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Top upcoming car manufacturers in Pakistan

The auto policy 2016-21 indeed seems to be revolutionary for the automobile industry and it seems that the monopoly of local Japanese automakers will soon end in Pakistan. Many new automakers are entering Pakistani market and ready to give tough competition to the existing ones namely; Toyota, Honda, and Suzuki.

Following are the new companies seems to do investment in Pakistan:


Renault Pakistan has acquired an industrial land in Faisalabad to set up the assembly plant to manufacture vehicles in the country. The expected five cars that Renault will launch in Pakistan are Duster, Captur, Lodgy, Pulse and Kwid.


Hyundai Nishat Motors had an agreement with the government to enter the Pakistani market. The company is setting up a 66-acre assembly plant in Faisalabad. After the plant is set up, Hyundai plans to launch locally manufactured cars in Pakistan by March 2020.


The South Korean automotive giant Kia, collaborated with Pakistan’s Yunus Brothers Group to launch the vehicles in the country. The company has already launched Grand Carnival and K2700 pickup in Pakistan.


Chinese automaker Chongqing Changan Automobile Limited inked an agreement with Master Motors to manufacture vehicles in Pakistan. Changan will establish an assembly plant in Karachi. In the initial stage, passenger vehicles will be introduced. The target market of Changan Automobiles will be middle and higher class. The Chinese competitors are expected to break the dominion of the three Japanese assemblers that have so far remained unsuccessful in localizing car production in the span of last three decades.


VW project at its full potential is expected to produce up to five hundred million euros yearly in exports and two hundred million euros in duties and taxes for Pakistan. These figures indicate that the world’s largest automotive group is keen in exporting vehicles to the regional nations from Pakistan.

In the initial phase, VW would be manufacturing 28,000 units of Amarok and T-6 light commercial vehicles (LCVs). This project is expected to generate 5,400 jobs including 1,400 direct jobs. Volkswagen has the target of having at least 40 dealerships in Pakistan. The car maker has got the aim of making use of the same plant that Audi plans to build for assembling its own automobiles in Karachi.



The Greenfield status has been granted complying with the auto policy 2016-21. Dollar 50 million will be invested in the auto sector of Pakistan in collaboration with the Chinese company KA Hanteng Motors. KA Hanteng will manufacture passenger vehicles and SUVs in Pakistan after it has built its assembly plant. The assembly plant will have the capacity to manufacture 15,000 vehicles annually in Pakistan.


Chinese FAW group already has a joint venture with Al-Hajj group in Pakistan and they are producing Al-Hajj FAW motors cars in Pakistan. The automaker is focused on assembling FAW cars locally in Pakistan and they would push the car production to 15,000 units per annum by 2020. Al-Hajj FAW V2 Car is gaining momentum in Pakistan gradually and the company has received a positive feedback from the market. The group already has strong JVs with global brands including Toyota, Volkswagen, and General Motors in China.


Another Chinese auto manufacturer JAC Motor is planning to launch electric vehicles in the Pakistani market. They are looking forward to introducing new vehicles particularly focusing on electric vehicles in Pakistan as part of their long-term development program.


SsangYong Motor Company (SYMC) is entering Pakistani market with the plans to launch sports utility vehicles (SUVs) in Pakistan by early 2019. The delegation of SsangYong Motor Company has visited Pakistan and will roll out vehicles in collaboration with Dewan Farooque Motors Limited (DFML) located in Sindh.


United Motors, the second largest bike manufacturer in the country has launched its first car in Pakistan. United Bravo, will give direct competition to Suzuki Mehran, with its affordable price.


LIFAN and Beijing Automobile Works (BAW) are two Chinese automakers that are entering the Pakistan market. They will receive approval for entry into the country and give a tough competition to the existing automakers in the country. Further, more than 14 Memorandum of Understandings (MoUs) has been signed between Rahmat Group and various Chinese companies for the launch of electric vehicles in Pakistan. 25 acres of land was acquired by Rahmat Group for the construction of electric complex at Nooriabad.

The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan

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