Pakistan Automobile Industry

[ghazi52]

In response to the increasing trade with regional countries, National Logistics Corporation (NLC) has significantly enhanced its fleet with the procurement of 500 modern, high-powered trucks.

These advanced vehicles are designed for long-haul operations. Prime Movers brought in Pakistan by road through Khunjerab Pass by saving lot of time and expenditure as compared to sea transportation.

The introduction of these trucks is a strategic move to strengthen “Regional Connectivity” under the TIR (The International Road Transport). This initiative was taken by NLC with the launch of first commercial operation in 2021.

Since then, NLC has progressively extended land-based transportation operation to Central Asian Republics, China, Russia, Turkiye, Azerbaijan & beyond while plans are afoot to expand NLC’s outreach to other countries in Eastern Europe.

Powered by advanced technology and delivering 390 horsepower, these trucks are equipped to handle the demanding requirements of long-distance transportation and will be utilized for the transportation of goods via road to various destinations.

The addition of these state-of-the-art trucks to NLC's fleet will enhance its cross-border logistics capabilities, contributing to the growth of regional trade & connectivity

 

[Akbar26]

A prominent Chinese company has partnered with the government of Pakistan to invest $350 million in establishing 3,000 electric vehicle (EV) charging stationsacross the country. This initiative aims to promote the adoption of electric vehicles, reduce reliance on fuel imports, and support environmental sustainability efforts.

Key Aspects of the Initiative​

1. Investment Breakdown: The project will commence with an initial investment of $90 million, which will focus on developing the necessary infrastructure for the charging stations. An additional $250 million is earmarked for local manufacturing of EV components, set to begin by February 2025.
2. Strategic Locations: The charging stations will be strategically positioned along major routes, including the Peshawar-Karachi motorway, enhancing accessibility for EV users and addressing a significant barrier to electric vehicle adoption in Pakistan.
3. Environmental Goals: This initiative aligns with Pakistan's broader objectives to transition towards greener technologies and reduce carbon emissions. By facilitating the use of electric vehicles, the project aims to lower environmental pollution and conserve foreign exchange reserves that would otherwise be spent on fuel imports.
4. Support from Local Authorities: Malik Khuda Bakhsh, Convenor of the Energy Standing Committee at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), highlighted that this collaboration represents a pivotal step toward energy independence and sustainable transportation in Pakistan. The Sindh government has also pledged full support to ensure smooth operations for investors involved in this transformative project.
5. Long-Term Vision: The investment is part of a larger strategy to modernize Pakistan’s transportation sector. The Pakistan Institute of Development Economics (PIDE) has recommended ambitious targets for electric vehicle adoption, aiming for 10% of new four-wheelers and 25% of new two/three-wheelers to be electric by 2030.
6. Economic Implications: Beyond environmental benefits, this initiative is expected to stimulate economic growth by creating jobs in the EV manufacturing sector and attracting further investments into Pakistan's energy landscape.

Conclusion​

The partnership between Pakistan and the Chinese company marks a significant milestone in advancing the country's electric vehicle ecosystem. With substantial investments in infrastructure and local manufacturing, this initiative not only seeks to enhance mobility options but also contributes to broader environmental and economic goals. As Pakistan embarks on this journey toward sustainable transportation, it sets a precedent for future collaborations aimed at fostering innovation and reducing dependence on fossil fuels.

 

[ghazi52]

1951
Karachi..

 

[ghazi52]

The first batch of 146 out of 160 electric buses reached Islamabad to provide smooth travel experience to the people.

According to the Capital Development Authority (#CDA) officials, the last batch of 14 electric buses has departed for Islamabad from China.

CDA officials said that the construction of the zero-point charging station has started.

CDA officials said that earlier the construction of the charging station was delayed due to the cancellation of the tender twice and now CDA has issued a tender for the charging station at reduced rates. Officials said that first, chargers and parking areas will be prepared for the new routes

 

[polycraftspvt]

Do you think Pakistan's automobile industry is a bit of a mixed bag? On one hand, we’re seeing more brands entering the market, offering options from budget-friendly cars to luxury SUVs. But let’s not ignore the struggles—skyrocketing prices, limited local manufacturing, and heavy reliance on imports are real issues. Sometimes it feels like we're stuck in neutral! Still, credit where it’s due—initiatives like electric vehicles (EVs) and locally assembled cars are a step in the right direction. The potential is huge, but we need some solid policies and more investment. What’s your take? Is the industry moving forward or spinning its wheels?

 

[ghazi52]

Auto financing rises amid strong sales​

Aamir Shafaat Khan
April 17, 2025

The downward trajectory in the interest rate continued to lure buyers towards auto financing, which increased to Rs257.3 billion at the end of March from Rs249bn in February.

A 1,000bps cut in the interest rate to 12pc from an unprecedented 22pc in June 2024 and price stability are encouraging buyers towards new and used cars.

Auto financing started improving in August 2024, when it was Rs227.3bn. In June 2022, it was at its peak of Rs368bn.

Rising auto financing is also evident from the soaring sales of cars, pickups, vans and jeeps, which surged by 46pc in 9MFY25 to 100,868 units versus 69,081 in the same period last year.

Mashood Ali Khan, an auto expert and parts manufacturer, predicted strong auto sales until June due to stable prices, a steady exchange rate, improved consumer confidence, and the launch of new models and variants.

Afterwards, he added that budgetary proposals for FY26 would determine auto sales prospects.

He said the State Bank may maintain a cautious approach by keeping the policy rate unchanged in the upcoming Monetary Policy Committee meeting.

He said low financing costs play a crucial role in propelling auto sales, but vehicle demand can be boosted further if the interest rate comes down to a single digit in the second quarter of 2025. Mashood urged the State Bank to consider increasing the loan cap to Rs6 million from Rs3m to encourage more buyers towards auto financing.

However, car buying through leasing still looks difficult due to a reduction in payment tenure to five years for vehicles up to 1,000cc, three years for below 1,000cc, and a down payment requirement of 30pc.

Published in Dawn, April 17th, 2025