Pakistan Automobile Industry

[ghazi52]

Near Bolan Pass, Balochistan , 1950's....

 

[ghazi52]

1964, Vauxhall..

 

[ghazi52]

1980's

 

[ghazi52]

1953, Tribal Area....

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Mahatma Gandhi Arrival Utmanzai, Charsadda Visit To North-West Frontier Province, October 9, 1938.

 

[ghazi52]

Karachi Saddar...

 

[ghazi52]

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Data released by Pakistan Automotive Manufacturers Association showed that car sales in the country fell by 50% year-on-year in August, the lowest level since June 2020. In stark contrast, data released just a month ago said car sales in Pakistan surged by 54% in the 2021-22 fiscal year. Pakistan's auto industry appears to have hit an "invisible door" after a year of soaring growth. Can Pakistan find the key to this invisible door?

The 17th Pakistan Auto Show in Lahore

Fed to blame for rising car prices in Pakistan

Mr. Farooq was looking for a "suitable" car at the 17th Pakistan Auto Show in Lahore, for him, the definition of "suitable" is "affordable", but it was not easy.

"Car prices are higher than usual this year," it wasn't just Mr. Farooq who complained. Hyundai Elantra and Sonata are going up in price. There are big price hikes in almost all major car brands in Pakistan, including Japanese and Korean car brands.

Consumers are complaining, and automakers have their own bugbears. "Production reduction" has become a common phenomenon across Pakistan’s auto industry. MG Pakistan General Manager Asif Ahmad told the reporter that all car factories had cut their production by 50%. Suzuki and Toyota, which have a combined market share of more than 80% in Pakistan, were forced to halt production in August as the State Bank of Pakistan (SBP) imposed restrictions on Completely Knocked Down (CKD) imports, affecting the country’s inventory levels.

According to Changan Pakistan's analysis of auto sales trends, Pakistan's auto industry will face a grim situation in FY23, with industry sales plummeting to nearly 240,000 units, a decrease of one-third. It cited restrictions on letters of credit approvals as the main reason for the loss of production in the past two months.

CBU vehicle imported by Pakistan

Is the import ban the biggest factor driving up car prices in Pakistan? Asim Ayaz, General Manager of Engineering Development Board, told us that the main purpose of the SBP ban was to control Pakistan's trade deficit. The impact is temporary and mainly on higher-priced Complete Built Unit (CBU), which will be improved in 2 to 3 months.

The battle between CBU and CKD has a long history in Pakistan. The Pakistani government has adopted a completely different policy on the import of complete vehicles and auto parts. For CBU, Pakistan’s Finance Minister Miftah Ismail once said that the government would impose duties and taxes of up to 600%.

Tariff increase on CBU has little impact on ordinary consumers with its luxury pricing. While CKD vehicles are accidentally injured by this tariff adjustment. As the trade deficit improves parts import restrictions will be gradually lifted, industry insiders are optimistic about CKD’s future. So what is the shadow hanging over Pakistan's car industry?

During the interview, almost all auto practitioners said that the interest rate hike policy implemented by the Federal Reserve was behind the rise in auto parts prices this year.

At a recent meeting of the Automotive Industry Monitoring Board in Pakistan, participants said recent car price hike was due to an increase in the dollar exchange rate, freight and raw materials including operating costs. "In addition to currency depreciation, freight has increased by 200%, which will eventually be reflected in car prices," those participants said.

With tires, gearboxes, engines and even freight charges paid in dollars, the heart of Pakistan's car industry is held thousands of miles away by the Federal Reserve. In a market dominated by the dollar, how do you escape the fate of being manipulated?

On its 75th Independence Day, Pakistan unveiled its first electric car prototype on August 14. This car, dubbed NUR-E 75, is the first electric car designed, developed and manufactured in Pakistan. As a "gift to Pakistan" on its diamond jubilee, its unveiling highlights Pakistan's ambitions in the field of electric vehicles.

Electric car is not a new topic in Pakistan. In 2019, the federal cabinet of Pakistan has approved the national Electric Vehicles Policy 2020-2025 to put check to the effects of climate change and offer affordable transport. In the first phase, the government will focus on converting 30% of the total number of vehicles, especially cars and rickshaws, into EVs. The target is set for the next four years to convert 100,000 cars and 500,000 two- and three-wheeler vehicles to EVs.


Many cities in Pakistan have short and fixed public transport lines and centralized operation and maintenance, which facilitates the deployment of new energy transport infrastructure and makes it a pioneer of new energy vehicles. Under the influence of above policy, cities including Peshawar and Karachi have cooperated with Chinese enterprises such as BYD and King Long to take the lead in launching new energy bus routes

which comes first, charging infrastructure or electric vehicle promotion? It's a chicken-or-egg problem. Shahzada Saleem, Vice Chairman of All Pakistan Car Dealers Association, believes that the promotion of electric vehicles is nonsense when there is no large-scale establishment of charging piles in Pakistan. "On the highway, you have to charge every 150 or 200 kilometers, and the reality is there aren't so many facilities."

He also believes that electric cars are doomed to fail due to power shortages in Pakistan. "Electricity is getting more and more expensive in Pakistan and electric cars are only available where electricity is cheap. In Pakistan, electricity is cut off for 3-4 hours a day. In this circumstance, this all is rubbish and drama. Electric cars have no future in Pakistan."

Studies have shown that it is necessary to establish a network of charging piles to ensure the development of electric vehicles. Charging stations need to be spread along highways and urban roads at first, and then residential communities and office buildings, which requires a lot of resources for renovation.

Nearly 7 million electric vehicles were sold worldwide in 2021, with China accounting for half of them. In China, the world's most competitive country for electric cars, electric cars are only about 20% more expensive than comparable gasoline cars, compared with about 50% much higher in Europe and the United States.

Asif said that Pakistan is going through a consumption upgrade from over 2 million electric motorcycles to four-wheelers. Ordinary people can afford it. Some Chinese companies are experts in making entry-level cars. I think in the future, these companies will come to Pakistan to drive this upgrade."

"In Pakistan, the price difference between a motorcycle and a car is around Rs. 1 million. If some affordable cars were introduced to Pakistan, they could create a new market, which would be disruptive," said Asim. According to Suhail, cooperation between China and Pakistan on electric vehicles will break the high price stereotype of EVs and generate new consumers by creating a fleet of cost-effective electric vehicles that are suitable for Pakistan's road conditions.

Instead of competing with Japanese and German cars in the high-end electric car market, making cars affordable to the general people seems to be the most realistic option for Pakistan's electric car industry. In the past, imported cars dominated the Pakistani car market, but now, domestically produced or assembled cars are becoming more and more popular.

Asif said that MG plans to invest USD 100 million to produce hybrid vehicles, electric and plug-in hybrid vehicles. The full range of products will be available in Pakistan once the factory is ready. Pakistan needs to move from conventional engines to energy efficient and hybrid engines."

 

[War Historian]

@ghazi52 Pakistan's auto sector moving towards local manufacturing before 1972 nationalisation .

 

[War Historian]

Video also includes the auto associated industries. Video with mostly english text to explain to international viewers.

 

[ghazi52]

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1969: A Karachi Picnic spot, Hill Park..... When people of Karachi enjoyed life without fear.

Popular cars seen in the snap are Hillman, Volkswagen, Fiat, Mazda, Ford Prefect, Datsun Bluebird, Toyota Corona, Morris and Oldsmobile.

 

[Path-Finder]

1964, Vauxhall..


View attachment 886637

NO WAY!!! VAUXHALL WAS SOLD IN PAKISTAN?

THAT IS NEWj FOR ME.

 

[chinasun]

.,.
Data released by Pakistan Automotive Manufacturers Association showed that car sales in the country fell by 50% year-on-year in August, the lowest level since June 2020. In stark contrast, data released just a month ago said car sales in Pakistan surged by 54% in the 2021-22 fiscal year. Pakistan's auto industry appears to have hit an "invisible door" after a year of soaring growth. Can Pakistan find the key to this invisible door?

The 17th Pakistan Auto Show in Lahore

Fed to blame for rising car prices in Pakistan

Mr. Farooq was looking for a "suitable" car at the 17th Pakistan Auto Show in Lahore, for him, the definition of "suitable" is "affordable", but it was not easy.

"Car prices are higher than usual this year," it wasn't just Mr. Farooq who complained. Hyundai Elantra and Sonata are going up in price. There are big price hikes in almost all major car brands in Pakistan, including Japanese and Korean car brands.

Consumers are complaining, and automakers have their own bugbears. "Production reduction" has become a common phenomenon across Pakistan’s auto industry. MG Pakistan General Manager Asif Ahmad told the reporter that all car factories had cut their production by 50%. Suzuki and Toyota, which have a combined market share of more than 80% in Pakistan, were forced to halt production in August as the State Bank of Pakistan (SBP) imposed restrictions on Completely Knocked Down (CKD) imports, affecting the country’s inventory levels.

According to Changan Pakistan's analysis of auto sales trends, Pakistan's auto industry will face a grim situation in FY23, with industry sales plummeting to nearly 240,000 units, a decrease of one-third. It cited restrictions on letters of credit approvals as the main reason for the loss of production in the past two months.

CBU vehicle imported by Pakistan

Is the import ban the biggest factor driving up car prices in Pakistan? Asim Ayaz, General Manager of Engineering Development Board, told us that the main purpose of the SBP ban was to control Pakistan's trade deficit. The impact is temporary and mainly on higher-priced Complete Built Unit (CBU), which will be improved in 2 to 3 months.

The battle between CBU and CKD has a long history in Pakistan. The Pakistani government has adopted a completely different policy on the import of complete vehicles and auto parts. For CBU, Pakistan’s Finance Minister Miftah Ismail once said that the government would impose duties and taxes of up to 600%.

Tariff increase on CBU has little impact on ordinary consumers with its luxury pricing. While CKD vehicles are accidentally injured by this tariff adjustment. As the trade deficit improves parts import restrictions will be gradually lifted, industry insiders are optimistic about CKD’s future. So what is the shadow hanging over Pakistan's car industry?

During the interview, almost all auto practitioners said that the interest rate hike policy implemented by the Federal Reserve was behind the rise in auto parts prices this year.

At a recent meeting of the Automotive Industry Monitoring Board in Pakistan, participants said recent car price hike was due to an increase in the dollar exchange rate, freight and raw materials including operating costs. "In addition to currency depreciation, freight has increased by 200%, which will eventually be reflected in car prices," those participants said.

With tires, gearboxes, engines and even freight charges paid in dollars, the heart of Pakistan's car industry is held thousands of miles away by the Federal Reserve. In a market dominated by the dollar, how do you escape the fate of being manipulated?

On its 75th Independence Day, Pakistan unveiled its first electric car prototype on August 14. This car, dubbed NUR-E 75, is the first electric car designed, developed and manufactured in Pakistan. As a "gift to Pakistan" on its diamond jubilee, its unveiling highlights Pakistan's ambitions in the field of electric vehicles.

Electric car is not a new topic in Pakistan. In 2019, the federal cabinet of Pakistan has approved the national Electric Vehicles Policy 2020-2025 to put check to the effects of climate change and offer affordable transport. In the first phase, the government will focus on converting 30% of the total number of vehicles, especially cars and rickshaws, into EVs. The target is set for the next four years to convert 100,000 cars and 500,000 two- and three-wheeler vehicles to EVs.


Many cities in Pakistan have short and fixed public transport lines and centralized operation and maintenance, which facilitates the deployment of new energy transport infrastructure and makes it a pioneer of new energy vehicles. Under the influence of above policy, cities including Peshawar and Karachi have cooperated with Chinese enterprises such as BYD and King Long to take the lead in launching new energy bus routes

which comes first, charging infrastructure or electric vehicle promotion? It's a chicken-or-egg problem. Shahzada Saleem, Vice Chairman of All Pakistan Car Dealers Association, believes that the promotion of electric vehicles is nonsense when there is no large-scale establishment of charging piles in Pakistan. "On the highway, you have to charge every 150 or 200 kilometers, and the reality is there aren't so many facilities."

He also believes that electric cars are doomed to fail due to power shortages in Pakistan. "Electricity is getting more and more expensive in Pakistan and electric cars are only available where electricity is cheap. In Pakistan, electricity is cut off for 3-4 hours a day. In this circumstance, this all is rubbish and drama. Electric cars have no future in Pakistan."

Studies have shown that it is necessary to establish a network of charging piles to ensure the development of electric vehicles. Charging stations need to be spread along highways and urban roads at first, and then residential communities and office buildings, which requires a lot of resources for renovation.

Nearly 7 million electric vehicles were sold worldwide in 2021, with China accounting for half of them. In China, the world's most competitive country for electric cars, electric cars are only about 20% more expensive than comparable gasoline cars, compared with about 50% much higher in Europe and the United States.

Asif said that Pakistan is going through a consumption upgrade from over 2 million electric motorcycles to four-wheelers. Ordinary people can afford it. Some Chinese companies are experts in making entry-level cars. I think in the future, these companies will come to Pakistan to drive this upgrade."

"In Pakistan, the price difference between a motorcycle and a car is around Rs. 1 million. If some affordable cars were introduced to Pakistan, they could create a new market, which would be disruptive," said Asim. According to Suhail, cooperation between China and Pakistan on electric vehicles will break the high price stereotype of EVs and generate new consumers by creating a fleet of cost-effective electric vehicles that are suitable for Pakistan's road conditions.

Instead of competing with Japanese and German cars in the high-end electric car market, making cars affordable to the general people seems to be the most realistic option for Pakistan's electric car industry. In the past, imported cars dominated the Pakistani car market, but now, domestically produced or assembled cars are becoming more and more popular.

Asif said that MG plans to invest USD 100 million to produce hybrid vehicles, electric and plug-in hybrid vehicles. The full range of products will be available in Pakistan once the factory is ready. Pakistan needs to move from conventional engines to energy efficient and hybrid engines."

design an electric car that can quickly change the battery so that you don't have to charge it yourself. The battery in the car can also be used when there is a power outage in the home. The price is also cheaper.

 

[ghazi52]

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Dewan Farooque Motors says it has entered into agreement with KIA Corp to assemble its vehicles in Pakistan​

BR
November 7, 2022

Dewan Farooque Motors Limited (DFML) announced on Monday that it has entered into a Technology License Agreement (TLA) with Korea's KIA Corporation for the production and assembly of its vehicles in Pakistan.

The development was announced through a Pakistan Stock Exchange (PSX) notice.

DFML, currently in the defaulter segment, has already seen its stock price surge 150% in less than a month — from Rs4.5 to Rs11.41 at close of trading on Monday. The KSE-100 Index has hardly moved during this period.

Its financial results indicate it is running losses with a loss per share (LPS) of Rs1.33 for fiscal year ended June 2022, and another LPS of Rs0.76 in the first quarter (July-Sep) of FY23.

Currently, Lucky Motor Corporation Limited (LMC) is assembling KIA brand vehicles in Pakistan, and produces SUVs Sorento, Sportage, Stonic and hatchback Picanto. It is also the assembler of French automaker's SUV Peugeot 2008.

“There is no clarity on whether Dewan Farooque Motors would enter the passenger cars' segment or commercial vehicles,” Ismail Iqbal Securities' auto sector analyst Muqeet Naeem told Business Recorder after the announcement.

If the plan goes through, it will not be the first time DFML will assemble KIA-brand vehicles in Pakistan.

An earlier report suggested the company produced 95,429 automobiles – including Kia Classic, Kia Spectra, Sportage – between 2000 and 2011.

 

[ghazi52]

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Sindh Transport Minister Sharjeel Inam Memon on Monday announced a new bus service for the people of Karachi comprising of environment-friendly electric vehicles.

According to Express News, these buses are capable of covering a distance of 240 kilometres on a charge of 20 minutes. They will take passengers to their destinations between Sindh Archive Complex and Sea View during the trial run.

Talking to the media after reviewing a test run, Sharjeel said that the electric buses would hit the roads for commuters after 10 days of trial run, saying that the buses will be run on routes with less traffic as they were 12 metres long. The routes of the buses would soon be announced, he added.

He said that the buses would be charged via solar energy and the company responsible for the project would also set up the centres where these buses would be charged.

"Initially, 50 electric buses have arrived in Karachi. We are trying to set up a manufacturing plant for electric buses in Karachi, for which negotiations are underway with Chinese, European and local companies," he said.

He said that the government was negotiating with two to three big companies of the world to set up plants in Karachi which would also create employment opportunities for locals.

"These electric buses are being imported at twice the cost of hybrid diesel buses. Setting up a plant in Karachi will reduce the import duty and buses will be available at a lower cost," he added.

The minister said that the fare of electric buses will be less than the Red Buses, adding that the project would also be extended to other major cities of Sindh.

Project Director Sohaib Shafiq said that these buses had a sitting capacity of 32 people, 35 to 40 people can travel standing whereas it also has two reserved seats for special citizens.

He further said that a charging unit has been installed at the UP Mor bus depot in North Karachi.

 

[ghazi52]

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KIA says Lucky Motor holds exclusive rights to sell its cars, SUVs in Pakistan​

• Notice sent to PSX by Lucky Cement looks to clarify recent announcement by Dewan Farooque Motors Limited

BR Web Desk
November 10, 2022

KIA Corporation, the South Korean automaker, has clarified that Lucky Motor Corporation (LMC) is its exclusive licensee holder to manufacture, assemble, market, distribute, and sell KIA Cars and SUVs in Pakistan.

This was stated in a letter cited by Lucky Cement in its notice to the Pakistan Stock Exchange (PSX) on Thursday. LMC is a subsidiary of Lucky Cement, which is listed on the PSX.

“We write with reference to the recent notification by Dewan Farooque Motors Limited (DFML) to the Pakistan Stock Exchange regarding the signing of the Technology License Agreement (TLA) between them and KIA Corporation (“Kia”).

“We would like to clarify that LMC is the exclusive licensee of KIA to manufacture, assemble, market, distribute and sell Kia Cars and SUVs in Pakistan according to the General Agreement for Technical Collaboration and KD Supply signed between both the parties,” read the notice by Lucky Cement.

On Monday, DFML had announced that it has entered into a TLA with KIA for the production and assembly of its vehicles in Pakistan.

However, KIA clarified that the contract signed between its “Special Vehicle Division” and DFML is limited only to special purpose commercial vehicles (SPVs) including PU (Bongo), and DFML is not and shall not in future be allowed to produce any other KIA cars and SUVs in Pakistan as long as Korean automaker and LMC maintain the CKD business in Pakistan.

“We would like to categorically state that LMC is a trusted long-term exclusive CKD partner for KIA Cars and SUVs in Pakistan as per the contract signed between both parties.

“KIA recognises and appreciates the efforts LMC has put in to make the KIA brand a true success in Pakistan and we truly believe that with long-term strategic business relationship between Kia and LMC, the KIA brand is bound to be one of the most successful brands in Pakistan in the very near future,” it added.

Currently, LMC is assembling KIA brand vehicles in Pakistan, and produces SUVs Sorento, Sportage, Stonic and hatchback Picanto. It is also the assembler of French automaker’s SUV Peugeot 2008.

 

[ghazi52]

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Car sales shrink to half in July-October​

Register drop of 47pc to 39,700 units in 4MFY23 due to rising prices and curbs on auto financing and parts imports.