Automotive industry in Pakistan

However, after the 2008 elections, the dollar started depreciating, and due to bad governance, many automakers began to halt production, with some exiting Pakistan.

However, on 19 March 2016, Pakistan passed a second "Auto Policy 2016-21," which offers tax incentives to new automakers to establish manufacturing plants in the country.

In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW, and Hyundai have expressed interest in entering the Pakistani market.

NLC signed an agreement with Mercedes-Benz to manufacture Mercedes Actros trucks in Pakistan.

On 20 October 2020, during a meeting with 50 Chinese automotive brands, the Pakistani envoy to China said that Pakistan will increase its automobile production to 6-8 million units in the next five years.

Pakistan is building special economic zones where Chinese companies will be able to set up their businesses.

The plant opened in conjunction with General Motors, which arranged facilities for the production of Vauxhall cars and Bedford trucks.

At the same time, the famous Vespa scooter and rickshaw were introduced by Raja Auto Cars.

In 1983, the Vendor Development & Technical Cell or VDTC was formed by Al-Ghazi Tractors, which introduced by Fiat.

Following deregulation, the decade witnessed a massive boom in auto production as nationalization was abandoned in favor of privatization.

From 2007 to 2009, the auto sector witnessed reduced sales amid high-interest rates and yen appreciation against the rupee.

Auto Policy 2016-21 was introduced in 2015 to help lure new automakers, historically dominated by Honda, Toyota, and Suzuki.

Sales data for the Suzuki Mehran is reported annually, covering the period from June 1999 to 2018.

Rising per capita income, changing demographic distribution, and an anticipated influx of 30 to 40 million young people in the economically-active workforce within the next decade will boost the industry.