Pakistan Automobile Industries

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Think about a futuristic electric car – Tesla’s EV may very well be the first one to pop into one’s head. But technically speaking, it shouldn’t anymore. Chinese giant BYD overtook Tesla in 2023 to become the world’s top EV producer.

It is now the world’s largest seller of battery electric vehicles (BEVs) and plug-in hybrids, selling about 3.02 million vehicles in 2023 – an increase of 61.9%, reported Reuters, earlier.

The good news is that BYD has already shown interest in Pakistan. BYD officials have met Pakistan’s Board of Investment (BOI) officials and apparently they have given the impression that they might set up in the country.

However, that’s something that might not be happening anytime soon.

This has quietly led to a highly celebrated EV company like Tesla to be elbowed out of the market by BYD, which sold 42,000 more cars than Tesla in 2023, according to an article in Business Insider.

 

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According to the Pakistan Bureau of Statistics (PBS) Pakistan’s Large Scale Manufacturing Industries (LSMI) production was decreased by 3.56 per cent MoM in September 2023 to stand at 112.85 as compared to 117.02 in August 2023.

Conversely, on a yearly basis, the LSMI output witnessed an increase of 1.01 per cent YoY against 111.73 recorded in September 2022. Cumulatively in 3MFY24, LSMI has shown a growth of 0.68 per cent when compared with the corresponding period of previous year.

Pakistan: Import Payments By Transport Group (Thousand US Dollar)
Details	Jul-Jun	Dec FY23	Nov (R) FY24	Dec (P) FY24	Jul-Dec
FY22	FY23	FY23	FY24 P
Transport Group	3,628,596	1,266,210	99,811	109,313	144,303	747,440	772,025
1. Road Motor Vehicles	3,009,873	1,073,575	68,159	106,397	117,357	661,743	672,233
1.1 Completely Built Unit (CBU)	476,676	79,122	8,724	8,814	11,606	53,365	42,425
a. Buses,Trucks & Oth. Heavy Vehicle	190,795	61,504	8,510	6,004	7,239	37,065	29,005
b. Motor Cars (CBU)	282,639	15,623	4	2,798	4,049	14,534	12,837
1.2 Completely Knock Down (CKD)	2,254,012	863,992	48,496	83,996	98,478	508,113	567,105
a. Buses,Trucks & Oth. Heavy Vehicle	429,429	249,047	20,403	9,287	15,325	135,917	99,695
b. Motor Cars (CKD)	1,747,959	577,396	23,539	69,679	79,384	346,653	440,219

According to the government officials in Pakistan, manufacturing with a share of 12.4 per cent in GDP has a dominant presence within the industrial sector.

During FY2022, LSM with 9.2 per cent of GDP dominates the overall manufacturing sector, accounting for 74.3 per cent of the sectoral share followed by Small Scale Manufacturing, which accounts for 2.0 per cent of total GDP and 15.9 per cent sectoral share.

The government officials recorded that except sluggishness in some areas in case of buses and two/three wheelers there has been robust growth in all-automobile sectors during July-March FY2022.

 

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Blue and white Ford Consul Classic.

This 4 door Consul Classic has covered an epic 280k miles since being built in 1962.

Victoria Road (Now Abdullah Haroon Road) #Karachi in 1970s :

 

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Indus Motor Company to invest Rs3bn ‘for additional localization’ of parts, components​

BR Web Desk
February 22, 2024

In a key development for the country’s auto sector, Indus Motor Company Limited (INDU) announced that its board has approved an investment of around Rs3 billion (~$10.76 million) for enhancing the localization of production.

The company, the maker of Toyota-brand vehicles in the country, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We are pleased to announce that the Board of Directors, in its meeting held on 21 February 2024, has approved an investment of around Rs3 billion to be made by the company for additional localization of parts and components of various existing vehicles,” read the notice.

Indus Motor shared that the latest investment is part of the company’s overall plan to continuously increase localization of parts and components of vehicles manufactured locally.

This will allow the company “to reduce outflow of foreign exchange and promote the local auto industry”.

“The announced investment shall be made towards expenditure in plant and machinery, molds, dies, equipment and related expenses for localization of parts and components to be manufactured locally for various existing vehicles,” Indus Motor said.

The automaker shared the investment is planned to be completed by the third quarter of the calendar year 2025.

The automaker in the past has hinted at increasing its product localization.

Last year, the company launched its Hybrid Electric Vehicle (HEV) Corolla Cross, which as per the company was 50% localised in terms of its value.

 

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Millat Tractors Ltd celebrates 60 years of excellence​

Press Release
March 2, 2024

LAHORE: Millat Tractor Ltd, the leading manufacturer of agricultural tractors, farm machinery & power generators in Pakistan, celebrated its 60 years of excellence and success as the country’s largest tractor selling company since 1964.

At this auspicious occasion the Chairman Millat Group, Sikandar Mustafa Khan paid rich tributes to its founding father Rana Khuda Dad, its Board of Directors, past & present employees, management and workers who had the vision of accelerating MTL towards the path of localization and tapping global markets with its wide range of products.

The CEO MTL Raheel Asghar congratulated all its stakeholders, partners and employees for their invaluable contributions and prayed that MTL continues to strengthen and serve the economy of Pakistan.

On the occasion, the company released its “Millat Anthem Song” expressing its enthusiasm and association with the farmers, their struggle to provide and the dedication of its workforce.

 

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Experts hail Chinese EV giant BYD’s entry to Pakistan market​

Bilal Hussain
March 29, 2024

A man cleans a BYD e-SEED GT concept EV during the media day for the Shanghai auto show in Shanghai, China. Photo: Reuters

Chinese electric vehicle (EV) giant BYD revealed its plan to enter the Pakistan market and industry experts see it as a positive sign for the country.

BYD (Build Your Dreams) made the highest number of electric vehicles in 2023 in the world, elbowing out Tesla from the top spot.

Its decision to enter Pakistan’s passenger vehicle market is part of a collaboration with local partner Mega Conglomerate Pvt. Ltd. (Mega).

The announcement was made during the BYD Asia Pacific Dealer Conference event in Xi’an, China, with key figures such as Liu Xueliang, General Manager of BYD Asia Pacific Auto Sales Division; Zhang Jie, Vice General Manager of BYD Asia Pacific Auto Sales Division; and Aly Khan, Executive Director of Mega, present at the signing ceremony.

The move comes at a time when Pakistan is seeking to reduce its carbon footprint and embrace cleaner, more energy-efficient modes of transportation.

 

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Tractor production increase 68% in Jul-Feb​

By Staff Reporter | APP
Mar 30, 2024

ISLAMABAD, Mar 29 (APP): The production of farm tractors in the country witnessed an increase of 68.61 per cent to 31,915 units during the first eight months of the financial year 2023-24, against the production of 18,928 units during the same months last year 2022-23.

During July-February, the production of trucks witnessed a decreasing trend as it went down from 2,427 units as compared to 1,276, showing a decline of 47.42 per cent, according to the Pakistan Automobile Manufacturing Association (PAMA).

Production of pickups, Light Commercial Vehicles (LCVs) and Jeeps also dipped by 50.35 per cent to 12,052 units during the months under review from 24,278 units during the fiscal year 2022-23. The production of buses witnessed a decline of 50.55 per cent from 2,991 units to 1,479 units during the fiscal year 2024, the PAMA added. Meanwhile, the production of passenger cars also declined to 48,402 units against the production of 81,809 units during July-February, the data revealed. The manufacturing of motorcycles and three-wheelers in the country plunged to 741,333 units from 850,514, showing a decrease of 12.83 per cent, it added.

 

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BYD partners with MCPL for EV manufacturing in Pakistan​

By Tahir Ali | Gwadar Pro
Apr 5, 2024

ISLAMABAD- BYD, a prominent player in the electric vehicle (EV) manufacturing world, has formed a joint venture (JV) with Mega Conglomerate Private Limited (MCPL) to establish showrooms in the initial phase, followed by the commencement of electric vehicles (EV) manufacturing operations in Pakistan.

The Board of Investment (BOI) Pakistan announced the development on Thursday, terming it “exciting news”. As per BOI, the JV between BYD with MCPL, the principal shareholder of HUBCO, has been signed during the BYD Asia Pacific Dealer Conference event in Xi’an, China.

 

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New players eye Pakistan’s growing hybrid, electric vehicles market​

Dawn
Apr 14, 2024

As the auto market continues to grow in Pakistan, new players are setting their sights on introducing hybrid as well as electric vehicles (EVs) in the country, and one of the largest automakers has announced its entry into Pakistan.

The BYD Group of China has recently announced its entry into the passenger vehicle market in Pakistan in collaboration with Mega Conglomerate Pvt Ltd, the parent company of Hub Power and Haleeb Foods.

During a signing ceremony recently held in China, Aly Khan, executive director of Mega, highlighted plans to promote EV adoption in Pakistan.”

He stated that three BYD showrooms would be established in Karachi, Lahore, and Islamabad in 2024. The move is expected to accelerate the electrification of Pakistan’s automotive industry, which has largely been based on petroleum fuel.

Meanwhile, a senior official of the Ministry of Industries and Production said that BYD and Mega have not applied for the licence to establish an assembly plant in Pakistan. It is more likely that the company and the local partner would import the vehicles into Pakistan, as other EVs, including some European brands, are being sold in the country.

There are several models of EVs and hybrid electric cars in the country, but currently, only the Indus Motor Company is manufacturing a hybrid electric vehicle (HEV) — the Toyota Corolla Cross, while two new entrants are assembling hybrid vehicles.

Ali Asghar Jamali, chief executive officer of Indus Motor Company, said that the auto sector was transforming towards reducing dependency on fossil fuels, which was especially important in countries where petroleum fuel was imported.

However, Mr Jamali added that, considering Pakistan’s current energy landscape, there are challenges in introducing battery electric vehicles (BEVs), as there is heavy reliance on petroleum fuel, which hinders the immediate adoption of BEVs.

“The HEV technology presents a practical and efficient solution in the current scenario, as electricity and electric chargers are not available everywhere,” he added.

Possibly due to these infrastructure hurdles, mostly related to the lack of charging ports and continuous availability of electricity, the National Electric Vehicle policy introduced in November 2019 has failed to attract any single four-wheeler EV assembler in the country.


Responding to the query, Asim Ayaz of Engineering Development Board, an attached department of the Ministry of Industries and Production, said that 34 licences have been obtained by two and three-wheeler manufacturers.

He acknowledged that issues related to the launch of EV vehicles in the country, such as the lack of financing for customers as EVs are more expensive due to the higher cost of batteries, but added that the ministry is proposing to have an EV charging station at every gas station to enhance the availability of charging options.

Two local players, Haval of Sazgar Engineering Works Ltd, and Hyundai Nishat Motors, are already assembling hybrid vehicles, while the third local player is also set to enter the non-conventional vehicle market of Pakistan on a larger scale.

Since they have the grace period up to June 2026 under the Greenfield option, these companies were only assembling vehicles in the country.

Apart from cars, Sazgar is a key player in manufacturing electric auto rickshaws in the country, and in late 2022, Haval introduced Pakistan’s first locally assembled hybrid electric vehicle. Later in October 2023, Hyundai Nishat introduced its hybrid car.

On the other hand, MG Pakistan has decided to enter the market on a larger scale with all three categories of the new energy vehicle (NEV) class.

These include hybrid vehicles that have inbuilt charging, the other category is the plug-in charging where the vehicles operate on fossil fuel and have the option for plug-in charging too in case of fuel shortage, and the third category is the electric vehicle.

“We have plans to start assembling vehicles in all three NEV categories, and these will be launched in the fiscal year starting from July 2024,” said Syed Asif Ahmed, general manager marketing, MG.

 

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Pakistan car sales drop 3% MoM in March​

Pakistan car sales in March totaled 9,379 units, reflecting 3% decrease compared to the previous month and 1% decline compared to the same period last year, as reported by the Pakistan Automotive Manufacturers Association (PAMA).

Higher auto prices, record high interest rates, and a limited availability of auto financing, coupled with an overall decrease in purchasing power, all contributed to the lackluster performance in the segment, according to Usman Rauf, auto sector analyst at AKD securities.

The surge in imports of used cars following the removal of the regulatory duty last year also had a significant impact on local original equipment manufacturer sales, Usman said.

In March, Honda Atlas Cars (HCAR) experienced significant growth, with sales increasing by 44% month-on-month (MoM) and 162% year-on-year (YoY) to 2,188 units.

“This growth can be attributed to the low base effect, as the company had shut down its plant during the same period last year,” wrote Topline Research analyst Sunny Kumar in his report on Wednesday.

 

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- Dodge Cars introduced by Haroon Industries in 1956
- Ford Anglia Cars introduced by Ali Automobiles in 1958
- Lambretta Scooters introduced by Wazir Ali Engineering in 1962
- Massey Ferguson Tractors introduced by Rana Tractors in 1964 (now Millat Tractors)
- Batala Engineering Company (BECO, now PECO) on way to designing and manufacturing its own line of cars and vehicles in the late 1970s
...then Zulfiqar Ali Bhutto's Nationalization arrived.

 

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Dewan Motors to relaunch KIA Shehzore in June’24​

Revives production after 9 years, brings back commercial vehicle in collaboration with Korea

Salman Siddiqui
May 30, 2024

Family Business: Dewan Group’s automobile unit – Dewan Farooque Motors – was the brainchild of young Yousuf when he entered the family business two decades ago.

KARACHI: Dewan Farooque Motors Limited (DFML) announced on Wednesday the reopening of its vehicle production plant after a nine-year hiatus, marking the re-launch of the special purpose commercial vehicle KIA Shehzore in collaboration with Korea, in anticipation of an economic boom in Pakistan.

In a notification to the Pakistan Stock Exchange (PSX), Muhammad Hanif German, the Company Secretary of DFML, stated that Dewan Farooque Motors Limited has resumed the commercial production of the “Special Purpose KIA Commercial Vehicle” with its product name ‘Shehzore,’ and its rollout/launch ceremony is scheduled for June 4, 2024.

Speaking to The Express Tribune, the company secretary mentioned that they are introducing three variants of the commercial loading vehicle, including the KIA Shehzore standard, king size, and double cabin, with the double cabin commercial vehicle being introduced for the first time in Pakistan.

He recalled that the vehicle plant was shut down nine years ago in 2015, when they were manufacturing and assembling passenger cars under the brand name Hyundai Santro and commercial vehicle Shehzore. They have been working to relaunch the commercial vehicle for the past two years.

Two years ago, in November 2022, the company entered into a Technical License Agreement (TLA) with KIA Corporation, Republic of Korea, for the assembly and manufacturing of special purpose commercial vehicles. German stated that they have conducted extensive exercises before the official launch of the vehicle next week.

 

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Dewan Farooque Motors Limited (DFML) said that it has entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing EGML’s Honri-VE.

The production of the vehicle is expected to commence in August, DFML shared in its notice to the Pakistan Stock Exchange (PSX) on Thursday.

Electric vehicle: DFML enters into agreement with EGML to manufacture Honri-VE​

BR
May 30, 2024

https://defencepk.com/forums/javascript:void(0)

“By the grace of Almighty Allah, we hereby announce that DFML has entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing of EGML’s Honri-VE (200km and 300km range), thereby becoming the leading manufacturer of electric vehicles in Pakistan,” read the notice.

A toll manufacturing agreement is between two companies, under which one company owns a design or idea for a product and supplies materials to the other to manufacture the product or parts of it.

“The production thereof is expected to commence in the month of August 2024,” read the notice.

Incorporated in Pakistan as a public limited company in 1998, Dewan Farooque Motors Limited is engaged in assembling, progressive manufacturing, and sale of vehicles in Pakistan.