Automobile Industry of Pakistan records high growth - The Asian Mirror: Latest News from Pakistan

Automobile Industry of Pakistan records high growth. Due to the gradual opening of economic activities after the Covid-19 pandemic and the emergency measures related to the vaccination campaign, Pakistan has witnessed a significant increase in the production and sales of passenger cars during the 2021/22 financial year. According to Pakistan Automotive Manufacturers Association (PAMA) statistics, Pakistan produced 226,433 passenger cars with a sales volume of 234,180 units in 2021-22, an increase of around 49% and 55% from 151 794 and 151,182 units in 2020-21, respectively. Industry insiders believe the future for Pakistan's automotive industry is bright as more and more international players step in, bringing with them cutting-edge equipment and technology. However, due to economic conditions such as inflation and power shortages, import restrictions, and natural disasters, production and sales growth would slow or even decline in the current fiscal year. As Automobile Industry of Pakistan records high growth, one of the most important factors for the continuous and high growth of local automobile production is the perfect supply of spare parts. According to the Pakistan Economic Survey 2021-22, Large Scale Manufacturing (LSM) recorded a growth of 10.4% in July-March FY22 compared to a growth of 4.24% in FY22. the corresponding period of last year. The automotive industry remained one of LSM's best-performing sectors. There are several reasons for the increase in car production and sales. Mobile World Editor-in-Chief Sohail Nasir said in a recent interview that the entry of Chinese automakers has greatly contributed to the pioneering production of Pakistan's auto industry. He pointed to the strong performance of Chinese auto brands such as Changan, Chery, MG, Changcheng, and DFSK, which carry on Chinese heritage and secure their market share. Engineer Asim Ayaz, Director General (Policy/Administration/Coordination) of the Engineering Development Board (EDB), pointed out that the Government of Pakistan has announced the Automotive Industry Development and Export Plan (AIDEP) 2021-26 to financially increase support for local vehicle manufacturing. "More and more companies that need to go overseas are recognizing Pakistan's unique location and its labor advantages," Ayaz added. China, as Pakistan's all-weather strategic partner, borders our country and has stable policies in place to ensure there is no supply chain disruption. The growing presence of Chinese companies has played a crucial role in boosting Pakistan's automotive market. On August 14, the first locally produced electric car was launched in Karachi through the combined efforts of the Dice Foundation, universities, and the private sector. Pakistan's first ultra-fast DC charging station for electric vehicles was inaugurated in Karachi two months ago. The president of the Dadi Foundation, Dr. Khurshid Qureshi, said the electric vehicle revolution is making its way into the global auto industry and Pakistan has also taken the first step in this direction. The recent rise in gasoline prices has led to a decline in demand for gasoline vehicles. In the long run, using new energy sources is the most effective way to tackle climate change. Pakistan is a country severely affected by climate change and the promotion of new energy vehicles is of greater importance to this country. China has a key advantage in the development of electric vehicles and its companies have invested in Pakistan.