The Pakistani automotive industry has been a significant contributor to the country’s economy, generating a substantial amount of revenue through taxes. According to a recent briefing before the Senate Standing Committee on Industry and Production, car sales alone generated a staggering Rs. 300 billion in taxes last year.
Rise of Electric Vehicles
The officials briefed that 13 car brands are operating in the country producing even less than a million units domestically. Whereas the industry has the potential to expand this graph up to five million.
The electric vehicle sector is also gaining momentum, with 45 licenses issued for the production of motorcycles and rickshaws. This shift towards electric vehicles aligns with global trends and offers opportunities for Pakistan to position itself as a player in this emerging market.
Challenges & Opportunities
However, concerns have been raised about the quality of cars manufactured in Pakistan, with Senator Saleem Mandviwalla suggesting that they do not meet export standards.
While tractors and rickshaws have been exported successfully, the 4% export target for vehicles was not achieved this year due to various factors, including the failure to secure export orders, a stay order from the court, and the lack of government export incentives.
To further boost the growth of the automotive industry and enhance its competitiveness, it is essential to address these challenges. Improving the quality of domestically produced cars, providing adequate export incentives, and creating a conducive environment for investment are crucial steps towards realizing the full potential of this sector.
Additionally, the government could consider offering incentives to encourage the adoption of electric vehicles and promote research and development in this area.
By addressing these issues and capitalizing on the industry’s potential, Pakistan can position itself as a major player in the global automotive market, contributing to economic growth, job creation, and technological advancement.
