Pakistan’s Flourishing Car Market gain Global Attention
The surge in passenger Car sales has crossed 200,000 units for the first time in history of Pakistan. Car makers are planning to increase the production of cars to meet the demand.
Due to the incentives taken by government, new players in the field are seeking to flock with the market of 200 million.
New investors in the market Renault of France and Kia motors have alarmed the dominance of Japanese makers.
According to record, 218,000 cars have been sold in the year 2016. In year 2016 the leading company was Pak Suzuki Motors which got order of 50,000 cars from Punjab. The cars were used as taxis as per job creation program.
Indus motors also did well in year 2016 as its sales increase by 11%. Chairman of Indus motors, Ali S. Habib said that too much production is good but safety is the first priority of company.
Honda Atlas Cars, the joint venture of Honda Motors also seems to have increase in sale of its cars. Further, the CEO of Atlas Honda told that we are expecting around 50,000 sales in year 2017.
Managing Director of Pak Suzuki Hirofumi Nagao told “Pak Suzuki have sold 128,000 cars in Pakistan in the year 2016. Other than taxis 20% models were sold.”
In Last year March, government of Pakistan has unveiled the policy of Automobile Development 2016-2021 which provides many incentives to the automakers in entering the market.
Kia Motors and Lucky Cement have made partnership and have planned to invest $115 Million. Company has planned to produce 25,000 cars by the end of year 2018.
Pak Suzuki’s managing director Nagao has requested to the government for a two year tax break as company has invested for new plant.