Cars and Automobiles in Pakistan

By Hayi Mansoor

Some of the cars in Pakistan are imported into the country. Some car factories in Pakistan serve as the site for assemblage of unique vehicles, vehicles designed for sale on the Pakistan automobile market. During the years of 2005 and 2006, important transactions promised to impact the sale within Pakistan of both imported and assembled cars.

In December of 2005, Korean makers of the Tata Daewoo Commercial Vehicle (TDCV) signed a technical assistance agreement with Afzal Motors of Pakistan. The Koreans agreed to assemble TDCVs inside of Pakistan. The first assembled TDCVs rolled out of a factory in Karachi during the final quarter of 2006.

As residents of Karachi admired those large vehicles, a second significant transaction was about to take place. On December 20, 2006, the Pakistan government announced creation of an Auto Industry Development Plan. The government of Pakistan had agreed to that Plan in an effort to spur car production within the borders of Pakistan.

Creators of the Auto Industry Development Plan had two goals in mind. First, they wanted to increase the level of competition among the small car makers in Pakistan. In order to raise the level of that competition, the Development Plan called for limits on the number of used cars imported into Pakistan.

Second, the creators of the Auto Industry Development Plan wanted to spur progress in the areas of design and innovation. The Plan creators hoped that increased competition among the car assembly plants would motivate car assemblers to create marketable new car designs, and to conceive of well-accepted car innovations.

The Auto Industry Development Plan promised to help the various car assemblers operating in Pakistan. Toyota, Suzuki, Honda, Hyundai and Kia all have assembly plants in Pakistan. The existence of those plants now provides Pakistanis in the automobile industry with a sure way to display their design skills and their innovative thinking.

Dewan Farooque Motors has a growing presence in Pakistan. Like Toyota, Honda and Suzuki, it assembles vehicles inside of Pakistan. The people of Pakistan seem to favor the passenger cars. There are at least 10 different models offered by Dewan Motors. The people of Pakistan have shows less interest in Dewan's recreational and commercial vehicles.

While the government of Pakistan has reached out to the car assemblers in that country, the government has not forsaken the companies that import new vehicles. Chevrolet is one such company. A Pakistani looking for a new Chevrolet must visit a facility operated by Nexus Motors.

At such a facility, a prospective car buyer can find cars with two original names and one rather common name: Aved, Optra and Joy. Those vehicles, all of which have been imported from the U.S., compete with the cars assembled in Pakistan's car factories.

Another important player in Pakistan's car market is Pakistan Motors. Pakistan Motors purchases many used imports. It then uses its online presence to sell those used imports to Pakistan residents, residents who have discovered just how to go about shopping for a car on the Internet.

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