Automotive industry in Pakistan

Toyota Indus's Corolla is the most assembled car in Pakistan. In 2017, 52,874 models were made.

The automotive industry in Pakistan is one of fastest-growing industries in the country, growing by 171% between 2014 and 2018. It accounts for 7% of Pakistan's GDP and employed a workforce of over 6.8 million people as of 2024. Pakistan is the 15th largest producer of automobiles. Its contribution to the national exchequer is nearly US$5.4 billion. Pakistan's auto market is among the fastest growing in Asia. 384,000 cars were sold in 2023. In the 1990s and early 2000s, Pakistan had many Japanese cars. With the launch of the first Auto Policy in 2005, Pakistan launched its first indigenous car, Adam Revo. However, after the 2008 elections, the dollar started depreciating, and due to bad governance, many automakers began to halt production, with some exiting Pakistan. Currently, the auto market is dominated by Honda, Toyota, Hyundai, Kia and Suzuki. However, on 19 March 2016, Pakistan passed a second "Auto Policy 2016-21," which offers tax incentives to new automakers to establish manufacturing plants in the country. In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW, and Hyundai have expressed interest in entering the Pakistani market. MG JW Automobile Pakistan has signed a memorandum of understanding (MoU) with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, to bring electric vehicles to Pakistan. NLC signed an agreement with Mercedes-Benz to manufacture Mercedes Actros trucks in Pakistan. On 8 July 2021, Jolta Electric launched the production of electric motorcycles.

On 26 December 2021, the Government of Pakistan announced a five-year policy between 2021 and 2026 to raise the production capacity of automobiles in Pakistan. On 20 October 2020, during a meeting with 50 Chinese automotive brands, the Pakistani envoy to China said that Pakistan will increase its automobile production to 6-8 million units in the next five years. Pakistan is building special economic zones where Chinese companies will be able to set up their businesses. In that meeting, 10 Chinese and Nasal automotive companies prepared to invest in Pakistan.