Pakistan’s Automobile industry contributes (2.8%) to its GDP and 30 billion rupees to the national exchequer in terms of taxes and duties.
Pakistan is home to the world’s sixth largest population with a growing middle class. There are approximately 17 million middle class households and 102 million middle class individuals as of 2018.
Pakistan’s automobile industry is fastest growing in Asia. The production and sales have both grown by 171% and 172.5% respectively between (2014 and 2018), all of which has been fueled by the Automotive Development Policy introduced in 2016.
On the 18th of March 2016, Economic Coordination Committee (ECC) passed the “Automotive Development” Policy 2016-21”, which offers tax incentives to new automakers to establish manufacturing plants. In response various car manufacturers have expressed their interest in entering the market including, but not exclusive to, Renault, Nissan, Kia, SsangYong, Volkswagen and Hyundai.