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Industry Structure
The automobile industry in Pakistan focuses on the assembly of cars, motorcycles, buses, and trucks to meet domestic transportation needs. Local assembly plants are predominantly based in Karachi and Lahore, which serve as industrial hubs for automotive production.
Local Manufacturing and Employment
The sector supports local manufacturing and creates employment opportunities not only in assembly plants but also through a network of suppliers and service providers. Parts manufacturing, a growing industry in Pakistan, allows local producers to substitute imports, reducing costs and fostering technical skill development.
Technological Advancements and EV Adoption
The automobile industry in Pakistan is witnessing a shift toward electric vehicles (EVs), with government policies promoting green technology. Companies are exploring EV assembly as a sustainable solution, which aligns with global trends in reducing carbon emissions.
Challenges and Future Growth
Challenges include high import duties on parts, rising production costs, and limited consumer purchasing power. However, with strategic investment in EV infrastructure and improved regulatory policies, this industry is set to modernize and expand.
Kreston Hyder Bhimji & Co. is a well-respected chartered accountant firm based in Pakistan. With over 53 years of experience in the industry, the firm has a deep understanding of the local business landscape and regulatory environment.
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