Pakistan’s Vehicle Production Increased 2.1-fold to 242,000 Units in 2021

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Pakistan vehicle production production increase vehicle sales Covid-19 coronavirus pandemic 2021 economic recovery AIDEP (Automotive Industry Development and Export Policy) policy domestic production production volume of automobiles in Pakistan by type production volume of the top three automakers in Pakistan passenger vehicle commercial vehicle ED (engine displacement) ED below 1,000cc ED 1,000-1,300cc ED above 1,300cc LCV SUV pickup truck truck bus PAMA (Pakistan Automotive Manufacturers Association) technology introduction production of vehicles and parts tax exemptions on parts tax exemptions on equipment and facilities 2026 manufacturing goal motorcycles and three-wheelers export target incentives for capital investment equipment used for development and production tax deductions and benefits exemption from Customs Duty exemption from Additional Customs Duty exemption from Federal Excise Duty tariff reduction / exemption for charging equipment BAIC Hino Honda Hyundai Isuzu JAC Master Suzuki Toyota UD Trucks Alto BJ40L Bolan BR-V City Civic Corolla Cultus D-Max D20 Elantra Fortuner Hilux Mehran Porter Ravi Sonata Swift Tucson WagonR X25 Yaris breakdown of production results

Pakistan's vehicle production increased 2.1 times year-on-year to 242,000 units in 2021. New vehicle sales expanded due to a significant tax cut on car purchases, which came into effect in July 2021. In addition to domestic demand, production also surged in response to the increase in exports associated with the global economic recovery from Covid-19.

In December 2021, the Pakistani government announced the Automotive Industry Development and Export Policy (AIDEP) 2021-2026. The policy supports the domestic production of vehicles and parts, and the introduction of relevant technology.