The automotive development in Pakistan can be divided in to four periods.
1. Nascent Period (1949-1971)
National motor limited: The first automaker company was established with equity participation of General Motor Corporation. Its assembly unit was built in Lahore as Semi kock down (SKD) production for Bedford trucks and passenger cars. In 1960 Rover and Massey Ferguson Tractors launched Complete Knock Down (CKD) for Jeeps and Tractors respectively. Automotive parts industry was also established but lacking latest technology and operated as small family oriented enterprises. Most of the automotive parts were imported. According to estimation only 20% parts of total production were indigenous built. British Ford and Vauxhall were produced as passenger cars.
2. Nationalization Period (1972-1982)
During Zulfiqar Ali Bhutto regime the nationalization of all industries took places in 1972 . all automotive industries integrated under Pakistan Automotive Corporation (PACO). Pickup trucks of Suzuki and Toyota (Hi-Ace), Mazda Trucks and Ford vans. Two Wheeler industry also started under PACO.
3. Private partnership (1983-1990)
In 1980 PACO started joint project with private companies to start automobile production in exchange for the establishment of the 75% Local content in five years. The first project was initiated in 1982 with collaboration of Pakistan Automotive Corporation Suzuki motors. Suzuki equity was 12.1% in 1983. This venture manufacturer passengers car, Pick ups, Vans and Jeeps producing around 45,000 units annually. A new plant was built in Bin Qasim. In 1990 installed with modern automobile production as Suzuki all types of Vehciles were made in integrated production process from steel plates to final assembly.
Many other projects started production like HONDA, Toyota and iahatsu started local assembly of passenger Cars. Hino started manufacturing of buses and trucks.
The government policy of 75 local content contributed remarkably for local auto parts which started getting help from Auto Makers inorder to ensyred quality .
4. Post privatization (1991 – present)
In 1991 a new era of automobile industry emerage as PACO was privatized . Following companies emerged.
1. Pak Suzuki Motor Company Limited:
The majority of Pak Suzuki shares were acquired by Suzuki in 1992. It built a new assembly unit having integrated production line capable of producing Handling press work, Wielding coating and assembly.
2) Indus Motor Company Limited
Toyota motor corporation was joint ventures between Indus Motors , Toyota Tsusho Corporation and Habib group with equity ratio of 12.5, 12.5 and 40% respectively. A new plant was constructed in Bin Qasim which started the production of Corolla as well as Hi-lux and Cuore.
3) Honda Atlas Cars Pakistan Limited
1992, Honda Atlas Cars Pakistan Limited was established with joint ventures between Honda Motor Company Limited and Atlas Group. The commercial operation was started in 1994. With main production of City and Civic Models .
Another ventures for the production of two wheeler industry was establishement of Honda Atlas Corporation with equity contribution of 49% of Honda and 51 Atlas. This assembly line was built in Karachi and Lahore for the production of 70cc, 100cc and 125 cc .
4) Other remaining Industries:
Other leading automakers in Pakistan are Ghandhara Nissan Limited (GNL) and Dewan Farooq Limited.