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From Supply Chain Resilience to Manufacturing Excellence: The Next Chapter of Pakistan’s Automotive Industry

DEAR READERS !!!

In the July edition of Automark Magazine, we explored “Supply Chain Challenges and Opportunities in the Automotive Industry. Creating Resilience for the Future of Mobility.” The article emphasized how Pakistan’s automotive industry was able to overcome the challenges of unforeseen global disruptions through robust supplier relationships, better inventories, collaborations, and developing resilient supply chains that could withstand any uncertainties. As the industry begins to move out of the recovery stage, there is a different and equally relevant question that arises: what next after resilience?

Resilience in the supply chain is not the end goal, but rather the starting point to build manufacturing excellence. As supply chains become more resilient and reliable, the attention should turn to optimizing manufacturing efficiency, localizing the process faster, adopting intelligent manufacturing systems, and building world-class manufacturing skills. For the future of the automotive sector in Pakistan, it will depend not just on acquiring components and materials, but on producing quality output using world-class manufacturing standards.

In this month’s edition, we continue that journey by exploring how Pakistan’s automotive sector can transition from Supply Chain Resilience to Manufacturing Excellence, creating a sustainable pathway towards productivity, innovation, operational excellence, and regional competitiveness. The journey from supply chain resilience to manufacturing excellence represents the natural evolution of Pakistan’s automotive industry. As Supply Chains ensure business resilience, manufacturing excellence ensures competitiveness. The companies of the future would be those that have both resilience in sourcing as well as lean processes and continuous improvement mindsets.

There are numerous reasons why Pakistan has the capacity to become a notable manufacturing center in the region. However, this would be possible only if the efforts are exerted by all stakeholders of the manufacturing process: suppliers, manufactures, policymakers, as well as academia to create a system where value is created through quality, innovations, sustainability, and performance excellence. As we move further in this series in Automark Magazine, it is important to keep in mind that resilience was the key factor that allowed us to overcome the obstacles in the past; manufacturing excellence will ensure our future success. The next chapter in the development of Pakistan’s automobile sector is not just about creating more cars; it is about making them better, smarter, and with the ability to compete in the global environment. In recent years, the automobile industry in Pakistan has faced some of the toughest challenges in its history. Disruptions in the global supply chain, the increase in freight costs, foreign exchange issues, inflation, and irregular supply of raw materials pushed manufacturers to reassess the core principles of production process.

Now that supply chains are slowly stabilizing, the discussion needs to shift from recovery mode to something else. Resilience is not enough anymore. The next step for the Pakistani automotive sector is to develop resilience into world-class manufacturing companies with the capacity to compete through quality, productivity, innovation, and sustainability. Manufacturing goes beyond putting cars together. Manufacturing is about instilling confidence. Each and every car coming out of an assembly line comes as a result of thousands of decision-making processes, many engineering hours, rigorous quality assurance checks, and the hard work of people whose faces go unseen. Behind each and every product is a group of suppliers, engineers, technicians, planners, logisticians, and production teams that work with a common goal.

Pakistan has immense potential in the manufacturing sector. We have a young, competent and hungry workforce. Pakistani engineers have been consistently showing tremendous flexibility even though they work with limited resources. The local suppliers have become increasingly competent and started adopting high standards of quality along with modern manufacturing techniques. All this needs to be appreciated because it shows that competitiveness does not lie in the economic size of a country; rather it lies in the dedication of its people. Nevertheless, the competition has changed a lot since then. Automotive manufacturing cannot be judged merely on the basis of production volume any more. Now, it is being judged on the basis of efficiency of operations, reliability, speed, digitalization, environment-friendliness and continuous improvement. The ones that succeed are those who can produce excellent cars efficiently and adapt themselves to the ever-changing demands of customers. And this is the place where the concept of lean manufacturing is not merely a management approach but a culture. The idea of lean manufacturing goes beyond just removing wastes or reducing cost. At the end of the day, lean manufacturing is about respect for people. Small improvements implemented consistently often create greater long-term value than occasional large-scale transformations. When every employee feels responsible for quality, safety, productivity, and customer satisfaction, continuous improvement becomes part of the organization’s identity rather than a scheduled initiative.

Many of the Pakistani automotive companies have already embarked upon this path. Automated production planning, ERP integration, real-time inventory visibility, and formalized quality management practices have slowly but steadily taken the place of inefficient manual practices. Information has become as important an asset as equipment itself. Decision-making based on reliable information helps organizations minimize downtime, increase the accuracy of planning, improve traceability, and tackle production issues proactively. The shift from experience-based approach to data-driven manufacturing is undoubtedly one of the biggest potentials of the industry. Future manufacturing facilities will not be characterized only by automation or robotics. They will be characterized by intelligence. Smart manufacturing involves the connection of people, machinery, processes, and information into one single ecosystem, which makes decision-making quicker and allows to detect potential problems even before they arise. Technologies like IIoT, predictive maintenance, artificial intelligence, digital dashboards, and automated quality control are no longer futuristic concepts of developed countries. They are becoming practical tools that improve productivity, enhance reliability, and strengthen competitiveness.

But even technology alone will not revolutionize the sector. It all comes down to people. Any effective manufacturing process requires visionary leadership, innovative engineering, skilled technicians, and dedicated operators in every single job that they do. Development of skills will have to go hand-in-hand with investments in technology. Skill development, technical education, training for leadership, and a learning culture will decide whether Pakistan is going to be just another country practicing the latest manufacturing techniques or actually excelling in them. One more area of opportunity is that of localization. Reduction in reliance on imported components is not just an economic goal any more – it is an absolute requirement. With each component developed domestically comes greater capacity of the country’s industries, creation of job opportunities, shortened supply lines, improved responsiveness, and foreign exchange savings. But above all, localization will drive innovation. The more developed domestic suppliers get, the more involved in the actual product development process they will be.

The development of electric mobility technology is another interesting aspect of this change. The impact of the development of electric vehicle production is being felt all over the world, and Pakistan is capable of participating in one of the most interesting stages of this revolution. In order to establish expertise in the assembly, batteries, charging equipment, and components of electric vehicles, a long-term approach and coordinated investments will be needed. Those companies who invest in this change today will have an advantage when competing tomorrow. Sustainability should be also an essential part of excellence in manufacturing. Customers, investors, and international partners are considering the performance of the company not only in terms of profitability but also in environmental terms. Energy efficient processes, responsible waste disposal, resource preservation, and internationally certified management systems cannot be considered additional but essential in the modern automotive business.

Probably, the biggest opportunity that lies ahead for the automobile industry in Pakistan is that of becoming a manufacturing center in the region. Being strategically located, with an increasing capacity of our industries and engineers, we are well placed to capitalize on such an opportunity. This would demand maintaining good quality, cost competitiveness, performance delivery, and cooperation between the government, industry, education sector, and suppliers.

Take way from this article:

Each era of turbulence always provides useful lessons to learn. The problems with the supply chains in the past few years have taught manufacturers about resilience, collaboration, and flexibility. These lessons need to be transformed into a more comprehensive change which will see manufacturing excellence take precedence over everything else in the future of industrial Pakistan. The way forward does not involve rebuilding what has been lost but creating something better than ever. The automotive industry of Pakistan is at a very important junction where the shift from supply chain resilience to manufacturing excellence needs to be embraced for national benefit. Through lean philosophy, digital transformation, localization, human capital, and sustainable manufacturing, the industry can achieve global competitiveness.  The next chapter has already started. It won’t be written solely by technology or solely by policy. It will be written everyday in factories, design offices, supply chains, and every individual who is convinced that Pakistan is able to build cars and an auto industry that is capable of standing proud amongst the best in the region.

This exclusive article has been written by @muhammad-rafique and published in Automark’s August-2026 printed edition

SME Financing Must Lead to Manufacturing Growth, Not Just More Lending

“Access to finance is important, but access to competitive manufacturing is even more important. Loans alone cannot build an economy unless they create factories, jobs, exports, and productivity.”

The Government of Pakistan has demonstrated a strong commitment to promoting Micro, Small, and Medium Enterprises (MSMEs). Recently, the Honourable Prime Minister chaired a high-level meeting with the Federal Cabinet, SMEDA Board members, and key stakeholders to discuss measures for improving access to finance and accelerating SME growth.

I had the privilege of participating in this important meeting and appreciated the Prime Minister’s sincere commitment to strengthening Pakistan’s SME sector.

During the meeting, I respectfully highlighted an important ground reality. While the government’s intentions are encouraging, many MSME entrepreneurs continue to face significant barriers when approaching commercial banks.

The major challenges include:

  • Private banks remain reluctant to finance manufacturing SMEs because they perceive the sector as high risk.
  • Entrepreneurs are required to submit excessive documentation before loans are approved.
  • Financing approval takes considerable time, discouraging small businesses.
  • Borrowing costs remain high despite recent reductions in the State Bank policy rate.
  • Islamic banking products are also difficult for many SMEs to access because of stringent collateral and documentation requirements.
  • Standardize MSME loan documentation across all commercial banks through a single SBP-approved application process to eliminate unnecessary variations and reduce the compliance burden on entrepreneurs.
  • Establish a centralized digital monitoring system to track all MSME loan applications, approvals, rejections, processing times, and reasons for decline. This data should be reviewed regularly by the State Bank of Pakistan (SBP), Ministry of Finance, SMEDA, and the Pakistan Banks’ Association (PBA) to improve transparency, identify bottlenecks, and ensure greater accountability in SME lending.

I further observed that many commercial banks appear more comfortable paying regulatory penalties than expanding lending to SMEs because they consider the risk-adjusted returns insufficient.

The Prime Minister immediately took notice of these concerns and directed that another meeting be held within two days with the leadership of commercial banks to discuss practical solutions.

Following this meeting, the Honourable Finance Minister presented a roadmap to the Cabinet highlighting the government’s priorities.

Key Focus Areas

  • MSMEs
  • Agriculture
  • Exporters
  • Housing
  • Information Technology
  • Renewable Energy

The government also proposed:

  • Performance-based incentives through taxation and capital relief measures.
  • Formation of a Core Working Group comprising the Ministry of Finance, State Bank of Pakistan (SBP), SECP, SMEDA, and the Pakistan Banks’ Association (PBA).
  • Increasing SME financing from the current 7% of private sector credit (June 2026) to 10% within the next 24 months.
  • Expanding outstanding SME financing from approximately PKR 900 billion to PKR 1.5 trillion.
  • Increasing active SME borrowers from around 300,000 to 750,000 businesses.

These are ambitious and encouraging targets.

However, one important sector deserves greater attention—manufacturing, particularly engineering and value-added industries.

Manufacturing should be identified as a separate priority sector because it creates long-term economic value through production, employment, localization, technology transfer, and exports.

The government should also establish sector-wise financing targets for:

  • Engineering Manufacturing
  • Light Engineering
  • Textile Manufacturing
  • Auto Parts
  • Electrical & Electronics
  • Agricultural Machinery
  • Chemicals
  • Pharmaceuticals
  • Food Processing
  • Other value-added manufacturing sectors

Manufacturing enterprises generally require two different types of financing:

  1. Working Capital Financing for purchasing raw materials and managing production.
  2. Long-Term Capital Financing for investing in modern machinery, automation, digital manufacturing, and new technologies.

For engineering SMEs, financing limits should be enhanced to at least PKR 20 million under both facilities, enabling businesses to modernize, improve productivity, and compete internationally.

Equally important is measuring outcomes rather than simply disbursing loans.

The government should regularly evaluate:

  • How many new manufacturing SMEs have been established?
  • How many additional jobs have been created?
  • How much export revenue has been generated?
  • How much import substitution has been achieved?
  • How much tax revenue has been added to the national economy?
  • How many businesses have adopted new technologies?

These performance indicators will determine whether SME financing is delivering real economic growth.

Finally, if the government is genuinely committed to strengthening Pakistan’s manufacturing sector, it should also review the National Tariff Policy. Financing alone cannot help manufacturers if tariff structures make imported finished products or components cheaper than locally manufactured goods.

Industrial financing and tariff policy must complement each other. If one policy promotes investment while another encourages imports over local production, the overall objective of industrialization will not be achieved.

Pakistan’s engineering manufacturing sector has the capacity to become a major contributor to employment, exports, and technological development. With the right combination of financing, industrial policy, stable tariffs, and localization incentives, SMEs can become the backbone of sustainable economic growth.

The real success of SME financing will not be measured by the amount of money banks lend—it will be measured by the number of factories that expand, the jobs that are created, the products that are exported, and the industries that become globally competitive.

Pakistan does not simply need more borrowers; it needs more manufacturers. Strong manufacturing creates strong SMEs, and strong SMEs build a strong economy.

By Mashood Khan
Director – Mehran Commercial Enterprises
Expert Auto Sector / Former Chairman PAAPAM / Director – SMEDA

Published in Automark’s August-2026 printed edtion.

Kia Lucky Motors Discontinues Entry-Level Picanto Hatchback

Removal of the Picanto from the official lineup signals the end of the hatchback’s journey in Pakistan after nearly six years.

Lucky Motors Pakistan has effectively discontinued the KIA Picanto hatchback by removing the model from its official vehicle lineup and closing new bookings, indicating that the company is no longer accepting orders for the compact city car.

While the automaker has yet to issue an official announcement explaining the move, the disappearance of the model from its website strongly suggests that the Picanto has been phased out from the local market.

The KIA Picanto was introduced in Pakistan in September 2019 by Lucky Motor Corporation, with bookings opening on September 14 of the same year.

The hatchback was locally assembled and positioned as an affordable urban vehicle aimed at buyers looking for a compact, fuel-efficient car with modern features.

Despite its promising launch, the Picanto struggled to establish a strong presence in Pakistan’s highly competitive hatchback segment.

Industry observers believe that consistently low sales were one of the primary reasons behind its discontinuation.

The vehicle also faced criticism for its comparatively weak resale value and limited availability of spare parts, factors that discouraged many potential buyers.

Although the automatic transmission variant managed to build a loyal customer base among city commuters, the manual version recorded relatively weak demand throughout its lifecycle.

The combination of higher pricing compared to key rivals and changing consumer preferences further limited the model’s market appeal.

Pakistan’s hatchback segment has become increasingly competitive over the past few years, with buyers placing greater emphasis on affordability, resale value, after-sales support, and easy access to replacement parts.

These factors have played a significant role in influencing purchasing decisions, making it difficult for the Picanto to gain broader acceptance.

Interestingly, while the model has exited the Pakistani market, the third-generation KIA Picanto continues to receive updates internationally.

The latest version recently underwent a major second facelift, featuring a bold exterior redesign, upgraded lighting elements, refreshed interior technology, and improved safety features to remain competitive in global markets.

The Future of Social Media in Automobile Sales Promotion

“From Digital Influence to Dealer Intelligence: How Social Media and Multi-Brand Showrooms Will Redefine Pakistan’s Automotive Retail Landscape.”

Dear Readers Pakistan’s automobile industry is entering one of the most transformative periods in its history. For decades, the market remained dominated by a handful of established Japanese manufacturers. Today, however, liberalized policies, increasing foreign investment, and the arrival of Chinese, Korean and European automobile brands have fundamentally changed the competitive landscape. Consumers now enjoy unprecedented choice across passenger cars, SUVs, electric vehicles (EVs), and hybrid models.

As competition intensifies, traditional dealership models that relied heavily on walk-in traffic, newspaper advertising and television campaigns are rapidly losing effectiveness. The modern automobile buyer begins the purchasing journey online—watching YouTube reviews, comparing prices on Facebook Marketplace, reading customer opinions on Instagram, and joining automobile communities before stepping into a showroom.

This digital evolution is making social media not merely a marketing platform but the primary driver of customer acquisition, brand perception and purchase decisions. Simultaneously, the increasing number of automotive entrants is creating an opportunity for a new dealership model in Pakistan: the multi-brand automobile showroom.

The future belongs to businesses that integrate digital engagement with customer-centric retail experiences while maximizing return on investment (ROI) and improving monthly profit and loss (P&L) performance.

Social Media: The New Automobile Salesperson

Today’s customers complete nearly 70–90% of their buying research before contacting a dealer. Instead of relying solely on sales representatives, they trust online reviews, influencers, owner experiences and digital content.

Social media has transformed automobile marketing from one-way advertising into continuous customer engagement.

Major platforms contribute differently:

  • Facebook generates qualified leads through targeted advertising.
  • Instagram builds aspirational branding using premium visuals.
  • YouTube educates buyers through detailed vehicle reviews and comparisons.
  • TikTok reaches younger audiences through engaging short videos.
  • LinkedIn promotes commercial vehicles and corporate fleet sales.

Instead of selling vehicles directly, these platforms build trust long before the customer visits a showroom.

Why Traditional Marketing Alone Is No Longer Enough

Conventional advertising remains important for brand visibility, but customer expectations have evolved dramatically.

Modern buyers expect:

  • 360-degree vehicle videos
  • Live showroom walkthroughs
  • Virtual consultations
  • Instant WhatsApp responses
  • Online financing information
  • Digital booking facilities

Dealers who fail to meet these expectations risk losing customers before the first showroom visit.

Artificial Intelligence Will Revolutionize Automotive Marketing

The next decade will witness artificial intelligence becoming central to dealership operations.

AI-powered systems will:

  • Recommend suitable vehicles based on customer lifestyle.
  • Predict purchasing behavior.
  • Schedule automated follow-ups.
  • Personalize advertisements.
  • Improve customer retention.
  • Reduce marketing waste.

Instead of spending heavily on mass advertising, dealerships will target individuals most likely to purchase, significantly improving marketing efficiency.

Influencer Marketing Will Continue to Grow

Automobile enthusiasts increasingly trust independent reviewers over traditional advertisements.

A detailed YouTube review often influences purchasing decisions more effectively than expensive television campaigns.

Future automobile brands in Pakistan will likely collaborate with:

  • Automotive journalists
  • Technology reviewers
  • Lifestyle influencers
  • Travel vloggers
  • Motorsport communities

Authentic experiences create stronger customer confidence than promotional messaging alone.

Customer Communities Will Drive Sales

The future of automobile marketing extends beyond selling vehicles.

Successful dealerships will build digital communities where customers exchange ownership experiences, maintenance tips and travel stories.

These communities generate:

  • Repeat purchases
  • Brand advocacy
  • Referral business
  • Lower customer acquisition costs

Satisfied owners become unpaid brand ambassadors.

Data Will Become the Most Valuable Asset

Every digital interaction creates useful customer information.

Dealerships can analyse:

  • Website visits
  • Video watch duration
  • Vehicle comparison trends
  • Test-drive requests
  • Finance enquiries
  • Service bookings

These insights allow businesses to forecast demand more accurately while optimizing inventory and marketing expenditure.

Pakistan’s Expanding Automotive Market

The Pakistani automobile industry is becoming increasingly diversified.

New entrants include:

  • Chinese manufacturers
  • Electric vehicle companies
  • Hybrid specialists
  • Premium European brands
  • Emerging SUV manufacturers

Greater competition benefits consumers but creates new challenges for dealerships.

Operating exclusive single-brand dealerships requires substantial investment in infrastructure, inventory and branding.

As more manufacturers enter the market, customer preferences become increasingly fragmented.

The Rise of Multi-Brand Showrooms

Globally, multi-brand dealerships have demonstrated significant commercial advantages.

Instead of representing a single manufacturer, they provide customers with multiple options under one roof.

Imagine a customer comparing:

  • Toyota Corolla
  • Hyundai Elantra
  • Changan Alsvin
  • MG5
  • BYD EV
  • Kia Sportage

within the same showroom.

This creates convenience while increasing conversion opportunities.

Benefits for Customers

Multi-brand dealerships simplify purchasing decisions by allowing customers to:

  • Compare prices instantly.
  • Evaluate financing options.
  • Test multiple vehicles.
  • Receive unbiased recommendations.
  • Save valuable time.

The dealership becomes a trusted mobility advisor rather than simply a vehicle seller.

Benefits for Dealers

From a business perspective, multi-brand operations provide substantial financial advantages.

These include:

Higher Inventory Turnover

Slow-moving inventory from one brand can be balanced by faster-selling vehicles from another.

Better Asset Utilization

Showroom infrastructure serves multiple revenue streams instead of one manufacturer.

Lower Marketing Costs

Digital campaigns attract customers interested in vehicle categories rather than individual brands.

Cross-Selling Opportunities

Customers visiting for one vehicle often purchase another better suited to their needs.

Greater Customer Retention

Service, insurance, financing and trade-in programs become independent profit centres.

Improving Monthly Profit & Loss Performance

Every dealership measures success through monthly profitability.

Multi-brand operations positively influence key financial indicators.

Revenue Growth

Income sources expand beyond vehicle sales.

Additional revenue includes:

  • Financing commissions
  • Insurance partnerships
  • Accessories
  • Service contracts
  • Extended warranties
  • Certified used vehicles

Expense Optimization

Instead of maintaining separate facilities for multiple brands, businesses share:

  • Marketing budgets
  • Sales staff
  • Administrative costs
  • Customer relationship systems
  • Digital infrastructure

Fixed costs are distributed across larger sales volumes.

Higher Return on Investment (ROI)

A higher showroom utilization rate improves ROI.

Marketing investments generate leads for multiple brands simultaneously.

Customer acquisition costs decline while conversion rates improve.

The same advertising budget delivers significantly greater returns.

Social Media + Multi-Brand Showrooms: A Powerful Combination

The greatest opportunity lies in combining digital engagement with diversified retail.

Imagine a Facebook campaign promoting:

“Compare Pakistan’s Top Five SUVs This Weekend Under One Roof.”

Rather than promoting a single manufacturer, the campaign attracts a much broader audience.

Similarly,

Instagram reels can showcase:

  • Best family cars
  • Fuel-efficient sedans
  • Entry-level SUVs
  • Premium executive vehicles
  • Electric mobility options

One campaign supports multiple revenue streams.

The Future Customer Journey

Tomorrow’s customer journey will look very different.

  1. Customer watches influencer reviews.
  2. Customer compares vehicles online.
  3. Customer books appointment via social media.
  4. AI recommends suitable models.
  5. Customer visits multi-brand showroom.
  6. Digital finance approval occurs instantly.
  7. Vehicle delivered within days.
  8. Customer shares experience online.

The purchasing cycle becomes faster, more informed and more profitable.

Challenges Ahead

Despite strong opportunities, several challenges remain.

These include:

  • Managing multiple brand relationships.
  • Inventory planning.
  • Sales staff training.
  • Digital capability development.
  • Customer experience consistency.

However, businesses investing early in technology and customer engagement will enjoy sustainable competitive advantages.

Strategic Recommendations for Pakistani Dealerships

To maximize future profitability, dealerships should consider the following roadmap:

  • Build a professional social media content strategy rather than relying solely on promotional posts.
  • Invest in customer relationship management (CRM) systems integrated with social media platforms.
  • Use video marketing to educate rather than simply advertise.
  • Develop AI-driven lead nurturing and follow-up processes.
  • Diversify revenue through financing, insurance, after-sales services and certified pre-owned vehicles.
  • Evaluate the feasibility of transitioning toward multi-brand retail formats where commercially viable.
  • Train sales teams to become mobility consultants instead of product-focused salespeople.
  • Measure digital performance using lead quality, conversion rate, customer acquisition cost and lifetime customer value.

Conclusion

Pakistan’s automobile industry is entering an era defined by digital transformation, customer empowerment and increased competition. Social media is no longer an optional marketing channel—it has become the primary gateway through which consumers discover, evaluate and ultimately purchase vehicles. At the same time, the arrival of multiple international automobile brands is reshaping dealership economics.

For forward-looking businesses, the convergence of data-driven social media marketing and strategically managed multi-brand showrooms offers a compelling path to sustainable growth. By expanding consumer choice, optimizing showroom utilization, diversifying revenue streams and reducing customer acquisition costs, multi-brand operations can strengthen both return on investment (ROI) and monthly profit-and-loss performance.

The dealerships that succeed in the coming decade will not simply sell automobiles. They will build digital relationships, create trusted mobility ecosystems and deliver personalized buying experiences that begin online and culminate in long-term customer loyalty. In this new competitive landscape, technology, transparency and customer convenience will become the true engines of profitability.

This exclusive article written by Aqeel Bashir and published in Automark’s August-2026 printed edition

Beyond Auto Parts: Why Alsons’ Bet on UAV Engines Matters

There is an old saying in manufacturing: companies don’t change because they see the future; they change because the present stops working.

When AKAL – Advanced Kinetic Aerospace Labs, the latest division under The Alsons Group, unveiled its indigenous UAV propulsion system at Eurosatory in Paris this June, it would have been easy to dismiss it as another product launch. Defence exhibitions are full of ambitious announcements, polished prototypes and companies promising to reshape the future of warfare. Most disappear into obscurity; a few eventually find commercial success.

Trying to judge a new aerospace programme after its first public appearance would therefore be premature.

What deserves attention, however, is not simply the engine itself but what its development says about the direction in which at least one Pakistani manufacturer believes the country’s industrial future lies. For decades, Pakistan’s engineering sector has excelled at manufacturing. We have become adept at producing components to demanding specifications, investing in machinery, improving quality systems and earning the confidence of international customers. Yet, despite these achievements, relatively few companies have made the transition from manufacturing products conceived elsewhere to developing technologies of their own. That distinction is more important than it first appears, because the greatest value in modern manufacturing increasingly lies not in production capacity but in intellectual property, innovation, and product ownership.

The automotive industry provides a useful lens through which to understand this shift. Pakistan’s auto parts sector has spent decades building an impressive industrial base around the needs of vehicle assemblers. The expertise accumulated by local vendors is substantial, but it has also left many companies heavily exposed to the fortunes of a single market. Recent years have demonstrated just how fragile that dependence can be. Fluctuating exchange rates, restrictions on imports, changing government policies and declining consumer purchasing power have repeatedly slowed vehicle production, leaving suppliers with idle capacity despite having done little wrong themselves. The monthly figures published by the Pakistan Automotive Manufacturers Association (PAMA) tell the story clearly enough. Sales rise sharply during periods of stability and collapse just as quickly when the broader economy comes under pressure. For parts manufacturers, whose order books depend almost entirely on vehicle production, every economic shock reverberates throughout their business.

Diversification is often presented as the obvious solution, but the word is frequently misunderstood. Expanding into another market certainly reduces commercial risk, yet the more interesting question is how a company chooses to diversify. There is a fundamental difference between producing another catalogue item and entering an industry that demands entirely new ways of thinking. The companies that transform themselves are usually those that recognise

their accumulated expertise can solve problems far beyond the markets in which they originally operated.

Alsons Group has followed precisely that path. Although widely recognised as one of Pakistan’s largest and most established automotive vendors, the company has quietly spent years broadening its engineering activities into sectors that have little obvious connection to passenger vehicles.

Medical devices, lighting, power and energy systems all emerged from the same underlying belief that the engineering knowledge developed over decades could be applied to increasingly sophisticated industries. None of those businesses represented a departure from manufacturing; they represented an expansion of what manufacturing could mean.

The creation of AKAL marks another step in that evolution, but one that is considerably more ambitious than the diversification moves that preceded it. Aerospace propulsion sits among the most demanding disciplines in engineering. It is an industry where products cannot simply work most of the time; they must perform predictably, repeatedly and under conditions where even minor failures can have serious consequences. Developing a propulsion system therefore requires a very different mindset from manufacturing components to somebody else’s drawing. It demands years of experimentation, repeated testing, countless design revisions and the willingness to solve problems for which no established answer exists within the organisation.

What is particularly interesting about AKAL’s approach is that the programme extends beyond the engine itself.

Modern UAV propulsion is no longer defined solely by mechanical performance. The software that manages the engine, the electronics that control it and the systems that integrate it into the aircraft have become equally important. By choosing to develop these elements alongside the engine rather than relying entirely on imported control systems, the programme reflects an understanding that future competitiveness in aerospace will depend as much on systems integration as on mechanical design.

That philosophy was evident at Eurosatory. Rather than exhibiting individual components or positioning itself solely as a contract manufacturer, AKAL presented a complete propulsion solution developed within Pakistan. Whether the programme ultimately secures significant commercial orders is a question that only time can answer, but its appearance on one of the world’s largest defence stages carried symbolic importance. It suggested a degree of confidence that Pakistani engineering can aspire to create technology rather than simply manufacture it.

There is a tendency in Pakistan to judge industrial projects too quickly. We often expect immediate commercial success and dismiss long development cycles as evidence that something has gone wrong. Aerospace has never worked that way. Every serious propulsion programme, regardless of where it originates, spends years progressing through design iterations, endurance testing and refinement before reaching maturity. Even then, credibility is established gradually as customers accumulate operational experience. The value created during that process is not confined to the eventual product. Engineers learn to solve increasingly complex problems, organisations develop new methods of working and companies acquire technical confidence that influences every subsequent project they undertake.

That cumulative effect is precisely what separates countries with advanced manufacturing sectors from those that remain dependent on imported technology. Turkey’s defence industry did not become internationally competitive because it produced one successful drone or one successful engine. It evolved because successive projects steadily expanded the country’s engineering capability, allowing each generation of products to build upon the experience gained from the last. South Korea followed much the same trajectory, transforming itself over several decades from a manufacturing economy into one capable of producing advanced aircraft, ships, electronics and defence systems. The common thread was not a particular product but a willingness to invest in technologies whose returns would only become apparent many years later.

Pakistan’s industrial sector now faces much the same choice. Continuing to compete primarily on manufacturing cost offers diminishing returns in an increasingly competitive world. The companies most likely to thrive over the coming decades will be those that treat manufacturing not as the end of the value chain but as the foundation upon which design, engineering and innovation are built. That transition is neither quick nor inexpensive, but it is the route followed by virtually every country that has successfully moved into advanced manufacturing.

Viewed from that perspective, AKAL’s launch at Eurosatory represents something more significant than the introduction of a new UAV engine. It reflects a belief that Pakistani industry is capable of participating in technologies traditionally regarded as beyond its reach, provided companies are prepared to invest patiently in developing them. Whether that belief proves commercially successful will become clear over the years ahead. The more immediate significance lies in the fact that a company whose history was built largely in automotive manufacturing has chosen to measure its future against the standards of the aerospace industry. That is not simply diversification. It is a statement about where Pakistani engineering believes its future should be.

By: Mariyam Khan

Chery Surpasses 20 Million Global Vehicle Sales as Monthly Exports Exceed 200,000

Master Auto Engineering (MAE), the official partner of Chery vehicles in Pakistan, celebrates another major global milestone for the Chery brand as Chery Group surpassed 20 million cumulative vehicle sales worldwide, while becoming the first Chinese automaker to export more than 200,000 vehicles in a single month. These achievements further reinforce Chery’s position among the world’s fastest-growing automotive manufacturers and reflect the brand’s continued global momentum.

In July 2026, Chery Group sold 276,820 vehicles, representing a 23.3% year-on-year increase. Monthly exports reached a record 202,533 vehicles, up 70.1% year-on-year, making Chery the first Chinese automotive manufacturer to surpass 200,000 vehicle exports in a single month. During the same period, Chery’s new energy vehicle (NEV) sales reached 129,067 units, marking a 97.5% year-on-year increase and setting another monthly record for the Group. From January to July 2026, cumulative vehicle sales reached 1.63 million units, while cumulative exports exceeded 1.14 million units, underscoring Chery’s sustained international growth.

Following Chery Holding Group’s successful inclusion in the Fortune Global 500 in recent years, Chery Automobile Co., Ltd. (9973.HK) has now made its own debut on the 2026 Fortune Global 500 as an independently listed company, entering the ranking at No. 383. Chery Automobile also ranked 30th globally in the Fortune Global 500 Return on Equity (ROE) Top 50 with an ROE of 36.5%, placing first among Chinese companies featured in the ranking.

Further reinforcing its growing global brand strength, Chery also ranked 11th overall and No. 1 in the automotive category in the 2026 Kantar BrandZ Chinese Global Brand Builders Top 50, marking its ninth consecutive appearance on the prestigious ranking

These global achievements further strengthen the foundation behind Chery in Pakistan, where Master Auto Engineering, a company of Master Group, is committed to bringing Chery’s internationally recognised products, advanced technologies and customer-centric philosophy to the local market. Backed by Master Group’s decades of industrial excellence and automotive manufacturing expertise, MAE continues to expand Chery’s footprint across Pakistan through local manufacturing, an expanding nationwide dealership and aftersales network, and a growing portfolio of intelligent and new-energy mobility solutions.

Commenting on the achievement, Samir Malik, CEO Master Auto Engineering, said:

“These remarkable global milestones demonstrate Chery’s consistent focus on innovation, quality and long-term sustainable growth. Surpassing 20 million global vehicle sales, achieving record-breaking exports and Chery Automobile’s inclusion in the Fortune Global 500 as a listed company reflect the strength and credibility of a brand that continues to earn the trust of customers worldwide. At Master Auto Engineering, we are proud to bring this global excellence to Pakistan through world-class products, local manufacturing capabilities and an unwavering commitment to delivering an exceptional ownership experience for Pakistani customers.”

Beyond automotive manufacturing, Chery continues to expand its global technology ecosystem, with cumulative deliveries of its AiMOGA humanoid robot surpassing 2,000 units across more than 60 countries and regions, reflecting the company’s continued investment in intelligent technologies.

As Chery continues to reach new milestones globally, Master Auto Engineering remains focused on translating that global strength into meaningful value for Pakistani families through continued investment in product innovation, local manufacturing, nationwide network expansion and sustainable mobility solutions. Together, Chery and Master Auto Engineering remain committed to shaping the future of mobility in Pakistan by delivering globally proven technologies backed by trusted local expertise.

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China’s BYD enters Japan’s mini-car market with low-cost EV

Chinese EV manufacturer aims to make splash with competitively priced model

China’s BYD  launched an electric mini-car in Japan on Tuesday, hoping the Racco model will ​revive sales in a market where it has struggled to gain traction since entering ‌the passenger-car segment in 2023.

The Shenzhen-based automaker said buyers could get the entry-level Racco for less than 2 million yen ($12,213) after taxes and government subsidies, a threshold some analysts have said will be key for attracting Japanese drivers.

The model’s ​suggested retail price starts at 1.95 million yen before taxes and subsidies, undercutting Nissan’s Sakura, ​Japan’s best-selling electric mini-car. But because the Racco is eligible for a smaller ⁠government incentive, the Sakura remains cheaper for buyers after subsidies are applied.

“Looking at the price, you can ​see how serious BYD is about taking on” the Japanese market, said Tang Jin, a senior researcher ​at Mizuho Bank.

BYD is targeting 10,000 orders for the Racco by the end of 2026. Jin said the company was under pressure to meet the target, and could resort to promotion campaigns or adding new features if demand disappointed.

CAPITALISING ​ON LAUNCH’S MOMENTUM

BYD Auto Japan President Atsuki Tofukuji said the goal of securing 10,000 orders by ​year-end was driven more by conviction than detailed market analysis, as the company seeks to build on the momentum of the ‌model’s launch.

“It’s ⁠really a matter of determination and gut feeling,” he told reporters at a roundtable, adding that annual sales at around that level should be sustainable from next year if dealerships can generate roughly one order per day on average.

The model offers up to 320 km (199 miles) of driving range and is the first ​electric mini-car to feature ​sliding rear doors, a ⁠popular feature among Japanese buyers.

Hiroki Ihara, an analyst at Tachibana Securities, said prior to the launch that BYD likely wanted to boost brand awareness by ​adding a ‘kei’ car to its lineup.

Kei cars translate as “light vehicle”, a segment that ​makes up ⁠about a third of Japan’s auto sales and has traditionally been served almost entirely by local automakers such as Honda and Suzuki.

At the end of 2025, BYD had sold just over 7,400 vehicles in Japan since ⁠its ​launch in early 2023.

The launch highlights the growing challenge Chinese ​automakers pose to Japanese rivals, which have been losing ground to BYD and other domestic EV makers in China, the world’s largest ​auto market.

($1 = 163.7500 yen)

Courtesy: Reuters

Chery Master stands by its customers, offering major relief from the revised Sales Tax across its PHEV lineup for a limited time. Save up to PKR 1.5 million

Master Auto Engineering (MAE), a company of Master Group of Industries and the official manufacturer and distributor of Chery vehicles in Pakistan, has announced measures to relieve the impact of the recently revised Sales Tax (ST) for customers purchasing its locally assembled Chery Super Hybrid (CSH) lineup until 31 July 2026. The decision reflects MAE’s commitment to facilitating customers while supporting Pakistan’s transition towards New Energy Vehicles (NEVs).

The measure applies across MAE’s locally assembled Chery Super Hybrid Tiggo lineup, reaffirming MAE’s commitment to making intelligent new energy mobility more accessible for Pakistani families while accelerating the adoption of cleaner mobility solutions.

Powered by Chery Super Hybrid (CSH), recognised as the world’s best plug-in hybrid technology, Chery’s locally assembled plug-in hybrid lineup delivers Pakistan’s longest-range plug-in hybrid experience, offering up to 170 km of pure electric driving range and up to 1,400 km of combined driving range. By combining the benefits of electric mobility with the confidence and convenience of conventional driving, helping reduce fuel dependency, everyday running costs and range anxiety, Chery Super Hybrid offers a practical pathway towards cleaner mobility for Pakistani families, particularly as the country’s EV infrastructure continues to evolve.

Since introducing Chery in Pakistan, MAE has remained committed to strengthening the country’s automotive landscape through continued investment in local manufacturing, advanced production capabilities, employment generation and nationwide dealership network expansion. With its 60+ acre manufacturing facility, a nationwide network of 10 dealerships and plans to expand to 20 dealerships within the next six months, the company continues to contribute towards industrial development, technology transfer and long-term economic growth while expanding access to advanced mobility solutions.

Speaking on the occasion, Samir Malik, CEO of Master Auto Engineering, said:

“At MAE, our customers have always been at the heart of every decision we make. The measures introduced to ease the impact of the revised Sales Tax reflect our long-term commitment to making the world’s most advanced new energy vehicles more accessible while accelerating Pakistan’s transition towards New Energy Vehicles. Through Chery Super Hybrid, we will continue investing in local manufacturing, innovation and customer-focused initiatives that deliver greater value and sustainable mobility for Pakistani families.

With Pakistan’s largest and highest selling locally assembled plug-in hybrid SUV lineup, expanding local manufacturing capabilities and a rapidly growing nationwide dealership network, MAE remains committed to delivering globally advanced mobility solutions that create long-term value for Pakistani families while supporting the continued growth and transformation of Pakistan’s automotive industry.

BYD Pakistan Receives Its Largest-Ever Shipment of NEVs at Karachi Port for Customer Deliveries

Mega Motor Company (MMC), the official partner of BYD in Pakistan, announced the arrival of a Roll on/Roll off (RoRo) vessel carrying more than 2000 BYD New Energy Vehicles (NEVs) at the Karachi Port, marking one of the largest consignments of BYD vehicles to arrive in Pakistan to date.

This shipment comes at a time when Pakistan’s transition towards NEVs continues to gather pace as consumers increasingly recognize the economic, environmental and technological advantages of electric mobility. This growing demand is thus reflected in the increasing scale of vehicle shipments into the country, reinforcing BYD’s commitment to making NEVs more accessible, supporting the broader shift towards a cleaner and more sustainable transportation future.

Speaking on the occasion, Danish Khaliq, Vice President – Sales & Strategy, BYD Pakistan – MMC, said: “This milestone reflects the growing confidence of Pakistani consumers in NEVs and the increasing momentum of Pakistan’s transition towards sustainable mobility. Amid evolving global supply chain challenges and unprecedented demand for BYD vehicles worldwide, we worked closely with our partner to strengthen supply planning and logistics. This shipment marks an important step in enhancing vehicle availability and reinforces our commitment to ensuring customers receive their vehicles in a timely and reliable manner. As demand continues to grow, we remain focused on delivering an exceptional ownership experience through world-class products, dependable after sales support, and an expanding charging network that gives customers the confidence to embrace electric mobility across Pakistan.”

Lei Jian, Country Head, BYD Pakistan, further added: “BYD’s journey to becoming the world’s No. 1 NEV brand has been driven by a commitment to continuous innovation, quality and sustainable mobility. Pakistan is an important market in BYD’s global growth journey, and we remain committed to supporting its transition towards cleaner transportation by introducing world-class NEVs and strengthening our presence in the country. We thank our customers for the trust and confidence they’ve placed in our products, and we look forward to supporting the next phase of electric mobility in Pakistan.”

The arrival of the shipment via a Roll-on/Roll-off (RoRo) vessel further reinforces the scale and efficiency of modern automotive logistics. Purpose-built to transport vehicles safely and efficiently, RoRo vessels facilitate the movement of larger consignments, contributing to improved supply chain resilience and enhanced vehicle availability.

Honda HR-V Joins Rs1 Crore Club After Latest Tax Changes

Honda Atlas is among the latest automakers to revise prices, raising HR-V e:HEV from Rs89Lac to Rs1.03 Crore, an increase of Rs13Lac. The revised price came into effect on July 1, 2026, making the HR-V e:HEV one of Pakistan’s newest SUVs to cross the Rs. 1 crore threshold.

Earlier this week, Toyota updated prices for its hybrid lineup. The Corolla Cross HEV X now costs Rs. 10,299,000, up from Rs. 8,935,000, while the Corolla Cross HEV has climbed to Rs. 9,849,000 from Rs. 8,535,000. Petrol-powered Corolla Cross variants remain unaffected.

The end of tax incentive sent ripples across automotive industry. Several manufacturers have reportedly suspended invoicing and deliveries of hybrid vehicles while awaiting official clarification on the applicable GST. The reduced tax rate was introduced under the previous five-year automotive policy to encourage the adoption of cleaner and more fuel-efficient vehicles.

The latest revisions underline the immediate impact of the government’s tax policy, with buyers now facing additional costs ranging from just over Rs. 1 million to more than Rs. 2.5 million on hybrid vehicles.