3 min read
The Pakistan Auto Parts Show (PAPS) 2025 opened today at the Expo Centre Karachi. The event brings together manufacturers, industry leaders, policymakers, and car lovers under one roof. It highlights four decades of Pakistan’s automotive journey, built on local manufacturing, innovation, and resilience.
Pakistan’s auto industry started in the 1980s. Since then, it has become a key contributor to national industrial growth. It supports thousands of jobs. It develops engineering talent. Pakistan’s auto industry adds significantly to GDP through a large network of local vendors and suppliers.
Over the years, locally assembled vehicles have built strong consumer trust. They are known for durability, reliability, resale value, and low maintenance. These traits have made local manufacturing an essential part of Pakistan’s economic fabric.
Industry Leaders Warn of Rising Used Car Imports
However, industry leaders also raised concerns at PAPS 2025. They warned that the growing influx of used imported vehicles threatens the sector’s progress. Despite heavy investment in production and localisation, local manufacturers struggle to use their full capacity. New entrants under the 2021–2026 Auto Policy face even more challenges as they try to establish themselves.
Ali Asghar Jamali, CEO of Indus Motor Company (IMC), highlighted the risks. He said the industry invested heavily in localisation over four decades. Yet the unchecked import of used cars discourages investment. It harms the manufacturing base and the economy. It also puts the employment of 2.5 million skilled workers at high risk. He called for policy stability that strengthens local industry while keeping consumer interests in mind.
Usman Malik, chairman of PAAPAM, echoed the same concerns. He said Pakistan’s auto parts industry made strong progress in localisation and quality. Therefore, the upcoming Auto Policy 2026–31 must support consumer affordability without hurting local producers. He added that the illegal imports of used cars put at risk USD 5 billion in investment, 1,200 manufacturing units, and 2.5 million jobs.
A Crucial Moment Ahead of Auto Policy 2026–31
The government is preparing to announce the new Auto Policy 2026–31. Stakeholders want the policy to encourage local investment, protect existing capacity, and support the local parts ecosystem. With over 17 global automakers already operating in Pakistan and an installed capacity of more than 500,000 vehicles per year, the issue is not infrastructure. Instead, it is underutilization caused by policy uncertainty and pressure from used imports.
PAPS 2025 celebrates local engineering and manufacturing. Yet it also reminds visitors of the challenges ahead. The industry hopes the next phase of Pakistan’s auto journey will be driven by balanced policies, local innovation, and renewed focus on vehicles made for Pakistan.
Suzuki’s Mystery Car Expected at PAPS 2025
Suzuki has also teased a mystery car ahead of the event. The company released a short video showing a covered car with glowing headlights. The model will be released at PAPS 2025. Viewers can read about the pre-release hype in TechJuice’s previous coverage by clicking here.
