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Phase 4: Establishment of the private sector automobile assembly plants and the



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PR-14-13
Phase 4: Establishment of the private sector automobile assembly plants and the
vendor industry

The need for another car manufacturer was felt in the mid-eighties. But sanction wasn’t granted till 1989 because the Government was unable to take a firm decision. The sanction was granted to the House of Habib and Toyota Motor Corporation of Japan to setup a progressively modern plant to manufacture the bestsellers of Toyota like the Corolla passenger cars and other such popular vehicles.


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During this phase the vendor Industry established its very first assembly plant. The first autoparts manufacturing unit was established in Lahore on 1942 for the purpose of providing after sales service. From 1950 to 1970, the initial focus of the industry was limited to tractors, buses and auto parts as well as to provide to the needs of the after sales market of different automobiles. However, in the s, the industry went through a major advancement when for the first time Suzuki commenced production in Pakistan. Other assemblers of cars and motorcycles, following Suzuki’s example, also established licenced vendors. This gave a boost to the local industry to enter the auto parts manufacturing.

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