Yamaha Motor Corporation of Japan has exited Pakistan after 10 years. It invested $100 million in 2015 and produced engines in collaboration with Honda. Its departure negatively impacts the auto sector.
Pakistan Automotive Manufacturers Association (PAMA) boss Abdul Waheed Khan said strict rules caused the exit. Companies must export to import parts. This is hard to do. The new Motor Vehicle Development Act 2025 also scares firms. It treats business problems like crimes. This can lead to arrests and long jail terms.
Khan said foreign investment is low. Many firms have already gone. These include Shell, Uber, Careem, Microsoft, and Telenor. He fears more will leave if rules stay tough. The auto industry struggles with these changes.
Read: Yamaha Motor Pakistan Shut Down Motorcycle Manufacturing
Indus Motor Company (IMC) said floods slowed sales. Without floods, car sales could hit 300,000 units in FY26. Last year, it was 223,799 units. Floods damaged roads and crops. This cuts buying power.
The auto sector needs help. Yamaha’s exit shows the problems. Bad rules and floods exacerbate the situation. Pakistan must fix policies to keep jobs and growth. Yamaha’s departure from Pakistan is a big loss. The auto industry warns of more exits. Floods add to the trouble. The government needs to act fast.
