Geely set to enter crowded auto market

Group Managing Director of the group's non-banking businesses in Pakistan, Muhammad Irfan Anwar Sheikh, said the partnership reflected the company's long-term view of the market. "For us, this partnership is a long-term commitment to Pakistan.

Our group has been investing in and building businesses here for decades, across sectors including cement and banking, and that experience and track record provide reassurance to our stakeholders, partners and customers that we are here to build for the long term.

With Geely, we are bringing together that local strength and experience with the technology, safety and global capabilities of a major automotive manufacturer," Sheikh said. Geely vehicles will initially be brought in as completely built units (CBUs) before BAL shifts to local assembly at a completely knocked-down (CKD) facility it has recently acquired, the company said.

Globally, Geely sold more than 3.02 million vehicles in 2025, including 1.69 million new-energy vehicles.

The automotive brand's arrival adds to what is now one of the most crowded automotive line-ups in Pakistan's history, with the number of assemblers operating in the country having climbed to around 17 in recent years as Chinese and other new entrants joined established Japanese and Korean players.

Industry analysts note that this expansion has coincided with a widening gap between capacity and actual output. Pakistan's installed manufacturing capacity is estimated at between 500,000 and 600,000 vehicles annually, yet plant utilisation has slipped below 50% in recent periods, down sharply from levels above 80% seen less than a decade ago, manufacturers.

Analysts tracking the sector say several of the newer Chinese brands that entered Pakistan over the past few years have struggled to match early sales enthusiasm with durable after-sales networks, spare-parts availability and resale value, denting consumer confidence even as competitive pricing and modern features drew initial interest.

Some smaller entrants have scaled back operations or seen showroom footfall taper once warranty and servicing gaps became apparent, industry analysts say, a pattern they caution any new entrant, including Geely, will need to avoid through sustained investment in service infrastructure.

Even so, sector experts argue Pakistan's automotive potential remains underexploited, pointing to a low car-ownership base, a young population and the government's still-pending long-term auto policy for 2026-31 as factors that could eventually help absorb idle capacity, provided policy consistency improves and financing costs remain manageable.

They added that the market's near-term challenge is less about attracting new manufacturers and more about ensuring the ones already present, and those now arriving, can sustain the after-sales commitments their launches promise.