After a broad identification of the major problems faced by the automotive industry of Pakistan this paper presents very useful analysis and comprehensive recommendations for solution of major problems of the automotive vendor industry. The problems of automotive vendor industry are identified as a result of interviews with vendors of the industry. The problems of car vendors are divided into five major categories: processes/ operations, supply chain, resources, testing & quality control, and poor technology climate. It includes both the vendors who are working for Japanese and local motorcycle assemblers. The analysis of the findings of survey interviews, expert’s discussions, and media releases has unveiled some daunting facts pertinent to automotive vendor industry of Pakistan. The salient outcomes of the analysis are presented. On the basis of the analysis and interview results, comprehensive recommendations are also provided for the automotive vendor industry of Pakistan.