automobile industry of pakistan

Industry that produces automobiles and other gasoline-powered vehicles, such as

buses, trucks, and motorcycles.

Designs Develops Manufactures MarketsSells World’s

“Automobiles”

Self-propelled machine or vehicle. Usually designed to carry people or goods for

transportation. It can be a:

Two wheeler.

Three wheeler.

Four wheeler.

2 WHEELER 3 WHEELERPASSENGER

VEHICLECOMMERCIAL

VEHICLE

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS

I.C.V. M.C.V. H.C.V.

One of the most important industries of the world.

Effects both economy and culture. Provides Jobs to millions of people. Generates billions of dollars in worldwide

revenues. Supports other Industries. Revolutionized the mode of

transportation.

Automobiles enabled people and goods to travel farther and faster.

Provides an opportunity to produce a large number of goods and services.

So, “Mother Of All Industries” is the most appropriate description to define its importance.

Though not a prominent automotive industry in the world, it is active and expanding in Pakistan for a long time.

The Industry started in 1950. Kandawalla Industries took the initiative.

Contribution to Pakistan’s GDP is Rs. 36 Billion.

Industry operates under franchise and technical cooperationagreement with:

▪ China▪ Europe▪ Korea▪ Japan.

Licensed by the Ministry of Commerce, Government of Pakistan under the Trade Organizations Ordinance 2006.

Chairperson “Ali Habib”. Objectives:

▪ Promote progressive manufacture of automotive vehicles in the country.

▪ Regulate the import/export of motor vehicles.

List of automotive companies and products:

Pak Suzuki Motor Company Ltd. Cars, L.C.Vs ,Pick-ups and Vans.

Indus Motor Company Ltd. Cars and L.C.Vs.

Honda Atlas Cars (Pakistan) Ltd. Cars and Bikes.

Sind Engineering Ltd. Cars, Trucks , Bikes and Pick-ups.

Sigma Motors (Pvt) Ltd. L.C.Vs

Hinopak Motors Ltd. Trucks and Buses.

Ghandhara Nissan Ltd. Trucks, Buses and Cars.

Master Motor Corporation Ltd. Trucks , Buses and Pick-ups.

Millat Tractors Ltd. Farm Tractors.

Dewan Automotive Engineering Ltd. Cars and Pick-Ups

DYL Motorcycles Ltd. Motorbikes.

Pakistan Cycle Industrial Cooperative Society Ltd. Motorcycles and Auto-Rickshaws

PLUM Qingqi Motors Ltd. Motorcycles and Auto-Rickshaws.

Product Capacity Production

(2008-2009)

CARS & LCV 215,000 193,695

HCV & Buses 15,000 5,343

Tractors 50,000 48,887

Motorcycles 925,000 520,124

Company Capacity Production (2008)

Production (2007)

Production

(2006)

Pak Suzuki 100,000 73,435 1,17,35 99,734

Indus Motors 50,000 26,876 26,007 41,552

Honda Atlas Cars 50,000 12,479 16,699 30,464

Dewan Farooque 15,000 13,250 8,020 17972

Sigma Motors 2,000 952 982 1,182

Hinopak Motors 2,000 2,004 1,567 2,167

Ghandhara Nissan 3,000 1,521 1,652 1,652

Ghandhara Ind. 1,800 50 40 48

Sind Engg. 1,000 44 53 68

TOTAL 2,48,800 1,30,253 1,69,861 1,57,514

Rank Country/Region 2008 2006 2005

— World 70,526,531 66,482,439 58,374,162

— European Union 18,432,070 18,176,860 17,142,142

1 Japan 11,563,629 10,799,659 10,140,796

2 China 9,345,101 5,708,421 2,069,069

3 United States 8,705,239 11,946,653 12,799,857

4 Germany 6,040,582 5,757,710 5,526,615

5 South Korea 3,806,682 3,699,350 3,114,998

6 Brazil 3,220,475 2,530,840 1,681,517

7 France 2,568,978 3,549,008 3,348,361

8 Spain 2,541,644 2,752,500 3,032,874

9 India 2,314,662 1,638,674 801,360

10 Mexico 2,191,230 1,684,238 1,935,527

34 Portugal 175,155 226,834 245,784

35 Austria 150,877 253,279 141,026

36 Venezuela 135,042 135,425 123,324

37 Netherlands 132,494 102,204 98,823

38 Pakistan 130,857 153,393 102,578

39 Egypt 114,782 123,425 78,852

41 Philippines 54,434 64,492 38,877

42 Morocco 41,731 33,992 31,314

43 Colombia 38,327 75,539 87,342

44 Vietnam 33,418 31,600 6,862

To discourage imports of auto mobiles and to promote localization of automobiles, high taxes are applied on imported automobiles through Tariff based system (TBS).

Sometimes, Imports of automobiles are made when the demands are greater than total produced vehicles.

Imports from India are relatively cheap.

Export of auto products is necessary to expand auto industry’s markets and gross profits.

To promote export, the government is providing 25% subsidy to new products.

The AIDP has laid a target of export of US$ 650 million by the year 2011-2012.

Comparison with neighbouring country:

▪ India.

Consulting Club

46 Active companies

ACTIVE COMPANIES

0

10

20

30

40

50

Active Companies

20

46

Pakistan

India

ANNUAL PRODUCTION CAPACITY

0

500000

1000000

1500000

2000000

2500000

Capacity

248800

2293000

Pakistan

India

PRODUCTION & SALES

130,857 169861 157514 130797 163706 144541

2,314,662 2,306,768

2,016,511

2,326,5892,065,205

1,700,383

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Pakistan

India

2008

0

100000

200000

300000

400000

500000

600000

700000

800000

Pakistan

India

2007

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

Pakistan

India

No. Cars Pakistan(PKR) India(IR)

1Toyota Camry 2400 CC Petrol M/T 5,999,000 2,116,580

2Suzuki Alto VXR 588,000

2,55,018

3Porsche Boxster Boxter S 7,502,000

5,660,000

4Porsche Carrera 911 Carrera 4 11,234,000

8,582,700

5Honda Accord 2.4 I-VTEC A/T 4,703,000

1,842,000

6Toyota Altis 1.8L M/T 1,639,000

9,70,000

7 Chevrolet Aveo LT - M/T with ABS and Airbag

1,339,000 697,087

Out of 70,526,531 automobile in the world 11,563,629 (16.39%) was produced by Japan in 2008.

In the world ranking, Japan is at 1st position.

Japanese automotive manufacturers include Toyota, Honda, Nissan, Suzuki, Mazda etc

Japanese manufacturers producing very affordable, reliable, and popular cars.

Japan became the largest car producing nation in the world in 2000

Very well organized and efficient industries.

Out of 70,526,531 automobile in the world 9,345,101 (13.25%) was produced by china in 2008.

In the world ranking, China is at 2nd position.

Out of 70,526,531 automobiles in the world Iran produced 1,051,430 (1.49%) automobiles in 2008.

In the world ranking, Iran is at 16th position.

Local auto industry stands behind the auto industries of neighboring countries.

Imports of automobiles is effecting local auto industry.

The auto industry has experienced decline in its production and sales values.

Car prices are relatively high. Low production capacity. Insufficient export of automobiles. Unorganized Industries .

Market expansion measures should be taken. Volume of production should be increased. Localization should be increased and investments

should be made to increase localization. Regulate the imports of cars. Financing options i.e. leasing , car finance and loans

should be extended on a wider basis. The car manufacturers should also encourage the

use of CNG .

Will be given on demand.

THANK YOU

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www.wikipedia.org www.pama.org.pk www.honda.com.pk www.pakwheels.com www.google.com www.toyota.com.pk www.oica.org www.Encarta.com www.Brytanica.com www.Siamindia.com www.Indiatimes.com www.Pakalumina.com