2. AUTOMOBILE INDUSTRY
▪ An industry that produces automobiles and
other gasoline powered vehicles, such as Buses,
Trucks and Motorcycles.
▪ Self Propelled Machine or vehicle.
▪ Usually designed to carry people or goods for
transportation. It can be a:
▪ Two-wheeler
▪ Three-wheeler
▪ Four-Wheeler
3. AUTOMOBILE
INDUSTRY
SIGNIFICANCE
One of the most important and supporting industry of the
world. So, it is Key driving sector of economy.
Automobiles enabled people and goods to travel farther and
faster.
It effects both economy and culture.Automobile industry is
considered to be an oligopoly(a state of limited
competition).
Provide jobs to millions of people and an opportunity to
produce large number of goods and services.
Generate Billions of Dollars in worldwide revenues.
Revolutionized the mode of Transportation.
The most appropriate description to define its importance
is “Mother of All Industries”.
5. AUTOMOBILE INDUSTRY
OF PAKISTAN
The Industry started in 1950. Kandawalla
industries took the initiative and the plant
was set up by General Motors and Sales Co.
And Pakistan produced its first vehicle in
1953, at the National Motors Limited.
Pakistan’s Automobile industry contributes
(4%) to its GDP and 30 billion rupees to the
national exchequer in terms of taxes and
duties.
Pakistan’s automobile industry is fastest
growing in Asia.The production and sales
have both grown by 171% and 172.5%
respectively between (2014 and 2018), all of
which has been fueled by the Automotive
Development Policy introduced in 2016.
6. CAPACITY AND PRODUCTION OF ALL
THE AUTOMOBILES IN PAKISTAN
PRODUCT Minimum Maximum Previous Last
Motorcycles,
Scooters, Rikshaws
60,960
1995
2,500,650
2017
2,071,123
2016
2,500,650
2017
Cars 19,514
1994
218,587
2018
190,466
2016
180,717
2017
Buses 312
1995
1762
2005
1070
2016
1,118
2017
Trucks 703
1995
7,712
2017
5,666
2016
7,712
2017
Tractors 9,817
1992
71,730
2010
34,914
2017
35,975
2016
L.C.Vs 4,886
1998
35,836
2016
35,836
2016
24,265
2017
9. ❑ Import
To discourage imports of automobiles
and to promote localization of
automobiles, high taxes are applied on
imported automobiles throughTariff
Based System (TBS)
Sometimes, Imports of automobiles are
made when the demands are greater than
total produced vehicles.
Imports from China and India are
relatively cheap.
❑ Export
Export of auto products is necessary to
expand auto industry’s markets and gross
profits.
Auto Industry plunges into deep crisis
due to increase in advance customs duty
on all raw materials and imposition of up
to 7.5pc FED proving deadly for the auto
sector.According to the data released by
Pakistan Automotive Manufacturers
Association (PAMA), the sales of Honda
cars declined 66pc, the sales ofToyota
vehicles witnessed fall of 56pc, the of
sales of Suzuki registered a decline of
23pc.
Pakistan passed the "Auto Policy 2016-
21", which offers tax incentives to new
automakers to establish manufacturing
plants in the country. Government is
planning for providing subsidy and long-
term policies for ‘Auto-Industry to make
itself stable, secure so that it can
implement its investment plans’.
10. ❑ ANALYSIS OFTHE INDUSTRY
▪ PESTEL ANALYSIS
POLITICAL
Government Policy, Political
Stability, Corruption.
ECONOMICAL
Economic growth,
Inflation rate,
Unemployment rates
SOCIAL
Population growth rate,
Age Distribution,
Lifestyle attitudes.
TECHNOLOGICAL
Technology incentives,
Level of innovation,
Automation.
ENVIRONMENTAL
Weather, Climate
change, Environmental
Policies.
LEGAL
Health and Safety laws,
Consumer Protection
laws, Employment laws.
12. PAKISTAN’S AUTOMOBILE COMPANIES
Indus Motor Company Ltd.
Honda Atlas Cars (Pakistan) Ltd.
Pak Suzuki Motor Company Ltd.
Sind Engineering Ltd.
Sigma Motors (Pvt) Ltd.
HinoPak Motors Ltd.
Ghaandara Nissan Ltd.
Millat Tractors Ltd.
13. CONCLUSION
Local Auto-Industry stands behind the auto-industries of neighboring countries.
In result imports of automobiles is affecting local Auto-Industry.
The Auto-Industry has experienced decline of its production and sales values.
Car Prices are relatively high because of low technology awareness.
Low Production Capacity.
Insufficient export of automobiles.
Unorganized Industries.
14. RECOMMENDATIONS
There should beTechnology Revolution in the Auto-industry.
Regulate the imports of cars.
Volume of production should be increased.
Localization should be increased and investments should be made to increase localization.
Market Expansion measures should be taken.
Financing options i.e. Leasing, car Finance and loans should be extended on a wider basis.