Automobile Industry Stu

8/14/2019 Automobile Industry Stu

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AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY

PRESENTED TO:PRESENTED TO:

SIR AFAQ ALI KHANSIR AFAQ ALI KHAN



GROUP MEMBERSGROUP MEMBERS

ARSALAN PERVAIZ ARSALAN PERVAIZ (SP07-BB-0033)(SP07-BB-0033)

SYED KUMAIL RAZA ZAIDISYED KUMAIL RAZA ZAIDI(SP07-BB-0162)(SP07-BB-0162)



OUR GOAL:OUR GOAL:

• INTRODUCTION TO AUTOMOBILE INDUSTRYINTRODUCTION TO AUTOMOBILE INDUSTRY• HISTORYHISTORY

• PRESENT SENARIOPRESENT SENARIO• MAIN PRODUCERS IN AUTOMOBILE SECTORMAIN PRODUCERS IN AUTOMOBILE SECTOR

• LINKAGES OF AUTOMOBILE INDUSTRYLINKAGES OF AUTOMOBILE INDUSTRY• CONTRIBUTION IN THE ECONOMYCONTRIBUTION IN THE ECONOMY• PRODUCTION AND SALEPRODUCTION AND SALE• ANNUAL PLANT REPORT.ANNUAL PLANT REPORT.

• STRENGTHSTRENGTH

• WEAKNESSWEAKNESS• EMPLOYEMENTEMPLOYEMENT• PROBLEMSPROBLEMS• IMPACT OF BUGDET 2008 IN AUTOMOBILE SECTORIMPACT OF BUGDET 2008 IN AUTOMOBILE SECTOR• WTO IMPACTWTO IMPACT

• CONCLUSIONCONCLUSION



INTRODUCTIONINTRODUCTION

• In the world trade autosector is one of theIn the world trade autosector is one of the

largest segments.largest segments.

• It is the backbone of world’s economy.It is the backbone of world’s economy.

• It is one of the largest segment in worldIt is one of the largest segment in worldtradetrade



• It has excellent world wide growthIt has excellent world wide growth

• There are over 140000 direct There are over 140000 direct

employment opportunitiesemployment opportunities



HISTORY:HISTORY:

• Automotive assembling in PakistanAutomotive assembling in Pakistan

was started in 1950was started in 1950

• A regular car industry was started inA regular car industry was started inthe country in 1983the country in 1983



• Other industries also established inOther industries also established in

1990’s and 20001990’s and 2000

• Remarkable success from last 4 yearsRemarkable success from last 4 years



• The automobile industry in Pakistan can be broadly categorized intoThe automobile industry in Pakistan can be broadly categorized intofollowing segments:following segments:

- Cars and Light Commercial Vehicles (LCVs)- Cars and Light Commercial Vehicles (LCVs)

- Two and Three Wheelers- Two and Three Wheelers- Tractors- Tractors

- Trucks and Buses- Trucks and Buses

- Vendor IndustryVendor Industry

• The industry operates under franchise and technical cooperationThe industry operates under franchise and technical cooperationagreements with Japanese, European and Korean manufacturers.agreements with Japanese, European and Korean manufacturers.



MAIN PRODUCERS IN PAKISTANMAIN PRODUCERS IN PAKISTAN

• SUZUKI MOTORSSUZUKI MOTORS

• HONDA.HONDA.

• TOYOTA.TOYOTA.

• DEEWAN FAROOQUE MOTORS.DEEWAN FAROOQUE MOTORS.

• DAIHATSU.DAIHATSU.



POTENTIAL AND PRESENTPOTENTIAL AND PRESENT

SCENARIO:SCENARIO:

UNITS PROJECTION2012

SUZUKI 80000 250000DEWAN 15000 48000

HONDA 30000 60000

NISSAN 6000 15000

INDUSMOTORS

37000 130000



LINKAGESLINKAGES

• AUTOPARTS INDUSTRY.AUTOPARTS INDUSTRY.

• TYRE INDUSTRY.TYRE INDUSTRY.

• CNG INDUSTRY.CNG INDUSTRY.

• TRACKER SYSTEM.TRACKER SYSTEM.



CONTRIBUTION TO THECONTRIBUTION TO THE

ECONOMY ECONOMY

• The growth of this sector is 168000 The growth of this sector is 168000

• The motorcycles have also shown The motorcycles have also shown

marvelous growth.marvelous growth.

• It is giving great deal of support toIt is giving great deal of support to

the GDP and revenue of the country.the GDP and revenue of the country.



• Last year the industry hasLast year the industry has

contributed a revenue of about Rscontributed a revenue of about Rs

8billion8billion

• GDP =2.8% contributionGDP =2.8% contribution



PRODUCTION AND SALEPRODUCTION AND SALEOF THE PRODUCERSOF THE PRODUCERS











PRODUCTION CAPCITY PRODUCTION CAPCITY

OF THE PRODUCERSOF THE PRODUCERS





STRENGTH:STRENGTH:

• CAPABILITIESCAPABILITIES

• AUTOMOTIVE MANUFACTURERSAUTOMOTIVE MANUFACTURERS

• HUMAN RESOURCESHUMAN RESOURCES



• GROWTHGROWTH

• ENTERPRENEURIAL SKILLSENTERPRENEURIAL SKILLS

• MECHANICAL SKILLSMECHANICAL SKILLS



• EXPORTEXPORT

• SPARE PARTS MARKETSPARE PARTS MARKET

• EMERGING MARKETEMERGING MARKET



WEAKNESSESWEAKNESSES

• No long term policyNo long term policy

• Lack of informationLack of information

• Lack Skilled labourLack Skilled labour



• Lack of well equipped facilitiesLack of well equipped facilities

• Raw materialsRaw materials

• To many regulatory To many regulatory



EMPLOYMENT:EMPLOYMENT:

Name of company

2002 2003 2004 2005

Pak suzukimotors 1130 1109 1378 1723

Indus motors 697 1021 1226 1429

Honda atlascars

470 477 625 1032

Ghandhara

Nissan

88 72 240 255

F d l

bl i



Fundamental problems inFundamental problems in

the automotive sector arethe automotive sector are

as follows:as follows:

• Low volumes / under utilization of Low volumes / under utilization of

capacitycapacity

• High pricesHigh prices

• Slow transfer of technology.Slow transfer of technology.



IMPACT OF BUGDT 2008IMPACT OF BUGDT 2008

ON AUTOMOBILEON AUTOMOBILE

SECTORSECTOR



WTO IMPACTWTO IMPACT

• Pakistan inked WTO in 1995 and it will come into operation on 1stPakistan inked WTO in 1995 and it will come into operation on 1st January 2005. January 2005.

• No tariff regime of WTO will get a huge influx of imported cars thatNo tariff regime of WTO will get a huge influx of imported cars thatwill test real mettle of the industry.will test real mettle of the industry.

• Objections were raised by the EU and IMF over higher protectionObjections were raised by the EU and IMF over higher protection

being enjoyed by Pakistan automobile assemblers.being enjoyed by Pakistan automobile assemblers.• In the year 2005 when WTO came into effect all such tariffs hadIn the year 2005 when WTO came into effect all such tariffs had

already scrapped.already scrapped.

• In nutshell, our auto industry is performing well but not very well.In nutshell, our auto industry is performing well but not very well.

• The challenges for it not only formidable but also warrants its very The challenges for it not only formidable but also warrants its verysurvival.survival.

• The WTO allows only the fittest to survive in a cutthroat worldwide The WTO allows only the fittest to survive in a cutthroat worldwidecompetition.competition.



CONCLUSIONCONCLUSION

• Auto industry in Pakistan has the great potential to generate investment andAuto industry in Pakistan has the great potential to generate investment andopportunities, and can expand its operation to contribute the development of theopportunities, and can expand its operation to contribute the development of theeconomy of the country.economy of the country.

• In future there will be intense competition in the market due to the entrance of In future there will be intense competition in the market due to the entrance of

new companies in the market with many new products.new companies in the market with many new products.

• The current assemblers has the potential to change the auto scenario in Pakistan .The current assemblers has the potential to change the auto scenario in Pakistan .

• But it is crucial for this industry to progress in order to provide consumer withBut it is crucial for this industry to progress in order to provide consumer withhigh quality, low priced locally manufactured products.high quality, low priced locally manufactured products.

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Automobile Industry Stu