Automotive industry in Pakistan

The Automotive industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries, having a stable annual production of 100-170 thousands only. Despite significant production volumes, there has been no transfer of technology and local manufacture of vehicle components is minimal, only a few car models being assembled in the country. The lack of competition in the local auto industry due to the presence of just three assemblers - and only one small car assembler - has resulted in technological stagnation of the industry; small cars primarily produced by Pak Suzuki, the country's largest auto assembler and a subsidiary of Suzuki Motor Corp., in the country are globally retired models using obsolete technology and not offering any safety features.

Major international brands with operations in Pakistan are:

History

According to Ministry of Industries, Pakistan produced its first vehicle in 1953, at the National Motors Limited, established in Karachi to assemble Bedford Trucks. Subsequently buses, light trucks and cars were assembled in the same plant. The industry was highly regulated until the early 1990s. After deregulation, major Japanese manufacturers entered in the market thereby creating some competition in this sector. Assemblers of HINO Trucks, Suzuki Cars (1984), Mazda Trucks, Toyota (1993) and Honda (1994) in particular, entered once deregulation was introduced. Assembly of Daihatsu and Hyundai cars (1999) and various brands of LCVs and range of mini-trucks commenced recently.

From 1953 to 2011, the journey of auto industry has been rough, tough and sometime very smooth. Car industry saw boom in 2006-2007 when sales touched record peak of 180,834 thanks to rising car financing up to 70-80 per cent by banks due to low interest rates and rising rural buying. Since then the industry has been surviving hard to reach the same sales level amid high interest rates and Yen appreciation against the rupee but high farm income is giving much support to car sales. Good crops this year will keep the car sales brisk despite increase in prices.

The car industry has invested over Rs 20 billion in the last four to five years to meet growing demand. The direct employment in car industry hovers between 5,500-6,000 persons.Motorcycle production hit the country's record level of over 1.5 million units in 2010-2011 by the effort of Pervaiz Musharraf Government's decision that opened bike market to low cost Chinese bikes. Auto sector now employs 192,000 people directly and around 1.2 million indirectly and has Rs 98 billion of investments and contributes Rs 63 billion as indirect tax in the national exchequer.

Auto Sector remains the second largest payer of indirect taxes after the Petroleum Sector. In Pakistan's context there are 10 cars in 1,000 persons which is one of the lowest in the emerging economies which itself speaks of high potential of growth in the auto sector and more so in the car production. Rising per capita income with changing demographic distribution and an anticipated influx of 30 to 40 million young people in the economically active workforce in the next few years provides a stimulus to the industry to expand and grow (Source AUTOMARK Magazine).

In 2007, the automotive industry made up 2.8% of Pakistan's GDP which is likely to increase up to 5.6% in the next 5 years. It currently contributes 16% to the manufacturing sector which is predicted to increase 25% in the next 7 years. Many cars in the country have dual fuel options and run on CNG which is more affordable and cheaper than petrol in the country.


Cars

Pak Suzuki Motors

Pak Suzuki motors is currently the market leader in Pakistan, with over 60% of market share

The firm was founded in September 1982 as a joint venture between the government of Pakistan and Suzuki motor company Japan, formalising the arrangement by which Awami Auto Ltd. had produced the Suzuki SS80 from 1982.[1] Suzuki originally owned 25% of the stock, and have gradually increased their holding; they now own 73.09%.[2] Pak-Suzuki was a joint venture between the state-owned Pakistan Automobile Corporation (PACO), who had earlier overseen local assembly from kits.[3]

Models produced include:

Other models may be imported from Japan & Indonesia.

Honda Atlas

Honda Atlas Cars is a joint venture between Honda Motor Company Limited, Japan and the Atlas Group, Pakistan. The company was incorporated on November 4, 1992 and a joint venture agreement was signed on August 5, 1993. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges. On July 14, 1994, booking of Honda cars started at six dealerships in Karachi, Lahore and Islamabad. Since then, the company has developed twenty one 3S dealers (Sales, Service and Spare Parts) twenty 2S dealers (Service and Spare Parts) and six 1S dealers (Spare Parts) network in all major cities of Pakistan.[6][7]

Models produced include:

Indus Motors

Indus Motors is a joint venture between the House of Habib, Toyota Motor Corporation, Japan (TMC), and Toyota Tsusho Corporation, Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 1, 1990. Indus Motor Company are Manufacturers, assemblers, distributors and importers of Toyota and Daihatsu vehicles, spare parts and accessories in Pakistan.

Models produced include:

Indus Motors also retails the following models imported from Japan:

Commercial vehicles

Al Ghazi Tractors

Al Ghazi Tractors is a commercial vehicle manufacturer in Pakistan. Al-Ghazi Tractors's plant manufacture New Holland tractors and generators in collaboration with Fiat New Holland. Since 1991, Al-Futtaim Group of Dubai has been managing the company by acquiring 50% of its shares. Its corporate Head Office is in Karachi, Pakistan.

Models produced include:

Master Motors

Master Motors is a lorry manufacturer based in Port Qasim, Karachi, Pakistan as a part of the Master Group of Industries. Master Motors signed an agreement with Mitsubishi Fuso Truck and Bus Corporation (Daimler AG has come to hold 85% of the company[8]) to manufacture and assemble Mitsubishi Fuso-based trucks and buses in Pakistan. It has developed into the leading brand in Pakistan in the 3 ton trucks (25% market share) and 31⁄2 and 41⁄2 ton trucks (50% share).

Models produced include:

Motorcycles

Ghani Automobile Industries

Ghani Automobile Industries is a Pakistani manufacturer of motorcycles based in Lahore.

Ghani Automobile is a collaboration of two industrial groups, Ghani Group of Companies & Chongqing Yingang Science and Technology Group Company Limited, and is a public limited company quoted on the stock exchange in Pakistan. Ghani Automobiles is a company of Ghani Group, and is listed on Stock Exchanges. Established in 2004, the company started its commercial production of the two wheelers during 2005. The head office is in Model Town, Lahore, Pakistan while the plant is situated at 49 km Multan Road, Lahore covering an area of approx. 218,000 sq. feet (5 acres).

Models produced include:

Suzuki

Suzuki motorcycles produced in Pakistan include:

See also

References

  1. ↑ 1.0 1.1 1.2 Mazur, Eligiusz, ed. (2006). World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. p. 214. ISSN 1734-2945.
  2. ↑ "History". Pak Suzuki Motor Co. Ltd. Retrieved 2012-12-27.
  3. ↑ "Suzuki considers turning out vehicles in Pakistan". Nihon Keizai Shimbun (Tokyo): 7. 1980-10-07.
  4. ↑ "Suzuki Mehran". Pak Suzuki Motor Co. Ltd. Retrieved 2012-12-27.
  5. ↑
  6. ↑ Honda Cars
  7. ↑ Honda Pakistan
  8. ↑ http://www.mmcl.com.pk/html/about_us.html