Automobile Industry(Significance) 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.
Significance (cont.) 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.
Automobile Industry Of Pakistan
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 cooperation
Pakistan Automotive Manufacturers Association (PAMA) 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.
Pakistan’s Automotive Companies(PAMA’s members) 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. Companies (Cont.)
Companies (Cont.) 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.
Capacity And Production Of All The Automobile In PAKISTAN
CAPACITY & PRODUCTIONOf The Different Companies
Ranking Of World Automotive Industries(Country Wise)
Ranking Of Automotive Industry Of Pakistan(2005-2008)
Imports 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.
Exports 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 Of Pakistan auto industry with the other countries. Comparison with neighbouring country: India.
Different Automotive Companies in INDIA 46 Active companies Consulting Club
Comparison With India’s Automotive Industry Active Companies Annual Production capacity
Comparison(Cont.) Production & Sales
Company Production Comparison 2008 2007
Cars Price Comparison
Automotive Industry Of Japan(Bench-mark ) 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.
Japan(cont.) 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.
Automotive Industry Of China
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.
Automotive Industry Of Iran 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.
Conclusion 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 .
Recommendations 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 .
References Will be given on demand.
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