Automobile Industry Stu

AUTOMOBILE INDUSTRY

PRESENTED TO: SIR AFAQ ALI KHAN

GROUP MEMBERS ARSALAN PERVAIZ (SP07-BB-0033) SYED KUMAIL RAZA ZAIDI (SP07-BB-0162)

OUR GOAL: • • • • • • • • • • • • • • •

INTRODUCTION TO AUTOMOBILE INDUSTRY HISTORY PRESENT SENARIO MAIN PRODUCERS IN AUTOMOBILE SECTOR LINKAGES OF AUTOMOBILE INDUSTRY CONTRIBUTION IN THE ECONOMY PRODUCTION AND SALE ANNUAL PLANT REPORT. STRENGTH WEAKNESS EMPLOYEMENT PROBLEMS IMPACT OF BUGDET 2008 IN AUTOMOBILE SECTOR WTO IMPACT CONCLUSION

INTRODUCTION • In the world trade autosector is one of the largest segments.

• It is the backbone of world’s economy. • It is one of the largest segment in world trade

• It has excellent world wide growth

• There are over 140000 direct employment opportunities

HISTORY: • Automotive assembling in Pakistan was started in 1950

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

• Other industries also established in 1990’s and 2000

• Remarkable success from last 4 years

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

- Cars and Light Commercial Vehicles (LCVs) - Two and Three Wheelers - Tractors - Trucks and Buses - Vendor Industry

• The industry operates under franchise and technical cooperation

agreements with Japanese, European and Korean manufacturers.

MAIN PRODUCERS IN PAKISTAN • • • • •

SUZUKI MOTORS HONDA. TOYOTA. DEEWAN FAROOQUE MOTORS. DAIHATSU.

POTENTIAL AND PRESENT SCENARIO: UNITS

PROJECTION 2012

SUZUKI

80000

250000

DEWAN

15000

48000

HONDA

30000

60000

NISSAN

6000

15000

INDUS MOTORS

37000

130000

LINKAGES • • • •

AUTOPARTS INDUSTRY. TYRE INDUSTRY. CNG INDUSTRY. TRACKER SYSTEM.

CONTRIBUTION TO THE ECONOMY • The growth of this sector is 168000 • The motorcycles have also shown marvelous growth.

• It is giving great deal of support to

the GDP and revenue of the country.

• Last year the industry has

contributed a revenue of about Rs 8billion

• GDP =2.8% contribution

PRODUCTION AND SALE OF THE PRODUCERS

PRODUCTION CAPCITY OF THE PRODUCERS

STRENGTH: • CAPABILITIES

• AUTOMOTIVE MANUFACTURERS • HUMAN RESOURCES

• GROWTH • ENTERPRENEURIAL SKILLS

• MECHANICAL SKILLS

• EXPORT

• SPARE PARTS MARKET

• EMERGING MARKET

WEAKNESSES • No long term policy

• Lack of information

• Lack Skilled labour

• Lack of well equipped facilities

• Raw materials

• To many regulatory

EMPLOYMENT: Name of company

2002 2003 2004 2005

Pak suzuki motors

1130 1109 1378 1723

Indus motors 697

1021 1226 1429

Honda atlas 470 cars Ghandhara 88 Nissan

477

625

1032

72

240

255

Fundamental problems in the automotive sector are as follows: • Low volumes / under utilization of capacity

• High prices • Slow transfer of technology.

IMPACT OF BUGDT 2008 ON AUTOMOBILE SECTOR

WTO IMPACT • Pakistan inked WTO in 1995 and it will come into operation on 1st • • • • • •

January 2005. No tariff regime of WTO will get a huge influx of imported cars that will test real mettle of the industry. Objections were raised by the EU and IMF over higher protection being enjoyed by Pakistan automobile assemblers. In the year 2005 when WTO came into effect all such tariffs had already scrapped. In nutshell, our auto industry is performing well but not very well. The challenges for it not only formidable but also warrants its very survival. The WTO allows only the fittest to survive in a cutthroat worldwide competition.

CONCLUSION • Auto industry in Pakistan has the great potential to generate investment and

opportunities, and can expand its operation to contribute the development of the economy of the country.

• In future there will be intense competition in the market due to the entrance of new companies in the market with many new products.

• 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 with high quality, low priced locally manufactured products.