http://www.brecorder.com/story.php?id=71130&currPageNo=2&query=&search=&term=&supDate=
Good news. i would like to see more car companies starting their businesses here. More options for the consumers and hopefully lower prices. I also believe that the govt. is not helping the auto industry by levying extremely high taxes.
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In the year 2002-03, the automobile industry contributed 27 billion of rupees to government exchequer and for the running year the figure expected to touch 33 billion of rupees, and for the year 2004-05 the projection figure is 40 billion of rupees
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In the year 2002-03, US $700 million foreign exchange was saved, for the current fiscal year it was expected US $1000 million, which was expected to touch the mark of US $1500 million in 2004-05.
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Those are pretty impressive achievments, and inshallah the many tens of thousands of jobs they are predicting will be created over the coming years.
would that mean an automobile would come within the reach of a working middle class family??
probably not..
This is great. It will mean more jobs. Since most of world trade in in engineered goods, I hope this will translate into exoport.
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*Originally posted by PakistaniAbroad: *
would that mean an automobile would come within the reach of a working middle class family??
probably not..
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huh? Then who's buying all the curores,altos, mehrans, cultus's, khybers?
do you know how much it costs to buy one of these and how it comapres with the average income of a middle class Pakistani?
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*Originally posted by PakistaniAbroad: *
do you know how much it costs to buy one of these and how it comapres with the average income of a middle class Pakistani?
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Around 300,000 to 600,000.
I don't know how it compares with the avg. income of a middle class family but the financing/leasing a car is so easy these days that just abt everyone who is employed with a reasonable income can get one.
[QUOTE]
*Originally posted by PakistaniAbroad: *
do you know how much it costs to buy one of these and how it comapres with the average income of a middle class Pakistani?
[/QUOTE]
well middle class in uk or Eu cant buy a new car on cash in most cases.
and its same in pakistan.
what will happen, more new cars, more models, people who tend to buy new one will replace quickly, and the used ones will be offered more and more to middle classes.
this will drag the prices down and hence making it affordable and in reach of more people.
More good news all over for Pakistani’s Auto industry.
http://www.dailytimes.com.pk/default.asp?page=story_21-1-2004_pg5_9
Auto sales, production soar in H1, demand to persist in H2
The automobile sector has shown an impressive performance in the first half of the current fiscal year as car sales soared 73 percent while motorbike sales rose 79 percent and tractor sales climbed 57 percent. Likewise, the production of cars in the last six months of 2003-04 rose by 71 percent followed by a 50 percent increase in tractors and 75 percent in motorbikes. “Growing sales and production of automobiles show that the economy is on the path of recovery,” said Arshad Arif, head of research at KASB Securities, a local brokerage house. Mr Arshad said the boom in the auto sector is continuing, which will make listed auto companies more attractive for further investment. According to data compiled by Pakistan Automobile Manufacturers Association (PAMA), a total of 43,706 cars, including Toyota, Honda, Suzuki, Hyundai Santro, Kia Spectra and Daihatsu Cuore, were rolled out in July-December period, compared to 25,531 units in the same period last year. Similarly, 43,345 cars were sold during the period under review, against 25,032 units last year. Abdul Azeem, an auto sector analyst at Invest Capital Securities, said demand for passenger cars remained high as customers and large companies opted to buy new cars due to record low auto financing rates offered by banks and leasing companies. Consequently, car manufacturers have increased their capacity utilization to meet rising demand, Mr Azeem said. Premiums ease: He said premiums charged on new models by authorized dealers remained lower than usual during the last six months. “The rate of premium eased on various models including the newly introduced model of Honda City,” Mr Azeem said. A premium of Rs 70,000 is currently being charged on Honda City while premium on Toyota Corrolla is in the range of Rs 50,000 to Rs 60,000, he added. PAMA figures show that a total of 9,667 Corolla were manufactured and 9,333 were sold during July-December period. Sales of Suzuki Mehran peaked to 12,729, followed by Cultus to 5,224 while Suzuki Alto 1000cc sales rose to 3,087 units. Honda Atlas produced 2,677 units of its Civic model and sold 2,685 units. Some 2,928 units of the newly introduced Honda City were produced and 2,846 were sold during the period under review.
Local auto assemblers produced and sold 17,296 and 16,914 units of 1,300 cc to 1,600 cc respectively in first half of current fiscal. A total of 11,051 units were produced and 11,220 were sold of 1000 cc whereas in 800 cc category 15,359 units were produced and 15,211 units were sold. Two-Wheelers: The sales and production of motorbikes rose 79 percent and 75 percent respectively. Production and sales stood at 137,503 and 137,749 units, respectively in the first half as compared to 78,503 and 76,939 same period last year. Three Chinese companies became PAMA members, breaking the domination by Japanese bike assemblers like Honda, Yamaha and Suzuki. The local industry has already been facing stiff competition from seven Chinese bike assemblers. The motorcycle market has seen a phenomenal change in the last one-and-a-half years following the entry of Chinese bike makers in the market. It gave customers a variety of choice to buy a two-wheeler at prices ranging between Rs 37,000 and Rs 42,000 compared with Japanese bikes that are being sold in a range of Rs 58,000 to Rs 73,000. Honda remained top in terms of sales and production as it manufactured 90,507 units and sold 90,264 units followed by Yamaha, which produced and sold 20,577 and 20,683 units, respectively. Bus and Trucks: Production and sales of trucks (Hino, Nissan and Mazda) jumped to 1,591 and 1,519 units, respectively. Local assemblers produced 645 buses and sold 626 units while 946 trucks were produced and 893 were sold. Hino remained a leader in large vehicle market as it produced 516 and sold 495 units in July-December 2003 followed by Nissan, which produced 380 and sold 365 units. Ali Sibtain, an auto sector analyst at Elixir Securities, linked the rise in bus production to rising sales of buses under urban transport scheme in Punjab. He said bus sales might increase in coming months as Sindh has also introduced a similar transport scheme. Sindh Engineering, maker of Mazda trucks, has entered into an agreement with a leading Chinese truck assembler, Dong Feng, to introduce Chinese trucks to replace Mazda. LCVs and Tractors: Production and sales of light commercial vehicles (LCVs), including Potohar, Bolan, Ravi, Hilux and Shehzore increased to 6,162 and 6,012 units, respectively. Production and sales of tractors (Al-Ghazi Fiat and Millat MF) increased 50 and 57 percent to 16,309 and 16,205 units respectively in last six months as compared to 10,896 and 10,380 units in the corresponding period last year.
Auto shares soar: With impressive growth in the auto sector, auto companies’ share prices witnessed tremendous growth in the last six months. Pak Suzuki’s share was trading in June 2003 at Rs 99, which is now at Rs 159.10 whereas share price of Indus Motors surged to Rs 128.75 showing an increase of Rs 56.50 followed by Honda Atlas whose share rose to Rs 82 from Rs 27.55 in the first half year of current fiscal. Market analysts believe growth in car demand may persist in the second half of fiscal year as well keeping in view current booking trends. New arrivals: Ahead of a deadline to open the local market by the start of 2005 under the WTO agreement, the auto sector is witnessing many changes in shape of arrival of foreign cars. Chevrolet 800cc car from Korea has recently hit the market despite no cut in import duty on small cars in the last budget. Analysts say the market is already abuzz with news of arrival of Chinese 600-800cc cars in the future. “It will be difficult for Pakistan to get a three-year extension from WTO for its auto sector,” Mr Sibtain said and added that the international financial institutions had granted five years to developing nations to get 100 percent deletion but Pakistan has yet to reach that level.