I was searching for some info about Pak auto industry, and the first few articles I found were a few years old, or maybe I’m not searching correctly, in any case. How’s the auto industry progressing in Pak? What’s happening?
Re: Pakistan Auto Ind
Saba what kind of information are you looking for? Realistically speaking, Pakistan doesnt have an auto industry, since there are no indigenous productions to speak of:) However, there are a lot of licensed productions here. Japanese manufacturers are still at the forefront there, with Honda, Toyota and Suzuki being manufactured locally. Korean automotives are making good headway into the Pakistani auto market as well. BMW has made a limited headway into the Pakistani market as well, as has american Chevrolet, with a couple of models on the roads.
In the heavy vehicles department, chinese trucks are making a strong headway into the market, though the old favorites are still around.
Economically, the auto sector experienced a standstill for a while because of soaring oil prices, but now with more and more models coming out with factory installed CNG kits, they are back on track.
Let me know if theres any specific info youre looking for.
Re: Pakistan Auto Ind
Akif bhai :) I'm trying to understand Pak economy, business strengths etc. In general getting to know Pak from a different angle. So I will probably be posting other threads with similar questions.
Basically I want to know, how much we producing compared to our import. Comparison of quality of homemade vehicles to imported vehicles. An avrg Pakistani's preference. Government initiatives within auto sector and private sector situation.
Weren't we producing those blue motorbikes in Pak, it was a Pak brand no?
Re: Pakistan Auto Ind
Ok I know what youre looking for.
This past year was not good for the auto assemblers with respect to their relationship with the government. The govt. had been putting pressure on auto assemblers to quicken their pace of supplying the market with new models, since consumers have complained for long about delayed deliveries, and high premiums for instant deliveries. The govt threatened the assemblers by thinking of reallowing import of reconditioned vehicles. While that matter is still under consideration, the govt has taken one small step in order to put pressure on the local industry. The custom duty on imported cars has been reduced by I think 30%, which has made it affordable for many people to import cars without paying too much in surcharges. However, this measure stands to affect bigger models only. Pak Suzuki, which is known for its compact, small economical cars, is virtually unaffected by this. But still, the pressure is on from the govt. and the auto assemblers have been forced to expand their production capacities. Such an expansion takes time, and the govt is not willing to wait too long. So currently, theres an air of uncertainty in the auto industry. It will take at least a few months to realize what impact imports will have on the local industry.....whether the number of cars imported on a personal basis will be high enough to cause panic in the industry, or will it be negligible. I think the latter.
Apart from the 3 main auto assemblers (Pak Suzuki, Indus Motors and Atlas Honda), one relatively new entry to the market is Dewan group. Mainly they have been dealing with Kias and Hyundais, but they have also stepped into Mitsubishis and BMWs, which shows that they are quite aggressive in their investment strategy. The impact of that remains to be seen, vis-a-vis the business of Atlas Honda and Indus, makers of Hondas and Toyotas respectively.
It will take a year or so to determine what direction the industry takes, what with the rising oil prices, government restrictions and regulations, and increasing imports. Currently, the industry is at a standstill, and does not seem to experience any immediate growth in its market cap.
The blue motorbikes, I dont know. Pakistan has a couple of motorbike brands in the market, under the 'Star' and 'Pak Hero' brand names, but honestly, they are rip-offs of the ever popular Honda CD-70. The only difference is the use of cheaper parts, resulting in a cheaper price. But those who are after quality, continue to prefer Honda over these local copycat models. There are a couple of chinese rip-offs of the same model in the market as well.
The true direction of the local auto industry cannot be determined unless Pakistan govt encourages indigenous development. Only then can we determine where we stand in competition to the rest of the world. I dont expect us to be at par with international productions right away, but we will have a barometer to work with at least. Right now, its basically subsidiaries for foreign companies fighting it out on Pakistans turf.
Re: Pakistan Auto Ind
Sabah..have you tried business recorder?
most Pak papers can be accessed via http://www.pakistanpapers.com
Do a search though them inidvidually for more info…
Re: Pakistan Auto Ind
Zakk, I checked this site briefly, it'll make more sense once I understand where we stand and background for our development. Thanks for the link though, it'll help me open more threads :o
Akif bhai, so Pak is only assembling these vehicles? Don't we have our own designs or brand names, like the Indian ambassador (the frog car)? Didn't either China or Japan sell us some pattern some time back?
How healthy is our consumer market?
Re: Pakistan Auto Ind
Saba....no, Pakistan does not have any auto manufacturers.....only assemblers. And this is obviously not because we cannot make them. We can definitely make them, and compete with the best in the world. However, both the consumers and government are to blame for lack of indigenous productions. The consumers always go for 'foreign' stuff, and seem to distrust local designs and products. The government doesnt help either, since no subsidies or tax exemptions are provided to any venture capitalist or designer who wishes to venture into this. In the face of high costs, noone takes a chance. A long time ago, a local brand came out, under the brand name Proficient. They mainly competed for the small pickup and medium truck market. Their products were as good as most of the foreign brands, and were cheaper as well. However, because of a lack of cooperation and encouragement from the government, it could not go on for too long.
I dont know if the chinese or Japanese sold us any designs or not, but even if they did, wouldnt that simply be a technology transfer, rather than an indigenous product? Its sad, because a cousin of mine just graduated from a reputed engineering university here, and one of the projects his classmates made was building an electric car. Now if undergraduate students can create such stuff, surely our seasoned engineers can too. So no dearth of talent or potential. Just lack of trust, venture capitalism, and govt. support.
Our consumer market has grown fairly healthy over the past couple of years, but not enough for people to be able to afford new cars. The financial sector has a different way of looking at it. The number of cars being sold by dealers has gone up, no doubt....but we also need to keep in mind the fact that more than half new cars being sold today are being financed by banks. As little as 3-4 years ago, this number was zero. Now with loans being handed down left and right, people are taking risks and are buying cars beyond their means. While this has created an artificial growth in the auto market, it does not automatically mean a healthy economy. The economy is better, but not that better. Consumers are trying to jump forward, rather than run.
Re: Pakistan Auto Ind
akif the rest of the world finances,how does pakistanis financing rather than paying cash create an issue here, as long as the payemnts are within the means of people.
Re: Pakistan Auto Ind
Rebel X.....its a matter of economics, and the ability to sustain such expenses. The per capita income in Pakistan is not nearly enough for people to be able to afford paying at least 50% of their salary as an installment for their car.
To give you a rough example, in the US, average car payments are around $300 a month. Thats about 10% of the average US monthly salary. In Pakistan, average car payments are around 10,000, which is in many cases more than 50% of the financee's monthly salary.
Re: Pakistan Auto Ind
I heard somewhere that Pakistan is launching its first indigenous car soon.... the Adam Revo.. soon to be launched. I think 60-70% of all the parts in the car are Pakistani and it is buit by a 100% Pakistani firm.
Re: Pakistan Auto Ind
Pakistan already launched its first indigenous vehicle.
http://habibmotorcars.com/main.html
Re: Pakistan Auto Ind
http://www.expertsadvisorycell.org/EAC_Publications/PakistanInvestmentGuide/index35.html
saba
it has good article if your press next for more detailed figures and vendors , i think auto indutry include these parts manufecturers too.
Akif saying Pakistan has no auto industry is wrong to say i guess even major part of manfecturing is assembling, but apart from engine, rest of the kit is made by local vendors, who also export parts out of Pakistan.
Re: Pakistan Auto Ind
^ thx for sharing 
Re: Pakistan Auto Ind
^^ u welcome, i hope it will give a statistical data as well.
Re: Pakistan Auto Ind
well - the local wigs heading the assy lines for Jap brands are acting as dacoits, the spares dealers too, All the consortium together are playing con with the local public, e.g. Atlas Honda cars produces a Honda civic of substandard quality and sells it at a whopping 1.2 million rupee mark, while for the same price, a quality mitsubishi lancer (imported CBU from Japan) can be purchased, funny isnt it,
What I see is that the government would soon allow imports cheaply, the effects are showing up nicely like the chevrolet (rebagded daewoo) brand has showed up, BMW and Mini have their agencies here too and a few are on way, The water is getting deeper by the day for the assemblers, and they would be transformed into agencies or do what Gandhara Nissan Motors here are doing; assembling many brands of vehicles, including Land Rover Defender.
Upon questioning they give out reasons for heavy taxations, limited production and all the usual jargon. But fail to answer the question of producing an export quality vehicle.
Same applies for motorcycle assy lines, especially Honda CD-70 and CG125 being produced by Atlas Honda motorcycles, until the introduction of the chinese and local assembled counterparts they priced their assys exorbitantly at 70 and 80 thousand rupees each, now both have come down drastically (with immediate delivery too) due to the war of the brands. The Suzuki and Yamaha players played it clean with quality workmanship and good prices.
Until and unless the “wigs” realize that this is the time of customer delight rather than satisaction - they would encounter waters more rough than a whirlpool.
You can get the idea by comparing prices of India for same cars like - the mitsubishi lancer, the suzuki alto and baleno.
To really see a good auto industry of a small nation - check out Iran with their Iran Khodro Industrial Corporation. http://www.ikco.com they have good products at very good prices.