Topics: Automotive industry, Suzuki, General Motors Pages: 45 (11282 words) Published: May 1, 2014


We would like to thank our teacher, Sir Shahid Hameed, for teaching the course of Analysis of Pakistani Industruies in the interactive manner that he did, for it has instilled the knowledge about the various industries in Pakistan and the political aspect of things very well in us as students. It was a wonderful learning experience for us. We wish you all the best for your future endeavors. We would also like to thank our Institute for this opportunity to study about the industries in Pakistan.

Thank you.

Letter of Transmittal

Mr. Shahid Hameed
Course Instructor – Analysis of Pakistani Industries
Institute of Business Management (IoBM)
Respected Sir,
This is the assigned report for our Analysis of Pakistani Industries course, which we have prepared on the Automobile Industry of Pakistan. This report is being submitted to you on December 12th 2013. Should you have any questions concerning the report, we shall be more than obliged to discuss them with you.

Table of Contents

Executive Summary
This report is all about the present condition and the potential of Pakistan Automobile Industry. With the Overview of the sector we get to know how this industry originated in Pakistan and where it’s leading towards. The evolutionary process is a series of phases that resulted in step by step progression with the passage of years. The three phases brought different situations and conditions all of which lead us towards the Development Phase in which we are still living. Automobile industry, like any other industry in Pakistan holds great potential but it’s presently acting like a sleeping giant. Moving on with the report we discuss about the production process of the automotive operations. Each criterion is elaborated with the help of step by step processes and flow charts. Production statistics, capacity utilization and product mix of the automobile industry is discussed in later stages of the report. A comparative analysis of the companies present in the market is provided in order to determine each company’s position and potential to grow and extend in future. Porter’s five forces model talks about industry competitiveness in terms of various aspects and let us know what events will be favorable and otherwise. Moving towards the end, the report is concluded with major issues being faced by the industry and their solutions. Overall, the report provides an insight as to what can be done to alter the present situation for the benefit of country as whole.

Overview of Pakistan Automobile Industry
Automobile Industry can be considered as an active and growing sector in Pakistan. This particular sector has been struggling for many years now but still it is unable to get to the level of global automotive industries as the yearly production of 100 to 170 thousand units still remain low. Even after considerable production volume, localization of vehicle components and transfer of technology, customers have a very limited number of cars to choose from and only few cars are assembled locally. Automobile sector contributed about 2.7% to GDP in 2007 which is likely to rise up to 5.6% in coming 5 years. And Automobile sector overall contributes 16% to manufacturing sector of Pakistan which is likely to increase to 25% in the coming 7 years. Pakistan’s automotive sector has been showing great progress and is trying to make the most of emerging opportunities. Evolutionary Process of Development:

Afterwards the same plant was used to assemble light trucks, buses and cars. Regulation plays an important role in prosperity of any sector and so it did for Pakistan Auto Industry until early 90s. Once deregulation took place, major Japanese producers entered the market placing local companies in a rough situation. Surprisingly, deregulation became an opportunity for new players to enter into the market and assemblers of...
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