Pakistan Automobile Industry

Presented to:
Sir. Afaq Ali Khan

Presented by:
Saad Khalid
Furqan Asif Hafeez Khan
 INTRODUCTION
(getting started)

 First Automobile Plant of Pakistan was developed in 1953 with the name
of National Motors which was established by General Motors of USA.

 At present there are 19 automobile manufacturing units which are

involved in assembling and manufacturing business.
 INTRODUCTION
S.No Manufacturers Name
1 Al-Ghazi Tractors Ltd.
2 Atlas Honda Ltd.
3 Dawood Yamaha Ltd.
4 Dewan Farooque Motors Ltd.
5 Fateh Motors Ltd.
6 Ghandhara Industries Ltd.
7 Ghandhara Nissan Ltd.
8 Hinopak Motors Ltd.
9 Honda Atlas Car Pak. Ltd.
10 Indus Motor Co. Ltd.
11 Master Motor Corporation Ltd.
12 Millat Tractors Ltd.
13 Pak Suzuki
Pakistan Cycle Industries
14 Cooperative Society Ltd.
15 Plum Qinggi Motors Ltd.
16 Sigma Motors (Pvt) Ltd.
17 Sind Engineering Ltd.
18 Suzuki Motorcycles Ltd
19 VPL Ltd.
 SECTOR OVERVIEW

 There are presently 82 vehicle assemblers in the industry

producing passenger cars, light commercial vehicles, trucks,
buses, tractors and 2/3 wheelers.
The total direct employment in the sector is over 192,000 with a
total investment of over Rs.98 billion.
The auto industry of Pakistan has played a significant role in the
large scale manufacturing industry as it contributes $3.6 billion to
the economy besides import substitution resulting in annual
foreign exchange savings of over $ 1 billion.
 AUTOMOBILE

COMMERCIAL
2 WHEELER 3 WHEELER PASSENGER VEHICLE
VEHICLE

I.C.V. M.C.V. H.C.V.

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS

 CAPACITY AND PRODUCTION
Product Capacity Production
(2008-2009)

CARS & LCV 215,000 193,695

HCV & Buses 15,000 5,343

Tractors 50,000 48,887

Motorcycles 925,000 520,124

SOURCE (PAMA)
2008-09 2008-09

2007-08 2007-08

2006-07 2006-07

2005-06 2005-06 FARM TRACTOR

SUV's
2004-05 2004-05
PICK-UP / LCV
2003-04 2003-04
Jeep & LCV,  

2002-03 2002-03 BUS

TRUCK
2001-02 2001-02
MOTORCYCLE
2000-01
2000-01 CAR
1999-00
1999-00
1998-99
1998-99
1997-98
1997-98
1996-97
1996-07
1995-96
1995-96
0 100000 200000 300000 400000 500000 600000 700000
Source: PAMA

ANNUAL PRODUCTION CAPACITY

CARS Annual Production Capacity
Pak Suzuki Motor Co. Ltd. 68,000
Indus Motor Co. Ltd. 34,000
Honda Atlas Cars (Pakistan) Ltd. 30,000
Dewan Farooque Motors Ltd. 15,000
Ghandhara Nissan Ltd. 6,000
TRUCKS
Hinopak Motors Ltd. 10,000
Ghandhara Industries Ltd.  3,000
Sind Engineering Ltd. 3,000
VPL Limited   500

Master Motor Corporation Ltd. 8,050

 ANNUAL PRODUCTION CAPACITY
BUSES Annual Production Capacity
Hinopak Motors Ltd. 2,000
Sind Engineering Ltd. 1,000
Ghandhara Industries Ltd. 1,800
Ghandhara Nissan Ltd. -
TRACTORS
Al-Ghazi Tractors Ltd. 25,000
Millat Tractors Ltd. 25,000
MOTORCYCLES
Atlas Honda Ltd. 400,000
Dawood Yamaha Ltd. 200,000
Suzuki Motorcycles Pakistan Ltd. 65,000
Saigols Qingqi Motors Ltd. 100,000
Pakistan Cycle Industrial Cooperative 42,000
 Society Ltd. (Sohrab)

Source: PAMA
MARKET SHARE
 HISTORY
 During the early days only few car models assembled in the
country and customers had very small variety of vehicles to
choose from, until the year 2000 there was lack of
competition in Auto industry due to the dominance of few
players.

 CNG (compressed natural gas) was started to use commonly

since 2002 and now most cars in the country have dual fuel
options that can run on cng as well as petrol which is more
affordable.

 Restriction in import in term of heavy duties have resulted

very high prices of cars in Pakistan.
 HISTORY
 Since the industry developed Suzuki has been enjoying the
position as market leader in small car segment, Suzuki
commenced production in 1983 eyeing the small car segment
800cc to 1000cc, while Honda and Toyota compete for the
high price segment of the market.

 The industry continued to be regulated until early 1990”s after

deregulization major Japanese manufacturer entered the
Pakistani market to produce locally.
 HISTORY
 Despite deteriorating air quality in various Pakistani cities
reaching dangerous level, most car produced in Pakistan still
utilize decades old carburetor based engines which have
been faced out from world for quite some time.

 The world is now focusing on implementing EURO V emission

standards, Pakistan has failed to adopt even EURO II emission
standards as of DEC 2009, it has missed the earlier deadline,
which was july 1, 2008 for euro II compliance and a new
deadline was set on july 1, 2009 which has yet been missed
again.
 Development during (1949 – 1970)
Getting the basics

• 1953: Exide battery started production.

• 1961: Precision auto parts manufacturing started at Allwin Engineering.

• 1962: Bedford Truck assembling started at Ghandara Motors

• 1963: General Tyres & Rubber Company started production in Karachi.

• 1964: Ghandara Industries launched Localization Plant for Bedford Trucks.

• 1965: Specialized Vehicles Production at Jaffer Industries.

Source: PAMA
 Development during (1970 – 1980)
Nationalization

• 1972: Pakistan Automobile Corporation (PACO) formed.

• Ali Autos renamed Awami Autos
• Wazir Ali Engineering renamed Sindh Engineering
• Haroon Industries Renamed Republic Motors
• Ghandara Motors renamed National Motors
• Kandawala Industries renamed Naya Daur Motors
• Tractor Corporation of Pakistan formed.

• 1974: Yamaha Motor Cycle launched by Dawood Yamaha

Source: PAMA
 Development during (1970 – 1980)
Nationalization

• 1974: Diesel Engines manufacturing started at Bela Engineering.

• 1976: Suzuki Motor Cycle introduced by Sindh Engineering.
• 1977: Kawasaki Motor Cycle introduced by Saif Nadeem Kawasaki.
• Suzuki Jeep introduced by Naya Daur Motors. 

• 1978: Plastic parts manufacturing at SPEL

• 1980: Suzuki Pickups introduced by Awami Autos,
• Mazda Truck introduced by Sindh Engineering

• Project approved for production of wheel Rims at Balochistan Wheels

under TAA with GKN-Sankey.

Source: PAMA
 Development during (1980 – 1990)
Gearing-up

• 1981: Wire Harness production at Ayenbee

• Production of Specialized Auto Parts at Agriauto Industries. 
• 1982: Suzuki Cars production started by Pak Suzuki.
• 1983: Fiat Tractors introduced by Al-Ghazi Tractors
• Vendor Development & Technical Cell (VDTC) formed.
• 1986: Hinopak Motors Limited formed as joint venture company
between PACO, Al-Futtaim, Hino Motors & TTC.
• 1987: Production of Nissan Diesel Trucks by Ghandara Nissan.
• 1988: Pakistan Association of Auto Parts and Accessories Manufacturers
(PAAPAM) was formed. 
• 1989: Second car plant sanctioned by the (Indus Motor Company).

Source: PAMA
 Development during (1990 – 2000)
First Waves
• 1992: Privatization of Pak Suzuki Motor Co. 
• 1993: Production of Toyota Corolla by Indus Motor Company
Limited
• First export of Buses and Trailers by Hinopak Motors Limited.  
• 1994: Production of Honda Civic by Honda Atlas Cars Pak Ltd.
• Import of Vehicles under Yellow Cab Scheme.
• Pakistan Automotive Manufacturers Association (PAMA) was
formed.
• 1995: Engineering Development Board (EDB) formed First PAP
Show in Islamabad.
• 1996: First Industry Specific Deletion Programme (ISSDP) printed
for the period up to 2001. 
• 1997: VDTC renamed AT & TC.
• Second PAP Show held in Lahore.

Source: PAMA
 Development during (1990 – 2000)
First Waves

• 1998: Export of Light Commercial Vehicles by Pak Suzuki Motor Company.

• Saigol Quingqi starts production of motorcycles with Chinese
collaboration.

• 1999: Dewan Farooque Motors starts production of Korean Pickup

named Shahzore.
• Hinopak Motors Ltd. taken over by Hino Motors and TTC of Japan.

• 2000: 3rd PAP Show in Karachi.

• Raja Motors starts production of UNO Cars.
• Production of Daihatsu vehicles by Indus Motor Company Ltd.

Source: PAMA
 CURRENT SCENARIO
 So far Pak Suzuki, Honda Atlas and Indus Motors have
been dominating market.

 Competition increased in the market with the entrance

of Dewan Farooque, Daihatsu and Hundai motors with
number of new product lines, this intense competition
has totally changed the Auto industry sector in Pakistan.
 CURRENT SCENARIO
 Auto mobile market has become more competitive in
recent years as new players are going to introduce
their products in the market.

 Daihatsu has launched its 850cc Coure, Dewan

Farooque has launched its Kia Classic 1300CC and
Hundai Santro 1000CC.
 CURRENT SCENARIO
 The sudden competition in small car pose challenge
for Pak Suzuki, the former loan player in the market
and to other leading names as well like Honda and
Toyota.
 In the future Dewan Farooque will offer the widest
range of products in the domestic auto mobile
market due to signing Technical Agreements with
Hundai motors company and Kia motors corporation
in DEC 2000 as the manufacturer and distributor of
Hundai and Kia motors to bring in korean technology
in the country.
 TREND OF LOCALIZATION
 The trend of localization is experienced at large in the
industry, so far level of localization of parts is
majority confined to small parts, the localization of
high tech and major engineering parts is not so much
developed, the industry local content in small car is
over 60% and 40% in the larger vehicles.

 Increased in deletion level and entrance of local

manufacturers in industry are the healthy signs for
future progress in Pakistan.
 VENDING INDUSTRY
 With the process of localization, vending industry is
also contributing its share in the revenue and
creating employment although the vending industry
in Pakistan is to be further modified to compete the
challenges of competition.

 The vending industries are providing jobs to about

more than then 13500 peoples, the total
contribution of vending industry to gdp (gross
domestic product) is about 23 billion.
 COMPANY WISE VENDORS
INFORMATION
Name of industry TOTAL VENDORS TOTAL DELETION NO. OF PARTS
TECHNICAL STATUS LOCALIZED
COLLABORATION

INDUS MOTORS 61 13 42.10% 740

PAK SUZUKI 180 15 66.10% 1,749

HONDA ATLAS 59 17 42.40% 699

CARS

SOURCE
(annual reports
and industry)
 THE PLAYERS, MAJOR
CONTRIBUTORS IN THE
AUTO INDUSTRY
 PAK SUZUKI MOTORS
 INDUS MOTORS
 ATLAS HONDA
 DEWAN FAROOQUE
 HINO PAK MOTORS
 PAK SUZUKI
 
 Pak suzuki motors ltd. Is a company assembling and
distributing suzuki Japan's cars in Pakistan. Currently
they are one of the most successful motor
companies in Pakistan.

 The firm was founded in 1983 as a joint venture

between Pakistan and suzuki, the company now
assembles a wide range of suzuki vehicles and aims
to produce 150,000 vehicles per year.
PAK SUZUKI PRODUCT LINE UP
A) PAK SUZUKI CARS LINE UP
 1) Mehran
 2) Bolan
 3) Baleno
 4) Swift
 5) Alto
 6) Cultus
 7) liana
 8) Jimny

B) PAK SUZUKI MOTOR BIKES LINE UP

 1) sprinter
 2) sprinter eco
Suzuki
 INDUS MOTORS
 Indus Motor Company (IMC) is a joint venture between the
house of habib, Toyota Motor Corporation (TMC) and Toyota
Tsusho Corporation Japan (TTC) for assembling manufacturing
and marketing of Toyota vehicles in Pakistan since 01 july,
1990.

 Indus Motor Company is engaged in sole distributorship of

Toyota and Daihatsu Motor Company Limited vehicles in
Pakistan. Indus Motor company's plant is the only
manufacturing site in the world where both Toyota and
Daihatsu brands are being manufactured. Indus Motor
Company production facilities are located at Port Bin Qasim
Industrial Zone near Karachi.
 INDUS MOTOR PRODUCT LINE UP
A) TOYOTA CARS LINE UP
 1) Corolla
 2) Corolla 2.OD
 2) Toyota IMV or Hilux

B) DAIHATSU CARS LINE UP

 1) Daihtsu cuore

C) TOYOTA IMPORTED VEHICLES

 1) Land cruiser
 2) Camry
 3) Rav 4
Toyota
Toyota
 HONDA ATLAS
 The Atlas Group is a diversified dealing in engineering. The
Atlas Group was laid in 1962, with the establishment of Shirazi
Investments (Private) limited.

 The Atlas Honda Limited is a joint venture between the Atlas

Group and Honda Motor Company, Japan. The Atlas Honda
was created by the merger of Panjdarya Limited and Atlas
Autos limited.

 Atlas Honda are also manufacturers hi-tech components like

genarators in collaboration with leading parts manufacturers
Nippon Denso and toyo Denso.
 HONDA ATLAS PRODUCT LINE UP
A) HONDA CARS LINE UP
 1) Civic 1.8i vvtec (prosmatec)
 2) City (steermatec)

B) HONDA MOTOR BIKES LINE UP

 1) Cd 70
 2) Cd100
 3) Cg125
 4) Cg125 (deluxe)

 C) HONDA IMPORTED VEHICLES

 1) S200
 2) Accord
 3) Insight
 4) Fits
Honda
 DEWAN FAROOQUE
 Dewan Farooque Motors Limited (DFML) was
established in 1998, it is fully owned by the local
Pakistani investors showing the commitment of
(DFML) with the people of Pakistan, (DFML) is
amongst the top ranking business houses of the
country.

 (DFML) brings in korean technology to the country

by acquiring Hyundai Motor Company and Kia
Motors Company, Their plant is located at Sujawal
around 145 kilometers from Karachi in southern
Pakistan.
 DEWAN FAROOQUE PRODUCT
LINE UP
A) HUNDAI CARS LINE UP
 1) Santro club

B) KIA CARS LINE UP

 1) Spectra
 3) Classic

C) IMPORTED VEHICLES
 1) Sonata
 2) Sportage
Dewan Farooque
Dewan M. Yousuf Farooqui
 HINO PAK MOTORS
 Hinopak Motors Limited was formed in 1985 by a diverse
group of sponsors, These include Hino Motors and Toyota
Tsusho Corporation.
 Hinopak Motors assembles, manufactures and market Hino
diesel trucks and buses in Pakistan. It has gained 70% market
share making (HCV) making it the largest manufacturer in
medium and heavy truck and bus industry in Pakistan.
 The company has held the top position in domestic market
for (HCV) and (MCV) for 17 consecutive years and is highly
acclaimed for quality.
 HINO PAK PRODUCT LINE UP
A) HINOPAK TRUCKS

 1) FB113KA-A 4X2 multipurpose loads upto 5 tons.

 2)FF3HKKA-A 4X2 loads up to 15.5 tons.

B) HINOPAK BUSES

 1 ) Roadliner Grand Cruiser - A/c Luxury bus with seating capacity of 46.
 2 ) Citiliner - Inter-city and Urban Bus with 45 to 63 passenger seats.
 3 ) Rapidliner - Standard Coach with 29 seats.
 4 ) Metroliner - A/c luxury coach with 23 seats.
Hino Pak
CARS 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

Honda 3,928 4,744 5,824 8,001 8,396 13,415 24,130 29,880 16,071 14,033 11,740

Daihatsu ~ 1,353 3,304 2,845 4,580 6,468 8,525 7,883 12,786 12,406 5,803
Hyundai ~ 599 3,937 1,667 3,114 7,902 6,101 8,604 2,225 2,028 327

Kia 0 890 1,784 2,091 843 261 466 0 0 0 0

Nissan 481 83 319 81 51 26 0 0 0 0 0

Suzuki 30,149 18,958 17,902 22,231 36,587 55,065 71,493 93,026 109,898 102,571 39,384

Toyota 8,369 8,705 8,486 5,763 12,861 20,525 23,007 31,094 35,036 33,672 27,054

Total Production 42,927 35,332 41,556 42,679 66,432 103,662 133,722 170,487 176,016 164,710 84,308

MOTORCYCLE 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09
Hero ~ ~ ~ ~ ~ ~ ~ 34,018 25,798 22,519 21,038
Honda 59,639 59,357 78,397 90,111 115,924 190,679 287,271 360,561 331,621 452,791 349,525
Qingqi (2 & 3 W) ~ ~ ~ ~ 10,064 19,007 15,801 17,198 15,926 26,831 10,616
Ravi ~ ~ ~ ~ ~ ~ ~ ~ ~ 23,032 18,243
Sazgar (Triwheeler) ~ ~ ~ ~ ~ ~ ~ ~ ~ 9,779 4,690
Sohrab ~ ~ ~ ~ 6,801 12,396 12,065 14,804 7,514 6,073 6,966
Sohrab (Triwheeler) ~ ~ ~ ~ 1,343 3,031 3,258 2,166 2,817 1,972 1,732
Suzuki 4,430 4,154 7,454 8,072 13,610 27,863 26,234 16,954 27,309 33,780 14,592
Yamaha 23,435 23,448 22,999 22,444 27,427 50,407 71,560 74,423 56,282 64,254 66,190
Total Production 87,504 86,959 108,850 120,627 175,169 303,383 416,189 520,124 467,267 641,031 493,592
 TAXATION POLICY
 The government's taxation policy too has been in question
from time to time since it appears that whatever government
comes to power uses the taxation policy as a tool to subjugate
the industrialists.

 Ever since the announcement of this year's budget, increase

in the prices of passenger cars and other vehicles is the most
favorite topic of discussion in many circles including the
industry itself. The local manufacturers keep blaming the
policy-makers for imposing heavy taxes and duties while the
government keeps shrugging its shoulders which means they
cannot help it, the overall result is low as compared to last
year which means much lesser development in the industry as
a whole.
 TAXATION POLICY
 In 1995, the formulas for taxes on import of
completely knocked down (CKD) and completely
built-up (CBU) units of vehicles were simplified.

 All the previous import taxes and duties were rolled

into one import duty of 30% on CKD kits as well as
assembled vehicles. A sales tax of 15% is charged on
the total of the cost, insurance and freight value and
import duty.
 TAXATION POLICY
 For taxation purposes, the CBU passenger cars have
been categorized into four groups.

 The import duty charged at CBU starts at 100% and

increases with the engine size for passenger cars
while in the case of commercial vehicles it is fixed at
60%.

 1000cc are in one group, 1300cc ,1800cc and above

1800cc respectively.
 
TAXATION POLICY
 The CVT rates recently introduced to the automobiles sector
were categorized on the basis of tax-payers and non-tax-
payers and according to the capacity of the vehicle.

 A non tax payer planning to buy a car of up to 800cc will have

to pay 2.5% and vehicles of up to 1000cc are subjected to
7.5% CVT for non-tax-payer while tax-payers are still
exempted from this tax. Vehicles falling between 1000cc and
1300cc are subjected to 10% Capital Value Tax in case of non-
tax-payers and two per cent for tax-payers. A 12.5% CVT is to
be paid in case of non tax payers and 4% in case of tax-payers
in the 1300cc-1600cc cars category where as for vehicles
above 1600cc, the CVT is fixed at 15% for non-tax-payers and
6% for tax-payers. 
 PAMA - Pakistan Automotive &
Accessories Manufacturers Association

 Pakistan Automotive Parts and Accessories

Manufacturers Association (PAAMA) was established
in 1988. The main purpose of this association is to
safeguard the vendors industry.

 The main purpose of this association is to safe guard

Pakistan vending industry and provide financial and
technical assistance to its members.
 PAMA - Pakistan Automotive Manufacturers
Association – The Members Body
S.No Name
1 Pak Suzuki Motor Company Ltd.
2 Indus Motor Company Ltd.
3 Honda Atlas Cars (Pakistan) Ltd.
4 Dewan Farooque Motors Ltd.
5 Sigma Motors (Pvt) Ltd.
6 Hinopak Motors Ltd
7 Ghandhara Nissan Ltd
8 Sind Engineering Ltd.
9 Ghandhara Industries Ltd.
10 Master Motor Corporation Ltd.
11 Millat Tractors Ltd.
12 Dewan Automotive Engineering Ltd.
13 Atlas Honda Ltd.
14 DYL Motorcycles Ltd.
16 Pakistan Cycle Industrial Cooperative Society Ltd.
17 PLUM Qingqi Motors Ltd
18 FATEH Motors LTD.
19 HKF Engineering Pvt. Ltd.
20 Sazgar Engineering Works Ltd.
 REVENUE TO THE GDP
 Pakistan is an emerging market for automobiles and
automotive parts which offers immense business and
investment opportunities.
 The total contribution of Auto industry to GDP in
2008 was 3.5% which is likely to increase up to 5.6%
in the next 5 years. Auto sector presently contributes
16% to the manufacturing sector which also is
expected to increase 25% in the next 7 years.
 Last year industry has contributed a revenue of Rs 7
billion and if the vendors are also included the
amount will be over 10 billion.
 SWOT ANALYSIS
STRENGTH
 The most striking issue in today's auto industry is the
emergence of new competitors in the market which
is definitely a major cause to change the auto
industry scenario in Pakistan.

 Increased deletion level and entrance of local

manufacturers in Auto industry are the healthy sign
for the future progress of auto industry in Pakistan, it
has been attracting investments and has the
potential to attract future investments.
 SWOT ANALYSIS
WEAKNESSES
 The automobile industry in the country has
not been developed according to the country's
demand for road vehicles.

 Several industrial units were set up but

vanished after some time due to unplanned
development and manipulations of the foreign
principals on whom the locals were very much
dependent.
 SWOT ANALYSIS
OPPORTUNITIES
 There has been some encouraging development in
the recent years. According to reports more than 80
billion rupees have been invested in the industry,
particularly its mechanical equipment sector where
more than 175,000 workers are employed.

 The output of the industry has been fluctuating from

year to year though it has been on the increasing
side during last few years.
 SWOT ANALYSIS
THREATS  
 Like other industries, the development of automobile
industry too depended on persistent government
policies. Any sudden changes in the official priorities
certainly affects the long-term planning of an
industrial sector.

 In last 10 years the auto industry has experienced 26

policy changes and duty tariff have taken place, the
production is still very slow due to the political and
economic reasons.
 RECOMMENDATIONS
 A consistent policy should be declared by the
Government for at least 7-10 years in order to make
the local manufacturer more focused and more
certain.

 The custom duty on CKD and CBU vehicles be

maintained.

 The current used car policy which discourages

trading should be maintained. 
 RECOMMENDATIONS

 Deletion level should be increased specially of high

tech and major engineering parts. 

 Volume of production should be increased in order to

achieve the economies of scale. Localization should
be increased and investments should be made to
increase localization.
 
 GOVERNMENTS ROLE
 Pakistan has not as much established to figure in the
prominent list of the top automotive industries yet.

 Surprisingly, despite its large size in terms of production

volume, only a few car models are assembled in the
country and customers have a very small variety of vehicles
to choose from.
 GOVERNMENTS ROLE
 Currently we are consuming Oil and Gas in transportation
at a record pace and if the trend continues we will be only
increasing the Oil import and air pollution adds-up as well.

 The introduction of CNG to the local market increased the

sales of automobiles sky-high, the local producers were not
prepared for this kind of response.

 At one point in 08-09 the demand was very high and there
was shortage of 15,000-20,000 units to fill the gap between
supply and demand.
 GOVERNMENTS ROLE
 Premium on locally-assembled cars is still flying high between PKR
25,000 – 35,000 depending on the models. Besides there had been
no change in the delivery period of cars which was ranging between
two months to six months.

 No strict action has been taken by the government so far to redress

the leasing car finance system.

 Over 60 % cars were mainly being sold through leasing finance

against 25 % through cash.

 This created a bubble which had to blast one day and it did with the
global market contraction/ recession. This also caused the excess jobs
that were created in the result of the bubble.
 GOVERNMENTS ROLE
 In the previous slides we have discussed the affordability
factor, that the automobile industry is not currently offering
any suitable mobile vehicles for an average citizen.

 Now lets have a look at the other mediums of traveling that

are offered to an average citizen of Pakistan.

 These are the most used and most ignored mediums at the
same time as there has been very little/ no development or
improvement.
 MEDIUMS TO TRAVEL
Motorcycles:

 This medium holds 60% of the total traffic on any road of Pakistan,
this is the ride which is used by the lower and lower-middle class of
our country.

 Bikes are economical and they are a great way of traveling saving
money and the hassle of getting stuck in the traffic.

 Bikes have proven to be the low cost and less painful traveling facility
as compared to the other traveling mediums available to an average
citizen of the country.
 GOVERNMENTS ROLE
 Pakistan has recently lost a proposed investment of $150 million by Japanese giant
Yamaha Motors because of its unclear automobile policy.

 Yamaha Motors had shown keen interest in manufacturing motorcycles and their
engines in Pakistan with an investment of $150 million.

 In the wake of the investment, 25,000 Pakistani engineers and technicians could
get jobs in the automobile industry.

 Policy-makers always include four-wheel and two-wheel vehicles in the policy but
Pakistan’s policy only covers four-wheelers. This is the reason that it is not feasible
for any foreign company to manufacture bikes in Pakistan.

 Yamaha requested Pakistan to include two-wheelers in the automobile policy and

allow foreign vehicle-makers to come and invest, but to no avail.
 MEDIUMS TO TRAVEL
Local Transport:
 Busses and Wagons/ local transport facilities are the back-bone of
any Mega City like Karachi.

 We must accept that our backbone has not been developed and
strengthened per the requirement of the city and the increasing
population.

 Since the time that the Local Transport Services were privatized, the
government got an easy getaway from the accountability of taking
any responsibility of the matter.

 Until recently; when the CNG busses were announced to be

introduced in Karachi by the efforts of CDGK. These are also hardly
seen on the roads.
 GOVERNMENTS ROLE
Local Transport:
 Apart from the regular issues of overloading, slow busses and having
no one to hold the busses and their drivers in any kind of process…

 We face another issue of having to stand on the main road with

running traffic around us and the sun shining straight at our heads,
this adds-up to the already mesmerizing experience of traveling in
Local Transport Service.

 Recently CDGK has started to install the new and very good looking
canopy bus stands with ample space to advertise as well.
 GOVERNMENTS ROLE
Roads:
 Until the early 2000’s the overall situation of specifically Karachi and
other big cities was not very well or it’ll be safe to say that we were
not known for any initiative which is taken for the betterment of the
municipal.

 Today we can see a lot of new roads, bridges and underpasses.

 The construction of the northern bypass and link road are namely the
big projects which have given us some individuality and our
government some respect in the municipal role that they are liable to
serve.
 R&D/ TECHNOLOGY
IMPROVEMENT
 Governments lack of interest also affects our R&D in the Automobiles
filed (as our market has hardly ever contributed in the betterment of
the technology).

 There are hardly any efforts to highlight the new breed of youngsters
who are interested in the field and are willing to devote their careers
to the industry.

 The existing technology is simply serving the purpose for few, who
can afford to buy a 1000cc car starting at minimum PKR 419,000. This
means that the lower and lower-middle class cannot afford to buy
even the lowest of the line car.
 ALTERNATIVES
 Following are the technologies that are in different stages of
development and research by different international institutions,
searching for alternatives to the current fuel used:
Fuel Substitution Status
1. Improved Gasoline and Diesel Fuel Within current refining techniques
Demonstration fleets
2. Natural Gas and LPG Field trials
Fuels commercially available
Demonstration fleets
3. Alcohol Fuels (in an ICE) Field trials in large vehicles
Commercial availability of blends
4. Hydrogen (in an ICE) R&D and prototypes
R&D and prototypes
Energy Regeneration Large vehicles with electric trains
Demonstration bus fleets
Demonstration fleets
Electric and Hybrid Vehicles
Field trials in niche markets
 IN THE END
 To summarize it will be safe to say that the government of Pakistan
has contributed very little in the improvement of an average persons
day-to-day life.
 Government has surely put-in some late efforts to improve the
worsening travel situation by taking the following initiatives, but they
are the basic infrastructure:
 Parking Plaza
 Intercity Bus Terminal
 CNG Buses
 Bus Stand
 There has been literally no improvement seen in the local
transportation sector, they have become a mafia that can put breaks
to your economy whenever they want to just by announcing a strike
on some odd reason.
 VISION 2012 THE FUTURE OF PAKISTAN
AUTO INDUSTRY
SR NO Product 2007-8 VISION 2012

1 Cars (nos.) 250,000 516,000

2 2 wheelers 1.06 million 1.7 million

3 Investment (Billion) 100 225

4 Contribution to GDP (%) 3.5 5.6

5 Contribution to 16 25
manufacturing sector (%)
6 Direct Employment 192,000 500,000

7 Gross sales turn over (Billion) 214 600

 CONCLUSION
 Auto industry in Pakistan has a 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 with
many new products. As the new assemblers Kia and
Hyundai has started its local production, Dewan
Farooque and Daihatsu Coure has really potential to
change the auto scenario in Pakistan.
END