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Overview of Pakistan's Auto Industry Growth

The automobile industry in Pakistan is one of the fastest growing industries, accounting for 4% of GDP and employing over 1.8 million people. There are currently 3,200 automotive manufacturing plants investing 92 billion rupees to produce 1.8 million motorcycles and 200,000 vehicles annually. Pakistan's auto market is considered one of the smallest but fastest growing in Asia, currently dominated by Honda, Toyota, and Suzuki. Auto sales in Pakistan were highest in 2017, with a volume of 239,724 units, an 18% increase from 2016. Major competitors in Pakistan's automobile industry are Honda, Suzuki, Toyota, Hyundai, Nissan, Master, and Isuzu.

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84 views2 pages

Overview of Pakistan's Auto Industry Growth

The automobile industry in Pakistan is one of the fastest growing industries, accounting for 4% of GDP and employing over 1.8 million people. There are currently 3,200 automotive manufacturing plants investing 92 billion rupees to produce 1.8 million motorcycles and 200,000 vehicles annually. Pakistan's auto market is considered one of the smallest but fastest growing in Asia, currently dominated by Honda, Toyota, and Suzuki. Auto sales in Pakistan were highest in 2017, with a volume of 239,724 units, an 18% increase from 2016. Major competitors in Pakistan's automobile industry are Honda, Suzuki, Toyota, Hyundai, Nissan, Master, and Isuzu.

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bakhtawar sonia
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Assignment no 1

Question no 1
The auto mobile industry in Pakistan is the one of the fastest growing industries of the country,
accounting for 4 percent Pakistan’s GDP and employing a workforce of over 1,800,00 people.
Currently there are 3200 automotive manufacturing plants in the country, with an investment of
92 billion rupees producing 1.8 million motorcycles and 200,000 vehicles annually.
The sector as a whole provides employments to 3.5 million people and play a vital role in
promoting the growth of the vendor industry. Pakistan auto market is considered among the
smallest , but fastest growing in Asia . At percent the auto market is dominated by Honda,
Toyota and Suzuki (Pak wheel , 2018).
Question no 2
Recent sale figure
Pakistan auto sales is highest in calendar year 2017 . in year 2017 sale volume of auto industry
was recorded at 239,724 units as compared to 203,492 units of last year registering an increase
18%. Growth in demand was driven by introduction of new models by local original equipment
manufactures .

Question no 3 competitors?
The major player in automobile industry are Honda, Suzuki , and Toyota.
The key competitors are Honda , Suzuki, Hyundai and Toyota are in passenger cars. Nissan and
Master and Isuzu in business and trucks. Honda , yamaha , suzuki , Road Prince , United are
main competitors in two and three wheelers . (pak wheels wikipedia )

Question no 4
What does it take to compete ?Barriers to entry?

Five major entry level barriers in automobile industry


Bargaining power of suppliers: the suppliers power is low because of the availability of the
large number of suppliers in the domestic country and cheap import of auto components from
China
Barriers to entry : regulatory framework and the startup capital required to established
manufacturing capacity to achieve minimum efficient scale in prohibitive.
Threat of new entrant : the industry is capital and technology intensive also the industry require
a wide distribution network to be in the race
Buyer power: the buyer of the industry have high bargaining power because they have many
options in the same price range .
Rivalry among competitors: Rivalry in the auto sector is intense due to the entry of foreign
companies in the market . Product being matched in an few months by the competitors (porter
1979)
Question no 5 what technological trends effect automobile industry?

automobile industry is undergoing dramatic alteration in response to changing energy,


environmental , and safety influences. Diminishing oil suppliers have created a particularly
pressing need for improved fuel efficiency , which is being satisfied by improving engine and
power train technology , lowering performance , and reducing weight by downsizing , redesign ,
and material substitution . historical trends in these areas are used in this study as a basis for
predicting important attributes of future automobiles. Also having concern about fuel efficient
vehicle production, because fuel or material price is increased .

question no 6 Main mode of marketing?

Automotive marketers know that more shoppers are turning to the interest to do their research .
Instead of visiting multiple dealership to compare brands , shoppers can now compare brands,
models , colors , and prices on multiple online sites.
Auto show: automotive marketers also advertise their brands by organizing an auto show where
consumers attend the show every year.
Campaign on multiple platform : Direct mail, television , commercial , short videos clips
Personalizing the digital experience : Instead of awaiting until a shopper is close to purchase ,
automotive marketers have an opportunity to provide rich digital experiences and engagement
throughout the journey. For example , a consumer may visit an automotive site and later see car
ads for that specific make and model show up in their Facebook feeds.

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