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Automobile Industry Stu

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    AUTOMOBILE INDUSTRYAUTOMOBILE INDUSTRY

    PRESENTED TO:PRESENTED TO:

    SIR AFAQ ALI KHANSIR AFAQ ALI KHAN

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    GROUP MEMBERSGROUP MEMBERS

    ARSALAN PERVAIZARSALAN PERVAIZ(SP07-BB-0033)(SP07-BB-0033)

    SYED KUMAIL RAZA ZAIDISYED KUMAIL RAZA ZAIDI(SP07-BB-0162)(SP07-BB-0162)

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    OUR GOAL:OUR GOAL:

    INTRODUCTION TO AUTOMOBILE INDUSTRYINTRODUCTION TO AUTOMOBILE INDUSTRY HISTORYHISTORY PRESENT SENARIOPRESENT SENARIO MAIN PRODUCERS IN AUTOMOBILE SECTORMAIN PRODUCERS IN AUTOMOBILE SECTOR

    LINKAGES OF AUTOMOBILE INDUSTRYLINKAGES OF AUTOMOBILE INDUSTRY CONTRIBUTION IN THE ECONOMYCONTRIBUTION IN THE ECONOMY PRODUCTION AND SALEPRODUCTION AND SALE ANNUAL PLANT REPORT.ANNUAL PLANT REPORT. STRENGTHSTRENGTH

    WEAKNESSWEAKNESS EMPLOYEMENTEMPLOYEMENT PROBLEMSPROBLEMS IMPACT OF BUGDET 2008 IN AUTOMOBILE SECTORIMPACT OF BUGDET 2008 IN AUTOMOBILE SECTOR WTO IMPACTWTO IMPACT

    CONCLUSIONCONCLUSION

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    INTRODUCTIONINTRODUCTION

    In the world trade autosector is one of theIn the world trade autosector is one of thelargest segments.largest segments.

    It is the backbone of worlds economy.It is the backbone of worlds economy.

    It is one of the largest segment in worldIt is one of the largest segment in worldtradetrade

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    It has excellent world wide growthIt has excellent world wide growth

    There are over 140000 directThere are over 140000 directemployment opportunitiesemployment opportunities

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    HISTORY:HISTORY:

    Automotive assembling in PakistanAutomotive assembling in Pakistanwas started in 1950was started in 1950

    A regular car industry was started inA regular car industry was started inthe country in 1983the country in 1983

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    Other industries also established inOther industries also established in1990s and 20001990s and 2000

    Remarkable success from last 4 yearsRemarkable success from last 4 years

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    The automobile industry in Pakistan can be broadly categorized intoThe automobile industry in Pakistan can be broadly categorized intofollowing segments:following segments:

    - Cars and Light Commercial Vehicles (LCVs)- Cars and Light Commercial Vehicles (LCVs)

    - Two and Three Wheelers- Two and Three Wheelers- Tractors- Tractors

    - Trucks and Buses- Trucks and Buses

    - Vendor IndustryVendor Industry

    The industry operates under franchise and technical cooperationThe industry operates under franchise and technical cooperationagreements with Japanese, European and Korean manufacturers.agreements with Japanese, European and Korean manufacturers.

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    MAIN PRODUCERS IN PAKISTANMAIN PRODUCERS IN PAKISTAN

    SUZUKI MOTORSSUZUKI MOTORS

    HONDA.HONDA.

    TOYOTA.TOYOTA. DEEWAN FAROOQUE MOTORS.DEEWAN FAROOQUE MOTORS.

    DAIHATSU.DAIHATSU.

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    POTENTIAL AND PRESENTPOTENTIAL AND PRESENT

    SCENARIO:SCENARIO:

    UNITS PROJECTION2012

    SUZUKI 80000 250000DEWAN 15000 48000

    HONDA 30000 60000

    NISSAN 6000 15000

    INDUSMOTORS

    37000 130000

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    LINKAGESLINKAGES

    AUTOPARTS INDUSTRY.AUTOPARTS INDUSTRY.

    TYRE INDUSTRY.TYRE INDUSTRY.

    CNG INDUSTRY.CNG INDUSTRY.

    TRACKER SYSTEM.TRACKER SYSTEM.

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    CONTRIBUTION TO THECONTRIBUTION TO THE

    ECONOMYECONOMY

    The growth of this sector is 168000The growth of this sector is 168000

    The motorcycles have also shownThe motorcycles have also shownmarvelous growth.marvelous growth.

    It is giving great deal of support toIt is giving great deal of support tothe GDP and revenue of the country.the GDP and revenue of the country.

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    Last year the industry hasLast year the industry hascontributed a revenue of about Rscontributed a revenue of about Rs

    8billion8billion

    GDP =2.8% contributionGDP =2.8% contribution

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    PRODUCTION AND SALEPRODUCTION AND SALEOF THE PRODUCERSOF THE PRODUCERS

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    PRODUCTION CAPCITYPRODUCTION CAPCITY

    OF THE PRODUCERSOF THE PRODUCERS

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    STRENGTH:STRENGTH:

    CAPABILITIESCAPABILITIES

    AUTOMOTIVE MANUFACTURERSAUTOMOTIVE MANUFACTURERS

    HUMAN RESOURCESHUMAN RESOURCES

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    GROWTHGROWTH

    ENTERPRENEURIAL SKILLSENTERPRENEURIAL SKILLS

    MECHANICAL SKILLSMECHANICAL SKILLS

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    EXPORTEXPORT

    SPARE PARTS MARKETSPARE PARTS MARKET

    EMERGING MARKETEMERGING MARKET

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    WEAKNESSESWEAKNESSES

    No long term policyNo long term policy

    Lack of informationLack of information

    Lack Skilled labourLack Skilled labour

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    Lack of well equipped facilitiesLack of well equipped facilities

    Raw materialsRaw materials

    To many regulatoryTo many regulatory

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    EMPLOYMENT:EMPLOYMENT:

    Name ofcompany

    2002 2003 2004 2005

    Pak suzukimotors 1130 1109 1378 1723

    Indus motors 697 1021 1226 1429

    Honda atlascars

    470 477 625 1032

    Ghandhara

    Nissan

    88 72 240 255

    F d l

    bl i

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    Fundamental problems inFundamental problems in

    the automotive sector arethe automotive sector are

    as follows:as follows:

    Low volumes / under utilization ofLow volumes / under utilization ofcapacitycapacity

    High pricesHigh prices

    Slow transfer of technology.Slow transfer of technology.

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    IMPACT OF BUGDT 2008IMPACT OF BUGDT 2008

    ON AUTOMOBILEON AUTOMOBILE

    SECTORSECTOR

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    WTO IMPACTWTO IMPACT

    Pakistan inked WTO in 1995 and it will come into operation on 1stPakistan inked WTO in 1995 and it will come into operation on 1stJanuary 2005.January 2005.

    No tariff regime of WTO will get a huge influx of imported cars thatNo tariff regime of WTO will get a huge influx of imported cars thatwill test real mettle of the industry.will test real mettle of the industry.

    Objections were raised by the EU and IMF over higher protectionObjections were raised by the EU and IMF over higher protectionbeing enjoyed by Pakistan automobile assemblers.being enjoyed by Pakistan automobile assemblers.

    In the year 2005 when WTO came into effect all such tariffs hadIn the year 2005 when WTO came into effect all such tariffs hadalready scrapped.already scrapped.

    In nutshell, our auto industry is performing well but not very well.In nutshell, our auto industry is performing well but not very well. The challenges for it not only formidable but also warrants its veryThe challenges for it not only formidable but also warrants its very

    survival.survival.

    The WTO allows only the fittest to survive in a cutthroat worldwideThe WTO allows only the fittest to survive in a cutthroat worldwidecompetition.competition.

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    CONCLUSIONCONCLUSION

    Auto industry in Pakistan has the great potential to generate investment andAuto industry in Pakistan has the great potential to generate investment andopportunities, and can expand its operation to contribute the development of theopportunities, and can expand its operation to contribute the development of theeconomy of the country.economy of the country.

    In future there will be intense competition in the market due to the entrance ofIn future there will be intense competition in the market due to the entrance ofnew companies in the market with many new products.new companies in the market with many new products.

    The current assemblers has the potential to change the auto scenario in Pakistan .The current assemblers has the potential to change the auto scenario in Pakistan .

    But it is crucial for this industry to progress in order to provide consumer withBut it is crucial for this industry to progress in order to provide consumer withhigh quality, low priced locally manufactured products.high quality, low priced locally manufactured products.