The detailed discussion and analysis of the data gathered from various sources have led us to the conclusion that there are a lot of expansion possibilities in the auto sector of Pakistan. People find it more convenient to travel by their own car instead of hiring a taxi. Taxi fares are increasing day by day as the petrol prices are rising; which is now not affordable by the low class of Pakistan. They can make a big investment by purchasing a Suzuki Mehran; instead of paying huge taxi fares daily.
The auto parts manufacturing has great potential in the European market; we export radiator bottles; steering wheels, handles etc. to various companies in Europe. The PAMA can help the auto-parts manufacturing industry of Pakistan by promoting exports.
Chapter 1: Introduction 简介
The evolution of the automotive industry has been influenced by various innovations in fuels, vehicle components, societal infrastructure, and manufacturing practices, as well as changes in markets, suppliers and business structures. As the challenges of twenty-first century are growing day by day and business world is becoming more competitive and customer centric with fluctuating trends.
The automotive industry is the industry involved in the planning, design, development, manufacture, and marketing. The automobile industry is concerned with profits and competition; with consumer demands for styling, safety, and efficiency; and with labor relations and manufacturing efficiency. In 2007, more than 73 million motor vehicles, including cars and commercial vehicles were produced worldwide.
This report represents a detailed and comprehensive account of the market expansion possibilities of the automobile sector in Pakistan and is documented on the directions of our subject teacher Sir Mustaghis-ur-Rehman. Our project essentially becomes the part of our course 'Strategic Management' as this will make us implement practically what we have learnt throughout the course.
Automobile sector is one of the most vibrant sectors in Pakistani economy with respect to policy changes, criticism on underdevelopment and lack of transfer of technology and head on collision with imported vehicles. The automobile industry in Pakistan operates under franchise and technical cooperation agreements with leading world manufacturers and can be broadly categorized into various segments, i.e. cars and light commercial vehicles (LCVs), two and three wheelers, tractors, trucks and buses and vendor industry.
The Automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries. Despite significant production volumes, transfer or technology remains low. Most cars in the country have dual fuel options and run on CNG(compressed natural gas) which is more affordable than petrol in the country.
There are only three major passenger car assemblers in the market; Pak Suzuki, Indus Motors and Honda Atlas. Pak Suzuki has almost complete monopoly in the small car segment as it faces almost no competition other than the single odd Diahatsu Cuore produced by Indus Motors. In the Subcompact Sedan segment Toyota Corolla, Honda Civic, Honda City, and the Nissan Sunny are currently the only cars in production. There are still no locally made SUV, Mid or Full sized sedans available.
We have analyzed the industry's dominant economic features because industries do differ significantly in their basic character & structure thereby identifying the market size, scope of competitive rivalry, market growth rate, number of buyers and their relevant sizes. The competition prevalent in the industry and the strength of the competitive forces has been elaborated. The driving forces in the auto industry are highlighted a