Impact Of Car Import And Its Effect On Economic Of Pakistan

7/21/2019 Impact Of Car Import And Its Effect On Economic Of Pakistan

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THE ROLE OF AUTOMOBILEINDUSTRY IN THE ECONOMY OF

PAKISTAN ITS GROWTH. ITS

IMPACTS NEGATIVE AS WELL AS

POSITIVE.

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Outline:

Introduction

Literature Review

Evolution of Automobile Industry with special reference toPakistan

Automobile Industry in Pakistan and comparison with the Indiancounterpart

Automobile Industry and the Allied industrieso Workshops

o Spare parts markets

Impact on economy

Contribution to the !P

Impactso Positive impacts

Economic impacts Social impacts

o "e#ative impacts Economic impacts Social impacts


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SW$% Analysis

Conclusion

&iblio#raphy


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Introduction

Since a#es man is tryin# hard to cover the distances between different

places in the shortest possible time' In order to fulfill this dream man

invented the automobile and within years the automobiles became a

common mode to travellin# to different places and replaced the

traditional means of usin# animals ' With this increasin# demand for the

newly invented automobiles its production also increased many folds'

%his industry also #ave rise to many allied industries and provided (obs

to millions of people all over the world' %his industry also contributed

its due share in the !P of the country via import duties) sales ta*)

federal e*cise duties etc' +owever the increasin# number of automobilesalso had different impacts which affected human lives) atmosphere)

social fabric etc'


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Literature review

%he #roup studied variety of literature to #ather in depth knowled#e of

the assi#ned topic of research study which includes periodicals) articles)research reports) case studies) economic analysis) financial data of ma(or

companies) economic survey of Pakistan ) websites and newspapers'

,r' -ahoor Sheikh Sarwar .CASE/) ,r' A0am Isha1ue) .CASE/) ,r'

"adeem Ehsan) .Center 2or Advance Studies in En#ineerin#/) ,r'

!anial Saeed Pir0ada) .Center 2or Advanced Studies in En#ineerin#/)

and ,r' -afar ,oeen "asir) .CASE/ in their report published inInternational 3ournal of Productivity and Performance ,ana#ement) has

identified that automobile sector has hu#e economic potential and the

study identified the prevalent condition of productivity in automotive

manufacturin# industry of Pakistan and indicated the possible areas for

enhancin# productivity' %he findin#s of this research have revealed that

effective utili0ation of role of technolo#y can enhance the productivity

of Pakistani manufacturin# firms drastically'

Pakistan Auto Industry !evelopment Pro#ram .AI!P45667/) an study

conducted by ,inistry of Industries and Production) overnment of

Pakistan states that the Pakistan Auto Industry has become a leadin#

industrial sector to steer the #rowth in lar#e scale manufacturin# sector'

%he hi#h economic and (ob multiplier effect of this industry and its deep

forward and backward linka#es in allied industries) make the autoindustry a key player in the national economy'

%he report further elaborates that Pakistan is amon#st a few countries of

the world which manufacture all kinds of vehicles i'e' 589 wheelers)

motorcars) LC:s) tractors) prime4movers ;


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trucks and buses' %he total country re1uirements are #enerally met from

the local production e*cept the import of certain cate#ories of trucks ;

prime4movers' Import of used cars is allowed to the bonafide e*4 patriate

PakistaniS ? 9'7 billion which comes

to 5'@ of !P .566=467/) thus savin# substantial forei#n e*chan#e on

imports' %he (ob contribution by auto industry comes to nearly B'95

million which includes direct (obs of nearly B5)666' %he auto industry

remains second lar#est ta* payer in terms of its contribution to customs

duty) sales ta* and withholdin# ta*' %he e*port contribution however) is

mar#inal and #rowin# slowly) which otherwise has hi#h potential to

#row in the comin# years' AI!P envisa#e to achieve a critical mass of

production) double the contribution of auto industry to !P from the

e*istin# 5'@) by the year 56BB4B5 with hi#h focus on investment)

technolo#y up #radation) increasin# its e*ports to >S? 7=6 million)enhancement in (obs alon#side the development of critical components

to further increase the competitiveness of domestically produced

vehicles' the #roup also come across financial information of the leadin#

manufacturers which formed the basis of our opinion that the benefits of

reduction in sales ta* and the removin# of 2ederal E*cise !uty from the

sector has not been shifted to end consumers which shows mar#inal

economic benefits to the manufacturer of the automobiles only'

%he &oard of Investment) overnment of Pakistan 1uoted the newspaper

Pakistan $bserver that contrary to hu#e Indian automobile industry in

spite of offerin# discounts and attractive sops) is sufferin# from

depressed sales) the nationwide auto sales increased by 9'D percent in


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Pakistan' %he sales of locally assembled passen#er cars .PC/ and li#ht

commercial vehicles .LC:/ in the country increased by around 9'D

over the previous year to BD7)D units as compared to BDB)7=D units

sold in 5664B6' Production in the industry also increased to B=9)units for the period ended 3une 96) BB) an increase of BB over B9@)=@

units last year' Pun(ab #overnmentS ? B'=@


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million in the last financial year and 9 vehicles and parts worth >S ?

B'77 million in the current year up to .3uly4,arch/ 56B64BB' Accordin#

to economic survey in spite of mar#inal #rowth of 6'= points the

performance of the automobile industry is affected by the factors likeweakenin# of demand in the international and domestic market)

inflation) hi#h input costs) hi#h #overnment sector borrowin# crowdin#

out availability of credit to the private sector and acute ener#y shorta#es'

+owever) events like the unprecedented floods and destruction in supply

chain due to earth1uake and tsunami in 3apan) compounded with a

#eneral slow down in the economic environment) lower !P #rowth)

risin# interest rates) limited credit availability for auto financin#)depreciation of the Pak Rupee a#ainst ma(or currencies) unprecedented

rise in prices steel and other inputs) inflation) etc impacted the demand

ne#atively'


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The History of Automobile Industry

European en#ineers started tinkerin# with motor powered vehicles since

late B66Gs' Steam) combustion) and electrical motors had all been tried

by the mid B@66Gs' &y the B66Gs) it was unsure which type of en#ine

would power the automobile' At first) the electric car was the most

accepted) but at the time a battery did not e*ist that would allow a car to

be in motion with much speed or over a lon# distance' Althou#h some of

the earlier speed records were set by electric cars) they did not stay in

manufacture past the first decade of the 56th century' %he automobiles

with steam lasted into B56Gs' +owever) the price on steam4driven

en#ines) either to build or maintain was unparalleled to the #as powereden#ines' "ot only was the cost a problem) but the dan#er of a boiler

e*plosion also kept the steam en#ine from becomin# popular' %he

combustion en#ine constantly beat out the competition) and the early

American automobile pioneers like Ransom E' $lds and +enry 2ord

built reliable combustion en#ines refusin# the ideas of steam or

electrical power from the start'

Automotive manufacturin# on a commercial scale started in 2rancein B@6' Commercial production in the >nited States started at the

be#innin# of the B66Gs and was e1uivalent to that of EuropeGs' In those

days) the European industry comprised of small independent firms that

would turn out a few cars by means of precise en#ineerin# and

handicraft processes'

At the start of the century the automobile entered the transportation

market as a toy for the rich' +owever) it became increasin#ly popularamon# the #eneral public because it #ave travelers the freedom to travel

when they wanted to and where they wanted' As a result) in "orth

America and Europe the price of automobile decreased and they became

easily accessible to the middle class' %his was facilitated by +enry 2ord


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who did two important thin#s' 2irst he set price of his car to be as

affordable as possible and second) he paid his workers enou#h to be able

to buy the cars they were manufacturin#' %his helped increase wa#es and

auto sales' %he convenience of the automobile freed people from thebindin# to live near rail lines or stationsF they could choose locations

almost anywhere in city area as lon# as roads were available to connect

them to other places'

Popularity of the automobile has moved side by side with the state

of the economy) #rowin# durin# the boom period after World War I and

decreasin# abruptly durin# the reat !epression) when unemployment

was at most' World War II saw a lar#e increase in mass transit becauseemployment was hi#h and automobiles were lesser' %he rapid #rowth of

car owners after World War II demonstrated the peopleGs favor towards

automobiles' !urin# the war) there was a shorta#e of automobile motors)

fuel) and tires' %here was an increased demand when the war ended and

plenty of production capacity as factories turned off the war machine'

,any people had enou#h money in store because there was little to buy)

beyond necessities) in the war years' Workers relied heavily on mass

transportation durin# the war and wanted the freedom and fle*ibility of

the automobile'

A historian has said that +enry 2ord freed common people from

the boundaries of their #eo#raphy' %he automobile brou#ht mobility on a

scale never known before) and the total effect on livin# habits and social

customs is endless' In the times of horse4drawn transportation) the

practical limit of wa#on travel was B6 to B= miles) so that meant any

community or individual farm more than B= miles from a city) a railroad)

or a navi#able waterway was isolated from the rest of economic and

social life' ,otor vehicles and paved roads have shortened the #ap

between rural and urban life' 2armers can ship easily and economically

by truck and can drive to town when it is feasible' In addition) such


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institutions as re#ional schools and hospitals are now approachable bybus and car'

Het) the effect on urban life has been) if anythin#) more prominent

than the effect on the farms' %he automobile has completely chan#edcity life by acceleratin# the outward e*pansion of population into the

suburbs' %he suburban trend is emphasi0ed by the fact that hi#hway

transportation supports business and industry to move outward to sites

where land is cheaper) where access by car and truck is easier than in

richly populated cities) and where space is available for their one or two

story structures' &etter roads were constructed) which further improved

travel throu#hout the nation'&efore the automobile) people both resided in the city and worked in the

city) or lived in the country and worked on a farm' &ecause of the

automobile) the #rowth of suburbs has rendered people to live on the

outskirts of the city and be able to work in the city by commutin#' "ew

(obs due to the impact of the automobile such as fast food) city8hi#hway

construction) state patrol8police) convenience stores) #as stations) auto

repair shops) auto shops) etc' allow more work for the worldGs #rowin#population'

%he Automotive industry has been an active and #rowin# field in

Pakistanfor a lon# time) however not as much established to fi#ure in

the prominent list of the top automotive industries' !espite si#nificant

production volumes) transfer of technolo#y and locali0ation of vehicle

components remains low' ,ost cars in the country have dual fuel

options and run on C"which is more affordable and cheaper thanpetrolin the country'

Pakistan produced its first automobile in B=9 and from B=9 to 56BBthe (ourney of auto industry has been rou#h) tou#h and sometime very
http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistan


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smooth' Car industry saw boom in 56674566 when sales touched record

peak of B@6)@9D thanks to risin# car financin# up to 64@6 per cent by

banks due to low interest rates and risin# rural buyin#' Since then the

industry has been survivin# hard to reach the same sales level amid hi#hinterest rates and Hen appreciation a#ainst the rupee but hi#h farm

income is #ivin# much support to car sales'


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Automobile Industry in Pakistan and comparison with theIndian counterpart

Automobile Industry in India

%he Automotive industry in Indiais one of the lar#est in the world and

one of the fastest #rowin# #lobally' IndiaGs passen#er car and

commercial vehicle manufacturin# industry is the seventh lar#est in the

world)with an annual production of more than 9' million units in 56B6'

Accordin# to latest reports) India is near to become the si*th lar#est

passen#er vehicle producer in the world) #rowin# B74B@ and to sell

around three million units in the course of 56BB456B5' In 566) Indiabecame AsiaGsfourth lar#est e*porter of passen#er cars) after 3apan)

South orea)and %hailand'!urin# 56B6) India has made pro#ress to D6

million passen#er vehicles and more than 9' million automotive

vehicles .an increase of 99'/) makin# country the second fastest

#rowin# automobile market in the world' Accordin# to the Society of

Indian Automobile ,anufacturers) annual car sales will increase up to =

million vehicles by 56B= and more than million by 5656' &y 56=6) the

country is e*pected to be on the top of the list in the world) in car

volumes ) with appro*imately 7BB million vehicles on the roads of India'

%he lar#est car manufacturin# industry of India is established in Chennai)

also known as the J!etroit of IndiaJ with the operations of 2ord)

+yundai) Renaultand "issanhead1uartered in the city and &,W havin#

an assembly plant on the outskirts' Chennai accounts for 76 of the

countryGs automotive e*ports' ur#aonand ,anesarare hubs and all ofthe ,aruti Su0ukicars in India are manufactured in +aryana' %he Chakan

corridor near Pune) ,aharashtrais another vehicular production hub with

companies like eneral ,otors) :olkswa#en) Skoda) ,ahindra and

,ahindra) %ata ,otors) ,ercedes &en0) Land Rover) 2iatand 2orce
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Detroithttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Renault_India_Private_Limitedhttp://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limitedhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Force_Motorshttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Detroithttp://en.wikipedia.org/wiki/Ford_India_Private_Limitedhttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Renault_India_Private_Limitedhttp://en.wikipedia.org/wiki/Nissan_Motor_India_Private_Limitedhttp://en.wikipedia.org/wiki/BMW_India_Private_Limitedhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Mahindra_and_Mahindrahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mercedes-Benz_Indiahttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limitedhttp://en.wikipedia.org/wiki/Force_Motors


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,otors) havin# assembly plants in the area) Ahmedabadwith the %ata

"anoplant and planned 2ord and Peu#eot4Citroenplants +alola#ain

with eneral ,otors) Auran#abadwith Audi) Skodaand :olkswa#en)

olkattawith +industan ,otors) "oidawith +ondaand &an#alorewith %oyotaare some of the other automotive manufacturin# localities

around the country' Every year Indian Automobile Industry is

manufacturin# over BB million and e*portin# about B'= million vehicles'

%he prominent and dominant products of the industry are two wheelers

with a market share of over = and passen#er cars with a market share

of about B7' Commercial vehicles and three wheelers share about

of the market' +ouseholds use about B of the vehicles sold and only

about are for commercial purposes' %he industry has attained a

turnover of more than ?>S 9= billion and provided employment to more

than B9 million people'

%he supply chain of the industry in India is very similar to that of

automotive industry in Europe and America' %his may present its own

set of opportunities and threats' %he order of the industry arises from the

consumers and #oes throu#h the automakers and until to the third tier ofsuppliers' +owever the products) like every traditional automotive

industry) flow from the top of the supply chain to reach the consumers'

Interestin#ly) in India the level of trade e*ports in this sector has been

medium and imports have been low' +owever) now this is chan#in# and

both e*ports and imports are increasin#' %he demand determinants of the

industry are factors like affordability) product innovation) infrastructure

and fuel price' Also) the competition in this sector is hi#h and increasin#'All the advanta#es of this sector in India are yet to be levera#ed with a

rapidly #rowin# middle class' !ue to hi#h cost of developin# production

facilities) limited access to new technolo#y and tou#h competition) the

obstacles to enter Indian Automotive sector are hi#h' India has a well4

developed ta* structure' %he power to impose ta*es and duties is
http://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Peugeot-Citroenhttp://en.wikipedia.org/wiki/Halolhttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Audi_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limitedhttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Tata_Nanohttp://en.wikipedia.org/wiki/Peugeot-Citroenhttp://en.wikipedia.org/wiki/Halolhttp://en.wikipedia.org/wiki/General_Motors_India_Private_Limitedhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Audi_Indiahttp://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limitedhttp://en.wikipedia.org/wiki/Volkswagen_Indiahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Kolkattahttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Honda_Siel_Cars_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Toyota_Kirloskar_Motor_Private_Limited


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distributed amon# the three tiers of #overnment' %he cost structure of the

industry is fairly traditional) but the profitability of motor vehicle

manufacturers has been risin# over the past five years' ,a(or companies

like %ata ,otors and ,aruti Su0uki have material cost of about @6 butearnin# profits after ta* of about 7 to BB'

%he level of chan#e in technolo#y in the ,otor vehicle Industry hasbeen hi#h but the rate of chan#e in technolo#y has been medium'Investment in technolo#y by the producers has been hi#h but furtherinvestment in new technolo#ies will help the industry to be morecompetitive' $ver the last few years) the industry has been volatile'Recently) Indianits' Annually) the Indian automobile industry is #rowin# atan avera#e rate of 96 and markin# itself as one of the fastest #rowin#industries in India' Accordin# to the reports of Society of IndianAutomobile ,anufacturers) annual car sales are estimated to reach =million vehicles by 56B= and more than million by 5656 %o believe


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"ew Hork %imes reports) several automobile companies like +yundai,otors) "issan) %oyota) :olkswa#en and Su0uki have e*panded theirmanufacturin# facilities owin# to IndiaGs stron# en#ineerin# base ande*pertise in the manufacturin# of low4cost) fuel4efficient cars'

Market share of different vehicles in the Indian automobile Industry

Passen#er :ehicles B='@7

Commercial :ehicles D'95

%hree Wheelers 9'=@

%wo Wheelers 7'59

%he production of automobiles in India has #reatly increased in the lastdecade' At present India is the lar#est tractor and three4wheel vehicle

producer) second lar#est two4wheel vehicle producer) fourth lar#est

commercial vehicle producer and eleventh lar#est passen#er carproducer' 2or the year 56694566D the production rate crossed )5D9)=7D@and for the current year it has reached BD)6D)@96 in terms of totalvehicles production' As a result of all this) the resultant annual turnoverof the Indian automobile industry for the year is recorded to be 9@)59@million >S! by Society of Indian automobile ,anufacturer .SIA,/'2or the year 5664B6) the production rate for different cate#ory ofvehicles is as followed .As per SIA,/

Passen#er

5)9=B)5D6:ehicles

Commercial=77)76@

:ehicles

%hree Wheelers 7B)69


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%wo Wheelers B6)=B5)@@

rand %otal BD)6D)@96

!port Market "tatistics

Last year) IndiaGs automobile e*ports had reached ?D'= billion and aconsistent e*port #rowth rate can be estimated in the year 56B6 also withthe estimation that it will cross ?B5 billion by 56BD' As per the SIA,records automobile e*ports have under #own a #rowth of 55'96 percentdurin# the current financial year' >nited in#dom is lar#est e*portmarket for IndiaGs automobile industry followed by ermany)

"etherlands and South Africa' In the year 5664B6) India has made ahu#e profit by e*portin# B)@6D)7B no' vehicles' !ifferent brands areutili0in# the Indian automobile en#ineerin# e*pertise to manufacture ande*port ma*imum no' of vehicles from their Indian plants' "issan ,otors

plans to e*port 5=6)666 vehicles manufactured in its India plant by 56BB'Similarly) eneral ,otors announced its plans to e*port about =6)666cars manufactured in India by 56BB' Listed below is the statisticsshowcasin# e*port sales rate of Indian automobile industry for the year5664B6

Commercial :ehicles D=)66E

Passen#er :ehicles DD7)BD7

%hree Wheelers BE9)5@5

%wo Wheelers B)BD6)B@D

rand %otal B)@6D)7B

#omestic Market "tatistics

Accordin# to Society of Indian Automobile ,anufacturers .SIA,/)


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there has been a #rowth of 95'5@ in the domestic car sales) (ustifiedfrom the 3anuary 56B6 sales BD=)6= units a#ainst the 566 sales ofBB6)966 units' %he Commercial :ehicles se#ment #rew mar#inally atD'6 percent' While ,edium ; +eavy Commercial :ehicles declined by

B'77 percent) Li#ht Commercial :ehicles recorded a #rowth of B5'5percent' Listed below is the statistics showcasin# domestic market salesrate of Indian automobile industry for the year 5664B6'

Commercial :ehicles=9B)9=

Passen#er :ehicles B)D)7

%hree Wheelers DD6)97@

%wo Wheelers )9B)59B

rand %otal B5)55)6


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Market #ynamics

2or 2H 56BB) ,aruti Su0uki held a reasonable market share of D@'D per cen

while that of +yundai was around B@'B6 per cent' %ata ,otorsG market sharestood at B5'5 per cent for the period' eneral ,otors India .,I/ and+onda Siel cars India .+SCI/ had a market share of D'D6 per cent and 5'

per cent respectively durin# 2H56BB'

Accordin# to the data released by the Society of Indian Automobil,anufacturers .SIA,/) ,aruti held D9 per cent of the total Indian passen#ercar market in the si* months ended September 56BB as a#ainst +yundaiGs 56

per cent pie'

$ey "tatistics

SIA, e*pects IndiaGs car sales to #row 54D per cent in the fiscal yearendin# ,arch 56B5 while a #rowth of B94B= per cent is pro(ected incommercial vehiclesG sales se#ment'

Car sales in September 56BB stood at B7=)5= cars'

Sales of commercial vehicles .a key indicator of the countryGs economicactivity/) increased by B@'6= percent to 6)79D) while motorcycle salerose B'9 percent to 99)D7= of them in September'

%otal sales of vehicles across cate#ories witnessed a #rowth of B'9 pecent to B=B)9D5 units in September 56BB from B9B7)BB@ units in thecorrespondin# period last year'

%he sales of scooters increased by =6'D per cent to 59B)B6 units .fromB=9)B7 units in September 56B6/ while that of three4wheelers stood aD)5== units .from D@)@BD units in September 56B6/ in September 56BB

$verall automobile e*ports re#istered a #rowth rate of 95'9B per cendurin# April4!ecember 56BB' Passen#er :ehicles re#istered #rowth a5B'6B percent in this period while two4wheelers) commercial vehicleand three wheelers se#ments recorded #rowth of 95'9D per cent) 9='

per cent and D'== per cent respectively'


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Automobile industry in Pakistan

Accordin# to ,inistry of Industries) Pakistan produced its first vehicle

in B=9) at the "ational ,otors Limited) established in arachi to

assemble &edford %rucks) while buses) li#ht trucks and cars were also

assembled in the same plant' In early B6sually)

#overnment or#ani0ations or companies for ta* benefit buy these types

of vehicles' Currently) about B65)666 units have been sold in the most

advanced countries like 3apan) >SA and a small number of units in

Europe' In Pakistan) environmentally friendly en#ines) improved

brakin# system) reducin# noise)fittin# collapsible steerin# wheels) safetysteel bar in doors) over dash drive in special models and fuel

conservation apparatus hardly are the concern of car manufacturers'

Whereas )in actual) +onda Civic offers A&S and %oyota Corolla D4

Wheel !isc brakes with stabili0er bars' Safety bars are available in

almost all products ran#in# from @=6cc Cuore to Civic and Corolla


21/38

models' ,oreover) Corolla offers Air &a#s for added safety as well as

3am Protection door windows) while over drive has always been

available in Corolla A8%s' In the conte*t of fuel conservation +onda

offers :4%ec en#ine while Corolla is e1uipped with the latest fuel4efficient %win4Cam en#ine with EC%' E2I en#ines by desi#n are meant

to be fuel4efficient' %oyota Corolla and +onda Civic have ":+

dampenin# material inside the car which control noise and vibration

ensurin# a comfortable drive'

It is also stated that the car manufacturers are neither providin# any

information on car performance nor #ivin# any viable warranty in terms

of milea#e and time frame and after sale service' As for 1uotin# on4Roadprices in India) the Indian rupee has a different rate a#ainst the >S ? and

duties are different' &esides) the volume production is hi#her in India)

7D6)666 cars versus D6)666 in Pakistan' %herefore) a comparison of India

and Pakistani prices should be made after ad(ustin# the e*chan#e rates

and duty factors'

Automobile industry has shown hi#h pro#ress from 566B4566 and the#overnment of Pakistan fi*ed a tar#et of over half million unitsnited States)B@

4. 3akle) 3ohn) Sculle) eith) Lots of Parkin#K Land >se in a Car

Culture)566D

5. Strasser) Susan) Waste and WantK A Social +istory of %rash) B

6. Smith) Robert) A Social +istory of the &icycle) its Early Life and

%imes in America) B5

7. raves) &rown) 2rom +i#hway to Superhi#hwayK %he

Sustainability) Symbolism and Situated Practices of Car Culture)B
http://books.google.com/books?id=qOQGwc3Q4V4Chttp://books.google.com/books?id=qOQGwc3Q4V4Chttp://books.google.com/books?id=qOQGwc3Q4V4Chttp://en.wikipedia.org/wiki/Crabgrass_Frontier:_The_Suburbanization_of_the_United_Stateshttp://en.wikipedia.org/wiki/Crabgrass_Frontier:_The_Suburbanization_of_the_United_Stateshttp://books.google.com/books?id=bV622ieCXakChttp://books.google.com/books?id=bV622ieCXakChttp://md1.csa.com/partners/viewrecord.php?requester=gs&collection=ENV&recid=5182080&q=car+culture&uid=789848837&setcookie=yeshttp://md1.csa.com/partners/viewrecord.php?requester=gs&collection=ENV&recid=5182080&q=car+culture&uid=789848837&setcookie=yeshttp://books.google.com/books?id=qOQGwc3Q4V4Chttp://books.google.com/books?id=qOQGwc3Q4V4Chttp://books.google.com/books?id=qOQGwc3Q4V4Chttp://en.wikipedia.org/wiki/Crabgrass_Frontier:_The_Suburbanization_of_the_United_Stateshttp://en.wikipedia.org/wiki/Crabgrass_Frontier:_The_Suburbanization_of_the_United_Stateshttp://en.wikipedia.org/wiki/Crabgrass_Frontier:_The_Suburbanization_of_the_United_Stateshttp://books.google.com/books?id=bV622ieCXakChttp://books.google.com/books?id=bV622ieCXakChttp://books.google.com/books?id=bV622ieCXakChttp://md1.csa.com/partners/viewrecord.php?requester=gs&collection=ENV&recid=5182080&q=car+culture&uid=789848837&setcookie=yeshttp://md1.csa.com/partners/viewrecord.php?requester=gs&collection=ENV&recid=5182080&q=car+culture&uid=789848837&setcookie=yeshttp://md1.csa.com/partners/viewrecord.php?requester=gs&collection=ENV&recid=5182080&q=car+culture&uid=789848837&setcookie=yes

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Impact Of Car Import And Its Effect On Economic Of Pakistan