Overall Veiw of Pakistan Automobile Industry

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Pakistan is an emerging market for automobiles, offering immense business and investment opportunities. Automobile sector is one of the fastest growing sectors in Pakistan. It contributes towards the nation’s economy in the form of Technology Transfer, Employment, Investment and much more. The industry is strictly monitored and controlled by Pakistan Automotive Manufacturers Association (PAMA), a licensed body by the Government of Pakistan.

As the industry's growing, so are the Automobile companies. Every manufacturer is in the process of increasing production capacity to meet customer demands. Pakistan is one of the few countries in the world that manufactures all types of vehicles with higher production capacities than the current domestic demand for the same.

Pak-Suzuki is considered to be a market leader. Indus Motor Company is one of the two leading car manufacturers in Pakistan. With respect to car sales, Indus Motor market share is increased to 39% in 2010-11 from 36% in 2009-10. Furthermore, Honda has a unique presence in the market holding 12% in 2010-11 compared with 2009-10 which was 11.3%.

There was massive growth in automobile industry in past decade, 2006 said to be a peak point of this increase when the sales reached to 180,834 cars. However, the sharp decline of 49% was observed in the fiscal year 2008-09, there were several reasons behind this decline in sales, price hike, curtailment of auto financing by most banks and reduced purchasing power of consumers, political instability in Pakistan and global economic recession had put negative impact on almost all sectors of economy and automobile sector was one of them. Furthermore, in fiscal year 2009-10 the growth recovered by 49% and still progressing. http://www.dailytimes.com.pk/default.asp?page=2009\07\12\story_12-7-2009_pg5_4 Assessed on 14/4/2012
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