Wednesday, April 29, 2009

HISTORY OF PAKISTANI CARS

GETTING THE WHEELS IN MOTION

1949: Vauxhall Cars introduced by General Motors & Sales. Bedford Trucks introduced by General Motors & Sales. Ford Trucks introduced by Ali Automobiles.
1953: Exide battery started production.
1956: Dodge Cars introduced by Haroon Industries.
1958: Ford Angela Cars introduced by Ali Automobiles.
1959: Ford Pickups introduced by Ali Automobiles.
1960: Ford Combi introduced by Ali Automobiles.
1961: Precision auto parts manufacturing started at Allwin Engineering.
1962: Lamberate Scooter introduced by Wazir Ali Engineering.
Jeep CJ 5, 6, & 7 introduced by Kandawala Industries. Bedford Truck assembling started at Ghandara Motors.

1963: Mack Trucks introduced by Hye Sons. General Tyres & Rubber Company started production in Karachi.
1964: MF Tractors introduced by Rana Tractors. Vespa Scooter and Rickshaw introduced by Raja Auto Cars. Honda Motor Cycle introduced by Atlas Autos. Ghandara Industries launched Localization Plant for Bedford Trucks.
1965: Specialized Vehicles Production at Jaffer Industries.
1967: Toyota vehicles introduced by Monnoo Motors.

CHANGING TRACKS
1972: Nationalization, Pakistan Automobile Corporation (PACO) formed. Ali Autos renamed Awami Autos, Wazir Ali Engineering renamed Sindh Engineering, Haroon Industries Renamed Republic Motors, Ghandara Motors renamed National Motors, Kandawala Industries renamed Naya Daur Motors, Hye Sons renamed Mack Trucks, Jaffer Industries renamed Trailer Development Corporation, Rana Tractors renamed Millat Tractors, Tractor Corporation of Pakistan formed.
1974: Yamaha Motor Cycle launched by Dawood Yamaha, Diesel Engines manufacturing started at Bela Engineering.
1976: Suzuki Motor Cycle introduced by Sindh Engineering.
1977: Kawasaki Motor Cycle introduced by Saif Nadeem Kawasaki. Suzuki Jeep introduced by Naya Daur Motors.
1978: Plastic parts manufacturing at SPEL
1980: Suzuki Pickups introduced by Awami Autos, Mazda Truck introduced by Sindh Engineering, Project approved for production of wheel Rims at Balochistan Wheels under TAA with GKN-Sankey.
1981: Wire Harness production at Ayenbee, Production of Specialized Auto Parts at Agriauto Industries.
CHANGING GEARS
1982: Suzuki Cars production started by Pak Suzuki. Bolan Castings started production, Belarus Tractors introduced by Fecto Tractors
1983: Fiat Tractors introduced by Al-Ghazi Tractors, Vendor Development & Technical Cell (VDTC) formed.
1986: Hinopak Motors Limited formed as joint venture company between PACO, Al-Futtaim, Hino Motors & TTC.
1987: Production of Nissan Diesel Trucks by Ghandara Nissan.
1988: Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) formed.
1989: Second car plant sanctioned by the GoP (Indus Motor Company).
1992: Privatisation of Pak Suzuki Motor Co.
1993: Production of Toyota Corolla by Indus Motor Company Limited First export of Buses and Trailers by Hinopak Motors Limited.
"READY TO TAKE-OFF"
1994: Production of Honda Civic by Honda Atlas Cars Pak Ltd. Import of Vehicles under Yellow Cab Scheme. Pakistan Automotive Manufacturers Association (PAMA) formed.
1995: Engineering Development Board (EDB) formed First PAP Show in Islamabad.
1996: First Industry Specific Deletion Programme (ISSDP) printed for the period up to 2001.
1997: VDTC renamed AT & TC. Second PAP Show held in Lahore. Aircon Systems production starts at San pak Lahore. Production of Sohrab Motorcycle.
1998: Export of Light Commercial Vehicles by Pak Suzuki Motor Company. Saigol Quingqi starts production of motorcycles with Chinese collaboration.
1999: Dewan Farooque Motors starts production of Korean Pickup
named Shahzore. Hinopak Motors Ltd. taken over by Hino Motors and TTC of Japan.
2000: 3rd PAP Show in Karachi. Raja Motors starts production of UNO Cars. Production of Daihatsu vehicles by Indus Motor Company Ltd.
2001: Molded Interiors manufacturing starts at Procon Engineering.
2002: Adam Motors launches Chinese Truck named Zabardast. Revised and updated ISDP for the period up to 2005 finalized.
2003: Sindh Engineering launches range of Chinese Trucks. Economy of the country is at Take-off stage and so is the Auto Industry. 1st PAMA AutoExpo held in Islamabad (May 12, 13, 2003).

Source: PAMA

RECENT REPORT

Caught in a traffic jam in some major cities of Pakistan, one feels there are too many automobiles in this country. But the fact of the matter is that our country is heavily under-motorised. This is bad considering that in developed world, the automobile industry is the second largest one after the steel and iron industry. It contributes more than 10 per cent in the total output of the manufacturing industry of the developed countries, and employs 10 per cent of their populations, plus, it develops a whole chain of vendor industries.
The under-motorisation of this country is not just symptomatic of underdevelopment. A potential growth gap also exists in our automobile industry. The two factors responsible for this gap are a weak transport sector, and lack of government incentive for the general investor. For years and years, transporters had remained shy to invest in this sector. This was usually attributed to on one hand, increased operational costs and, on the other, absence of better and long-term policies for the automotive industries. The problems of public transport seemed to have become insurmountable and needed bold initiative on part of the government for solutions. This situation has shown slight improvement. Some barriers to development have now been removed and the automobile industry has started to hope for a better tomorrow.

Pakistan's automobile industry is a fast developing sector that needs no foreword or introduction. The swift expansion of the industry has been in large part due to the events of September 11th, which although it wrought mass havoc on world economies, was instrumental in attracting a flood of home remittances from abroad. Apart from this, a lot of credit also goes to the Musharraf government as the auto industry flourished amply due to the conducive investment policies drafted under his fine governance. This has the effect of aiding industries such as the automobile sector. The result has been an astonishing growth with the auto industry posting a growth of 20 per cent and the demand for new cars increasing by around 50 per cent.

The increased demand for Pakistani automobiles has been highly beneficial for the country's economy. Furthermore, contrary to statements by certain groups, the industry has increased production significantly with several units now operating second shifts. One of the achievements of the industry has been its major transformation of the country's domestic vendor base by making it more export oriented. The system works in such a way that before the domestically manufactured parts are used, they are tested by the original equipment manufacturers at their own facilities and awarded a certification of quality. These increased exports have resulted in the industry contributing almost Rs.30 billion to the country's GOP and export of parts worth $27 million annually. The growth of the industry is but a small indication of the tremendous and lucrative investment opportunities that lie ahead. From its very onset, the sector has been attracting investment and has strong potential to attract investors in the future too. The current total investment by the OEMs in Pakistan is over 8 billion. Nevertheless, this volume in the industry and its contributions were also available in early 90's, but could not be sustained because of the policies of the government at that time.

The automobile sector has also been aided by leasing companies and low interest bank loans, which have made it possible for a larger segment of the population to own a car of their choice. In spite of this critics are of the opinion that Indian automobiles of the same make and quality are cheaper than their Pakistani counterparts. While this may be true, it is unfair to draw comparisons between these two vastly different markets as the automobile industry in India is far more developed and the localisation of parts is much greater. The Pakistani industry is trying to achieve similar success with the support of sound government policies.

While car sales in general fell by 21 per cent in July due to the monsoon rains, sales when compared with the same month last year, recorded an impressive growth of 56 per cent. OEMs such as IMC, Dewan Farooque and Suzuki in particular registered record increase in sales of their brands especially due to an increase in production levels and lowered prices. Much of the progress achieve by the auto industry has been marred by so called investors who extract excess payments from customers on the promise of delivering automobiles earlier than the normal waiting period. Understanding the predicament of its customers, the industry has taken measures to increase awareness regarding this malpractice and some car makers have even guarded against this possibility by announcing a fixed booking amount. However, the onus for this also lies with customers who are often unwilling to wait for the delivery of their cars. In this regard, certain parties have suggested a one-time import of used cars in order to eliminate the logjam of bookings. However, an abrupt flood of automobiles in the country would do more harm than good. This would merely be a short-term solution to an issue that requires sustained efforts. Furthermore, logic dictates that if demand continues to grow at the rate that it is currently, the logjam would occur yet again, only to be met by the adhoc import of more used cars, eventually leading to a situation that would not be beneficial to the local industry. The Pakistani auto industry has made sustained efforts to meet growing demand by increasing supply and reducing delivery periods of automobiles.


PAKISTANI AUTOMOBILE INDUSTRY

Pakistan's automobile industry is a fast developing sector that needs no foreword or introduction. The swift expansion of the industry has been in large part due to the events of September 11th, which although it wrought mass havoc on world economies, was instrumental in attracting a flood of home remittances from abroad. Apart from this, a lot of credit also goes to the Musharraf government as the auto industry flourished amply due to the conducive investment policies drafted under his fine governance. This has the effect of aiding industries such as the automobile sector. The result has been an astonishing growth with the auto industry posting a growth of 20 per cent and the demand for new cars increasing by around 50 per cent.The increased demand for Pakistani automobiles has been highly beneficial for the country's economy. Furthermore, contrary to statements by certain groups, the industry has increased production significantly with several units now operating second shifts. One of the achievements of the industry has been its major transformation of the country's domestic vendor base by making it more export oriented. The system works in such a way that before the domestically manufactured parts are used, they are tested by the original equipment manufacturers at their own facilities and awarded a certification of quality. These increased exports have resulted in the industry contributing almost Rs.30 billion to the country's GOP and export of parts worth $27 million annually. The growth of the industry is but a small indication of the tremendous and lucrative investment opportunities that lie ahead. From its very onset, the sector has been attracting investment and has strong potential to attract investors in the future too. The current total investment by the OEMs in Pakistan is over 8 billion. Nevertheless, this volume in the industry and its contributions were also available in early 90's, but could not be sustained because of the policies of the government at that time.

The automobile sector has also been aided by leasing companies and low interest bank loans, which have made it possible for a larger segment of the population to own a car of their choice. In spite of this critics are of the opinion that Indian automobiles of the same make and quality are cheaper than their Pakistani counterparts. While this may be true, it is unfair to draw comparisons between these two vastly different markets as the automobile industry in India is far more developed and the localisation of parts is much greater. The Pakistani industry is trying to achieve similar success with the support of sound government policies.

1 comment:

  1. Peloton compatible shoes Awesome article, it was exceptionally helpful! I simply began in this and I'm becoming more acquainted with it better! Cheers, keep doing awesome!

    ReplyDelete