After attending several different meetings for automobiles-we at Motor Trader realized that the name Pakistan in this specific area is seen “no-where”. The list that was recently marked and read at a meeting only talked about the following six markets;
- America
- Latin America (Brazil, Mexico etc.)
- Asia Pacific (Pakistan is never mentioned in this market)
- China
- Europe (Excluding UK)
- UK
Various companies (Tier-1) have talked about China and Asia Pacific for market growth rate, but have never mentioned Pakistan in the discussion. The reasons for excluding Pakistan from the consideration are as follows:
- Pakistan has unstable economy, has less financial liquidity, and has a very low demand for vehicles (Due to less population).
- Pakistan’s currency is weak, the country itself has low GDP, for such reasons car manufacturers avoid investing in Pakistan’s’ Automobile industry.
- Pakistan has a tag as a “Terrorist Nation”; it receives a minimal number of visitors for marketing.
If you bring in a comparison of India’s Car Industry with Pakistan (Since the two names have to be the major competitors always)-you will most likely end the automotive competition before it starts; the data below will elaborate how simply India is stepping ahead. See the various facts we have gathered: –
As detailed in an article, Suzuki Mehran which resembles Maruti Suzuki (Almost), India stopped the production of this car back in 2004 when its price was Rs. 3, 75,000 in Indian Rupees. Try this; few words taken from an article posted back in 2005 (Source: Flop gear (http://www.economist.com/news/asia/21650570-absurdly-protected-industry-flop-gear)
THINGS can get emotional at the main Suzuki dealership in Islamabad, the Pakistani capital. “Many of our customers literally cry when they buy their first Mehran,” says Mohammad Ali Khalid, the managing director.
“All their lives they have been saving up little amounts to buy this car.” ” The industry is carved up among just three Japanese brands, Suzuki, Honda and Toyota, assembling cars with imported parts in joint ventures with local players. They enjoy the protection of high tariffs and other Byzantine rules. It is meant to encourage “indigenisation” of production.”
According to Wikipedia, Mehran is a “retired car”, yet it’s the majorly bought and sold car in Pakistan (Still). PAMA (Pakistan Automotive Manufacturers Association) said the production of cars in 2015 was 152,524 and the sale was 152,134, which somehow is unrealistic.
So, finally coming to a serious point, Pakistan is lacking indigenous car Manufacturers, while India has Mahindra and Mahindra, TATA, motoCorp, and many others. Most of these not-mentioned manufacturers are famous in India and are even getting acquired by foreign automotive companies. TATA is one such name that has acquired LandRover and Jaquar.
Pakistan has a way of excelling and reaching somewhere in this industry-how? Well, it should open its Car Manufacturing industries to foreign manufacturers. Indian companies might just be the first ones to take the market and it should work for Pakistan and its people. Pakistan should encourage manufacturers to start the production of cars in Pakistan itself.
Pakistan has a greater access to major “land lock” countries such as: Afghanistan, Iran, Turkmensitan, Tajikstan, and UAE. The later can be connected through sea route while the foremost can be connected through land and rail routes. The connection with these countries is for export of manufactured products and most of these have oil and gas resources. Pakistan has better approachability to these connecting points than China or India and it can use this connection to import and export manufacturing goods.
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