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Automotive Industry

Overview

Manufacturing sector is the backbone of Pakistan’s economy and constitutes the second largest sector of economy contributing 13.5 percent to Gross Domestic Product (GDP) It comprises mainly of Large Scale Manufacturing (LSM) with 80 percent share in Manufacturing and 10.7 percent in GDP, whereas small scale manufacturing accounts for 1.8 percent in total GDP and 13.7 percent share in manufacturing.

 

During FY 2017, Manufacturing sector recorded an impressive growth of 5.3 percent against 3.7 percent of last year which helped overall industrial sector to improve by 5.0 percent against 5.8 percent last year. The Year on Year (YoY), LSM recorded significant growth of 10.5 percent in March 2017 compared to 7.6 percent of March 2016.

 

 

Industry Analysis 

 

  • Automobile industry of Pakistan increased at a compound growth rate of 10% over the period of 5 years (2013-17) and produced 277,537 units in FY 17 as compare to 189,628 units in FY 13.

  • The total production of automobile is dominated by car productions which represents 67% in FY17 followed by tractors 19%, Pickups & Jeeps 10%, Trucks and buses 3.2%.

  • Cars, trucks and buses production over the period has show an increasing trend from (2013-17). Cars, Trucks and Buses production over the period (FY14-FY17) has shown an increasing trend where as jeeps , pickups and tractors production is volatile.

  • In FY17 the car production has increase by 6992 units as compare to 359,191 units in FY14 mainly because of GOP Rozgaar scheme in FY16. However, trucks production has shown an increasing trend and increase by 2046 units in FY17 compare to 1,365 units in FY14. Two and Three wheelers industry of Pakistan increased considerably by CAGR of 19% and produced 1,632,965 units in FY17 as compare to 819,556 units in FY13.

  • Motor cycle production dominates the industry production and represents more than 90% of the total production over the period under review (FY 2013-17).

  • Two and three wheeler industry flourished during the period FY16 and onwards and recorded 78% and 20% growth in FY 16 and FY17 respectively

  • Moreover 589,469 and 247,789 more units of motorcycles were manufactured in FY16 and FY17 respectively . Similarly for three wheelers, production increase by 7,432 and 23,080 units in FY16 and FY17 respectively. Import/Export Potential  Pakistan import of vehicles and spare parts has shown an increasing trend, an increase by 16% in 2017 as compared to previous year.

  • Pakistan import only 2 categories of spare parts 8708, 8714 whose more than 80% of total imports are dominated by 4 countries. (Thailand, Japan, Indonesia and China)

  • Moreover three categories (8701, 8003, 8711) represent more than 75% import value of vehicles built in units. Afghanistan, Nigeria, Botswana ,UAE and Italy are the top countries which imports vehicles and parts (Hs 87) from Pakistan.

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Existing Companies

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