2. local capital companies, whereas original equipment manufacturer assemblers


industry of Pakistan sustain a rapid growth in last 2 decades. Sales volume
increase 40% in last few years. But the major issue of Pakistan automobile
industry is expansion in imports. Pakistan imports 57 percent of its total auto
parts from japan, which results that production cost mostly depends on exchange
rate, which normally made the basis of rapid increase in retail prices,
Pakistan’s auto sector still mostly depends upon imports as indigenisation is
partial to the manufacturing of steel metal auto parts, interior trim, seats,
rubber, and other auto plastic parts and batteries, wheel rims, tyres, and
lighting accessories. The more sophisticated moving automobile parts just like
engine, transmission etc. which mainly requires precision engineering are all
imported because they cannot made locally up to international standards. In
1985, deletion program which pursued. in 2012-13 Automotive market holds
production capacity of almost 751,887 units, but considered as fairly
concentrated automobile market having only eight models for overall car sales
in Pakistan. These models are established by most famous Japanese car
manufacturer companies Honda, Suzuki and Toyota motors. More over hundred
automobile companies are working in Pakistan which assemble motor vehicles
including cars, trucks, busses, motorcycles as well as tractors. And for
automotive parts manufacturing, there are almost 1700 manufacturers are
currently working in Pakistan. These auto part manufacturers are mostly local
capital companies, whereas original equipment manufacturer assemblers are led
by Japanese manufacturing companies. In Pakistan, the production system and
automotive technology suffers many weaknesses due to lack of competition in the
industry because of localized requirements. Due to this, foreign investment
remains low in automobile industry.

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Market structure:

market structure of Pakistan automobile industry is mainly considered as
concentrated. In the language of economics we said it is high rivalry
characterized by imperfect competition. Where the automotive industry is
dominated by small number of suppliers. The major reason behind this situation
is the automobile industry of Pakistan is extremely capital intensive, which
requires high investments and the products are very expensive and barriers to
entry are mostly high because of resulting in the existence of limited number
auto suppliers.

Furthermore the auto market is
comprehensively characterized as Price oriented. As in developing countries cars
are considered as luxury items Pakistan is also one these countries, so the
demand for them is considerably elastic. Any change in price affects the sales
of the company to high extent.










Pak Suzuki motor company:

Suzuki Motor Company was established as a joint venture between famous Japanese
automobile company Suzuki motor corporation japan which is generally known as
SMC and Pakistan automobile corporation which is known as PACO, By following
PACO take over another company Awami Autos limited in 1983. Later in 1992, the
company was privatized with Suzuki motor company by increasing its equity up to
40% from 25 percent. SMC kept accruing stock by raising its 67% and later in
1992 purchased the PACO’s share to own 73 percent of the company.

Suzuki motor company is working in Pakistan since 1983 and its headquarter
situated in Karachi, it manufactures, assembles, and markets automotive
vehicles in Pakistan. Pak Suzuki motor company operates through two segments,
first one is Automobile and other one is motorcycles. The company’s major
offering is Suzuki cars, pickups, vans, four wheel 4 by 4 and motorcycles, as
well as related automobile spare parts. Pak Suzuki also trades in vehicles and
spare parts, company also exports its own manufactured products. Basically pak
Suzuki Company is subsidiary of Suzuki Motor Corporation. Last 5 years
performance shows high growth in earning per share and price earnings ratio.
According to annual financial report 2016, the earning per share of pak Suzuki
motor company 33.69. And Price earnings ratio P/E ratio is 18.19 since last 6
years. And book value or break up value of the company share is 318.55. Free
float of shares of the company till 30 September 2017 is 21,729,236. And the number
of outstanding shares of pak Suzuki limited is 82,299,851.

Indus motors company limited:

motors also known as is mainly famous for IMC and also for Toyota Indus motor
company. And which was incorporated in 1989 because of joint venture between
House of Habib Pakistan, Toyota Motor Corporation and Toyota Tsusho Japan. The
company plays a vital role in Pakistan automobile industry and hold a high
growth sales margin in car sales. Indus motors is famous for Toyota brand
vehicles and company manufactures and markets Toyota vehicles in Pakistan.
Major product contributions of company is includes numerous variant of the
flagship Corolla in the category of passenger cars. Produces Hilux in the
category of light commercial vehicles and also contributes in sports through
Fortuner in sports efficacy vehicle. The manufacturing plant and management
offices are situated in Port Qasim Karachi. But company delivered its products
to end customers countrywide through a well-managed network of 45 sovereign 3S dealers
across the country.

the 27 years history of Indus motors since initiation, company has sold almost
800000 complete build up and complete knock down auto vehicles and revealed an
impressive growth, in footings of volumetric surge from a meek commencement of
twenty vehicles per day production in year 1993 to 250 units daily at present
through the human endowment embracing the Toyota way of Quality and learn
engineering process.

the ages, Indus motor has made large scale investments in
increasing its capacity and in meeting customer wants for new products. At
present Corolla is the leading selling automotive brand model in Pakistan. IMC
is doing best in manufacturing new attractive vehicles and has distinction of
being No 1 in Asian market. The company made large investments in Training and
learning their 2800 workforce of team members and management and creating a
culture of high performance endowed teams which working similar across
processes in exploration of quality and constant improvement. Company is
enhancing morality of employees to chase high standards of business ethics. The
company has played a major contribution of the intact value chain of local auto
sector and is pride to have contributed in poverty at the grass root level by
development of local industry, by creating thousands of jobs and transferred
technology to moreover 60 suppliers by supplying auto parts. IMC pays a major
contributions in economic development with fulfilling the responsibility of
major tax payer. The number of outstanding shares of Indus motors are

Atlas Honda limited:

Atlas Honda Pakistan limited company is renowned
company in manufacturing of motorcycles and spare parts. It is listed in
Pakistan stock exchange under Automobile assembler sector. The number of
outstanding shares of atlas Honda are 103,406,613. The company was came in to
being on 16 October 1962. It is joint venture between the largest and well
reputed company of japan Honda motor company and Pakistan’s famous and renowned
business group atlas group. The company plays a pivotal and progressive role in
the manufacturing, assembling and marketing of motor bikes and related spare
parts. Atlas Company is leading motorcycle producer in Pakistan with strongest
brand image and value and hold highest customer loyalty. Company is holding the
advantage of pioneer motorcycle industry in Pakistan has capture high market
share in motor bike market from last 50 years. 
The company produces moreover 10, 000, 00 units per year. Which shows
the high production capacity of Atlas Company and company sustain its brand
image and loyalty with its customers and maintain its position as market
leading company in production volume and equity status. And the major
achievement of Atlas Honda group is its exports its motorcycles to different
countries mostly Bangladesh and Afghanistan.

Holding a high market share, Atlas Honda continue
its best in providing high quality motor cycles, expand the state of art
production facilities, largest dealership chain and flawless after sales sales
service. Atlas Honda Pakistan is mark of success two wheeler, motorcycle
production in Pakistan. And atlas group is one of the highest tax payer in the
sector. And enjoy the competitive advantage in motorcycle manufacturing in a
Pakistan. Atlas Honda is conceitedly and successfully fulfilling its
contribution as market leader and core player of motorcycle production in
automobile sector

Honda atlas cars limited:

Honda atlas
cars is considered of the most reputed company in car manufacturing and highly
involved in assembling and progressive production and bulk sale of Honda cars
and spares. Company is trending in manufacturing and trading automotive units.
Production line relates to the trade of locally manufactured vehicles and their
parts. And completely build units are also part of trading section. The head
office of Honda atlas cars limited is located at Multan road Lahore. Company
offers many automobile car models, includes Honda accord, Honda cr-v Honda cr-z
Honda hr-v, Honda civic Honda city with attractive design and best technology
features. It is public listed company and listed on no.8 in PSX under
automobile assembler. Company is having good product image and high customer
value and good market share in industry. The numbers of outstanding shares of
Honda cars is 142,800,000.

2.1.6 HinoPak Motors limited:

The number of
outstanding shares of Hinopak Company is 12,400,600. The company is listed in
Pakistan stock exchange, which plays a major part in the development of auto
sector. Major processes of Hino Pak is assembling, manufacturing, and selling
of hino trucks and buses and product line is producing trucks, buses,
particular vehicles. They are market leader and built a competitive advantage
from years in making diesel buses and trucks. They design strong and long
lasting buses and heavy trucks. Company build a high brand value in the aye of
their customers, and capture a good market share in the market of trucks,
buses, and specialised auto vehicles in Pakistan. They also producing spare
parts, bus chassis material, and bodies of all type of hino buses.


2.1.7 AL-Ghazi Tractors limited:

Ghazi Tractors Company limited was incorporated in 1983 and achieved a high
growth in very short period of time. Capture a high market share in the selling
of tractors and agricultural products. Build a core competency in Tractor
manufacturing in Pakistan. And become market leading company. In 1991 ghazi
tractor privatised and then company shined with high corporate goals and
massive success. Company is titled as best corporate performance and become the
no.1 producer of agricultural tractors throughout the world. Al ghazi tractors
honoured with a very first automobile company in country for introducing a high
ERP Resolutions to upraise the technological process. High growth and market
share became this company market leader in agricultural tractors production.
Company mostly manufactured tractors, generators, and their parts in
Afghanistan and Pakistan. It also engaged in implements including agricultural
machinery just like cultivator, disc, Harrows, Rotavator, and other agriculture
related machinery. They are connected with customers through strong network of
dealers and service centres.  The head
quarter of company is located in Karachi. Al ghazi tractors have high earning
per share and good reputation in industry as well as in their shareholders. The
number of outstanding shares of AL ghazi is 57,964,201.

Millat tractors is renowned company in
tractor production. It was established in 1964. And firstly introduce messy
Ferguson tractors in Pakistan. Production plant was built in 1967 for the
manufacturing of tractors in condition of semi knocked down form. In 1972,
millat tractors was nationalised and start manufacturing and marketing of their
products under the instruction of Pakistan Tractor Corporation. Which was
basically deals with import of tractor products in skd condition. Millat
tractors achieve productive success in less time and become a well reputed
company of Pakistan. In 1993, millat tractors successfully acquired the major
control of bolan castings limited which was engaged in interacted automotive castings.
The company has been honoured with corporate excellence award from Pakistan
management association one of the best organisation of Pakistan. And received
top companies reward from Karachi stock exchange in honour of best corporate
performance. Their annual financial report has been acknowledged as top ranked
and best report by the ICS and Admin Association of Pakistan for many years.
Currently their share price goes high and recorded 1066.67 in Karachi stock
market. And sustain a good market value from several years by holding
44,292,541 outstanding shares. In accordance with historical financial
analysis, Millat tractors annual report shows high growth and probability in
year 2016. While from the perspective of sales volume millat tractors attain high
growth recorded sales of 31.62 billion Pakistan rupees for the fiscal year
2017. These statistics shows an increase of 76 percent comparatively with 2016
when the sales volume of the company were 17.96 billion rupees. Agricultural
tractors sales shows high growth by raising sales volume up to 77.5 percent,
and shows a double digit increase from 17 to 30 billion Pakistani rupees.