Strategic Analysis of the Pakistan Automotive Market, Forecast to 2025

Strategic Analysis of the Pakistan Automotive Market, Forecast to 2025

With An Expected Growth Rate of 7.2%, The Industry is Ripe for New Opportunities, Backed by a New Automotive Policy and Political Stability

RELEASE DATE
31-Dec-2018
REGION
South Asia, Middle East & North Africa
Research Code: ME29-01-00-00-00
SKU: AU01771-SA-MR_22766
$4,950.00
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Description

The economies in developed countries have either stabilized or declined over the past few years. As a result, automotive companies are struggling to grow their sales in these markets. End-customers are either continuing to use their existing vehicles or are looking at alternative modes of transport. To sustain growth, automotive OEMs are continuously looking at new markets for expansion. Pakistan is one such market which holds significant growth potential.

With an extremely low penetration rate of approximately 13 cars per 1000 inhabitants and a rapidly growing urbanization rate of 40.5%, Pakistan has huge potential to grow its automotive market. So far, only three manufacturers— Suzuki, Honda and Toyota—assemble vehicles in the country, and these Japanese OEMs obviously dominate the domestic automotive market. The Pakistan government is keen to incentivize new and existing OEMs to introduce new models to enable end-customers to expand their choices. The presence of only three OEMs gives an opportunity for new OEMs to enter the market and satisfy the unmet need for end-customers.

A change in the government’s automotive policy is expected to spur local OEM investment in the country in terms of assemblers and thereby contribute to an increase in sales. This is expected to further propel growth in downstream industry activities, especially automotive servicing and parts.

End-customers struggle with poor vehicle quality, inferior technology, and outdated model designs offered by the three existing manufacturers. Further, the high cost of financing is detrimental to the purchase of new vehicles as end-customers are hindered from buying new cars, which forces OEMs to continue producing old models because of lack of growth.

The aim of this study is to provide an overall perspective on the passenger vehicle market in Pakistan. It discusses the capabilities of vehicle manufacturers, how the market is currently positioned in terms of vehicles sales, who are the leading OEMs and, most importantly, how is the market expected to change in the future.

Table of Contents

Executive Summary—Key Findings

Executive Summary: Pakistan’s Automotive Industry—2017 Data

Executive Summary—Current Automotive Landscape

Executive Summary—Current Vehicle Assembly Capability

Executive Summary—PV Segment Analysis

Executive Summary—SWOT Analysis of Pakistan Automotive Industry

Research Scope Aims and Objectives

Research Aims and Objectives

Key Questions this Study Will Answer

Research Methodology

Pakistan Country Snapshot

Population Demographics and Urbanization

Major Industrial Clusters in Pakistan

Political and Economic Landscape

Pakistan’s Automotive Industry—2017 Data

SWOT Analysis of Pakistan Automotive Industry

Pakistan—Current Automotive Landscape

Emission Regulations

Automotive Regulations

Automotive Regulations (continued)

Market Size and Potential

Key Takeaways

Pakistan—Automotive Production Footprint

Key Competencies in PV Manufacturing and Assembling

Current Vehicle Assembly Capability

Production Profile

OEM Manufacturing Profile—Pak-Suzuki

OEM Manufacturing Profile—Indus Toyota

OEM Manufacturing Profile—Honda Atlas

Manufacturing Strategy—Expected Trends

Key Takeaways

Total Units Sold and CAGR

PV Segment Analysis

Most Popular Brands

Sales Performance Benchmarking

Most Popular Models

OEM Competitive Analysis

PV Segment Analysis

Overall PV Sales Forecast

OEM Distribution Network

Key Takeaways

Current Mobility Landscape

Profiles of Mobility Providers

Profiles of Mobility Providers (continued)

Profiles of Mobility Providers (continued)

Key Takeaways

Growth Opportunity

Strategic Imperatives for Success and Growth

Key Conclusions and So What Analysis

The Last Word—3 Big Predictions

Legal Disclaimer

Abbreviations and Acronyms Used

Market Engineering Methodology

List of Exhibits

List of Exhibits (continued)

Related Research
The economies in developed countries have either stabilized or declined over the past few years. As a result, automotive companies are struggling to grow their sales in these markets. End-customers are either continuing to use their existing vehicles or are looking at alternative modes of transport. To sustain growth, automotive OEMs are continuously looking at new markets for expansion. Pakistan is one such market which holds significant growth potential. With an extremely low penetration rate of approximately 13 cars per 1000 inhabitants and a rapidly growing urbanization rate of 40.5%, Pakistan has huge potential to grow its automotive market. So far, only three manufacturers— Suzuki, Honda and Toyota—assemble vehicles in the country, and these Japanese OEMs obviously dominate the domestic automotive market. The Pakistan government is keen to incentivize new and existing OEMs to introduce new models to enable end-customers to expand their choices. The presence of only three OEMs gives an opportunity for new OEMs to enter the market and satisfy the unmet need for end-customers. A change in the governments automotive policy is expected to spur local OEM investment in the country in terms of assemblers and thereby contribute to an increase in sales. This is expected to further propel growth in downstream industry activities, especially automotive servicing and parts. End-customers struggle with poor vehicle quality, inferior technology, and outdated model designs offered by the three existing manufacturers. Further, the high cost of financing is detrimental to the purchase of new vehicles as end-customers are hindered from buying new cars, which forces OEMs to continue producing old models because of lack of growth. The aim of this study is to provide an overall perspective on the passenger vehicle market in Pakistan. It discusses the capabilities of vehicle manufacturers, how the market is currently positioned in terms of vehicles sales, who are the leading OEMs and, most importantly, how is the market expected to change in the future.--BEGIN PROMO--

Key Issues Addressed

  • What are the best performing brands, models, and segments in the Pakistan automotive industry? 
  • What are the industry dynamics in terms of vehicle assembly and who are the leading OEMs in the market that manufacture or assemble vehicles? 
  • What does the future hold for Pakistan in terms of automotive growth and how will production and sales help support this? 
  • How are new mobility solutions, in terms of car-sharing and ride-sharing, growing in the industry? 
  • If they are expected, how will regulations change in the next few years and how will this impact the automotive industry?

Author: Viroop Narla

More Information
No Index No
Podcast No
Author Viroop Narla
Industries Automotive
WIP Number ME29-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9AF6-A6