Essay On Automobile Industry In Pakistan

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Following international trends, the automobile industry in Pakistan showed substantial growth in the years under review. A significant rise in demand for automobiles, propelled at least partly by easy availability of auto leases and loans from banks and leasing companies at low financial cost, was instrumental in the fast growth of the sector.
In the past years, there has been a high growth of more than 40 percent per year in the automobile market. The growth in the automobile sector had naturally also given impetus to the allied automobile vendor industry, which also faced problems due to the recent fall in demand. The auto-makers need to take this crucial fact into account that there is still a significant gap between supply and demand for
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Since managers have superior information about the firm than investors, they might issue equity when it is overpriced. Notwithstanding a manifold increase in car production in Pakistan during the last few years, Pakistan still stands relatively low in terms of motorization when compared globally and even to its neighbors. [1]
The automobile industry was established in Pakistan in 1950 and since then has fluctuated through different phases of remaining in private and public controls.
From 1980s onward, the control of the automobile industry remained in private hands. Presently, there are three major car manufacturers/assemblers in the car industry in Pakistan namely: Pak Suzuki Motor Company Limited, Indus Motor Company Limited and Honda Atlas Cars Limited.
Pakistan automobile industry is inward looking and it tries to protect itself through the use of regulatory instruments. Pakistan needs to develop the automobile industry instead of protecting it and in this regard, imports have a disciplinary impact on domestic firms. [2]
The auto industry in Pakistan is producing all kinds of vehicles that include; motor cars, buses, trucks, Light Commercial Vehicles, tractors, prime-movers and 2/3

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