Transforming Automobile Industry in Pakistan

Transforming Automobile Industry in Pakistan

Over a long period of time, Pakistan automobile industry had been revolving around few companies only like Toyota, Honda and Suzuki in particular, which were having the dominance and no any other local competition was able to have taken place due to which the consumers of the sedan cars, small hatchback and SUV cars in Pakistan had to pay the price above the actual worth of those cars. Until the current ongoing competition which came into market and have now changed the automotive industry to the next level and have created various job opportunities in Pakistan by having their showrooms and offices in Pakistan like KIA Motors, Hyundai Motors, United Motors and having their manufacturing units in Pakistan. So far the cars of KIA Motors have the edge over the others in terms of its sales and popularity and the best models it came with like Picanto, Sportage (SUV).

These new entrants really excited the consumers by their quality and the use of technology and a great interior which attracted the overall market towards them and grabbed a lot of buyers which shifted the consumers from the big three companies to KIA Motors etc in a very short time as it has not been much years to them being in the industry as compared to the big three Giant Companies in Pakistan and still managed to gain their market share in the Pakistan Automobile Industry.

In Pakistan, the entry of these companies as mentioned above, the consumers are happy in a way that now they have more of a variety to choose from and different names and models which are having way too smarter look if compared to the brands like Suzuki etc. Along with that the automobile industry in Pakistan used to have an oligopolistic competition as were a few sellers only and had seen their dominance for a long time and due to that reason, it was a bit over priced as well and the end consumers had no choice except to buy from those available brands.

Automobile industry in Pakistan is not only having the changing trend in terms of new entrants but along with the cars which are imported from Japan has a different market as well, especially the hybrid technology cars imported from Japan like Toyota Aqua, Honda Vezel etc which are among the popular choice cars in Pakistan. The demand for such cars have also increased in last few years which can be said that Pakistan has potential to import cars in a huge quantity from Japan as the sales for these cars is way too high. Imported cars although being expensive have been proved to be famous among consumers as the quality of Japanese cars is the best. Keeping in consideration the Japanese cars in Pakistan, it has given a profitable business opportunities to the car dealers and they had been importing used cars from several Japanese used car suppliers like SBT JAPAN, MDK JAPAN, JAN JAPAN (The Pioneer company to have Japanese cars in Pakistan) and then selling them to the end consumers.

In Pakistan, Japanese used cars import was not a new trend but gained popularity in Pakistan because of it’s remarkable quality in a short span of time but now with time, not only Japanese but the automobile industry in Pakistan also welcomes the Chinese brands and Malaysian car brands to sell cars in Pakistan. With that, the best thing that would happen would be that competition would be tough, prices would be better for end consumers like recently the prices of Corolla and Japanese cars is high but in the same category (Sedan Body type), the newly introduced car Alsvin (Changan Automobile) which is the Chinese brand price is reasonable and lower which gained again the popularity in Pakistan and the bookings for this car is full which clearly indicates the consumers are really willing to try such brands in Pakistan. So with more companies to come and more local assemblers in automobile industry, we can say that the future of automobile industry in Pakistan can easily have a growing trend and good for Pakistan’s economy.