Market Expansion Possibilities In The Auto Mobile Industry Of Pakistan Marketing Essay

Market Expansion Possibilities In The machine Mobile Industry Of Pakistan Marketing EssayChapter 1 IntroductionThe evolution of the cable railway carmotive patience has been influenced by mingled innovations in force outs, vehicle components, societal infrastructure, and manufacturing practices, as well as changes in markets, suppliers and bank line structures. As the challenges of twenty-first century be development day by day and business world is meet more competitive and customer centric with fluctuating trends.The automotive industry is the industry bear on in the planning, design, development, manufacture, and marketing. The locomote industry is concerned with profits and competition with consumer demands for styling, safety, and efficiency and with labor relations and manufacturing efficiency. In 2007, more than 73 million motor vehicles, including cars and commercialized vehicles were produced worldwide.This report represents a detailed and comprehensive account of the market elaboration possibilities of the automobile firmament in Pakistan and is documented on the directions of our subject teacher Sir Mustaghis-ur-Rehman. Our roll essentially becomes the p craft of our course Strategic Management as this will make us implement practicablely what we pick up learnt throughout the course. simple machine heavens is one of the most vibrant sectors in Pakistani economy with respect to policy changes, criticism on underdevelopment and lack of transfer of technology and head on collision with here and straighted vehicles. The automobile industry in Pakistan operates under franchise and technical cooperation agreements with leading world manufacturers and can be broadly categorized into various segments, i.e. cars and lighting commercial vehicles (LCVs), two and three wheelers, tractors, trucks and buses and vendor industry.TheAutomobile industryhas been an active and growing field inPakistanfor a long time, however not as much established to figure in the prominent list of the top automotive industries. Despite significant production volumes, transfer or technology remains low. Most cars in the country have dual fuel options and run on CNG(compressed natural gas) which is more affordable than petrol in the country. at that place are still three major passenger car assemblers in the market Pak Suzuki, Indus pushs and Honda Atlas. Pak Suzuki has almost complete monopoly in the small car segment as it faces almost no competition other than the single odd Diahatsu Cuore produced by Indus Motors. In the Subcompact Sedan segment Toyota Corolla, Honda Civic, Honda City, and the Nissan Sunny are currently the only cars in production. There are still no locally made SUV, Mid or Full sized sedans available.We have analyzed the industrys dominant scotch features because industries do differ significantly in their basic character structure thereby identifying the market size, scope of competitive rivalry, market growth rat e, number of profaneers and their germane(predicate) sizes. The competition prevalent in the industry and the strength of the competitive forces has been elaborated. The driving forces in the auto industry are highlighted and its impact on the Pakistani auto industry expressed. The key success factor outs that affect industry members ability to prosper in the marketplace regarding resources, competencies, product attributes etc have been pointed out. In depth analysis of the political, economical, social,technological and sound conditionsof Pakistanwith reference to the automobile industry will help in crafting a better strategy for the expansion.Automobile demand was streng then(prenominal)ed by higher bank building financing which shored up car sales despite the increase in prices during the first quarter of FY11.Chapter 2 Back strandThis chapter coers the background of the expansion possibilities in the auto industry of Pakistan.As we are discussing the expansion possibilitie s we will first have a look at the current situation of industry where it is lagging and then what can be done for the future expansion.DOMINANT ECONOMIC TRAITS IN AUTO INDUSTRYScope of the Rivalry Suzuki is the biggest competitor holding 52% of the bestow market share. Following is Toyota with around 29% and then Honda with 10.4%. Other companies constitute rest of the market share. We can say that Suzuki is leading the industry and does not have a direct rivalry as market niche for Toyota and Honda is different.Market Size In 1998 500 Million Vehicles on the Road, 49 Million saucy Registrations.Number of Competitors The most dominant of the competitors are Suzuki, Indus motors for Toyota and Honda Atlas for Honda.Prevalence of Backward Integration Partially integrated industry.Entry Barriers Very High, Experience Curve, sizable economies of scale leaf, label loyalty, large capital requirements, access to distribution channels.Exit Barriers High Fixed Costs, Specialized Plants and machinery to some degree, Shared facilitiesPace of Technology Obsolescence is not really an mercantile establishment because of resale value and functionality.Product and Customer Characteristics Segmented by Social Status and Value Orientation. Most manufacturers have broad product lines. force UtilizationCapacity in Nos.CAR2005-062006-072007-082008-092009-102010-111Pak Suzuki Motor Co. Ltd.1200001500001500001500001500001500002Indus Motor Co. Ltd.4429853040530405304053040530403Honda Atlas Cars (Pakistan) Ltd.300005000050000500005000050000Rapid Product Innovation M whatsoever innovations in the 1990s, numerous cooperation agreements. In ten years, time-to-market went from an average of 60 months to 24 months.DRIVERS OF CHANGE IN THE AUTO-INDUSTRYDriverIndustry EffectSlow Industry GrowthMore Consolidation, Larger firms in better position to reduce costs in production, purchasing, and product development costsIncreasing GlobalizationRequires an infrastructure to manufacture and distribute vehicles inter nationally.Technological agitateEncouraging more cooperative agreementsSuppliers Larger RoleSuppliers account for 69% of entire value. Working in parallel with suppliers helps to reduce time to market.Increasing governing RegulationConcerns regarding safety, emissions, fuel efficiency.Increasing emphases on reducing CostsMature market requires impertinent features, but at the same time manufacturers must be concerned about costsKEY SUCCESS FACTORS IN AUTO INDUSTRYThe key success factors of any industry are indicators or milestones that bar your business achievements and help determine how well you are progressing towards your goals and objectives.Without determining your key success factors, you run the risk of needing to make expensive changes of direction later on as you have not aligned your objectives to the success of your business.Following are the KSFs for the auto industry of PakistanPositive ImageOne critical factor that ofttimes defines an aut omotive association is its semipublic determine. Because buyers entrust their safety, along with a sizable portion of their income, to acar community, the perception of the company figures greatly in the purchasing decision. Factors influencing an automotive companys image include advertising, word of mouth and expert reviews and opinions.Low Cost ProviderPakistan is a developing country and majority of the population is infra the poverty line the middle class is vanishing very quickly there is an emerging need of a cost effective car which is fuel efficient and withal low cost.Distribution NetworkA more practical critical success factor for any automotive company is a weapons-grade network for distribution. Becausecarsand trucks are not exchange directly to customers, auto manufacturers rely on franchised dealerships to provide local showrooms. These dealers must be knowl pass onable and reputable to deal cars, which is essential for the automaker. Like auto corporations, dealers are reliant on a positive image that may be influenced by, or influence in turn, the image of the automaker. The cars should be available overly in the remote areas of Pakistan to capture market share.Cash FlowA wholesome cash flow is another practical critical success factor. When an automaker provides incentives or lowers prices, it almost always sells more cars, but the profit margin may not be a healthy one. At the same time, an automaker needs to keep costs under control, including line items that are prone to fluctuation such as the price of newfangled(a) materials and outsourced components. Achieving a sustainable cash flow is central to the frequent discussions in the midst of automakers and employee unions.ComplianceAutomakers must also ensure that the vehicles they sell are in conformation with various federal and local regulations. These include emissions standards, fuel efficiency and safety standards. While it may cost less to produce vehicles that perfor m marginally in these areas, the cost of a safety recall or government-mandated repairs are often much higher and difficult to anticipate.FlexibilityAn elusive critical success factor for the automotive industry is the ability to be flexible. Pakistan car buyers may change their buying habits quickly in response to factors like the state of the economy, the price of fuel and new automotive technologies. It is essential that automakers remain attentive to these trends and keep in place a system that can adapt quickly to create new products that meet the current and near-future needs of customers.Chapter 3 Industry AnalysisPakistan is an emerging market for automobiles and automotive parts offers immense business and investmentopportunities. The nub part of Auto industry to GDP in 2007 is 2.8% which is likely to increase up to 5.6% in the next 5 years. Total gross sales of automobiles in Pakistan were Rs.214 billion in 2006-07 or $2.67 billion. The industry paid Rs.63 billion cumul ative taxes in 2007-08 that the government has levied on automobiles. There are 500 auto-parts manufacturers in the country that bestow parts to original equipment manufacturers (PAMA members). Auto sector presently, contributes 16% to the manufacturing sector which also is expected to increase 25% in the next 7 years, as compared to 6.7 per centum during 2001-02.Vehicles manufacturers directly employ over 192,000 people with a total investment of over $ 1.5 billion. Currently, there are around 82 vehicles assemblers in the industry producing passengers cars, light commercial vehicles, trucks, buses, tractors and 2/3 wheelers. The auto policy is geared up to make an investment of $ 4.09 billion in the next five years thus, devising a target of one-half a million cars per annum achievable.Government of Pakistan had undertaken two major initiatives in the form of National Trade Corridor Improvement Program (NTCIP) and Auto Industry Development Program (AIDP) for the development of the automotive industry in Pakistan.Engineering Development Board (EDB) is actively implementing the AIDP to increase the GDP contribution of the automotive sector to 5.6%, boost car production capacity to half a million units as well as attract an investment of US$ 3 billion and reach an auto export target of US$ 650 million.Automotive engineering is a driving force of large scale manufacturing, contributing US$ 3.6 billion to the national economy and engaging over 192,000 people in direct employment.The Auto parts manufacturing is $ 0.96 billion per annum. The demand for auto parts is highest in the motor cycle industry which is 60%, then is for cars which constitutes to 22% and the rest 18% is consumed by trucks, buses tractors. This demand is met by Imports which caters 22% while the remaining 78% is supplied by the local manufacturers.Due to the increase in demand for sophisticated machinery, the government has allowed duty free import of rawmaterial, sub components, component s assemblies for manufacturers assemblers. Total import bill of machinery stands at $2.195 billion in the current fiscal year of 2007-08 which is 12.77% higher than that of the preceding year.The impressive growth in the machine tools and automation sector is directly proportional to the growth of the automotive industry which has become the fastest growing industry of Pakistan and contributes $3.6 billion one-yearly to the countrys GDP.The aftermarket for spares has also witnessed immense expansion over the same period, with imported parts playing an important role in meeting local demand. The spare parts market is given further trend by a total vehicle population of approximately 5.4 millionPakistan has the second highest number of CNG-powered vehicles in the world with more than 1.55 million cars and passenger buses, constituting 24% of total vehicles in Pakistan with improved fuel efficiency and conforming to the latest environment regulations.Honda Atlas Cars Pakistan LtdHond a Atlas Cars Pakistan Limited is a conjunction venture between Honda Motor Company Limited Japan, and the AtlasGroup of Companies, Pakistan. The company was incorporated on November 1992 and joint venture agreement was signed on August 1993. The ground breaking ceremony was held on April 17, 1993 and within a destroy time of 11 months, construction and erection of machinery was completed. The first car rolled off the group line on May 26, 1994. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad caravanserai Leghari. Mr Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges. In July 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad. Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pitstops network in all majo r cities of Pakistan. Since the commencement of production in 1994, the company has produced and sold more than 150,000 cars till Oct, 2008. All dealerships are constructed in accordance with the standards defined by Honda World over.Indus Motor CompanyIndus Motor Company (IMC) is a joint venture between the House of Habib, Toyota Motor Corporation Japan (TMC),Daihatsu Motor Company Ltd.vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. IMCs production facilities are located at Port Bin Qasim Industrial partition near Karachi in an area measuring over 105 acres. Indus Motor companys plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are beingness manuf actured. IMCs Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4-2 and 4 reading materials of Daihatsu Cuore.Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota.Pak Suzuki Motor CompanyPak Suzuki Motor Company Ltd (PSMCL), established as a joint venture between Suzuki Motor Corporation of Japan (SMC) and Pakistan Automobile Corporation (PACO) Govt. of Pakistan in 1983. Started commercial operations with production (S.O.P.) of Suzuki FX in 1984. In 1992, started production of MARGALLA at new Plant. In 1997, started production of 1300cc BALENO replacing Margalla. In 2001, launched the CNG version of MEHRAN, RAVI and BOLAN. By 2005 capacity expansion up to 80,000 vehicles per year were completed. In 2006, capacity expansion up to 120,000 vehicles per year was completed and production of 1300cc/1 600cc car LIANA and BALENO commenced. In 2007, the triophases of capacity expansion up to 150,000 vehicles per year were completed. Amalgamation of Suzuki Motorcycle Pakistan Ltd into Pak Suzuki Motor Company Ltd took place and new land of 120 acres was acquired for further expansion adjacent to current plant. In 2008, the company started exporting Suzuki LIANA to Bangladesh. Pak Suzuki acquired a land of 25.22 acres at Lahore for setting up PDI centre, Spare Parts Ware-house, Regional berth and other related facilities.Nexus AutomotiveChevrolets were sold in Pakistan well into the 1970s, after which the automotive regime was changed and Chevroletgradually withdrew to its home market in the joined States. In 2004, after an absence of three decades, Chevrolet was re-introduced in Pakistan. Once again, a global brand with a product line-up suited to developing markets such as Pakistan, Chevrolet has made a successful return to the country. Working with Nexus Automotive, commonplace Motors partner in Pakistan , Chevrolet can once again be seen on roads all over the country. Today, Nexus Automotive assembles the 1000cc Chevrolet Joy at Port Qasim (Sindh), and imports a broader line-up of cars, including Aveo, Optra, and Colorado (coming soon) from the General Motors global network.Al-Ghazi TractorsAl-Ghazi Tractors Limited (AGTL) was incorporated in 1983. In 1991 the put up was offered for privatization, andacquired by Al-Futtaim Group of Dubai who took over the management control of AGTL in December 1991. Ever since AGTL is a case study of rollicking corporate success. 50.02% shares of the company are held by Al-Futtaim Industries Co. LLC and 43.17% shares are held by CNH Global NV, with whom Al-Ghazi Tractors Limited has signed an Industrial Collaboration Agreement for manufacture of New Holland brand tractors. The Agreement is well-grounded till April 2016. With expansions carried out in 2005, the plant is now capable of producing 30,000+ tractors per yea r in a single shift the most enduring competitive edge being the flavor of our tractors, which are robustand sturdy and carry a local content as high as 92%. AGTL was the first automobile company in Pakistan to earn the ISO-9002 Certificate.Dewan MotorsDewan Farooque Motors Limited has one of the most advanced automobile assembly plants of South Asia. Located at Dewan City, Sujawal, Thatta, with a total project cost of Rs. 1.8 billion, the plant is built on an area of 42,000 square meters. Selection of the site reflects the commitment of Dewan Group towards building of a prosperous Pakistan and its contribution to national wealth. The project has provided direct employment to over 700 personnel. The plant is the first automobile manufacturing unit in Pakistan to be independently invested by 100% Pakistani investors. The annual capacity of the plant is 10,000 units on a single shift basis. The groundbreaking ceremony for the plant was held in June 1999, and the first Kia Classic ro lled-out in a record time of six months. Today the modern state-of-the-art plant is rolling-out cars every day. This is the first and only automobile assembly plant in Pakistan with state of art robotic equipment. Dewan Farooque Motors Limited has technical collaboration and license agreements with the following Korean companiesHyundai Motor Company December 25th 1998Kia Motors Corporation July 27th 1999Ghandhara IndustriesThe Ghandhara Industries Limited is a public limited company quoted on the Stock Exchanges and registered under the Companies Act, 1913 (now companies Ordinance, 1984). It was established in Karachi by General Motors Overseas Distribution Corporation U.S.A. in 1963 Lt. Gen. M. Habibullah Khan Khattak acquired these facilities from General Motors and renamed it Ghandhara Industries Limited. The Government of Pakistan nationalized Ghandhara Industries Limited in 1972 and renamed it National Motors Limited. In 1992 M/s. Bibojee Services (Pvt) ltd. acquired it under Privatization Policy of the Government, and adopted its original name Ghandhara Industries Limited w.e.f. 27-11-1999. The major business activities of the company comprise of progressive manufacture, assembly and marketing Isuzu truck and bus chassis and fabrication of Bus and Load bodies. Ghandhara industries Ltd have a product throw off of ISUZU medium-duty vehicles (F-Series) light-duty Vehicles (N-Seies) in Pakistan.Hino-Pak Motors LtdHino Motors Japan and Toyota Tsusho Corporation in collaboration with Al-Futtaim Group of UAE and PACO Pakistan formed Hinopak Motors Limited in 1986. In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors.Adam Motor CompanyWe would dogreat injustice if we fail to mention, the only large scale effort made by a Pakistani to achieve what othersfailed toimplement or even envision. Mr.Feroz Khan,founder of theAdam Motor Company, Ltd.was an automob ile assembler base in Karachi, Pakistan. They were notable for producing theRevo, which was Pakistans first homegrown company to assemble a decent car. Together with styler Mehmood Hussain, Chief Engineer N. A. Salmi and two fresh graduates from NED, Khan designed and manufactured Pakistans first car. In fact, Khan invested in the latest software programs to train his team using electronic computer Aided Design (CAD) and Computer Aided Manufacturing (CAM). Khan is also Chairman and CEO of Omar Jibran Engineering Industries and has twice been Chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers.All their vehicles used make in China components due to lack of a modern manufacturing industry in Pakistan. Initially Adam Motor was involved in assembling cheap Made in China light trucks, followed by a Made in China four-wheel drive off-road vehicle. Later they started manufacturing the Revo. The 800CC version of the Revo costs Rs. 269,000 (about $4,500) and the 1050 model is Rs. 369,000 (about $6,200). The Revo has also been built in accordance with EU safety regulations. Mr. Feroz Khan blames the politicians for the companys failure.The current auto update about vehicle production in year 2008, i got the report in recently from local magazine, i am subcriber of the said magazine thats why i have update information about it. fit in to the report which was published in February 2009 issue of Mobile World.The number of vehicles produced in country declined in the second half of last year to 59,288 from 96,448 units produced during first half in contrast to installed capacity of 383,922 units.It may be mentioned here that out of total number of 19 registered four wheeler assemblers 4 have already abandoned the assembling activities. Out of remaining 15 manufacturers M/s Pak Suzuki Motor Company was the top producer during July to December 2008 by making a total of 34,607 vehicles of six different types.Indus Motor Company was the second h ighest who produced 14,844 vehicles of three different kinds followed by Honda Atlas Cars who produced only two brands making a total of 6,154. Dewan Farooque Motors with 1,413 and Nexus Automotive with 197 were the other car manufacturers in the line.Sigma Motors, assemblers of Defender Jeep produced only 13 units in six months while Sindh Engineering had manufactured 25 Dong Feng light Trucks and Dewan Automotive Engineering formerly known as Delta Innovations produced 2 Star Trucks only. Similarly, Karakoram Motors produced 43 Kalash pickups.M/s Hinopak Motors was the leading manufacturer of baleful/ light duty trucks, dumpers, semi trailers, prime mover and bus segments which produced a total of 1,062 vehicles. Ghandhara Nissan followed through manufacture of 315 including 24 Nissan Sunny cars and Ghandhara Industries produced 308 Isuzu vehicles while Afzal Motors made 85 Daewoo vehicles and Bibojee Services produced 8 Kamaz prime movers.M/s Raja Motor Company, Adam Motor and T ransmission Motor were the companies whom had abandoned the manufacturing of Fiat UNO car, Zabardast truck and Alif car, bespeak pickup respectively. Similarly, M/s Roma Motor Company was the assembler of Roma Mini truck.During this period Suzuki pickup was the most demanded vehicle for Pak Suzuki Motors that topped by 9,267 in the company followed by 7,853 Mehran, 6,301 Bolan, 6,133 Cultus, 4667 alto and 386 Liana cars.Toyota Corolla was the favorite from Indus Motors with 10,130 units followed by 4,003 Daihatsu Cuore and 711 Hilux pickups. Honda produced 3,301 Civic and 2,853 City cars. Dewan Farooque produced 1,320 Shehzore pickup and 93 Hyundai Santro cars while Nexus Automotive assembled 197 Chevrolet Joy cars.It may be mentioned here that Pak Suzuki has installed capacity of 150,000 units, Indus 50,000, Honda 50,000, Dewan Farooque 10,000, sigma Motors 1,000, Sindh Engineering 3,000, Mater Motor 8,500, and Roma Motor 572.In truck and bus assembling segment Hinopak has install ed capacity of 5,950 vehicles, Ghandhara Nissan 2,200 trucks buses and 6,000 Nissan delightful cars, Ghandhara Industries 3,000, Afzal Motors 3,000 and Bibojee Services 200 units, respectively.Automobile demand was strengthened by higher bank financing which shored up car sales despite the increase in prices. Similarly, production of some of consumer electronics rose sharply despite imposition of federal excise duty in Budget FY11. In fact, continued indigenization of automobiles partly contained the pass-through of currentness depreciation on local prices, while duty reductions on imports of some electronic parts have helped firms reduce their costs.Car Financing and Sales (Jul-Nov)FY10FY11Disbursements (mln Rs.)6,25222,969Avg. car price (Rs.)*854,122912,822Car sales42,16646,822* Average of 11 car models Source PAMA, Automark.Official Pakistani car sales figures only take into consideration the models produced locally, which gives a pretty good idea of actual car sales given impo rts are very limited. Nearly 1 in every 3 new cars sold in the country is a Toyota Corolla It totals 44,098 sales over the year for a 29.7% market share.No less than 5 Suzukis follow, on top of which the gaffer Suzuki Mehran (a 1988 Maruti 800), still holding very well for its age at 23,117 sales and 15.6%, and the pick-up Ravi grabbing nearly 10% of the Pakistani market in 3rd. The Suzuki Bolan (aka Carry) is 4th with 12,701 sales and 8.6% fore of the Alto and Cultus.The plant capacity was increased in year 2005-2006 as the bank car financing was at boom. But since then it has been fixed.The table infra describes the total number of cars, jeeps, trucks, buses, tractors and buses sold from 2001-2009.According to Government Board of Investment,Automotive IndustryNo of UnitsNumber01-022002-032003-042004-052005-062006-072007-082008-09Cars5164,00040,60162,89399,263126,817160,642176,016164,71084,308Jeeps23,2981,590932Light Vehicles432,5008,49112,17414,08923,61329,58119,67221,354Trucks 517,5001,1411,9542,0223,2044,5184,4104,9933,135Buses53,90010991,3401,3801,7628259931,146662Tractors350,00024,33126,50136,10343,74649,43954,61053,60759,968Motor Cycles55733,000133,334176,591327,446571,145744,875839,2241,057,751493,592EXPANSION POSSIBILITIES AND OPPORTUNITIESIncreasing Demand for CarsIn Pakistan context there are 9 cars in 1,000 persons which is one of the terminal in the emerging economies which itself speaks of high potential of growth in the auto sector and more so in the car production.Rising per capita income with changing demographic distribution and an anticipated influx of 30 to 40 million young people in the economically active workforce in the next hardly a(prenominal) years provides a stimulus to the industry to expand and grow.Resale of Local Assembled CarsResale of locally assembled cars is better due to availability of spare parts and after sales serve and warrantyUsed imported cars have been selling below their cost at the showrooms for the last six months but consumers are not inclined to buy because of their low re-sale value and problems in parts availability.Quality of local carsInitially when the import of cars was liberalized the quality of local assembled cars was unsatisfactory so the people of high income take aim group started buying imported cars and the sales of the local assembled cars started decreasing so the local assemblers started enhancing the quality of their vehicles so we can say that the quality of local cars is becoming the strength of the auto industry.OEMThe local OEM of Pakistan is well equipped with enough advance technology and skilled labor to produce parts according to the desired quality of any foreign company.CNG kitThe advantage of buying local assembled cars is that they come with factory fitted CNG kits at the times when the prices of fuel rising at higher grand internationally.MechanicsFor local assembled cars mechanics are readily available in market and much cheaper so the buyer has not to worry about any problem that can occur in the car in long term whereas the availability for imported cars is a bigger issue for the owners and if somehow they are able to find one then the mechanics charges much higher than actually it should be charged.Import German technology and skillsEDB wanted to build a Pakistan-German automotive supply network, providing opportunities to Pakistani automotive vendor enterprises to benefit from the German know-how and technology to improve quality, productivity, developing and marketing of value-added products.Foreign Investment and setup production facilitiesChina National Heavy Duty Truck Corporation (CNHDTC), on