“THE ROLE OF AUTOMOBILE INDUSTRY IN THE ECONOMY OF PAKISTAN ITS GROWTH. ITS IMPACTS NEGATIVE AS WELL AS POSITIVE.” Syndicate # 3 Syndicate Adviser: Dr. Shagufta Zareen
Members:
Muhammad Naeem Arshad Abbasi Ghazala Nasir Romana Alam Naveed Akhtar Khurram Mangi Mahmood Alam
Directorate General of Training & Research, Federal Board of Revenue, Lahore
Outline:
Introduction Literature Review
Evolution of Automobile Industry with special reference to Pakistan Automobile Industry in Pakistan and comparison with the Indian counterpart Automobile Industry and the Allied industries o Workshops o Spare parts markets Impact on economy Contribution to the GDP Impacts o Positive impacts Economic impacts Social impacts o Negative
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The auto industry remains second largest tax payer in terms of its contribution to customs duty, sales tax and withholding tax. The export contribution however, is marginal and growing slowly, which otherwise has high potential to grow in the coming years. AIDP envisage to achieve a critical mass of production, double the contribution of auto industry to GDP from the existing 2.8%, by the year 2011-12 with high focus on investment, technology up gradation, increasing its exports to US$ 650 million, enhancement in jobs alongside the development of critical components to further increase the competitiveness of domestically produced vehicles. the group also come across financial information of the leading manufacturers which formed the basis of our opinion that the benefits of reduction in sales tax and the removing of Federal Excise Duty from the sector has not been shifted to end consumers which shows marginal economic benefits to the manufacturer of the automobiles only. The Board of Investment, Government of Pakistan quoted the newspaper Pakistan Observer that contrary to huge Indian automobile industry in spite of offering discounts and attractive sops, is suffering from depressed sales, the nationwide auto sales increased by 3.4 percent in
Pakistan. The sales of locally assembled passenger cars (PC) and light commercial vehicles (LCV) in the country increased by around 3.4% over the previous year to 146,497 units
Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.
While car manufacturing is a global industry, automotive companies such as JLR operate in broader regions such as Europe and Asia. Three major trends were identified affecting car production in mature markets, the first was the fragmentation of mature markets, customers were demanding more choice, and this has made it difficult for manufacturers to obtain economies of scale, so cost had to be reduced and with the general
In many ways, the automotive industry has huge impacts on Canada. The impact it has creates jobs, and services. It also boosts economy and contributes to its success. Over the last two decades, the automotive industry has been a leading contributor to Canada’s economy and is a primary factor as to whether or not the economy will be successful. There are many contributing branches of the sector that allow it to be successful. This is shown through the production and manufacturing of vehicles, as well as the sale of the vehicles. The automotive industry has had a significant impact on Canada’s economy over the last 10 years. If the production and sale of domestic vehicles were to decline, Canada’s economy to be severely crippled and fall
With the recovery of economy, the world’s automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10.4 million in 2009 to over 15.6 million in 2013. Furthermore, industry analysts predict that the sales will
The impact of trade agreement made the country's auto sectors and GDP enhance several folds. Canada gained a lot more from the trade as its economy needed a bigger boost than America. In the production of automobiles, America is the dominant player in making the parts where as Canada assembles it into a vehicle. The trade also paved way for Vertical Specialization as is discussed in the paper. The trade between the two nations saw a downward drift following the 2008/2009 energy crisis that majorly targeted the United States. Since the Canadian market is linked to America's market, it also became a victim of crisis in the auto industry. Despite these troubles, both the nations have attempted to stabilize the problems and still carry on trade and thus progress their import and export quantity as well. Overall, this paper emphasizes the importance of the joint collaboration of both countries in automobile industry and its success.
The focus of this paper to describe how the automotive industry has evolved throughout these past years, and its impact on the U.S. economy. The domestic market has gone from being dominated by the “Big Three” which are General Motors, Chrysler, and Ford to now including other major manufacturers from foreign countries. The industry has become an important economic indicator used to predict fluctuations in the U.S. economy. It currently makes up approximately 3.5 percent of the U.S. GDP. The Foreign manufacturers however are slowly increasing market shares now that the Big Three aren’t so big
Large numbers of players are now fighting to eat each other over market share. In developing nation company’s like Mercedes & Audi are playing aggressively while BMW is not able to sustain in these markets. Another advantage for these car manufacturers is the support of number of loans available for the purchase of vehicles in developing
This paper is reference to provide a draft of a complete research project. So, I provide details for car industry, specifically Al-Futtaim organization. I will analysis the SWOT for Al-Futtaim Company and I will show in issues and challenges. For that, I can found Suggestion for the research. Moreover, I will identify at least three relevant CLOs from semester 7 and 8. My organization for my research is Al-Futtaim Company. The company founder is Majid Al-Futtaim; he has many companies and projects like City Centers, hotels, Emirates Mall, Carrefour and others. I will talk about Al-Futtaim Company which is for cars. It is a big company in the UAE and they have many branches in GCC and Greater Middle East, Australasia, Africa, South East and North Asia and Europe. They established in 1930 until now and they are famous organization.
The international automakers invested more than $72 billion to capitalize 425 facilities and offices. This created jobs for 123 thousand Americans with $9.3 billion and products purchased from US suppliers for $104 billion to produce 5.3 million vehicles in which 46% of all US vehicle production. There are nearly 10 thousand dealership franchises sold that employ more than 500 thousand American gaining $29 billion. Further, nearly 900 thousand US-built vehicles were exported. These figures clearly shows that there has been a domino effect of success in the US auto industry and it means that it is a great contributor to the US economy.
Since Henry Ford invented the mass production techniques that made cars affordable to the public, the United State 's economy has been dramatically influenced by this key component in its affluence. Exponentially, jobs were created because the auto business grew. Employees were needed for the constantly growing assembly lines. Consequently, Ford 's model Ts became the primary preferred, affordable, mass manufactured cars. (Davis, 2012). For more than a century, the United States ' automotive industry constantly had a large impact on the national economy. The quantity of cars sold annually has always been a reliable indicator of the nation 's economic well-being. Thus, once the recession hit in 2008, automotive sales declined sharply, indicating the decrease in customer purchase power. Environmental challenges impacting the American automotive industry consist of, yet not limited to, fierce global competition, vigorous technological advancements race, emissions and governmental approach toward a cleaner environment and, finally, customer satisfaction of the American product.
The automobile industry is one of the largest industries in the U.S. and faces major global competition with The European, Russian and Easter Asian Markets. The industry is also facing continuous organization and technological change but has taken action to increase its global presence. For example, by making alliances with other global leaders.
In 2013, an American auto industry report dubbed, ‘‘Redefining the American Auto Industry” was compiled by the Association of Global Auto makers and the American International Auto dealers ` Association. The aim of the report was to establish and indicate how international or global auto makers were impacting the US economy in general. In 2013, international automakers in American produced more than 5 million vehicles across America which were sold in the US market with 800 000 of that number being exported to over 60 countries outside the United States. Global competition in the US auto industry and the presence of International Auto Makers in the US has also had positive spin-off effects with respect to great employment opportunities elsewhere within America. Every stage of car making represents an
The Indian automobile industry is one of the largest automobile industries in the world with an annual production of 21.48 million vehicles in 2013-14. This industry accounts for 22% of the country’s manufacturing GDP (Gross Domestic Product).
13. Price of the cars as well cost of spares, parts and component also govern the
The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging