The automobile and parts industry of Pakistan is dynamic industry which is driven by consumer choice, comfort, safety and design. This industry comprises of two and three wheelers manufacturers and assemblers of motorcycles, motorcars and other light commercial vehicles. The automobile and parts sector of Pakistan is one of the highly traded sectors in the Karachi stock exchange with a turnover of Rs.12, 631,750 (in 10th October 2014). Pakistan’s automobile and parts sector came into existence sometime around 1953 when national motors limited established a plant in Karachi to manufacture Bedford trucks which was the first output to be produced from this industry and since then buses, cars, and motorcycles have been added to the portfolio of this industry. The industry is comprised of several large and medium sized companies however the majority of sales in the industry comes from the three major players Pak Suzuki Motors Co Ltd, Honda Atlas Motors and Toyota Indus Motors. The current investment in this industry accounts for Rs 92 billion and contributes to 2.8% of the country’s gdp. The industry is a host to providing employment to 3.5 million people and is also playing a vital role in establishing a significant vendor industry.
The automobile and parts industry of Pakistan was a star performing industry during 2000 to 2005 but bad governance and infrastructure frailties have caused the growth of this sector to decline and has lead this industry into all sorts of trouble. The government has failed to provide any support to this industry over the past decade and has done a lot of damage to this industry by allowing the import of used cars. According to a report more than twenty five thousand used cars were imported in the last six months and these used cars have eaten up around 25% market share of local manufactures which amounts to approx. Rs 20 billion worth of