Current Situation of Automobile Industry in Pakistan
Shaikh, Mohammad Irfan, Economic Review
Established in 1986, Hinopak is a Japanese owned multinational company with majority shares with Hino Motors Japan (59%) and Toyota Tsusho Corporation, Japan (30%).
Backed by Hino's expertise, Hinopak has achieved standard of quality and excellence that rival the best in the region. The Company has been overall market leader in commercial vehicles for the last 23 years. With over 50,000 vehicles on road, Hinopak has gained over 65% market share, making it the largest manufacturer in medium & heavy duty truck and bus industry in Pakistan.
The company is the first in the commercial vehicles sector to start the establishment of a 3S Dealers network, which offers Sales, Service and Spare Part facilities all under one roof. Our comprehensive network of offices, 3S Service Dealers and Spare Parts Dealers are strategically located throughout the country.
Hinopak has always manufactured and designed vehicles keeping in view the demands of the customers, recent development being the addition of two new Prime Movers to its existing range, Hino FG1J Prime Mover and Hino FM1J Prime Mover, thus providing a wide choice of Prime Movers to the market
Around the world, automobile assemblers are experiencing the worst of financial crisis, leading to recession. Similarly, since Pakistan's automobile industry is an export driven industry attracting both local and foreign investments is currently experiencing declining sales and production volumes and shows a bleak future. Due to the present crunch in the industry, many companies are on the verge of bankruptcy.
Several factors could be attributed to the reduction of vehicle sales during 2008-2009. These include
* High interest rate
* Reluctance of financial
* institutions in extending credit for vehicle purchase, Sharp rise in cost of CKD kits etc.
Similarly high rate of inflation in the country has greatly reduced purchasing power of people in general. The unexpected destabilization of economy compounded by political adventurism and the effect of global financial meltdown has combined to deliver a severe blow to our economy. …