Booming Automotive Market in Pakistan, Become Global Attention

Karachi- Pursuing status as a country with a developing economy, the automotive industry of Pakistan are moving toward "healthy". Annual sales have touched the figure of 200,000 units for the first time, where all the manufacturers are playing on Pakistani soil, plans to increase production to meet domestic needs are growing rapidly.
Citing Nikkei, Sunday (02/19/2017) the new players also began to come in droves (where Renault and Kia Motors), and lured by incentives provided by the government, and to exploit the momentum of growth of the middle class. In Pakistan the Japanese brands still dominate.
Pakistan's highest record obtained in fiscal year 2016, as many as 218,000 units. Pak Suzuki Motor Company, a subsidiary of Suzuki Motor of Japan, managed to record sales reached 128,000 units in fiscal year 2016.
The government also intends to use the Suzuki cars for taxis, as part of government programs to create jobs lapagan. Then there Indus Motor, the company the joint venture between Toyota Motor and local conglomerate House of Habib, where getting good sales through its Corolla, grew 11 percent in fiscal year 2016, 65,000 units.
Nikkei Pakistan Car sales in fiscal 2016 ending in March."The market is very fast moving and the production can not keep it. Demand in India, our neighbor next door, sold about 4 million cars (including commercial vehicles) per year. So the annual sales of about 600,000 units could be included in coverage in Pakistan, which has a population one-sixth of India, "said Toshiya Azuma, Vice Chairman Indus Motor.

A joint venture of Honda Motor, Honda Atlas Cars, also saw record high sales, where the Civic and City sold 35,000 units during 2016, up about 50 percent this year. "The Civic is the main driving force, we expect sales to reach 50,000 units in 2017," said Saquib H. Shirazi CEO of Atlas Honda.
The producers have benefited from several conditions that could increase their profits. Ranging from household income to increase, along with Pakistan's growing economy, while prices for gasoline and diesel were at a low price.
Then, interest rates on car loans have fallen sharply, which is on an average below 10 per cent compared to what happened in fiscal year 2008, the lift 18 percent. More recently, the initiative of China-Pakistan Economic Corridor, has encouraged investment in the infrastructure sector, where Pakistan hopes the highway network could be completed in the near future.