Author Topic: Auto Sector  (Read 146012 times)

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Offline aharoon

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Re: Auto Sector
« Reply #879 on: June 13, 2018, 11:09:16 PM »
Renault ' KIA ' Nissan aur kuch pata nahin about dewan.. Chinese maal alag..
Itnay competition main INDU PSMC HCAR waghaira Kay margins bohat limited reh jain gay..
Yeh baat bhi notice plz

Pakinvestorsguide

Re: Auto Sector
« Reply #879 on: June 13, 2018, 11:09:16 PM »

Offline Farzooq

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Re: Auto Sector
« Reply #880 on: June 14, 2018, 11:51:10 AM »
New entrants investing ~US$820mn
We shed light on auto companies that are entering the local market, their potential
investment size, capacities and the various segments that they are expected to
target during the initial years of entry. To recall, with the introduction of the new
Auto Policy (ADP 16-21) – which provides duty and other incentives to new
entrants over existing assemblers – there has been a flurry of companies that have
pledged investment in the local auto sector to grab a potential chunk of the
booming auto market.
These include the likes of Kia Motors from South Korea in collaboration with the
Lucky Group (Kia-Lucky Motors) and Hyundai Motors from South Korea with Nishat
Group (Hyundai Nishat Motors). As can be seen from the table, the potential
investments coming from the new entrants are estimated around US$820mn
(including US$110mn pending cases). Eight companies have been granted
Greenfield status so far under the Auto Policy, while two companies have received
Brownfield status and some cases are pending for approval. Renault, as per media
reports is expected to enter the market in collaboration with Al Futtaim Motors has
not yet completed the application process as per our channel checks, and is
therefore not included in this analysis.

Tough times ahead for existing assemblers
Total additional capacity from new entrants is estimated at 192,000 units, the bulk
of which is expected to directly target the market dominated by existing players
such as Pak Suzuki Motors (PSMC), Indus Motor Company (INDU) and Honda
Atlas Cars (HCAR). The total automotive capacity (Passenger Cars, LCVs, SUVs)
of the country is expected to increase from existing ~280k units (including INDU’s
10k units CAPEX and FAW) to ~465k units within the next 2-3 years, which may
limit the breathing space for existing OEMs. We believe that existing OEMs can
likely employ a strategy of product diversification in order for them to protect their
market share.
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Offline rameez1

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Re: Auto Sector
« Reply #881 on: June 15, 2018, 01:37:52 AM »
I think Indus and HCAR will still be able to retain their market share due to no direct competition in their category of vehicles. PSMC will take the biggest hit as there is direct competition in 1000CC cars with the new entrants.

Offline dr.muhammad zia

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I'm friends with the monster that's under my bed
Get along with the voices inside of my head
You're trying to save me, stop holding your breath
And you think I'm crazy, yeah, you think I'm crazy,WELL THATS NOT FAIR