Sunday, April 5, 2009

EFFECTS OF GLOBAL AUTOMOBILE INDUSTRY IN PAKISTAN

The Effect of Global trend on automobile industry will be against the Pakistan economy like the major trend is automobile industry on minimizing the cost , adopting latest technology and free export where Pakistan has all the factors going against for like manufacturing cant be minimized because the utilities expense is increasing day by day and except in the current scenario where the electric corporations not able to provide continuous electricity .If you talk about the latest technology then technology depends on the research and development where in Pakistan there is no working on research and development .To import a car there is a huge duty which they had to pay by the importer and in Pakistan import duties are up to 200% so the end consumer has to pay a lot more money to the original cost of the vehicle. Thus it is very hard to imagine that in such a high material, electricity, Taxes and Import duties costs it is very difficult to install or manufacture any units in Pakistan. On the other hand the uncertainty conditions where life is in danger of every human being so heavy investments are very much complicated. Suzuki is a company which is providing low cost quality vehicle so while working under the global changes trends Suzuki motors is doing exactly the same as they are doing for the last two decades they even not bother to change their models because the consumers demand is not as higher as in the other European, American countries etc where they are keep on changing.

In our opinion Pak- Suzuki Automotive industry won’t get affected to change in global trends the worst most possible condition will be that, the automotive units will be shut down in the country and the demand will be met by foreign countries and peoples who have the buying power they will import the cars from India china and rest of the world.

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