Title

Opportunities and challenges for the new entrants in automobile sector of Pakistan

Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

Spring 2018

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Keywords

Automobiles--Bodies--Materials | Automobiles--Chassis--Design and construction | -- Pakistan

Executive Summary

Automotive sector of Pakistan is an avant-garde in development of its economy. Currently it contributes about 5% of its share to the economy of Pakistan and is amongst the second largest tax payer in Pakistan. Its existence has significantly affected sectors of employment, steel and petroleum. It has helped in the growth and development of Pakistan's economy. The aim of the report is to elucidate the opportunities & challenges the new entrants will face while setting their feet's in Pakistani automotive industry and opportunities they will have in order to settle themselves in Pakistani automotive market. On the other hand it will enlighten the comparison between locally assembled cars and Renault & Hyundai cars which are expected to be launched in Pakistan. Pakistan being a developing country is already facing various challenges in its automotive sector. Similarly tbe entrance of new entrants would direct tbem towards various distinct challenges although new entrants will need ample of time to in grain their feet's in automotive sector of Pakistan; on the other hand local assemblers will also face vigorous time in future due to the entrance of imported assemblers in Pakistan. The trends of sales of passenger cars have witnessed a tremendous growth in Pakistan. Despite of its upgrading nature it is dealing with trials each day. The contradiction between local assemblers and new entrants takes birth due to the discouraging nature oflocal assemblers and delay by the government sectors for installation of plants of new entrants. Currently local assemblers are already in charge of 3/4 th of automotive industry of Pakistan. The main sources for secondary data used in this report includes literature review and interviews in order to explore the current state of Pakistani automotive sector and on the other hand the source for obtaining primary data in this report involves a structured questionnaire with close ended questions and focus groups were conducted in order to evaluate demands of Pakistani consumers.

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