Automobile industry by segment & opportunities (fuel cards)


Master of Business Administration

Faculty / School

Faculty of Business Administration (FBA)

Project Type

MBA Research Project

Abstract / Summary

During the past years the fuel economy has seen slower than expected growth due to global economic conditions and political unrest in oil exporting regions 1. Nevertheless, the automobile industry has seen much improvement in the past years within Pakistan. The automotive industry has witnessed various advancements both globally and locally in key areas as dynamics of the industry are changing with varying customer needs. These changes range from technological changes in the automotive sector to changes in regulatory environment, changing fuel sources, alterations in sales patterns of various automobiles and shifting consumer preferences which have affected the dynamics of the automobile sector. It is pertinent to mention that these external/internal changes on the transport sector have direct implications on the fuel industry which drives the transport sector. With increased economic development 10 the country comes an increased dependence on commercial vehicles within the corporate environment. The automobile industry has been evolving and developing constantly around the globe including in Pakistan. With the increase in business expected due to CPEC, companies in the business of logistics and transportation particularly have seen a surge in activities. Pakistan's oil consumption is expected to increase over the next five years due to increased political stability, higher automotive sales and growing foreign investment" These changes in the economy paired with other internal/ external factors have impacted the fuel industry directly. 7 In this same era fuel companies are trying to assess the situation and better the profitability for their companies. Oil Marketing Companies, such as our patron; PSO, are looking into expand their operations and brand through various means; in this context the fuel cards business. Despite the global race for alternative fuel sources, the demand for automobiles and fuel seems to be growing in Pakistan in the commercial sector. The transport industry in Pakistan consumes around 11.4 MTs, which amounts to approximately 51% of the totalliguid fuel consumption of Pakistan.

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