With massive influx of imported cars, dumping of second hand cars and lower safety standards in the country, Pakistan’s total car production numbers have proven to be embarrassing recently.
The statistics released by Pakistan’s Automotive Manufacturers Association (PAMA) reveal that country’s total car production, when compared with the same statistics of India highlight that car exports alone in India are more than four times the size of total cars produced and sold in Pakistan. These numbers have brought a wave of disappointment in the local car manufacturers and other dealers who aspire to bring this level up to a respectable figure.
Discrepancy between auto numbers
Although it is insignificant to compare the two economies considering the sheer size of emerging Indian economy but when looking at the burgeoning Pakistani consumer market, our car production numbers are trivial.
Total passenger cars sold in India for the outgoing year 2014-15 stood at 23.56 lakh in the domestic market while Pakistan sold a number as low as 1.52 lakhs. Consequently, the numbers are more disappointing when we compare Indian exports. Indian passenger vehicle exports hover around 5.74 lakh during 2014-15 which is more than four times the size of Pakistan’s total output of passenger cars.
There are several reasons for such low production and sales levels; firstly Pakistan is mainly a hub of assembling these cars rather than being an indigenous producer. Despite the fact that the country has massive opportunities for expansion located at a prime location in Central Asia. Indian auto giants like TATA, Mahindra, Ashok Leyland and Hero group are expanding their wings not only in the Indian market but are also spreading their reach in international markets with aggressive foreign expansion. Other milestones are as TATA has entered in an acquisition agreement with world’s renowned Jaguar and Land Rover while Mahindra and Mahindra have also bought SSyangYong Motors.
Another significant reason for Pakistan’s lower production and sales is the recent emergence of Japanese cars in the country which provide good value for their price along with better safety standards which is giving cut throat competition to the local producers. An esteemed member of PAMA mentioned that Pakistan has become a dumping ground for used cars such as Suzuki, Humvees and Toyota.
The anonymous member of PAMA stated that:
“The data has left us red faced, we are nowhere in the picture. No comparison with India”
When asked how will Pakistan replicate the Indian campaign of ‘Make in India’ he exclaimed:
“How can we say ‘Make in Pakistan’ when no Pakistani has ‘Made in Pakistan’ before.”