Automotive Sector of Pakistan Ministry of Industries October 9 , 2012 Automotive Sector of Pakistan www.engineeringpakistan.com

Automotive Sector of Pakistan At a Glance The Automotive industry of Pakistan assembles/manufactures Cars, LCVs, HCVs ,Tractors, Motorcycles and Auto Rickshaws. Presently, the number of players engaged in the Auto Sector are: PRODUCTS NUMBERS Cars 3 units Tractor 6 units Truck Buses LCVs/Jeeps Two/Three Wheelers 100+ Downstream Vendor Industry comprises of around 2000 parts manufacturers www.engineeringpakistan.com

CAR SECTOR

Automotive Sector of Pakistan: Market Share: %age www.engineeringpakistan.com

Automotive Sector of Pakistan: Major Players and Capacities of Car No. Name Location Plant Capacity Status Product Range 1 Pak Suzuki Motor Company Limited (PSMCL) Karachi 150,000 Operational Liana, Cultus, Alto, Mehran, Bolan 2 Indus Motor Company Limited 50,000 Corolla Cuore 3 Honda Atlas Cars (Pakistan) Limited Lahore City, Civic TOTAL 250,000 www.engineeringpakistan.com

Growth Achieved By Car Segment Number in 000

Automotive Sector of Pakistan: CC Wise Market Share (%) Engine cc wise 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 1300-1600 cc (2000cc Diesel) 32 31 48 50 46 43 1000 cc 30 29 20 19 800 cc 37 40 35 38

Automotive Sector of Pakistan: Company Wise Market Share (%) Manufacturers 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Pak Suzuki Motors 62 52 56 Honda Atlas 8 12 10 7 Toyota Indus 24 26 34 37 33 31 Dewan Farooq (Hyundai) 5 2 1 Nissan Nexus Automotive Raja Motors

Automotive Sector of Pakistan: Import of Cars (Used or New)   2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Cars up to 1000cc 19,272 14,108 7,596 3,129 4,565 5,248 24,778 From 1001 to 1300 4,131 2631 1301 502 314 1,282 8,040 From 1301 to 1500cc 5,976 2,882 2,779 508 783 2,477 18,392 From 1501 to 1600cc 991 919 45 18 11 33 From 1601 to 1800cc 947 546 561 136 503 1,324 4,590 From 1801 to 3000cc 2,267 2,517 1,462 238 61 89 176 Above 3000cc 445 267 163 161 36 46 112 Jeeps (4x4) 9,251 3,097 2,214 870 309 284 852 Total 43,280 26,967 16,121 5,556 6,582 10,761 56,973 Source :FBR

Low Motorization Levels Cars per 1000 persons

Automotive Sector of Pakistan: Local Content Levels S.NO AUTOMOTIVE SEGMENT PERCENTAGE 1. Cars 50-70 2. Tractors 88-95 3. Motorcycles 77-93 4. Commercial Vehicles 40 5. Buses and Trucks 45-47 www.engineeringpakistan.com

Growth Levels Achieved By Auto Sector Number in 000 Tractors Buses Trucks

Automotive Sector of Pakistan: Tractors Production Manufacturer Capacity 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 1 Millat Tractors Ltd 40,000 24,313 27,080 27,516 29,785 40,177 42,188 2 Al-Ghazi Tractors Ltd 25,000 24,574 27,018 25,740 30,183 31,430 28,582 3 Universal Tractors 3,000 552 335 356 139 121 85 4 Hero Motors - 40 785 492 772 1,017 5 Farmall Technology 14 NA 6 Arzoo Tractors 7 PM Auto industries 5000 475 431 GRAND TOTAL 82,000 49,439 52,029 54,397 59,684 72,989 72,303

Automotive Sector of Pakistan: Tractors Capacities Manufacturer Location Capacity Status Origin Product range 1 Millat Tractors Ltd Lahore 35,000 Operational Massey Ferguson 50, 60,75,85 HP 2 Al-Ghazi Tractors Ltd DG Khan 25,000 Fiat 55,65,75 ,85 HP 3 Universal Tractors Karachi 3,000 Universal 53 and 85 HP 4 Hero Motors Hyderabad UMG Ukraine 57,62 and 80 HP 5 Farmall Technology URSUS 50 and 60 HP 6 Arzoo Tractors Not operational Rakovica IMR 50 HP 7 PM Auto industries 5000 HEMA Turkey 50,60 and 80 GRAND TOTAL 77,000

Growth Achieved By Auto Sector Number in 000 Motorcycles LCVs

A strong vendor base of over 2000 parts manufacturers Automotive Sector of Pakistan: Indigenous Capabilities Sheet Metal Parts Plastic & Rubber Parts Forged & Machined Parts Cast & Machined Parts Interior Trims Auto Electrical Wheel Hubs and Rims Seats Glass etc A strong vendor base of over 2000 parts manufacturers www.engineeringpakistan.com

Auto Vendor Capability Most of the part manufacturers have achieved quality certifications ISO 9002,QS9000 & ISO 16949 and are manufacturing to quality standards of Global Brands. Some of the parts manufactured include: Plastic Bumpers, Radiators, Grills, Steel Floor, Instrument Panels, Complete Doors, Seats, Steering Wheels, Side view mirrors, Tyres, Sun Visors, Wheel Rims, Mufflers, Carpets, shock absorbers, Seatbelts, lights, machined, Rubber Seals, cast & forged parts Air conditioners, etc Wiring Harnesses,

Automotive Sector of Pakistan: Industry Location VENDORS North 255 South 245 Wazirabad Islamabad Gujranwala Sargodha Sheikhupura Lahore Faisalabad Dera Ghazi Khan Multan OEMs North 7 South 19 Hub Hyderabad Karachi www.engineeringpakistan.com

tariff structure for Cars CBU Cars/LCV’s Present 2012-13 Up to 1000 cc 50 to 55% 1001 to 1500cc 60 % 1501cc to 1800cc 75% Above 1800cc 100% + 50% RD 2 CKD Non-Localized 32.5% 3 CKD Localized 50% 4 Raw Material 0% 5 Sub Component 5% 6 Components 10% 7 Sub-Assembly 20%

TARIFF STRUCTURE FOR LCV,S Present 2012-13 CBU of GVW not exceeding 5 tons 60% CKD Non Localized Parts 20% CKD Localized Parts 50% Raw Material 0% Sub Component 5% Component 10% Sub-Assembly 15%

2-3 wheelers including Electric & specialized bikes, Mopeds, Quads, etc. Present 2012-13 CBU 65% CKD Non Localized Parts 15% Localized Parts 47.5% Raw Material 0% Sub Component 5% Components 10% Sub-Assembly 20%

Agriculture Tractors Agriculture Tractors Present 2012-13 CKD Non Localized Parts 0% Localized Parts 35% CBU Raw Material Sub Component Component Sub-Assembly

Prime Movers/ Rigid Trucks Description Present 2012-13 Prime Movers up to 280 HP CKD (Non Localized) 10% CKD (Localized Parts) 35% CBU 30% Prime Movers above 280 HP 0% 15% Rigid Trucks ( above 5 tons)

Prime Movers/ Rigid Trucks Description Present 2012-13 Prime Movers Raw Material 0% Sub Component Component Sub-Assembly Rigid Trucks 5% 10% 15%

Buses Buses (Non CNG/LPG) Buses (CNG/LPG) Buses CKD (Non Localized) 5% Description Present 2012-13 Buses CKD (Non Localized) 5% CKD (Localized Parts) 35% CBU 20% Bus (CNG /LPG dedicated) 0% Buses (Non CNG/LPG) Raw Material 0% Sub Component 5% Component 10% Sub-Assembly 15% Buses (CNG/LPG)

Automotive Sector of Pakistan Investment Opportunities Establishment of small car (low capacity) assembly/ Manufacturing plants Setting up Tractor Assembly plant (Tractor Industry: Competitive, potential for growth to meet domestic and exports demand) Need technical tie ups for car sub-assemblies, assemblies, components which are presently being imported. At present 45% of parts not made locally.

Automotive Sector of Pakistan Products Cars LCVs (Jeep &Pickup) Tractors Motorcycles Trucks Bus Honda Suzuki Fiat Hino Toyota Massey Ferguson Yamaha Nissan Toyota / Daihatsu Hyundai Universal Master *Dong Feng Nissan* Hero Qinqqi Isuzu *Chevrolet Kalash Farmall Technology Pak Hero *Hyundai Sigma (Defender) Arzoo Tractors* Afzal Motors Daewoo *Raja Motors (Fiat) PM Auto Industries Other Chinese *Roma Motors Co Afzal Motors Co *Bibojee Services P.M Industries www.engineeringpakistan.com *Not operational

Automotive Sector of Pakistan: Production Performance 2001-02 – 2011-12 Production Products 2001-02 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Cars 42,679 170,487 176,213 164,870 84,814 121,790 133,972 154,255 Jeeps/LCVs 564 2,472 3,298 1,590 932 1,172 883 461 Pick-Up and LCV 5,900 19,152 19,672 21,354 16,160 15,768 19,142 20,928 Trucks/Prime Movers 1,134 4,533 4,593 5,271 2,774 3,727 2,957 2,877 Buses 1,086 825 1,073 1,160 707 716 577 698 Tractor 23,801 49,439 52,029 54,397 59,984 72,989 72,261 48,895 Motorcycle 137,273 751,379 839,850 1,058,109 976,842 1,380,184 1,600,781 1,640,205 * Also includes Non PAMA Members www.engineeringpakistan.com

Automotive Sector of Pakistan: Motorcycles Production Growth Year Number of Companies 2005-06 44 2006-07 52 2007-08 59 To date June 2012 100 Production Product 2001-02 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Motorcycle 137,273 751,379 839,850 1,058,109 976,842 1,380,184 1,600,781 1,570,205

Automotive Sector of Pakistan: Company Wise Production Performance 2001-02 – 2010-11 CAR 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-2012 Honda (Civic)  12,274 5,610 5,813 4,985 5,648 6,408 5,396 Honda (City)  17,606 10,461 8,220 6,755 7,852 9,294 7,089 TOTAL HONDA 29,880 16,071 14,033 11,740 13,500 15,702 12,485 Toyota (Corolla) 31,094 35,036 33,672 27,054 43,382 41,419 46,352 Daihatsu (Cuore) 7,883 12,786 12,406 5,803 5,145 6,280 3,635 TOTAL INDUS 38,977 47,822 46,078 32,857 48,527 47,699 49,987 Suzuki (Baleno) 2,939 Suzuki (Liana) 5,370 5,964 2,605 684 900 614 334 Suzuki Swift 2,578 4,376 7,128 Suzuki (Khyber/ Cultus) 21,342 27,662 9,181 12,453 12,414 13,600 Suzuki (Alto) 17,513 21,546 18,805 6,641 10,665 12,873 15,288 Suzuki (Mehran) 35,433 36,988 36,249 13,239 22,271 25,935 33,839 Suzuki (Bolan) 10,429 15,520 17,250 9,639 10,541 14,359 21,594 TOTAL SUZUKI 93,026 109,898 102,571 39,384 59,408 70,571 91,783 Hyundai (Santro Plus) 8,604 2,225 2,028 327 212 Chevrolet Joy(Non Pama) 753 197 160 307 Nissan (Sunny) TOTAL OTHERS 9,357 2,422 2,188 634 TOTAL CARS: 171,240 176,213 164,870 84,615 121,647 133,972 154,255