the years, the automobile industry becomes the true consideration of economy
throughout the world. Similarly Pakistan’s economic gauges shows the good
improvement at present peak of automobile sector. Currently there are 22
automobile assemblers including national and multinational companies with their
equity participation working in pakistan. Presently there are 10 automobile
companies listed in Pakistan stock exchange including Pak Suzuki, Toyota,
Honda, Hino, Nissan, and Hyundai involved in progressive manufacturing of
different automobile vehicles under approved omission program started by Government
automobile industry in Pakistan showed extensive growth in the years under
review. The growth was assisted by favorable government policies during this
period and tax of lower import duties on raw material inputs and on
intermediate products. A significance rise in demand for automobiles, driven at
least partly by easy availability of auto leases and loans from banks and
leasing companies at low financial cost was subjected to fast growth of the
sector, the expansion in the sector besides boosting the country’s industrial
productivity , also provided significant direct and indirect employment
the past years, there has been high growth of more than 40% per year in the
automobile sector. The growth declined slightly in 2008 and 2009 due decrease
in demand because of rising prices and lease financing becoming expensive for
the customers. This phenomenon resulted from steep depreciation of Pakistan’s
currency same as international currencies and increase in market interest rates
and inflation. The growth in the automobile sector had naturally also given
impulse to Allied automobile vender industry, which also faced problems due to
the recent fall in demand.
Objectives of the study:
as of the study are, to understand the
basic problems of Pakistan automobile industry. Study the Effect of Government
policies on local automobile industry and on import and export of country.
Discuss its pros and cons. Find the reasons of current issues of sector.
Present the future outlook and find results, Proposed Recommendations that
might lead to better results.
Pakistan automobile sector is still facing
challenging economic environment and exceptional decline in sales and exports.
Expansion in imports which highly affect local automobile industry. Major
problem is decline in exports in automobile vehicles as well as auto parts. And
expansion in importing auto parts from different countries. Which hardly
affected on local automobile industry.
Significance of the study:
Significance of the project is to
identify the major problems of automobile industry in Pakistan. Through
fundamental and technical analysis. Fundamental analysis focus on the financial
health of companies which are incorporated in automobile sector and fundamental
analysis also chooses stocks to buy and in technical analysis suggest when to
buy for analysts who use both. And recommend the best solutions to improve the
auto sector. While from the perspective of supplier in recent years.
sources of information for this project includes secondary data .company’s
annual financial reports. Research Articles, newspapers about current update of
automobile sector and some old research reports for fundamental analysis. I
will also use the data of companies, which I choose for the project, use
companies reports, balance sheets, and cash flow statements. And for technical
analysis I will take help from technical reports of companies. 3 years of data
of companies from 2012 to 2015 will be used for fundamental analysis in this
project. For better results and comprehensive study different variables will be
used for analysis. For fundamental analysis EPS, P.E ratio, and dividend paid
is used. And for technical analysis measurement of return, risk measurement,
and total risk will be used.
I will use secondary data for this
project, use Annual reports of companies for fundamental analysis, and
technical reports for technical. Also use Resrech reports related to my study
and get help from PMX website.
Automobile sector plays a vital role in
economic development, there is major increase recorded in Pakistan automobile
sector. Last few years which is about to 40%. There are 10 automobile companies
listed in Pakistan stock exchange. And I will analyse the major automobile
companies of Pakistan.
I will take Top seven companies of auto
sector for this project. Which are listed in Pakistan stock exchange under Auto
I will use 3 years of data from the
selected companies for fundamental and technical Analysis.