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

2. Automotive Sector of Pakistan At a Glance www.engineeringpakistan.com 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: PRODUCTSNUMBERS Cars3 units Tractor6 units Truck6 units Buses6 units LCVs/Jeeps6 units Two/Three Wheelers100+ Downstream Vendor Industry comprises of around 2000 parts manufacturers

3. CAR SECTOR

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

5. Automotive Sector of Pakistan: Major Players and Capacities of Car www.engineeringpakistan.com No. NameLocationPlant CapacityStatusProduct Range 1Pak Suzuki Motor Company Limited (PSMCL) Karachi150,000OperationalLiana, Cultus, Alto, Mehran, Bolan 2Indus Motor Company Limited Karachi50,000OperationalCorolla Cuore 3Honda Atlas Cars (Pakistan) Limited Lahore50,000OperationalCity, Civic TOTAL250,000

6. Growth Achieved By Car Segment Number in 000

7. 7 Engine cc wise2006-072007-082008-092009-102010-112011-12 1300-1600 cc (2000cc Diesel)323148504643 1000 cc30292019 800 cc374032313538 Automotive Sector of Pakistan: CC Wise Market Share (%)

8. 8 Manufacturers2006-072007-082008-092009-102010-112011-12 Pak Suzuki Motors62 52 5662 Honda Atlas881210 7 Toyota Indus242634373331 Dewan Farooq (Hyundai)552100 Nissan000000 Nexus Automotive000000 Raja Motors000000 Automotive Sector of Pakistan: Company Wise Market Share (%)

9. 9 2005-062006-072007-082008-092009-102010-112011-12 Cars up to 1000cc19,27214,1087,5963,1294,5655,24824,778 From 1001 to 13004,131263113015023141,2828,040 From 1301 to 1500cc5,9762,8822,7795087832,47718,392 From 1501 to 1600cc991919451811 33 From 1601 to 1800cc9475465611365031,3244,590 From 1801 to 3000cc2,2672,5171,4622386189176 Above 3000cc4452671631613646112 Jeeps (4x4)9,2513,0972,214870309284852 Total43,28026,96716,1215,5566,58210,76156,973 Source :FBR Automotive Sector of Pakistan: Import of Cars (Used or New)

10. Cars per 1000 persons Low Motorization Levels

11. Automotive Sector of Pakistan: Local Content Levels www.engineeringpakistan.com S.NOAUTOMOTIVE SEGMENTPERCENTAGE 1.Cars50-70 2.Tractors88-95 3.Motorcycles77-93 4.Commercial Vehicles40 5.Buses and Trucks45-47

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

13. ManufacturerCapacity 2005- 06 2006- 07 2007- 08 2008- 09 2009- 10 2010- 11 1Millat Tractors Ltd40,000 24,313 27,08027,51629,78540,177 42,188 2 Al-Ghazi Tractors Ltd 25,000 24,574 27,01825,74030,18331,430 28,582 3Universal Tractors3,00055233535613912185 4Hero Motors3,000-407854927721,017 5Farmall Technology3,0008514NA 6Arzoo Tractors3,000------ 7PM Auto industries5000----475431 GRAND TOTAL 82,000 49,43952,02954,39759,68472,989 72,303 Automotive Sector of Pakistan: Tractors Production

14. ManufacturerLocationCapacityStatusOriginProduct range 1 Millat Tractors LtdLahore35,000Operational Massey Ferguson 50, 60,75,85 HP 2 Al-Ghazi Tractors LtdDG Khan25,000OperationalFiat55,65,75,85 HP 3 Universal TractorsKarachi3,000OperationalUniversal53 and 85 HP 4 Hero MotorsHyderabad3,000OperationalUMG Ukraine57,62 and 80 HP 5 Farmall TechnologyLahore3,000OperationalURSUS50 and 60 HP 6 Arzoo TractorsLahore3,000 Not operational Rakovica IMR50 HP 7 PM Auto industriesHyderabad5000OperationalHEMA Turkey50,60 and 80 GRAND TOTAL77,000 Automotive Sector of Pakistan: Tractors Capacities

15. Growth Achieved By Auto Sector Motorcycles LCVs Number in 000

16. Automotive Sector of Pakistan: Indigenous Capabilities www.engineeringpakistan.com 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

17. Auto Vendor Capability 0 Plastic Bumpers, 0 Grills, 0 Instrument Panels, 0 Seats, Steering Wheels, 0 Tyres, 0 Wheel Rims, 0 Carpets, 0 Seatbelts, 0 Rubber Seals, 0 Air conditioners, 0 Wiring Harnesses, 0 Radiators, 0 Steel Floor, 0 Complete Doors, 0 Side view mirrors, 0 Sun Visors, 0 Mufflers, 0 shock absorbers, 0 lights, machined, 0 cast & forged parts 0 etc 0 Most of the part manufacturers have achieved quality certifications ISO 9002,QS9000 & ISO 16949 and are manufacturing to quality standards of Global Brands. 0 Some of the parts manufactured include:

18. Automotive Sector of Pakistan: Industry Location www.engineeringpakistan.com Hub Karachi Hyderabad Lahore Faisalabad Multan Dera Ghazi Khan IslamabadWazirabad Gujranwala Sargodha Sheikhupura VENDORS North255 South245 OEMs North7 South19

19. CBU Cars/LCV’s Present 2012-13 Up to 1000 cc50 to 55% 1001 to 1500cc60 % 1501cc to 1800cc75% Above 1800cc100% + 50% RD 2CKD Non-Localized32.5% 3CKD Localized50% 4Raw Material0% 5Sub Component5% 6Components10% 7Sub-Assembly20% TARIFF STRUCTURE FOR CARS

20. TARIFF STRUCTURE FOR LCV,S LCV,s Present 2012-13 CBU of GVW not exceeding 5 tons60% CKD Non Localized Parts20% CKD Localized Parts50% Raw Material0% Sub Component5% Component10% Sub-Assembly15%

21. 21 2-3 wheelers Present 2012-13 CBU 65% CKD Non Localized Parts15% Localized Parts47.5% 2-3 WHEELERS INCLUDING ELECTRIC & SPECIALIZED BIKES, MOPEDS, QUADS, ETC. Raw Material0% Sub Component5% Components10% Sub-Assembly20%

22. AGRICULTURE TRACTORS 22 Agriculture Tractors Present 2012-13 CKD Non Localized Parts 0% Localized Parts 35% CBU0% Raw Material 0% Sub Component 0% Component 0% Sub-Assembly 0%

23. PRIME MOVERS/ RIGID TRUCKS 23 Description Present 2012-13 Prime Movers up to 280 HP CKD (Non Localized)10% CKD (Localized Parts)35% CBU30% Prime Movers above 280 HP CKD (Non Localized)0% CKD (Localized Parts)35% CBU15% Rigid Trucks ( above 5 tons) CKD (Non Localized)10% CKD (Localized Parts)35% CBU30%

24. 24 Description Present 2012-13 Prime Movers Raw Material0% Sub Component0% Component0% Sub-Assembly0% Rigid Trucks Raw Material0% Sub Component5% Component10% Sub-Assembly15% Prime Movers/ Rigid Trucks PRIME MOVERS/ RIGID TRUCKS

25. BUSES 25 Description Present 2012-13 BusesCKD (Non Localized)5% CKD (Localized Parts)35% CBU20% Bus (CNG /LPG dedicated)CKD (Non Localized)0% CKD (Localized Parts)35% CBU0% Buses (Non CNG/LPG) Raw Material0% Sub Component5% Component10% Sub-Assembly15% Buses (CNG/LPG) Raw Material0% Sub Component0% Component0% Sub-Assembly0%

26. Automotive Sector of Pakistan Investment Opportunities 0 Establishment of small car (low capacity) assembly/ Manufacturing plants 0 Setting up Tractor Assembly plant ( Tractor Industry: Competitive, potential for growth to meet domestic and exports demand) 0 Need technical tie ups for car sub-assemblies, assemblies, components which are presently being imported. A t present 45% of parts not made locally.

28. Automotive Sector of Pakistan Products www.engineeringpakistan.com Cars LCVs (Jeep &Pickup) TractorsMotorcyclesTrucksBus HondaSuzukiFiatHondaHino SuzukiToyotaMassey FergusonYamahaNissan Toyota / Daihatsu HyundaiUniversalSuzukiMaster*Dong Feng Nissan*MasterHeroQinqqi*Dong FengIsuzu *ChevroletKalashFarmall TechnologyPak HeroIsuzuMaster *HyundaiSigma (Defender)Arzoo Tractors*HeroAfzal MotorsDaewoo *Raja Motors (Fiat) *Dong FengPM Auto IndustriesOther Chinese*Roma Motors CoAfzal Motors Co *Bibojee Services P.M Industries *Not operational

29. Automotive Sector of Pakistan: Production Performance 2001-02 – 2011-12 www.engineeringpakistan.com * Also includes Non PAMA Members Production Products2001-022005-062006-072007-082008-092009-102010-112011-12 Cars42,679170,487176,213164,87084,814121,790133,972154,255 Jeeps/LCVs 5642,4723,2981,5909321,172883461 Pick-Up and LCV 5,90019,15219,67221,35416,16015,76819,14220,928 Trucks/Pri me Movers 1,1344,5334,5935,2712,7743,7272,9572,877 Buses 1,086825 1,0731,160707716577 698 Tractor23,80149,439 52,02954,39759,98472,98972,261 48,895 Motorcycle 137,273751,379839,8501,058,109976,8421,380,1841,600,7811,640,205

30. YearNumber of Companies 2005-0644 2006-0752 2007-0859 To date June 2012100 Production Growth Product2001-022005-062006-072007-082008-092009-102010-11 2011-12 Motorcycle137,273751,379839,8501,058,109976,8421,380,1841,600,781 1,570,205 Automotive Sector of Pakistan: Motorcycles Production

31. CAR 2005-062006-072007-082008-092009-102010-112011-2012 Honda (Civic) 12,2745,6105,8134,9855,6486,408 5,396 Honda (City) 17,60610,4618,2206,7557,8529,294 7,089 TOTAL HONDA 29,88016,07114,03311,74013,50015,702 12,485 Toyota (Corolla)31,09435,03633,672 27,05443,38241,419 46,352 Daihatsu (Cuore)7,88312,78612,406 5,8035,1456,280 3,635 TOTAL INDUS 38,97747,82246,07832,85748,52747,69949,987 Suzuki (Baleno)2,939000 00 0 Suzuki (Liana)5,3705,9642,605 684900614 334 Suzuki Swift000 02,5784,376 7,128 Suzuki (Khyber/ Cultus)21,34229,88027,6629,181 12,45312,414 13,600 Suzuki (Alto)17,51321,54618,8056,641 10,66512,873 15,288 Suzuki (Mehran)35,43336,98836,24913,239 22,27125,935 33,839 Suzuki (Bolan)10,42915,52017,2509,639 10,54114,359 21,594 TOTAL SUZUKI 93,026109,898102,57139,38459,40870,57191,783 Hyundai (Santro Plus)8,6042,2252,028 32721200 Chevrolet Joy(Non Pama)753197160 307000 Nissan (Sunny)000 0000 TOTAL OTHERS 9,3572,4222,18863421200 TOTAL CARS: 171,240176,213164,87084,615121,647133,972154,255 Automotive Sector of Pakistan: Company Wise Production Performance 2001-02 – 2010-11