Lean Manufacturing In Automobile Industry Of Pakistan Commerce Essay

The aim of the thin fabrication is to cut down the lead clip and cost of production. In competitory markets, the issue of lead-time is of great importance, it is the chief drive factor for concern profitableness but people are less cognizant of the thin fabrication & A ; its importance that can convey drastic betterment in Automobile industry of Pakistan.

Thin fabrication is the production of goods utilizing less of everything compared to mass production. It focuses on less human attempt, less fabricating infinite, less investing in tools, and less technology clip to develop a new merchandise. Thin fabrication is a generic procedure direction doctrine derived largely from the ( “ Toyota Production ” , 1991 ) Toyota Production System ( TPS ) Womack, James P. , Jones, Daniel T. , and Roos, Daniel ( 1991 ) .

In the simplest signifier, thin fabrication means bring forthing goods with less ; it applies fewer resources without impacting the measure or quality of the goods produced. Toyota ‘s intent in developing the system was the riddance of waste, and TPS is focused on seven beginnings of it:

over-production caused by accent on supply instead than demand ;

wasted gesture due to hapless procedures ;

waiting clip generated by tuning the production system to the fastest instead than the slowest procedure ;

conveyance waste caused by ill designed supply systems that delay the theodolite of goods ;

treating waste from severely designed systems ;

natural stuff waste from inefficient design or uneffective supply schemes ;

rectification waste caused by make overing severely made merchandises. ( “ Toyota Production, ” 1991 ) Toyota Production System ( TPS ) Womack, James P. , Jones, Daniel T. , and Roos, Daniel ( 1991 ) .

The consequences of TPS have included tremendous progresss in robotic fabrication systems and mill design, just-in-time stock list direction, the “ kanban ” system of ocular stock list replacing cues, demand-pull direction of fabricating planning and others. But thin fabrication besides has evolved into a concern doctrine based on a alone set of patterns, and the ensuing concern civilization demonstrates how to utilize these to make a thin attack to other facets of concern ; one country ripe for this lesson is supply concatenation direction.

Thin fabrication is the systematic riddance of waste from all facets of an organisation ‘s operations, where waste is viewed as any usage or loss of resources that does non take straight to making the merchandise or service a client wants when they want it. In many industrial procedures, such non-value added activity can consist more than 90 per centum of a mill ‘s entire activity ( Simon Caulkin, 2002 ) .

The supply concatenation permeates every face of the endeavor, and if a thin attack to pull offing it is to win, the full organisation has to concentrate on taking waste and adding value. As a portion of this alteration it requires everyone to affect for looking beyond the boundaries of the company to relationships with clients and providers at all degrees. The alteration in focal point is indispensable, but implementing it can be hard in today ‘s international supply concatenation environment. Nevertheless, the rules of thin concern are straightforward and can organize the foundation for an organisation ‘s new attack to its supply concatenation. ( Ventana Research, Europe ) .

First, merchandise value has to be defined from the client ‘s point of position, non the company ‘s. This apparently simple rule is the key to extinguishing waste caused by such things as doing the incorrect merchandise ( one that cipher wants ) , doing the merchandise at an unsuitable quality degree, doing excessively much or excessively small of it, or presenting it excessively easy or through the incorrect channel.

A 2nd rule is that the supply concatenation should flux continuously, and so should the information that supports it. Delaies and discontinuities in the supply concatenation procedure are frequently caused by get downing and stoping procedures or information watercourses that could smooth things out if they were operated continuously.

Merchandise should be pulled by the client, non pushed by the company. That is, no portion of any supply concatenation procedure should be started without a complete apprehension of the demand finish of the concluding merchandise that will finish the rhythm.

Finally, the full organisation demands to go on to pull off toward flawlessness, concentrating on the riddance of waste and the add-on of value in all of its supply concatenation processes. This is a uninterrupted procedure that starts with the launch of a thin supply concatenation direction scheme and it continues.

Purpose: –

The chief intent of this thesis is to find the importance of thin fabrication and make its consciousness amongst the car industry of Pakistan, which so can be applied by the whole fabrication sector of Pakistan to do them more competitory in footings of monetary value every bit good as in rushing the bringing clip.

The thesis is to pull together the grounds about the benefits of thin fabrication in car industry of Pakistan. It has been noticed that car industry is concerned about the cost & A ; bringing clip, which are the cardinal success factors for this industry. At present, the whole car sector is enduring from losingss, which has led many concerns to shutdown.

Problem treatment: –

Pakistan ‘s car industry is losing its fight in the market due to the intense competition faced from universe markets in footings of cost & A ; bringing clip. Buyers get low quality merchandises which reduces their assurance in Pakistani merchandises. Up till now Pakistan car industry has been unable to run into the lead clip demanded by extremely profitable cars and is besides unable to carry through the low monetary value outlooks of western markets. Until and unless any enterprise to cut down the cost and bringing clip of merchandise will non be taken, any betterment in the industry would non take topographic point. In order to convey betterments in this industry, it is of import to direct this industry ‘s attending towards thin fabrication. This thesis has been done to concentrate in this country to look into that why thin fabrication has non yet been implemented in the car industry of Pakistan.

De restriction of the survey: –

There are some restrictions of this thesis. The work focuses on Manufacturers and assembly programs of Cars industry located in Pakistan and which has the gross revenues volume more than 10 million. Due to the limited clip merely top few Manufacturers are included in the research work, which are

Indus Motor Company -Toyota Motor Co

Pak Suzuki Motors.

Al-Ghazi Tractors

Further the work does n’t include interview with provider & A ; client which requires detail research so it is limited to the organisation ‘s internal boundary merely.

Research Question: –

This thesis is an effort to reply the undermentioned inquiry: –

Q: – What is the cognition degree of production people about the thin fabrication?

Q: – Are the production director of car industry aware of thin tools?

Q: – Are the production director of car industry aware of thin fabricating benefits?

Q: – To understand the issues of acceptance of thin fabrication in car industry in Pakistan?

Deduction of the survey: –

The intent of this thesis is to happen how much the direction of this industry in Pakistan is cognizant of thin fabrication and so highlight the obstructions that exist in its execution. This thesis besides provides the benefits of thin fabrication to the car industry of Pakistan, which is confronting problems in these yearss due to higher cost of production & A ; hold in bringing day of the months. Hence, this thesis is good for the car makers so that they can recognize the importance of thin fabrication and so implement it to derive the competitory advantage in footings of lower costs and on clip bringings.

Chapter 2


Thin fabrication is a technique that allows companies to be more antiphonal to rapidly altering markets and more sophisticated & A ; demanding clients. ( Dohse, Jurgens & A ; Malsh,1985, p.118 ) .

History of Lean Manufacturing

Toyota is frequently considered one of the most efficient fabrication companies in the universe and the company that sets the criterion for best patterns in Thin Manufacturing. ( James Womack & A ; Daniel Roos, 1992 ) . Thin Manufacturing has progressively been applied by taking fabrication companies throughout the universe, lead by the major car industries and their equipment providers. Thin Manufacturing is going an progressively of import subject for fabricating companies in developed states as they try to happen ways to vie more efficaciously against competition from developing countrie.

Get downing about 1910, Ford and his right-hand-man, Charles E. Sorensen, fashioned the first comprehensive Manufacturing Strategy. They took all the elements of a fabrication system — people, machines, tooling, and merchandises — and arranged them in a uninterrupted system for fabricating the Model T car. Ford was so improbably successful he rapidly became one of the universe ‘s richest work forces and put the universe on wheels. Ford is considered by many to be the first practician of Just in Time and Lean Manufacturing.

Beyond big scale production 7 classs of muda or waste: –

Overproduction – bring forthing more unit than clients are demanding or bring forthing them earlier than client order them. ( Taiichi Ohno, 1988 )

Waiting – people waiting for machine or procedure ; merchandise waiting for people, machines or procedures.

Transportation – traveling merchandise from one topographic point to another.

Inventory – Raw stuff, work in procedure ( WIP ) , finished goods in surplus of direct client demand.

Gesture: – Any motion people or machines that does non really transform merchandise from one province to another.

Over treating – Performing operation that are unneeded.

Defect – making or go throughing along merchandise which contains mistake in stuff or processing.

Definition of thin fabrication

Thin fabrication is the systematic riddance of waste from all facets of an organisation ‘s operations, where waste is viewed as any usage or loss of resources that does non take straight to making the merchandise or service a client wants when they want it. In many industrial procedures, such non-value added activity can consist more than 90 per centum of a mill ‘s entire activity. ( Simon Caulkin. “ Waste Not, Want Not, ” The Observer ( September 2002 ) .

Many of the constructs in Lean Manufacturing originate from the Toyota Production System ( TPS ) and have been implemented bit by bit throughout Toyota ‘s operations get downing in the 1950 ‘s. By the 1980 ‘s Toyota had progressively become known for the effectivity with which it had implemented Just-In-Time ( JIT ) fabricating systems.

“ The learning ability that concerns bring to bear to extinguish otiose assets, stuffs, and clip in production shouldA every bit be deployed to better the procedures of ingestion that clients follow. Like their earlier work, this is both a landmark synthesis of thoughts whose deductions have n’t been to the full understood and a discovery to new district. ” – ( Thomas A.Stewart, 2000 )

Main Kinds of Waste

Originally 7- 9 chief types of waste were identified as portion of the Toyota Production System. However, this list has been modified and expanded by assorted practicians of thin fabrication and by and large includes the followers:

1. Over-production – Over-production is unnecessarily bring forthing more than demanded or bring forthing it excessively early before it is needed. This increases the hazard of obsolescence, increases the hazard of bring forthing the incorrect thing and increases the possibility of holding to sell those points at a price reduction or fling them as bit. However, there are some instances when an excess supply of semi-finished or finished merchandises is deliberately maintained, even by thin makers.

2. Defects – In add-on to physical defects which straight add to the costs of goods sold, this may include mistakes in paperwork, proviso of wrong information about the merchandise, late bringing, production to incorrect specifications, usage of excessively much natural stuffs or coevals of unneeded bit.

3. Inventory – Inventory waste means holding unnecessarily high degrees of natural stuffs, works-in-progress and finished merchandises. Extra stock list leads to higher stock list funding costs, higher storage costs and higher defect rates. For more on this, delight see subdivision 2.5 below.

4. Transportation – Transportation includes any motion of stuffs that does non add any value to the merchandise, such as traveling stuffs between workstations. The thought is that transit of stuffs between production phases should take for the ideal, that the end product of one procedure is instantly used as the input for the following procedure. Transportation between treating phases consequences in protracting production rhythm times, the inefficient usage of labour and infinite and can besides be a beginning of minor production arrests.

5. Waiting – Wait is idle clip for workers or machines due to constrictions or inefficient production flow on the mill floor. Waiting besides includes little holds between processing of units. Waiting consequences in a important cost insofar as it increases labour costs and depreciation costs per unit of end product.

6. Motion – Gesture includes any unneeded physical gestures or walking by workers which diverts them from existent processing work. For illustration, this might include walking around the mill floor to look for a tool, or even unneeded or hard physical motions, due to ill designed biotechnologies, which slow down the workers.

7. Correction – Correction, or reprocessing, is when something has to be re-done because it was n’t done right the first clip. This non merely consequences in inefficient usage of labour and equipment but the act of re-processing frequently causes breaks to the smooth flow of production and hence generates constrictions and arrests. Besides, issues associated with make overing typically devour a important sum of direction clip and hence add to factory overhead costs.

8. Over-processing – Over-processing is accidentally making more processing work than the client requires in footings of merchandise quality or characteristics – such as smoothing or using completing on some countries of a merchandise that wo n’t be seen by the client.

9. Knowledge Disconnection – This is when information or cognition is n’t available where or when it is needed. This might include information on correct processs, specifications, ways to work out jobs, etc. Lack of right information frequently leads to defects and constrictions. For illustration, inaccessibility of a mixing expression may potentially suspend the full procedure or make faulty points due to time-consuming trial-and-error trials.

What kinds of companies benefit most from thin?

Lean is most widely used in industries that are assembly-oriented or have a high sum of insistent human procedures. These are typically industries for which productiveness is extremely influenced by the efficiency and attending to item of the people who are working manually with tools or runing equipment. For these sorts of companies, improved systems can extinguish important degrees of waste or inefficiency. Examples of these companies include wood-processing, garment fabrication, car assembly, electronic assembly and equipment fabrication. Thin Manufacturing is besides appropriate in industries for which it is a strategic precedence to shorten the production rhythm clip to the absolute lower limit as a beginning of competitory advantage for the company.

Recently, some companies in Vietnam have actively conducted preparation and enforced thin methods to extinguish procedure inefficiencies. This resulted in an betterment to their production and service lead times. For illustration, Toyota Ben Thanh, a service centre of Toyota in Vietnam, has implemented thin methods to significantly cut down the procedure clip for its car care service from 240 proceedingss to 45-50 proceedingss per auto, and as a consequence, increased the entire figure of autos processed at each service centre from 4-6 autos up to 16 autos per twenty-four hours. Toyota Ben Thanh achieved important decreases in the procedure lead clip by successfully extinguishing unneeded waiting clip, inefficiencies of physical gestures and procedure flow. ( Thoi Bao Kinh Te Saigon, 2004 )

Aims of Lean Manufacturing

Thin Manufacturing, besides called Lean Production, is a set of tools and methodological analysiss that aims for the uninterrupted riddance of all waste in the production procedure. The chief benefits of this are lower production costs, increased end product and shorter production lead times. More specifically, some of the ends include:

1. Defects and wastage – Reduce defects and unneeded physical wastage, including extra usage of natural stuff inputs, preventable defects, costs associated with recycling faulty points, and unneeded merchandise features which are non required by clients.

2. Cycle Times – Reduce fabricating lead times and production rhythm times by cut downing waiting times between treating phases, every bit good as procedure readying times and product/model transition times.

3. Inventory degrees – Minimize stock list degrees at all phases of production, peculiarly works-in-progress between production phases. Lower stock lists besides mean lower working capital demands.

4. Labor productiveness – Improve labour productiveness, both by cut downing the idle clip of workers and guaranting that when workers are working, they are utilizing their attempt every bit fruitfully as possible ( including non making unneeded undertakings or unneeded gestures ) .

5. Use of equipment and infinite – Use equipment and fabrication infinite more expeditiously by extinguishing constrictions and maximising the rate of production though bing equipment, while minimising machine downtime.

6. Flexibility – Have the ability to bring forth a more flexible scope of merchandises with minimal conversion costs and changeover clip.

7. Output – Insofar as decreased rhythm times, increased labour productiveness and riddance of constrictions and machine downtime can be achieved, companies can by and large significantly increased end product from their bing installations.

In a 2004 study by Industry Week Magazine, U.S. companies implementing thin fabrication reported a average nest egg of 7 % of Cost of Goods Sold ( COGS ) as a consequence of implementing thin ( George Taninecz, 2004 ) . We believe that the nest eggs really are higher for companies in Vietnam sing the higher degrees of waste which they typically have compared to U.S. based makers.

Another manner of looking at Lean Manufacturing is that it aims to accomplish the same end product with less input – less clip, less infinite, less human attempt, less machinery, less material, less cost.

When a U.S. equipment fabricating company, Lantech, completed the execution of tilt in 1995, they reported the undermentioned betterments compared to their batch-based system in 1991: ( James P. Womack ; Daniel T. Jones, 1996 )

aˆ? Manufacturing infinite per machine was reduced by 45 % ;

aˆ? Defects were reduced by 90 %

aˆ? Production rhythm clip was reduced from 16 hebdomads to 14 hours – 5 yearss ; and

aˆ? Product bringing lead clip was reduced from 4-20 hebdomads to 1-4 hebdomads.

Why Thin Consumption Now?

While thin ingestion would be a reasonable thought in any epoch, we see several convergent tendencies that we think do it inevitable and so, a competitory necessity now. With the regulated economic system steadily undertaking, consumers have a broader scope of determinations to do, from how to put retirement financess, to what telecommunications provider to utilize, to what air hose to wing at what monetary value.

“ The mass-producer uses narrowly skilled professionals to plan merchandises make by unskilled or semiskilled workers be givening expensive, single-purpose machines. These churn out standardised merchandises at high volume. Because the machinery costs so much and is so intolerant of break, the mass-producer adds many buffers – excess supplies, excess workers, and excess infinite – to guarantee smooth productionaˆ¦ . The consequence: The client gets lower costs but at the disbursal of assortment and by agencies of work methods that most employees find deadening and depressing. ” ( Womack, 1990 P 13 ) .

While on a circuit of a big client, Michael Dell saw technicians custom-making new Dell computing machines with their company ‘s ‘standard ‘ hardware and package. “ Do you believe you cats could make this for me? ” his host asked. Without losing a round, Dell replied, “ Absolutely, we ‘d love to make that. “ 4 Within a twosome of hebdomads, Dell was transporting computing machines with factory-installed, client particular hardware and package. What took the client an hr could be done in the mill in proceedingss, and moreover, computing machines could be shipped straight to end-users instead than doing a halt in the corporate IT section. This shortening of the value concatenation is the kernel of thin thought. Direct from Dell, ( Catherine Fredman, 1999 )

Basic Principles of Lean

Add Nothing But Value ( Eliminate Waste )

The first measure in thin thought is to understand what value is and what activities and resources are perfectly necessary to make that value. Once this is understood, everything else is waste. Since no 1 wants to see what they do as waste, the occupation of finding what value is and what adds value is something that needs to be done at a reasonably high degree. Let ‘s state you are developing order tracking package. It seems like it would be really of import for a client to cognize the position of their order, so this would surely add client value. But really, if the order is in house for less than 24 hours, the lone order position that is necessary is to inform the client that the order was received, and so that it has shipped, and allow them cognize the transportation tracking figure. Better yet, if the order can be fulfilled by downloading it on the Web, there truly is n’t any order position necessary at all. To develop discoveries with thin thought, the first measure is larning to see waste. If something does non straight add value, it is waste. If there is a manner to make without it, it is waste. Taiichi Ohno, the originator of the Toyota Production System, identified seven types of fabrication waste, ( 2002 Poppendieck.LLC )

‘Do It Right The First Time ‘

It is informative to research the beginnings of the motto “ Do It Right the First Time. ” In the 1980 ‘s it was really hard to alter a mass-production works to tilt production, because in mass production, workers were non expected to take duty for the quality of the merchandise. To alter this, the direction construction of the works had to alter. “ Workers respond merely when there exists some sense of mutual duty, a sense that direction really values skilled workers, and is willing to depute duty to [ them ] . ”

The motto “ Do It Right the First Time ” encouraged workers to experience responsible for the merchandises traveling down the line, and promote them to halt the line and troubleshoot jobs when and where they occurred. ( Womack,1990 p 99 ) .

A more appropriate interlingual rendition of such mottos as “ Zero Defects ” and “ Do It Right the First Time ” would be “ Test First ” . In other words, do n’t code unless you understand what the codification is supposed to make and hold a manner to find whether the codification works. A good cognition of the sphere coupled with short physique rhythms and automated proving constitute the proper manner for package developers to “ Make It Right the First Time ” . ( 2002 Poppendieck.LLC )

Center On The Peoples Who Add Value

About every organisation claims it ‘s people are of import, but if they truly halfway on those who add value, they would be able to state:

The people making the work are the centre of: –



Process Design Authority

Decision Making Authority

Organizational Energy

In mass-production, undertakings are structured so that low skilled or unskilled workers can easy make the repetitive work, but applied scientists and directors are responsible for production. Workers are non allowed to modify or halt the line, because the focal point is to keep volume. One of the consequences of mass-production is that unskilled workers have no inducement to volunteer information about jobs with the fabrication line or ways to better the procedure. Maladjusted parts acquire fixed at the terminal of the line ; a hapless dice or improperly maintained tool is direction ‘s job. Workers are neither trained nor encouraged to worry about such things. “ The truly thin works has two cardinal organisational characteristics: It transfers the maximal figure of undertakings and duties to those workers really adding value to the auto on the line, and it has in topographic point a system for observing defects that rapidly traces every job, one time discovered, to its ultimate cause. “ 9 Similarly in any thin endeavor, the focal point is on the people who add value. In thin endeavors, traditional organisational constructions give manner to new team-oriented organisations which are centered on the flow of value, non on functional expertness.

The first experiment Taiichi Ohno undertook in developing thin production was to calculate out a manner to let monolithic, single-purpose stomping machines to stomp out multiple parts. Once, it took skilled

mechanics hours, if non yearss, to alter dies from one portion to another. Therefore, mass production workss had many individual intent stomping machines in which the dies were about ne’er changed. Volume, infinite, and funding were non available in Japan to back up such monolithic machines, so Ohno set about inventing simple methods to alter the stamping dies in proceedingss alternatively of hours. This would let many parts of a auto to be made on the same line with the same equipment. Since the workers had nil else to make while the dice was being changed, they besides did the dice changing, and in fact, the stamping room workers were involved in developing the methods of rapid dice conversion.

Ohno transferred most of the work being done by applied scientists and directors in mass-production workss to the production workers. He grouped workers in little squads and trained the squads to make their ain industrial technology. Workers were encouraged to halt the line if anything went incorrect, ( a direction occupation in mass production ) .Before the line was re-started, the workers were expected to seek for the root cause of the job and decide it. At first the line was stopped frequently, which would hold been a catastrophe at a mass production works. But finally the line ran with really few jobs, because the assembly workers felt responsible to happen, expose, and decide jobs as they occurred.

Flow Value from Demand

The thought of flow is cardinal to thin production. If you do nil but add value, so you should add the value in as rapid a flow as possible. If this is non the instance, so waste builds up in the signifier of stock list or transit or excess stairss or wasted gesture. The thought that flow should be ‘pulled ‘ from demand is besides cardinal to thin production. ‘Pull ‘ means that nil is done unless and until a downstream procedure requires it. The consequence of ‘pull ‘ is that production is non based on prognosis ; committedness is delayed until demand is present to bespeak what the client truly wants. Pulling from demand can be one of the easiest ways to implement thin rules, as LL Bean and Lens Crafters and Dell found out. The thought is to make full each client order instantly. In mass-production yearss, make fulling orders instantly meant constructing up tonss of stock list in expectancy of client orders. Thin production alterations that. The thought is to be able to do the merchandise so fast that it can be made to order. True, Dell and Lens Crafters and LL Bean and Toyota have to hold some stock list of sub-assemblies waiting to be turned into a finished merchandise at a minutes notice. But it ‘s astonishing how small stock list is necessary, if the procedure to refill the stock list is besides thin. A truly thin distribution channel merely works with a truly thin supply concatenation coupled to really thin fabrication.

In add-on to rapid, Just-in-Time information flow, Lean Software Development means rapid, Just-in-Time bringing of value. In fabrication, the key to accomplishing rapid bringing is to fabricate in little batches pulled by a client order. Similarly in package development, the key to rapid bringing is to split the job into little batches ( increases ) pulled by a client narrative and client trial. The individual most effectual mechanism for implementing thin production is following Just-in-Time, pull-from-demand flow. Similarly, the individual most effectual mechanism for implementing Lean Development is presenting increases of existent concern value in short time-boxes. 2002 Poppendieck.LLC

Optimize across Organizations

Quite frequently, the biggest barrier to following thin patterns is organisational. As merchandises move from one section to another, a large spread frequently develops, particularly if each section has its ain set of public presentation measurings that are unrelated to the public presentation measurings of neighbouring sections. For illustration, allow ‘s state that the public presentation measuring of a stamping room is machine productiveness. This measuring motivates the stamping room to construct up hills of stock list to maintain the machines running at top productiveness. It does non count that the stock list has been shown to degrade the overall public presentation of the organisation. Equally long as the stamping room is measured chiefly on machine productiveness, it will construct stock list. This is what is known as a sub-optimizing measuring, because it creates behavior which creates local optimisation at the disbursal of overall optimisation. ( 2002 Poppendieck.LLC )

Lean fabrication & A ; Automobile Industry

Thin fabrication is applicable to about every industry and it is known that the instigators of this technique is TOYOTA by the name Toyota Production System, than this techniques became generalize and unfastened for all with some alterations and named as Lean. We to the full expect that thin fabrication will give a competitory advantage to this industry.

Automobile Industry of Pakistan

Pakistan is a lifting market for cars offers monolithic concern and investing chances. The entire engagement of Auto industry to GDP in 2007 was 2.8 % which was expected to increase up to 5.6 % in 5 old ages. Entire gross gross revenues of cars in Pakistan were Rs.214 billion in 2006-07 or $ 2.67 billion. The industry revenue enhancement accumulated to Rs.63 billion in 2007-08 that the authorities has imposed on cars. There are 500 auto-parts manufacturers in the state that supply parts to original equipment makers. Auto sector soon, contributes 16 % to the fabrication sector which besides is projected to increase 25 % in the following 7 old ages, compared to 6.7 % during 2001-02. Vehicles ‘manufacturers straight employ over 192,000 people with a full investing of more than $ 1.5 billion. At present, there are about 82 vehicles ‘ assembly programs in the industry bring forthing riders autos, light commercial vehicles, trucks, coachs, tractors and 2/3 Wheelers. The car policy is geared up to do an investing of $ 4.09 billion in the following five old ages therefore, doing a mark of half a million autos per annum achievable.

Pakistan has the highest figure of CNG-powered vehicles in the universe with more than 1.55 million autos and rider coachs, representing 24 % of entire vehicles in Pakistan with improved fuel efficiency and conforming to the latest environment ordinances.


Harmonizing to Government Board of Investment

Automotive IndustryA

No of Unit of measurements























Light Vehicles









































Motor Cycles











Vision 2012: The Future of Pakistan Auto Industry



Vision 2012

Cars ( nos. )



2 Wheelers

1.06 million

1.7 million

Investing ( Billion )



Contribution to GDP ( % )



Contribution to fabrication sector ( % )



Direct Employment



Gross gross revenues turn over ( Billion )




Decline in Gross saless and Gross

Unfortunately, the current worsening tendency in car gross revenues ( autos + LCVs ) continued as car gross revenues stood at 27,034 units for July-September 2008, demoing a diminution of 44 per centum year-on-year, the informations released by Pakistan Automobiles Manufacturers Association ( PAMA ) shows. ( Daily Times )

Car grew from 2001-2007, the industry and the authorities of Pakistan fixed a mark of over half million units ‘ production by the twelvemonth 2011-12 that now seems out of range. In 2007-08 the production turns down to 169,861 units against an estimated mark of 266,543 units. In the bing fiscal twelvemonth they said the fabrication is estimated to worsen to 121,107 units that are less than half the jutting mark of 313,486 units.


Car Manufacturers

Honda Atlas Cars Pakistan Ltd

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company was incorporated on November 1992 and joint venture understanding was signed on August 1993. Since the startup of production in 1994, the company has produced and sold more than 150,000 autos till Oct, 2008. All franchises are built in conformity with the criterions defined by Honda World over. A

Indus Motor Company

Indus Motor Company ( IMC ) is a joint venture between the House of Habib, Toyota Motor Corporation Japan ( TMC ) , A Daihatsu Motor Company Ltd vehicles in Pakistan through its franchise web. The company was incorporated in Pakistan as a populace limited company in December 1989. IMC ‘s production installations are located at Port Bin Qasim Industrial Zone near Karachi in an country evaluated over 105 estates. Indus Motor Company ‘s works is the lone production topographic point in the universe where both Toyota and Daihatsu trade names are being Assembled. IMC ‘s Product line includes 6 assortment of the freshly introduced Toyota Corolla, Toyota Hilux Single Cabin 4A-2 and 4 discrepancies of Daihatsu Cuore.

Pak Suzuki Motor Company

Pak Suzuki Motor Company Ltd ( PSMCL ) , established as a joint venture between Suzuki Motor Corporation of Japan ( SMC ) and Pakistan Automobile Corporation ( PACO ) Govt. of Pakistan in 1983. It started commercial operations with production ( S.O.P. ) of Suzuki FX in 1984.

Nexus Automotive

Chevrolets use to sell in Pakistan good into the 1970s, after which the car system was changed and ChevroletA easy departs to its beginning in the United States. In 2004, after a long interruption of three decennaries, Chevrolet was re-entered in Pakistani market. Once once more, an international trade name with manufactured goods lined-up suited for developing markets such as Pakistan.

Al-Ghazi Tractors

Al-Ghazi Tractors Limited ( AGTL ) was incorporated in 1983. In 1991 the program was presented for denationalization, and Al Ghazi Tractors get by Al-Futtaim Group of Dubai who took over the direction control of AGTL in December 1991.

Dewan Motors

Dewan Farooque Motors Limited has one of the most superior car fabricating installations of South Asia. Located at Dewan City, Sujawal, Thatta, with a entire undertaking cost of Rs. 1.8 billion, the installation is built on an country of 42,000 square metres.

Ghandhara Industries

The Ghandhara Industries Limited is a public limited company listed on the Stock Exchanges and registered under the Companies Act, 1913 ( now companies Ordinance, 1984 ) . It was established in Karachi by General Motors Overseas Distribution Corporation U.S.A. in 1963. The cardinal concern activities of the company comprise of progressive industry, assembly and selling Isuzu truck and coach human body and fiction of Bus and Load organic structures. A Ghandhara industries Ltd have a merchandise scope of ISUZU medium-duty vehicles ( F-Series ) & A ; light-duty Vehicles ( N-Seies ) in Pakistan.

Hino-Pak Motors Ltd

Hino Motors Japan and Toyota Tsusho Corporation in coaction with Al-Futtaim Group of UAE and PACO Pakistan formed Hinopak Motors Limited in 1986. In 1998, Hino Motors Ltd. , and Toyota Tsusho Corporation obtained bulk shareholding in the company after disinvestments by the other two founding patrons.

Adam Motor Company

It would beA great unfairness if it is fail to advert, the lone big graduated table attempt made by a Pakistani to accomplish what others failed toA implement or even envision. Mr.Feroz Khan, A laminitis of theA Adam Motor Company, Ltd. was an car assembly program based in Karachi, Pakistan. It was noteworthy for bring forthing the Revo, which was Pakistan ‘s first homegrown company to piece a nice auto. The 800CC version of the Revo costs Rs. 269,000 ( about $ 4,500 ) and the 1050 theoretical account is Rs. 369,000 ( about $ 6,200 ) .