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Final Project

Name: Faisal Liaquat

Student ID: 10912
Class: MBA R (Brand Management)
Teacher Name: Kashif Riaz

Student Signature Marks Obtained Teacher Signature

Faisal Liaquat
Automobile Industry of Pakistan
Pakistan’s auto market is considered among the smallest, but fastest growing in Asia .
At present, the auto market is dominated by Honda, Toyota and Suzuki. However on 19 March 2016,
Pakistan passed the "Auto Policy 2016-21", which offers tax incentives to new automakers to establish
manufacturing plants in the country.
Response, Renault, Nissan, Kia, SsangYong, Volkswagen and Hyundai have expressed interest in
entering the Pakistani market. Pakistan has not enforced any automotive safety standards or model
upgrade policies. Obsolete vehicles including the Mehran, Bolan, and Ravi continue to be sold by Pak
Suzuki without taking care of any safety aspects.
The existing population of automotive vehicles in Pakistan is 3.9 million. The annual demand is
estimated at 300,000, two thirds of which is being met from local sources and imports and the
remaining one third is left unmet. The market value of automotive vehicle les in dollar terms is
estimated at more than 1 billion, out of which import constitutes around US$ 200 million. The
aftermarket of auto parts is estimated at US$ 500 million, imports and local production taken
together. Production figures of automobiles are given in the following tables:

Pakistan’s strength of production elements lies in its vast reservo ir of land, labour and even capital. But
technology and purchasing power of the consumers are its major weaknesses. Technology requirements
are being met by joint ventures and technology tie-ups with foreign players in automotive sector.
Japanese, Korean and European entrepreneurs have invested almost US$ 1.5 billion in Pakistan’s
automotive sector. The local investment in the automotive sector is approximately US$ 1 billion.
There are 12 automobile companies listed on the Karachi Stock Exchange under the sector of Auto &
Allied. The car industry in Pakistan primarily comprises of four players, all of which are Japanese which
are as follows,

1. Pak Suzuki Motor Company Ltd.

2. Indus Motor Company Ltd.
3. Honda Atlas Cars Ltd.
4. Ghandhara Nissan Ltd.

Also we cannot neglect the booming sing of Japanese used cars which are very much liked nowadays
and are eating above big player’s business share.


Domestic Market is large Government provides monetary assistance for manufacturing units which will
Reduced Labor cost but there are other things which have to take care like Infrastructural setbacks
Low productivity, too many taxes levied by government increase the cost of production, Low
investments in Research and Development.

Evolving industry: Automobiles represent freedom and economic growth. Automobiles allow people to
live, work and travel from one place to another easily to their home to offices.

Continuous product innovation & technological advancement

Companies invest on research and new technology and entering to next phase of growth through use of
renewable sources of energy which may be solar, wind instead of Gasoline.

Growth shifting to Asian markets:

Although American & European market is the pulse of this Industry, but the focus is shifting to
developing markets like Pakistan China, India & other Asian nations because of the rise in disposable
income, changing lifestyle.

Increasing demand of VFM vehicles:

Intense competition in the matured/developed markets has forced automobile manufacturers
to target developing economies. But these developing economies have high demand
for VFM products (value for money). In the automobile industry, VFM products would be fuel efficient,
high mileage vehicles because majority of customers in these nations prefer vehicles for commuting. On
the other hand, developed nations need is of vehicles for interstate travelling and high speed vehicles
suitable for long route with high engine power.

Manufacturing facilities in Asian nations to control cost : In order to control cost & to manage shrinking
margins automobile companies are building their manufacturing facilities in developing nations like
Pakistan, India, China because these nations have cheap workforce, are high in resources & are nearer
to developed economies. These are classic conditions of an emerging market.
Bargaining power of consumers:
Over the last 3-4 decades the automobile market has shifted from demand to supply market. Availability
of large number of variants, Stiff competition between them, and long list of alternatives to choose from
has given power to customers to choose whatever they like.

Growth rate of Automobile industry

It is the in the hands of the government due to regulations like excise duty, no entry of outside vehicles
in the state, decreasing number of validity of registration period & volatility in the fuel prices. These
factors always affect the growth of the industry.

Intense Competition: Presence of such a large number of players in the Automobile industry results into
extensive competition, every company eating into others share leaving little scope for new players.

Volatility in the fuel Prices : At least for the passenger segment fluctuations in the fuel prices remains
the determining factor for its growth. Also government regulations relating the use of alternative fuels
like CNG. Shell gas is also affecting the inventories.

GAP (Opportunity)

Introducing fuel-efficient vehicles: Optimization of fuel-driven combustion engines and cost efficiency
programs are good opportunities for the automobile market. Emerging markets will be the main growth
drivers for a long time to come, and hence fuel efficient cars are the need of the hour.

Strategic Alliances: Making strategic alliances can be a smart strategy for Automobile companies. By
using specialized capabilities & partnering with other companies, they can differentiate their offerings.

Changing lifestyle & customer groups: Three powerful forces are rolling the auto industry. Shift
in consumer demand, expanded regulatory requirements for safety and fuel economy, and the
increased availability of data and information. Also with the increase in nuclear families there has been
increase in demand of two-wheelers & compact cars and this will grow further.

Market expansion : Entering new markets like Asian & BRIC nations will result in upsurge in demand of
vehicles. After these markets, other markets are likely to emerge soon.

OEM priorities: Given the increase in electronic content, OEMs need to collaborate with suppliers and
experts outside the traditional auto industry. Accomplishing this will require changes in the way OEMs
function. OEMs will be looking to their top suppliers to co-invest in new global platforms & this will be
the driving force in the future.

Innovative/ Luxury

Normal Regular Modern

Low Price
Different brand are doing its positioning in differently to have uniqueness in their product and for that
they have market themselves based on the strategy they are following.

Launching a brand new Lexy

This car gives a mileage of around 25 km/l and has a fuel tank capacity of 35 liters. There will be
different variants of Lexy will be launched in the available to consumers, and almost all the variants
possess immobilizer, three-point seat belts, etc.; moreover, S variant with driver airbag.


To be the most exciting leader in automotive industry and provide sustainable machines solutions.

Brand values / Purpose:

Competitive price, excellent quality with safety features, latest generations with eco-friendly engines.

Brand Personality:

Name: LEXY

SLOGAN: “Right time to re-think about future”


With commercials like, LEXY tried to attract the confident, Powerful, independent individuals who love
Commercial used three of LEXY models to inflict upon the viewers a sense of power and exhilaration
when they sit behind the wheels.
Targeting those people who cares about safety and think about the future environment

• Presentation
• Direct advertising
• Blogs and Vlogs
• Showrooms

“LEXY has everything what you want.”

“It’s time to Upgrade.”


The six aspect of the identity prism is divided into two dimensions. The constructed sender vs. the
constructed receiver A well-presented brand has to been seen as a person from both perspective a
constructed sender (physique and personality) and as a constructed receiver (reflection and self –
Externalization vs. internalization
A brand has social aspects that define its external expression (externalization: physique, relationship and
reflection) and aspects that are incorporated into the brand itself (internalization: personality, culture
and self – image)

• Physique
Lexy cars are Stylish, Modern.

• Personality
Successful, modern

• Relationship
Trust Safety

• Culture
Modern Pakistan Fashion
• Reflection
Respected, successful, stylish

• Self-image
Modern, Trendy, Responsible


Projected Market Share






Lexy is the first car in Pakistan with Eco friendly engines with style and economy.
Traditional gearheads are going to have smell of a gasoline engine, while modern gearheads will want it
for the smooth acceleration and comfort.
It is so easy to charge at home and have the car ready for the next day. Solar panels mean our electricity
is as green as possible. When travelling further than my regular commute, the network of chargers is
improving at the rate of 10 chargers a week in the UK. In the winter, it defrosts and warms up ready. A
pleasure to drive