How can Korean companies enter into electric vehicle market in Pakistan?

1. Overview of Pakistan conventional fuel automobile market.

a. Main segments
b. Main players with their sales volume
c. Current retail prices.
d. Current status of sales due to Pak Rupee devaluation
e. Conclusion / Opportunities & Gaps

2. Current status of upcoming Electric Vehicle Policy of Pakistan. (See separate PPT)

3. Potential Electric Vehicle Market of Pakistan.

 Automobile In Pakistan
Introduction to Automobile Industry

Auto sector has USD 12 billion of

Auto sector employs 192,000 The auto industry is considered
investments and contributes
people directly and 1.2 million to be an oligopoly due to
USD 3.6 billion annually to the
indirectly presence of few assemblers
economy

Automobile Industry Chronology

Japanese Cars Suzuki Entrance Chevrolet Cars Robust Growth

§ Japanese started
§ Suzuki was the first § Chevrolet Cars § The Industry
penetrating the
entrant in early
market from from South experienced
80’s with CKD
early 60’s Korea were robust growth
production and is
still the market also introduced and is expected
leader for over 30 in the year to persist the
American & Japanese Cars Industry Expansion
years
European Brands Dominance Hyundai 2003 Depressed Automobile trend § Automobile
§ In pre and post § Japanese gradually § CKD Hyundai Market demand is
60’s, Pakistani car wiped out all other vehicles were § Global economy faced expected to
market comprised brands by mid 70’s significant slowdown grow sharply
of American and launched in the § Dewan / Hyundai and double by
European brands. year 1999 operations winded up mid 2020s
Pre and Post 60 Early 1960s Mid 1970s Early 1980s 1999 2003 2008 2013-14 Mid 2020s

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 Segments of Auto Industry
Segment for Local Automobile Industry Foreign Automobile Brands Operating In Pakistan

BRAND CBU CKD BRAND CBU CKD

Passenger Cars
HONDA MERCEDES
TOYOTA BMW
Light Commercial Vehicles
SUZUKI AUDI
NISSAN
SUVs MITSHUBISHI KIA

PORSCHE
Heavy Trucks and Buses HYUNDAI
HINO

FAW
LAND ROVER

Segments in Focus

Economy & Mid Range Car § Small car segment is dominated primarily by Suzuki. Their offered products are Mehran, Cultus,
Segment 800cc~1300cc Wagon-R and Swift. This segment is characterized by low prices and high volumes

Passenger Car Segment § Medium car segment is catered by Toyota and Honda with models, Corolla, City and Civic. This is the
1300cc~1800cc largest segment in passenger car, followed closely by the economy car segment

Sports Utility Vehicle (“SUV”) § SUV segment is growing in Pakistan, primarily dominated by imported vehicles and in 2013 Toyota has
Segment also launched Fortuner, locally assembled SUV
Light Commercial Vehicle
§ Shehzore was the most popular commercial transport in Pakistan. After the discontinuation of
(“LCV”)
Shehzore, there is a visible gap in the 1-1.5 ton loading capacity segment
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 Automobile Industry in Pakistan
Segmentation as per PAMA
Mid Range Car
Passenger Car (≥ 1300 cc) Economy Car (≤ 800 cc) Jeep &LCV
(800 cc~1000 cc)

Honda Suzuki Toyota

Civic - 1.8 L Swift - 1.3 L Suzuki Suzuki Fortuner - 2.7 L
City - 1.3 L &
1.5L Cultus - 1.0 L Alto-0.66 L
Wagon-R -1.0 L Bolan - 0.8 L
Toyota
Corolla - 1.3L
Corolla - 1.6L
Corolla - 1.8L

Truck Bus Farm Tractor Pickup & LCV

Hino Isuzu Hino Isuzu Fiat (New Holland)

Suzuki (Ravi) -0.8 L
Nissan Dong Feng Nissan Dong Feng Toyota (Hilux)-2.5 L
Massey Ferguson

Mitsubishi Foton Yuejin Mitsubishi Foton Yuejin

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 PAMA AUTOMOTIVE SEGMENTS

1. PASSENGER CARS
2. TRUCKS
3. BUSES
4. JEEPS
5. LCVS & PICKUPS
6. FARM TRACTORS
7. MOTORCYCLES (2W) & RICKSHAWS (3W)

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GOAL SET BY ADP 2016 - 2021 (Page 21)

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Devaluation Trent of Pak Rupee vs US Doller

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 1) PASSANGER CARS SALES
Source: PAMA

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 2) TRUCKS SALES
Source: PAMA
1) Hino
2) Nissan
3) Master Motors
4) Isuzu

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 3) BUSES SALES
Source: PAMA
1) Hino
2) Nissan
3) Master Motors
4) Isuzu

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 4) JEEPs & LCVs SALES
Source: PAMA
1) Toyota: Fortuner, Hilux
2) Honda: BR-V
3) Suzuki: Ravi

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 5) LCVS & PICKUPS - SALES
Source: PAMA
1) Suzuki Ravi
2) Toyota Hilux
3) Hyundai Shehzore
4) Master

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 5) FARM TRACTORS SALES
Source: PAMA
1) Fiat
2) Massey Ferguson
3) Orient IMT Tractor

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7) MOTORCYCLES (2W) & RICKSHAWS (3W) SALES

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Automobile Sales vs US $ Rate
Main Players Sales Volume Trend
Main Players Sales Volume Trend
Toyota Price Comparison (2018 vs 2019)
Honda Price Comparison (2018 vs 2019)
Suzuki Price Comparison (2018 vs 2019)
 Conclusion / Opportunities & Gaps

1. Pak Rupee has devalued from PKR 121.54 / US$ in 2018 to PKR 158.26 / US $ in 2019 recording
23% increase. (See Slide #7)

2. All the automobile assemblers of Pakistan have passed on this devaluation to the customers by
increasing the retail price of their vehicles. An average of 30% increase in retail price has been
done from 2018 to 2019 by all major assemblers. They have increased the prices taking into
consideration doller devaluation and and local inflation (See Slide # 18 ~ #20)

3. Consiquently sales volume of CKD vehicles have dropped by 13% (See Slide # 16)

4. However the sales volume of large passenger vehicles above 1300cc, Mid range passanger
vehicles (1000cc) and Busses sales have improved while all other segments have reduced sales.
 Potential EV Market of Pakistan

1. Electric vehicles definately have a very promising future in Pakistan market.

2. It is expected that a very favourable EV policy will be announce by Pakistan government by the
end of 2019.

3. Engineering Development Board working under Ministry of Industries & Production has
suggested that initially assemblers of two wheel & three wheel Electric Vehicles will be given
priority.

4. Presently the prices of EVs being manufactured by reputable international players such as
Hyuandi, Toyota & Honda are very high. It will be difficult to sell such high vale EVs in
Pakistanistan market.

5. In my openion, presentkly Korean companies should consider entering the Pakistan EV market
with E2V & E3V products.
Thank You

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