Vehicles in Pakistan: Over Half of All Households Own Motorcycles in 2019

[Riaz Haq]

Private vehicle ownership in Pakistan has risen sharply over the last 4 years. More than 9% of households now own cars, up from 6% in 2015. Motorcycle ownership has jumped from 41% of households in 2015 to 53% now, according to data released by Federal Bureau of Statistics (FBS) recently. There are 32.2 million households in Pakistan, according to 2017 Census.

Vehicle Ownership in Pakistan. Source: PBS

Total number of vehicles registered in Pakistan increased 9.6% to 23,588,268 in 2018, up from 21,506,641 vehicles in 2017. Of all the vehicle categories, motorcycles saw the biggest increase of 11.5% reaching 17,465,880. Cars, jeeps and station wagons rose 5.3% reaching 3,043,593. Trucks surged to 277,416 and buses to 236,461, according to Pakistan Today.

Pakistan is now the 5th largest motorcycle market in the world after China, India, Indonesia and Vietnam. With 7,500 new motorcycles being sold everyday, Pakistan is also the among the world's fastest growing two-wheeler markets. Passenger car and motorcycle sales in Pakistan have both been soaring at rates of over 20% a year until recently.

Motorcycle ownership data is yet another confirmation of the fact that the majority of the households in Pakistan now belong to the middle class, a first in Pakistan's history. This was first reported in 2015 research done by Dr. Jawaid Abdul Ghani of Karachi School of Business and Leadership (KSBL).

It's an important tipping point that puts Pakistan among the top 5 countries with fastest growing middle class population in Asia-Pacific region, according to an Asian Development Bank report titled Asia's Emerging Middle Class: Past, Present, And Future. The ADB report put Pakistan's middle class growth from 1990 to 2008 at 36.5%, much faster than India's 12.5% growth in the same period.

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[Riaz Haq]

Iron, steel output swells to 4.7m tonnes

https://www.dawn.com/news/1646475

KARACHI: The production of iron and steel, with billets/ingots mainly used in the construction industry, in the last 10 years swelled by 196 per cent to 4.777 million tonnes in FY21 from 1.616m tonnes in FY12.

H/CR sheets/strips, coils/plates, also known as flat steel products for production of electronics, surged to 3.296m tonnes in FY21 from 1.850m tonnes in FY12, Pakistan Bureau of Statistics (PBS) data of Large-Scale Manufacturing (LSM) showed.

Rising production of steel related products has led to higher imports of raw materials. For making steel bars, the country’s iron and steel scrap imports in FY21 rose to 4.719m tonnes costing $1.86bn from 1.568m tonnes valuing $538m in 2011-12, the PBS figures showed.

Besides, iron and steel imports swelled to 2.992m tonnes amounting to $1.959bn in FY21 from 1.755m tonnes ($1.4bn) in 2011-12.


Commenting on rising demand for steel bars, Pakistan Association of Large Steel Producers Secretary General Syed Wajid Bukhari said steel bar production till 2011-12 was about three to 3.5m tonnes while the current demand now hovers between 6.5m tonnes to 7m tonnes.

He attributed increase in steel bar prices to soaring scrap prices in the world market to $550 per tonne from $300 per tonne while one dollar is now equal to 168 as compared to Rs85 in 2011-12.

He said gas price increased to Rs97 per unit from Rs15 per unit in the last 10 years followed by power tariff to Rs21 per unit from Rs6 per unit. Freight charges are 100 per high now.

Mr Bukhari was of the view that steel bar demand would soar to nine to 10 million tonnes by 2023-24 in view of rising construction activities.

Private sector consumes 80pc of total steel bar production as compared to 20pc by the public sector, he added.

Hassan Bakhshi, former chairman Association of Builders and Developers (ABAD), said a multi-storey high project to be built on 1,000 yards plot with three floors for car parking requires around 1,100 tonnes of steel bars.

He claimed that steel bar demand has been on the rise due to 80pc construction work on highrise projects in Punjab while the Sindh Building Control Authority (SBCA) has been creating problems in clearing new projects.

“Only 91 projects have been cleared by the SBCA in the last two years in Karachi as compared to 500-7,000 projects a year some 10 years back,” he said.

The projects being promoted on the social, print and electronic media belong to Punjab while in Karachi, advertisement campaigns have been running for old projects which had been approved very late.

Pakistan Association of Parts and Accessories Manufacturers Association chairman Abdul Rehman Aizaz was of the view that auto assemblers and their vendors consume 15,000-20,000 tonnes per month of iron and steel in different forms which are used in making different parts by the vendors and the assemblers.

Bike production swelled to 2.475m units from 1.645m units in FY12, while jeeps/cars production rose to 163,122 units from 154,706 units in FY12.

Trucks and buses production in FY21 jumped to 3,808 and 570 units from 2,597 and 568 units FY12.

Domestic appliances and electronic products have shown phenomenal growth in the last 10 years. For example, production of refrigerators, deep freezers and air conditioners has swelled to 1.337m units, 109,029 units and 505,493 units from 1.062m units, 56,313 units and 240,338 units in FY12. Electric fans production rose to 2.498m units from 1.908m units.

[Riaz Haq]

Vehicle Sales in Pakistan

https://minutemirror.com.pk/speedy-recovery-33561/

In the first eight months of the current financial year (July 2021-February 2022), the automobile industry sold cars at a record pace and car sales went up by a record 57 per cent. According to the data released by the Pakistan Automotive Manufacturers Association, 149,813 vehicles were sold in the first eight months of the current financial year as against 95,139 units in the same period of the previous financial year. The breakup of the sale data tells interesting tales: of the sold vehicles, car sales accounted for 57.5 per cent, truck sales for 82.2 per cent, jeep/pickup sales for 51.5 per cent and farm tractor sales for 6 per cent during the period. However, the sale of motorcycles and rickshaws declined by 3%. Car sales are likely to continue to rise till the end of the current financial year. The increased sale of trucks shows the revival of economic activities across the country. Farm tractors’ sale figures are also encouraging as the agriculture sector has seen an unprecedented boom, thanks to the farmer-friendly policies of the government. The figure strengthens the government’s claims of economic recovery.

This has happened at a time when car prices have increased multiple times, and the opposition has been protesting inflation. The figures of car sales have puzzled many and they may scramble the main reasons for the increase in car sales when people are worried about inflation.

According to experts, the main reason for the vehicle sale is the single-digit rate trade and macro recovery, which played a significant role in increasing auto sales in the first eight months of the current financial year. The increase in the purchase of such necessities of life, which are considered luxuries in Pakistan, is not a sign of the recovery or improvement of the economy, but the recent figures on car sales establish the fact that the purchasing power of a certain class has increased multiple times. The increasing gap between the rich and the poor makes it hard for social scientists to determine the overall rate of poverty.

These figures are, however, welcome for the automobile sector, which went through troubling times in the last three years. Several plants had to close down operations and lay off the staff. However, the life of the common man may remain the same as their purchasing power has shrunk. The government needs to take concrete steps for the welfare of the people.

[Riaz Haq]

PAAPAM opens Pakistan's largest automotive Expo 2022 in Lahore

https://dailytimes.com.pk/974390/paapam-opens-pakistans-largest-aut...

Pakistan Auto Show 2020 Chief Organizer and PAAPAM former chairman Syed Nabeel Hashmi said “Pakistan Auto Show 2022 is setting new benchmarks and trends for the automotive industry. Today, this mega event attracts more than 100,000 visitors from all over Pakistan and internationally. Over 200 international buyers and well over 100 international visitors will be attending the largest auto show in Pakistan.” The government needs to prepare long-term plans and support industries accordingly. The Chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) – Capt. (R) Muhammad Akram stated that: People are passionate about seeing the latest revolutionary technologies being deployed in Pakistan. Some of the participants this year include global automobile brands, along with spare-parts manufacturers, component suppliers, Original Equipment Manufacturers (OEM vendors), automobile traders, investors, buyers and enthusiasts, who want to expand their business networks and gain more information about the innovations and products in this sector.” The inaugural day at the show, saw an overwhelming response from industry stakeholders, international large-scale buyers and diverse consumer segments, as the Pakistan Auto Show features; cars, tractors, trucks, buses, 4X4, motorcycles, three wheelers and exotic cars, while promoting a wide array of advanced technologies and solutions, including; engines, casting, forging, sheet metals, jigs and fixtures, along with electronics, car-paints, tools, tires, batteries, plastic parts, rubber parts and accessories.

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Automobile Sector Has Key Importance In Economy: Secretary

https://www.urdupoint.com/en/business/automobile-sector-has-key-imp...

LAHORE, (UrduPoint / Pakistan Point News - 31st Jul, 2022 ) :Provincial Industries and Commerce Department Secretary Dr Ahmed Javed Qazi said on Sunday that automobile industryenjoyed a key position in the national economy, and effective steps were being taken to increase its share in the GDP and get its proper share in the global market.

This sector, he added, was providing opportunities to value-added exports; therefore, the Punjab government was providing all possible support for development of this industry.

Addressing an industrial symposium, organised by the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) here at the Expo Center, he said 10 special economic zones were functional in the province, while recommendations had been sent to the Federal government for three new special economic zones. "There are vast opportunities for domestic and foreign investors in these special economic zones. There are also 24 small industrial estates for investors in the province," he added.

Qazi said that the University of Engineering and Technology (UET) Lahore was contributing much to promote automobile and engineering sector and the Punjab Tianjin University of Technology, Mir Chakar Khan University, Dera Ghazi Khan, and Rasool University Mandi Bahauddin were producing high-quality technologists; however, there was a need to strengthen the linkages between academia and industry.

The secretary said that such seminars prove helpful in policy-making process, assuring the recommendations that came out at the symposium would be considered by the relevant departments. He said that holding an auto show was a welcome step as 153 local and international exhibitors were participating in the event, factories making cars, tractors and motorcycles, apart from factories making auto-parts have set up their stalls.

[Riaz Haq]

NFHS-5 report 7 Percent of households in India own a car, Goa first and Bihar last IG News

https://irshadgul.com/nfhs-5-report-7-percent-of-households-in-indi...

NFHS-5 report 7 Percent of households in India own a car, Goa first and Bihar last
New Delhi: According to the National Family Health Survey 2019-21 (NFHS-5) report, 7.5% of households in India own a car. This number has increased by 1.5% in the last 4 years. In 2018, the figure was 6%. In terms of states, Goa ranks first, Kerala second and undivided Jammu and Kashmir third. In Goa, 45.2% of households own a car. The figure is 24.2% in Kerala and 23.7% in Jammu and Kashmir.

In Himachal Pradesh 22.1% of households own a car, in Punjab the figure is 21.9% and in Nagaland it is 21.3%. In Sikkim, 20.9% of households own a car. The hill and northeastern states are at the forefront in this regard. 19.3% in Arunachal Pradesh, 17.0% in Manipur, 15.5% in Mizoram, 12.9% in Meghalaya and 8.1% in Assam own a car. In the hill states of Uttarakhand, after Jammu and Kashmir and Himachal, 12.7% of households own a car.

In the national capital Delhi, 19.4% of households own a car. In Haryana, 15.3% of households own a car. In Uttar Pradesh, the largest state in the country in terms of population, only 5.50% of households own a car. The fewest families in Bihar have their own car. Only 2.0 per cent of households in the state own a car. This is followed by the number of Odisha. In Odisha, 2.7% of households own a car.

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[Riaz Haq]

Stats of India
@Stats_of_India
What % of households in India own different consumer goods/services?

93% Mobile Phone
88% Electric Fan
68% Television
50% Motorcycle / Scooter
49% Internet
39% Refrigerator
18% Washing machine
7.5% households have a Car

Source: NFHS-5 2019-21

https://twitter.com/Stats_of_India/status/1525400881566728192?s=20&...

[Riaz Haq]

PLSM Pakistan 2019-20


https://www.pbs.gov.pk/sites/default/files//pslm/publications/pslm_...

HOUSEHOLD WITH: U R T
Computer 19 7 12
Internet 48 23 33
Mobile 96 91 93
PERCENTAGE OF THE POPULATION 10 YEARS AND OLDER WITH MOBILE OWNERSHIP
M F T
Pakistan 65 25 45
Urban 71 38 55
Rural 61 17 39
PERCENTAGE OF THE POPULATION 10 YEARS AND OLDER USED INTERNET IN LAST THREE
MONTHS
Pakistan 24 14 19
Urban 37 24 31
Rural 16 7 12
PERCENTAGE OF THE POPULATION 10 YEARS AND OLDER WITH ICT SKILLS
Copy Move 66 57 63
Copy Paste 54 52 53
Send Mail 51 44 48
Spread Sheet 31 20 27
Finding Downloading Software. 33 32 33
Presentation 25 16 21
Transferring Files 35 33 35
Programming 24 15 20
Social Media 46 41 45
Entertainment 60 58 59
Connecting Installing Devices 26 15 22

[Riaz Haq]

Technology
Xiaomi’s Local Partner to Start Selling TVs in Pakistan
Air Link aims to start assembling televisions in January
Mobile assembler also plans to ramp up mobile phone output


https://www.bloomberg.com/news/articles/2023-08-15/xiaomi-s-local-p...


By Faseeh Mangi
August 15, 2023 at 1:40 AM PDT
Pakistan’s Air Link Communication Ltd. plans to start assembling Xiaomi Corp. televisions in January to sell in the world’s fifth-largest nation.

The companies, which forged a partnership two years ago to sell mobile phones in Pakistan, don’t expect major investment will be needed since the assembly lines for both products are quite similar, Air Link CEO Muzzaffar Hayat Piracha said in an interview.

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https://propakistani.pk/2023/08/15/air-link-communication-to-start-...

Piracha said that Air Link has become profitable in the past six months. The company aims to raise mobile phone production to around 500,000 per month by the end of the year, up from 300,000 currently, he added.

Air Link, which began operations as a mobile phone reseller just over 10 years ago, became Pakistan’s largest private sector public offering when it was listed at PSX in 2021. It has since become one of the country’s largest smartphone distributors.

Pakistan has recently seen a slight uptick in the revival of business operations by foreign enterprises ever since the International Monetary Fund agreed to a new bailout program to revive the economy. The IMF demanded that the country remove all import restrictions, which has appealed to distributors like Air Link.