Learning from Past – Earning from Present – Growing from Future
Episode: 1
Automotive is an industry that has been mobilizing the entire world for the past century and a half, not only humans but also almost every aspect of human life. The automotive industry first developed America and then the entire Europe economically to such an extent that the economic development of these countries began to touch the limits. It raised the living standards of the residents of these countries above all other countries. Along with eliminating unemployment in these countries, it not only made every difficult task of workers easier but also made them respectable and proud.
My entire active life has been associated with the automotive industry. After serving and learning for eight years at Hyundai and Kia Motors in the Middle East, I shifted to Pakistan and was active in the auto industry for 30 years at Honda Atlas Cars, the production, warranties, field engineering and dealer development taught me so much that I had become a teacher, an instructor and an auto enthusiast.
Thanks to Honda Cars, who considered me an automotive trainer and handed over their state-of-the-art training center to me, providing a wide range of training for all the technical staff of the dealer networking spread across Pakistan, where the process of learning and teaching the automotive industry continued for 20 years.
Meanwhile, Honda Motor Company Japan has invited four times to its first Honda plant in Tokyo, which has now become a training center, and its first Honda plant in Bangkok, Thailand, which has now become a training center, to provide training on every modern automotive technology, register certified automotive trainers, and issue their certifications.
When the automotive industry has transferred and accumulated so much knowledge and experience in a person, then his identity is no longer just his own, but his knowledge and experience become a trust for his society, and it becomes his duty to return the trust to his rightful society as soon as possible.
It has been my long-standing desire to be the first to share my knowledge and experience with the responsible service providers and dynamic thinking and passion of assemblers, manufacturers, vendors, importers, exporters and service providers associated with the automotive industry in Pakistan. Similarly, I can educate and train talented students from technical institutions, colleges and universities as well as workshops and those who have the passion and passion to make their future in the automotive sector.
I thank Allah and the Messenger of Allah (peace be upon him) for providing me passion with the effective platform of the popular monthly magazine AUTOMARK, which has been popular in the Pakistan Automotive Industry for years, to make this goal a reality.
I am deeply grateful to the dynamic team of AUTOMARK and its talented, dear to everyone, handsome and compassionate leader Mr. Hanif Memon, who has connected the Pakistan Automotive Industry with his strategy and the platform of his monthly magazine AUTOMARK and has provided a platform to share the knowledge and experiences with others.
When the automotive industry has transferred and accumulated so much of its knowledge and experience in a person, then his identity is no longer just his own, but his knowledge and experience become a trust of his society, and it becomes his duty to return this trust to the rightful society as soon as possible. It has been my long-standing desire to be the first to share my knowledge and experience with the responsible, service-minded and passionate assemblers, manufacturers, vendors, importers, exporters and service-providing businessmen associated with the automotive industry in Pakistan as soon as possible. Similarly, I can educate and train talented students from technical institutions, colleges and universities as well as workshops and those who have the passion and desire to make their future in the automotive sector.
Let us now come to the main topic. I have planned to study the automotive sector from the past to the future so that the strategies, secrets of success and points of development of each era can be studied and applied in the automotive industry of the present era according to our own needs.By studying the famous inventors, scientists, masters, businessmen, industrialists, companies andbrands of the automotive industry, Pakistan’s automotive industry can benefit from their experience.
Man has always learned from his past to improve his present era, but one should only keep an eye on the past as much as a rear-view mirror while driving a car. We should keep our business economy on the path of survival and development by using our best abilities, attention, hard work and resources while living in the present era. We should keep our eyes on our front screen as much as possible, because that isour future path. So that in the present era, our business economy vehicle becomes fast while driving safely and continuously. By adopting every modern and advanced technology as soon as possible, that is, by meeting the requirements of conquering future destinations, it should grow forward and forward.
For this purpose, it was necessary to make this introduction to explain our point of view. While one article of AUTOMARK is not enough to adequately study the auto industry spread across the world. Therefore, we will try to continue writing it in episodes until every aspirant associated with the automotive industry in Pakistan is able to benefit from something or the other. You are requested to stay connected with Auto Mark. Keep reading our episode articles completely and keep implementing its positive aspects. In addition to providing constructive criticism, which is your right, please continue to provide us with your valuable feedback and guidance.
Automotive Industry
The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. It is one of the world’s largest industries by revenue.
The word AUTOMOTIVE comes from the Greek autos (self), and Latin motivus (motion), referring to any form of self-powered vehicle. This term, as first came into use to describe automobiles in 1898.
The automotive industry began in the 1860s with hundreds of manufacturers pioneering the horseless carriage. Early car manufacturing involved manual assembly by a human worker. The process evolved from engineers working on a stationary car to a conveyor belt system where the car passed through multiple stations of more specialized engineers. In the 1960s, robotic equipment was introduced, and most cars are now mainly assembled by automated machinery.
For many decades, the United States led the world in total automobile production, with the U.S. Big Three General Motors, Ford Motor Company, and Chrysler being the world’s three largest auto manufacturers for a time, and G.M. and Ford remaining the two largest until the mid-2000s.
In 1929, the world had 32,028,500 automobiles in use, of which the U.S. automobile enterprises produced more than 90%. At that time, the U.S. had one car per 4.87 persons. After 1945, the U.S. produced around three-quarters of the world’s auto production.
In 1980, the U.S. was overtaken by Japan and then became a world leader again in 1994. Japan narrowly passed the U.S. in production during 2006 and 2007.
In 2008 also China, which in 2009 took the top spot (from Japan) with 13.8 million units, although the U.S. surpassed Japan in 2011, to become the second-largest automobile industry.
In 2023, China had more than 30 million produced vehicles a year for the first time in history, after reaching 29 million for the first time in 2017 and 28 million the year before.
From 1970 (140 models) to 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.
Countries Grow by Automotive Industry
The history of the automobile industry, though brief compared with that of many other industries, has exceptional interest because of its effects on history from the 20th century. Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques.
In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters then, later on this trend was followed by Korea and finely by China.
Automobiles represent freedom and economic growth.
Automobiles are a liberating technology for people around the world. The personal automobile allows people to live, work and play in ways that were unimaginable a century ago. Automobiles provide access to markets, to doctors,to jobs and businesses. Nearly every car trip ends with either an economic transaction or some other benefit to our quality of life.
Auto industry is the single greatest engine of economic growth in the world.
The global auto industry is a key sector of the economy for every major country in the world. The industry continues to grow, registering a 30 percent increase over the past decade.
Autos create jobs, jobs, jobs.
Building 60 million vehicles requires the employment of about 9 million people directly in making the vehicles and the parts that go into them. This is over 5 percent of the world’s total manufacturing employment.
It is estimated that each direct auto job supports at least another 5 indirect jobs in the community, resulting in more than 50 million jobs owed to the auto industry. Many people are employed in related manufacturing and services.
Autos are built using the goods of many industries, including steel, iron, aluminum, glass, plastics, glass, glass, carpeting, textiles, computer chips, semiconductors, rubber and more.
Automotive Industry of Pakistan
Currently, the auto market is mostly dominated by Honda, Toyota, Hyundai, Kia, Changan, MG, Sazgarand Suzuki.
MG JW Automobile Pakistan has signed a memorandum MoUwith Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, and started sale and assemblingof electric vehicles in Pakistan.
Presently Pakistan has almost attained 95% localization for tractors, 3 wheelers and motorcycles, 50 % for cars, and 20-25% for trucks and buses.
Unfortunately, the economy of scale demands one million productions of cars for more localization, whereas we are resolving around 200k only per annum.
The critical phase for the auto and part sector started in July 2022 when the Government restricted the import of CKDs and parts immediately under the showingdark of default.
Tractors, cars, and Chinese motorcycle producers are the top affectees of this ongoing crisis.
Original Equipment Manufacturers (OEMs) would not have transferred technology to cost down and maximize their production due to so many hurdles and reasons.
The way forward lies with exports and localization, which can be categorized into the short-term and long-term. As a trade-off action, the government should restore the quota regime immediately. At least machinery, equipment for measurement, metrology, calibration equipment, designing equipment, CAD, CAM, and CAE software, Molds, dies and fixtures, 3-D Printing, etc., should be duty-free.
The rationalization of duties on the import of parts and raw materials needs immediate review. Government should have a dialogue with OEMs to bring technology to Pakistan and export products to a certain incremental portion of the production.
The group-based training initiative can reduce the gap. Safety testing equipment and laboratories do not exist in Pakistan and how export can be possible without them? This issue could also be addressed through clustering and government support.
In the next episode, INSHALLAH we will study, Pakistan’s automotive industry, its current challenges and strategies to address them, as well as the opportunities for EV vehicles and related businesses. Until then, with words of determination and conviction…
This exclusive article has been published in Automark’s March-2025 printed and digital edition written by Muhammad Mumtaz Hussain