Automotive industry
The automotive industry in
Pakistan is one of the fastest growing in the country, accounting for 4% of
Pakistan's GDP and employing over 1.8 million people. There are currently 3,200
automotive manufacturing plants in the country. It contributes nearly Rs50
billion (US$310 million) to the national exchequer. The sector as a whole
employs 3.5 million people and plays a critical role in promoting the vendor
industry's growth. Over 180,000 vehicles were sold in the fiscal year 2014–15, with
206,777 units sold in the fiscal year 2015–16. Honda, Toyota, and Suzuki currently
dominate the auto market. However, on March 19, 2016, Pakistan passed the
"Auto Policy 2016-21," which provides tax breaks to new automakers
who set up shop in the country. The following are the major players in
Pakistan's automobile industry.
Atlas Honda
Limited (PSX: ATLH) is a
well-known motorcycle manufacturer in Pakistan, commanding more than 60% of the
two-wheeler market. The company is part of the Atlas Group, which was founded
in the 1960s with the incorporation of Shirazi Investments (Pvt.) Limited with
an initial capital of Rs 500,000. In 1963, a technical collaboration agreement
was signed with Honda Motors Company Limited, Japan (HMC) using funds generated
by Shirazi investments to produce and sell motorcycles in Pakistan.
Al-Ghazi is one of Pakistan's only two major tractor
manufacturers, having been in business since 1983 and beginning production in
1984. The company manufactures various tractor models and generators
and agricultural implements such as cultivators, plows, and sprayers. The
company has achieved 92 percent localization in the business while using only a
small percentage of imported content in manufacturing. The company is owned by
the Al-Futtaim Group in Dubai, which owns more than half of it. Al-Futtaim has
over 200 subsidiaries in the UAE, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia,
Egypt, Pakistan, Sri Lanka, Syria, Singapore, and Europe.
Ghandhana Nissan Limited (PSX: GHNL) is a
Pakistani automaker that produces a variety of vehicles. It is part of the
Bibojee group of companies, which was founded in 1981 and began production in
1996. Under a technical assistance agreement with Nissan Motor Japan and a
Joint Venture Agreement with Nissan Diesel Co. Japan for light and heavy-duty
commercial vehicles, the company had a license for the distribution of Nissan
passenger cars. In addition, the company formed alliances with UD Trucks
Corporation for UD trucks and buses. Recently, the company formed a wholly owned subsidiary after entering into an agreement with Dongfeng. The company
has two plants in Port Qasim, one for trucks and one for cars. Ghandhara
Nissan, as well as Ghandhara Industries, General Tyre, and Rubber, are all
subsidiaries of Bibojee Service. Gammon Pakistan and a slew of textile and
cotton mills are among the companies represented. Ghandhara Nissan established
Ghandara Dongfeng Pvt. Ltd in July 2013 with an equity investment of Rs 59.99
million. The subsidiary will assemble Dongfeng vehicles from China. The company
began by importing these vehicles.
HinoPak (PSX: HINO) controls nearly 45 percent of the market, and while
truck demand has been strong and growing (33 percent during this period),
demand for locally assembled buses has fallen over the last year and a half,
owing to increased imports in the segment.
The Honda Atlas (PSX: HCAR) Despite the debilitating effects of the covid-19 quarter, which
sent many a company spiraling into losses due to factory-wide shutdowns and a significant slowdown in demand has emerged relatively unscathed and has since
seen a solid recovery. From zero sales in April, it appears that the automobile market has awoken from its year-long stagnation, aided by the lifting of
lockdowns, a decent demand recovery, and much cheaper car financing due to
lower policy rates.
Indus Motors (PSX: INDU), the country's second-largest automotive assembler, saw a 23
percent increase in its top line in HFY18 and a subsequent 21 percent increase
in its bottom line year on year. The increase in top-line revenue is due to
higher car sales and price increases in December 2017. Overall volumetric sales
increased by 6% in HFY18, thanks to a healthy sales mix and higher sales for
higher-priced variants. Both the Hilux and the Fortuner rallied strongly, with
Fortuner sales increasing eightfold. Despite the company's efforts, sales of the
flagship Corolla with a higher volumetric weight fell slightly. In fact,
Corolla production fell by 1% in the first quarter of the fiscal year 2018, and by
4% in the second quarter, indicating that sales are being squeezed due to
capacity constraints.
Millat
Tractors (PSX: MTL) has grown
to become the country's largest tractor manufacturer. The company was founded
in 1964 and began operations by importing and selling Completely Built Unit
(CBU) tractors. MTL was nationalized in 1972, and the company was bought out by
management in 1992, after twenty years. Millat has since ventured into
generating sets and has either acquired or established other subsidiaries for
similar business. Bolan Casting was purchased in 1993, Millat Equipment was
established the following year, and Millat Industrial Products was established
in 2002. Since signing an export agreement with AGCO Corporation in Africa, the
company has been gaining market access abroad. MTL's main line of business is
the production of agricultural tractors, diesel engines, forklifts, and a
variety of agricultural implements. It also has laboratories for material
testing and gauge control. In a market of about 60,000 tractors, the company's
plant currently has a capacity of more than 35,000 units per year.
Trend Graphs and Simple moving average chart
There are two charts depicted to show trend and simple moving average. Simple moving averages
are one of the most important indicators in technical analysis, and there are
numerous variations. The SMA is the most straightforward moving average to
construct. It is just the average price for a given time period. Because it is
shown on the chart bar by bar, generating a line that moves along the chart as
the average value changes, the average is called "moving."
SMEs are frequently used to determine
the direction of a trend. The trend is up if the SMA is trending higher. The
trend is down if the SMA is trending down. The long-term trend is often
represented by a 200-bar SMA. as 50 bars are commonly employed to
determine the intermediate trend. SMAs with shorter periods can be used to spot
shorter-term trends.
Price data and technical indicators are
frequently smoothed with SMAs. The smoother the result, the longer the SMA's
period, but the more latency imposed between the SMA and the source.
Crossing of prices, Trading signals are frequently triggered by SMAs. When prices cross above the SMA, you should consider going long or covering short; when prices cross below the SMA, you should consider going short or exiting long.
Following is for the automotive industry simple moving average data and SMA in "R" using "shiny" IDE
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