The effects of decline in car leasing on automobiles Industry of Pakistan

Abstract

The project is about thoroughly analyzing the effect on the automobile industry after the decline of leasing. The objective of the project is to see how the industry got adverse effects after the financial institutions stopped giving easy leasing options to the people which effected the automobile manufacturers in effect. We used quantitative data with both deductive and inductive approaches in the project.Structured interviews and non-structured observations were also taken. In the end we found that any industry of a country needs protection when it faces troubling times ,as the industry is a source of revenue for government in the form of tax and a source of livelihood for its people. Goverenment should take necessary steps if there are certain forces which try to make advantage from the weak spots of the economy. As the leasing boom was due to the economic prosperity of then government which failed to make it a long and sustained form of productive activity for the economy. As the boom in the economy declined,in the process it also hit the automobile industry which resulted in the adverse effects on the economy as a whole.