With new competitors closing in on the Big Three, capex spending in auto industry surges

The entry of KIA and Huyndai and other new entrants into the market has meant big changes for the auto industry overall

What’s the best way to assess how the car industry of Pakistan is doing? For Saroash Saleem, investment analyst at AKD Securities, it’s easy: use the quarterly capex for the three companies that produce cars in Pakistan. Capex is short for capital expenditure, also known as funds typically used by a company to upgrade, and maintain physical assets such as plants or buildings, and are also the funds used to undertake new projects or investments by a company.

Which is what Saleem highlighted in his note to clients sent on September 30 – that the rising capexs of the three companies represent a paradigm shift in the automobile industry. 

 

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