Audi AG expresses intent to assemble vehicles in Pakistan

[GreenFalcon]

well it depends on the condition of the car and mileage and Model etc NO??



In the Article it mentioned Audi sold 900 Cars (Imported) last year

Imported means what that you have to pay 200% duty of the Book value of the car or is it 400%? Im not sure

 

[Muhammad Omar]

Can't understand what you are trying to prove by providing wrong figures and facts.

http://www.dawn.com/news/1206196

http://www.pakistantoday.com.pk/2015/07/11/business/car-sales-cross-150000-mark/

 

[GreenFalcon]

Can't understand what you are trying to prove by providing wrong figures and facts.

http://www.dawn.com/news/1206196

This news article is talking about the sales of locally assembled cars are going up so what are you talking about?

 

[Muhammad Omar]

Can't understand what you are trying to prove by providing wrong figures and facts.

http://www.dawn.com/news/1206196

the link you shared only if you could read

Sales of locally-assembled cars rose by 77 per cent to 29,168 units during the first two months of this fiscal year compared to 16,466 units in the corresponding period last year.

Buyers remained eager to have Toyota Corolla

2 months is not equal to 1 year

 

[sparten]

Imported means what that you have to pay 200% duty of the Book value of the car or is it 400%? Im not sure

If you have stated an intention to begin manufacturing (before June assembling) of cars in Pakistan, you get a tax holiday on CBU cars for about 3 years. That for Audi is ending next year, this will extend it for IIRC another 18 months.

 

[Tom M]

This news article is talking about the sales of locally assembled cars are going up so what are you talking about?

If I'm not wrong this thread is all about assembling Audi locally right ??

 

[GreenFalcon]

If I'm not wrong this thread is all about assembling Audi locally right ??

If I'm not wrong again, you're getting too worked up for no reason about Pakistan's internal matters.

 

[Dawood Ibrahim]

Its a good news.Buying high end car is not issue the only problems are road.

 

[GreenFalcon]

Its a good news.Buying high end car is not issue the only problems are road.

Well for now we can drive them on the CPEC to give some people an even bigger heartburn and a never ending butthurt

 

[GeraltofRivia]

I recalled back 1999 when Buick built a large manufacture facility in China, many doubt about its success as Buick was considered prestige US car and only a small population can afford it. And now they cannot make enough to meet the demand. I am sure what Audi is thinking mainly is how many car they are going to sell in 5 years time as opposed to that at the moment.

 

[jupiter2007]

AUDI, for general public ??? LOL

But yes, investment in any form will surely create more jobs and always good for economy.



Get a life dude. It's not a defense deal where TOT can be made, a country will provide them with the incentives and they will setup their factory and produce cars there. No one will transfer their patented core technology. Apart from that I guess everyone know how a car is manufactured.

Even in defence deals there is no such thing as complete TOT.
TOT depends on negociation, instead of just assembling the car, Pakistan can negociate on building engine parts, tranmission parts, spare parts in Pakistan.

 

[Thorough Pro]

You are entitled to your opinion, no offence taken.

I am not saying there is any shortage of millionaires in Pakistan or people wouldn't like more choices. Someone was arguing that "every" car owner in Pakistan can afford an Audi, which is a ridiculous claim.

To setup a brand new assembly plant would require a hefty investment in plant and machinery 500/600 million, a minimum of two years for the construction and plant setup, hiring and training of 400/500 employees, boarding/lodging/travelling expenses of European consultants / trainers, setup dealrship, spares availability and repair centers with training etc. etc........ to go through all that effort and investment the first thing any investor would look at is the Payback, IRR and commercial break-even volumes and the local economic growth.

So how many cars can Audi sell in Pakistan per year?

Car ownership per 1000 persons in 2014: US=797, Pakistan=18
Average per capita income in 2014 in US$: US=53,657, Pakistan=1,114

Just Audi sales in US in 2014 182,011
Total car sales in Pakistan in 2015=Civic 7805 + Corolla 51,398

now what share Audi can get from Toyota + Honda at double the price?
If that number projected for next 10 years make the investment worth it, they would come otherwise they would just import the fully assembled cars and sell to the few who can afford.

A hint of the people who talk without facts, there is a reason both Honda and Toyota don't assemble Camry and Accord in Pakistan, does that mean Pakistanis can't afford them or don't buy them?

btw do check how many Audi's are they selling in India on annual basis?

Suzuki is the largest selling car because it has become a household name for decades and decades. They have been allowed to dominate and monopolize the entire automobile industry in Pakistan. That was a very wrong move on our part. Time has come for Pakistanis to familiarize with other brands. Time has come to rectify this madness and diversify the automobile industry in Pakistan. You'll be surprised to see how many people are going opt for other brands. Perhaps not many Pakistanis can yet afford such cars, but there are quite a few who certainly can and these car makers aren't crazy. They have done their math in a population of 200 million people. That is not peanuts.

With respect @Thorough Pro, I think your time as an insider has blinded you. Not picking on you personally, but car industry insiders In my experience are exceptionally myopic. Case in point Fortunner, it's sold like hot cakes since it began to be assembled in Pakistan, despite warnings

Audi, Renault, Fiat and maybe BMW are looking at the very big middle class market. Audi is going after the cohort which buy the Civics and the high end Corollas. That a huge market and one which will pay more as well.

 

[GreenFalcon]

You are entitled to your opinion, no offence taken.

I am not saying there is any shortage of millionaires in Pakistan or people wouldn't like more choices. Someone was arguing that "every" car owner in Pakistan can afford an Audi, which is a ridiculous claim.

To setup a brand new assembly plant would require a hefty investment in plant and machinery 500/600 million, a minimum of two years for the construction and plant setup, hiring and training of 400/500 employees, boarding/lodging/travelling expenses of European consultants / trainers, setup dealrship, spares availability and repair centers with training etc. etc........ to go through all that effort and investment the first thing any investor would look at is the Payback, IRR and commercial break-even volumes and the local economic growth.

So how many cars can Audi sell in Pakistan per year?

Car ownership per 1000 persons in 2014: US=797, Pakistan=18
Average per capita income in 2014 in US$: US=53,657, Pakistan=1,114

Just Audi sales in US in 2014 182,011
Total car sales in Pakistan in 2015=Civic 7805 + Corolla 51,398

now what share Audi can get from Toyota + Honda at double the price?
If that number projected for next 10 years make the investment worth it, they would come otherwise they would just import the fully assembled cars and sell to the few who can afford.

A hint of the people who talk without facts, there is a reason both Honda and Toyota don't assemble Camry and Accord in Pakistan, does that mean Pakistanis can't afford them or don't buy them?

btw do check how many Audi's are they selling in India on annual basis?

The Audi AG group must be really stupid for showing their interest for investing in Pakistan, so you with your endless wisdom should become their adviser. Because basically all you're saying is that Pakistanis should be stuck with Honda, Toyota, and Suzuki for the rest of their lives because you are worried that Audi won't make money in PK?
You're also saying that Pakistanis should keep paying ridiculous amounts on Duty for 40,000 imported cars annually?
Nations don't mature with the attitude that you're displaying, you need to be positive and a look for a bright future.

 

[Thorough Pro]

Audi is not the first one, there had been many in the past too, they all show interest and then crunch their numbers.
I am a finance person and investment adviser and think like one, emotions, desires and patriotism have no effect on number calculations. Being positive does not mean being unrealistic.
Audi does not need my wisdom and advisory, they have a lot of in-house resources better trained and with a lot more combined experience. I hope, wish and pray that not only Audi but 10 more auto assemblers come to Pakistan but my rough calculations tell me something else.

Fortunately OEM's are not run by PDF fanboys who live in patriotic delusional reality. They live and breath money. Why would Audi setup an assembly plant in Pakistan when they already have one ion India, which is not doing well in terms of sales. Why would they come to Pakistan and not go to China as a hub for global supply at far cheaper labour, business friendly environment, no power outages, no strikes, no MQM, no bribes at every step.

The only car (whatever the brand) that would stand any chance of success would be a small to mid size family car that can replace Suzuki and sell under 1.5m. Big luxury cars priced over 3m would not be "Financially viable".

All you have done is just rant and rant and rant without any facts and figures, come back after 5 years and tell me how many European car manufacturers have actually setup their asembly plants in Pakistan.

The Audi AG group must be really stupid for showing their interest for investing in Pakistan, so you with your endless wisdom should become their adviser. Because basically all you're saying is that Pakistanis should be stuck with Honda, Toyota, and Suzuki for the rest of their lives because you are worried that Audi won't make money in PK?
You're also saying that Pakistanis should keep paying ridiculous amounts on Duty for 40,000 imported cars annually?
Nations don't mature with the attitude that you're displaying, you need to be positive and a look for a bright future.

 

[GreenFalcon]

Audi is not the first one, there had been many in the past too, they all show interest and then crunch their numbers.
I am a finance person and investment adviser and think like one, emotions, desires and patriotism have no effect on number calculations. Being positive does not mean being unrealistic.
Audi does not need my wisdom and advisory, they have a lot of in-house resources better trained and with a lot more combined experience. I hope, wish and pray that not only Audi but 10 more auto assemblers come to Pakistan but my rough calculations tell me something else.

Fortunately OEM's are not run by PDF fanboys who live in patriotic delusional reality. They live and breath money. Why would Audi setup an assembly plant in Pakistan when they already have one ion India, which is not doing well in terms of sales. Why would they come to Pakistan and not go to China as a hub for global supply at far cheaper labour, business friendly environment, no power outages, no strikes, no MQM, no bribes at every step.

The only car (whatever the brand) that would stand any chance of success would be a small to mid size family car that can replace Suzuki and sell under 1.5m. Big luxury cars priced over 3m would not be "Financially viable".

All you have done is just rant and rant and rant without any facts and figures, come back after 5 years and tell me how many European car manufacturers have actually setup their asembly plants in Pakistan.

We'll just wait and see, people like you have doubted many things in the past like CPEC for example, but we are living a new age and you're still stuck in the 80s.