Auto/Bus/Truck Monopoly in Pakistan & Future Cars Entry

[Bouncer]

Pakistan has to start manufacturing there own cars. Why the hell business men like mansha, hashwanies, etc can go and put a plant. Just imagne what impact this can have on economy, if imports of automobile can be tap in.
Its good for country as well, a very profitable business, whats wrong with us and our businessmen?

I believe there must be very strong incentives for our local businessmen to NOT to venture in to making local cars. Either they have investments in these big 3 assemblers or they are supplying them with spare parts.

Remember what happened to Feroz Khan. Poor guy was ruined by these assemblers and their puppets in bureaucracy.

 

[Asian.Century]

Mehtab Haider
Wednesday, January 28, 2015

ISLAMABAD: The new auto sector policy has proposed 80 percent reduction in Customs duties for the entry of manufacturers into the Pakistani market for the next five years in order to put in place competitive mechanism and reducing car prices in the country.

For new brands of cars from the existing car manufacturers operating in Pakistan, the duty reduction is proposed to be available for two years in order to give more choice to consumers at affordable prices.

In Pakistan, it is generally believed that the manufacturers are fleecing consumers on account of car prices existing in the neighbouring India. It will be mandatory for manufacturers to come up with new brand of cars after a period of 10 years. Citing an example, an official said that the shape of Suzuki Mehran or any other shape will have to be changed after every 10 years period.

The indigenisation of cars will be encouraged under the upcoming auto policy in the country.“On the directives of Prime Minister Nawaz Sharif, we have prepared the draft of Automotive Development Plan for five year period which will be tabled before the ECC for approval within the next two weeks,” top official sources confided to The News here on Tuesday.

The Engineering Development Board, Ministry of Industries, FBR and other stakeholders held an important meeting here on Tuesday to incorporate the changes proposed by stakeholders before submitting the draft of the auto policy beforeof auto policy before the ECC probably by mid of February 2015.

The sources said that some Chinese companies showed their interest to invest in auto sector of Pakistan but the existing players mainly belonging to Japan are making all kinds of hues and cries to ensure protective regime for them. The auto manufacturers argue that the country’s market for new entrant is not ripe because they are operating at maximum capacity of 50 percent.

But it is fact that the practice known as “Aoun money” still continues unabated in the country and there are serious concerns expressed in terms of ensuring quality of cars manufactured in Pakistan.

The draft auto policy envisages changes in cars to install alarm system in the cars manufactured in Pakistan to avoid rampant thefts of cars. The government proposed to place recall system which will ensure return of cars in case of any major fault occurred in bulk.In order to discourage late delivery, the new auto policy proposed 50 percent payment at time of booking of cars and remaining 50 percent at time of delivery.

In case of delay over three months of booking of cars, the auto policy proposed penalties and rate of penalties are under consideration. All types of used cars will be regulated under the upcoming auto policy as no used cars will be allowed for import except through personal baggage scheme, transfer of residence and gift scheme.

 

[Asian.Century]

Toyota, Suzuki & Honda sending low quality cars to Pakistan. Japanese manufacturers are giving low quality cars at high prices to Pakistanis. I was astonished to hear that there is no airbag in many of the cars. These are so unsafe and price is way too high. Government should open market for other investors, like Nissan, Hyundai, Audi, Volkswagen, BMW & FAW Luxury cars,If Renault, Fiat and Nissan invest we wont need their investment. enough is enough. That will help the people to get better cars and also the local industry will grow and jobs will be created.

This Honda-Suzuki-Toyota car-tel in Pakistan needs to be broken.

 

[Max Pain]

Toyota, Suzuki & Honda sending low quality cars to Pakistan. Japanese manufacturers are giving low quality cars at high prices to Pakistanis. I was astonished to hear that there is no airbag in many of the cars. These are so unsafe and price is way too high. Government should open market for other investors, like Nissan, Hyundai, Audi, Volkswagen, BMW & FAW Luxury cars,If Renault, Fiat and Nissan invest we wont need their investment. enough is enough. That will help the people to get better cars and also the local industry will grow and jobs will be created.

This Honda-Suzuki-Toyota car-tel in Pakistan needs to be broken.

I associated high expections with VW when last year they expressed interest and now there are 3 upcoming options that may knock some senses in This cartel,
1) Datsun Go (to be produced by Gandhara Nissan Plant from the first half of 2017)
2) FAW B 30 and FAW V2 1.0 version.
3) JAC Motors(JAC may produce cars in Pakistan from late 2017 onwards)

till then we're stuck with the existing trio

 

[Saquib]

What needs to be done is to open up the market to all car makers and put duty on Petrol oils and lubricants; tax charges should relate to cars imported from countries Pakistan has a trade deal with this could be used as an leverage!

 

[v9s]

I associated high expections with VW when last year they expressed interest and now there are 3 upcoming options that may knock some senses in This cartel,
1) Datsun Go (to be produced by Gandhara Nissan Plant from the first half of 2017)
2) FAW B 30 and FAW V2 1.0 version.
3) JAC Motors(JAC may produce cars in Pakistan from late 2017 onwards)

till then we're stuck with the existing trio

lol

Forget about 2017. Expect new players (if any) after 2018-2019. It takes a long time to set up a plant and get things moving along.

-Gandhara Nissan plant - needs upgrades which will take more than 2 years.

-VW - The group wants to build the plant on German govt owned land near port qasim. Nawaz (the Dalla) wants them to build the plant in Punjab so that he can appease his (equally chu*ia) vote bank. VW is in disagreement. Expect anything from them after 2020+

-JAC Motors - builds cars that are pieces of sh*t, even by local standards. Not a significant player - Pakistanis will still go for rollas or suzukis.

-FAW barely sells any passenger cars. Their v2 has barely sold 200 FY15-16. Their truck business and LCV business is only slightly more successful.

 

[Max Pain]

lol

Forget about 2017. Expect new players (if any) after 2018-2019. It takes a long time to set up a plant and get things moving along.

-Gandhara Nissan plant - needs upgrades which will take more than 2 years.

-VW - The group wants to build the plant on German govt owned land near port qasim. Nawaz (the Dalla) wants them to build the plant in Punjab so that he can appease his (equally chu*ia) vote bank. VW is in disagreement. Expect anything from them after 2020+

-JAC Motors - builds cars that are pieces of sh*t, even by local standards. Not a significant player - Pakistanis will still go for rollas or suzukis.

-FAW barely sells any passenger cars. Their v2 has barely sold 200 FY15-16. Their truck business and LCV business is only slightly more successful.

“GNL is in process of finalising with Nissan Motor Japan for the necessary preparation to start production of Nissan and Datsun initially,” Senior Executive Director Marketing and Sales, GNL, Muazzam Pervaiz Khan told Dawn.

“Efforts are underway to initially assemble two brands at the company’s existing production facilities for which the company is expanding production capacity and investing in jigs, fixtures and tooling etc.”

GNL expects an investment of over Rs2 billion for Nissan and Datsun vehicles as the infrastructure of production facility already exists. Vehicle production would create a number of jobs.“We plan to enter the market by the end of 2016 or first quarter of 2017,” Muazzam said.
http://carspiritpk.com/2016/06/14/nissans-comeback-possible-launch-of-datsun-go-in-pakistan/

so hopefully we can expect some model from GNL next year,

JAC may be making rubbish cars for international standards yet they'll be leaps better than the ones presented by Suzuki here, their low end model if marketed right would still beat the likes of mehran and cultus,
its always good to have more players in the market, so lets not speculate before they enter our market.

Give me the official FIgures of FAW v2 sales, i doubt the number youve stated, its still the cheapest 1300cc car available in Pakistan and ofcourse has a euro 4 engine as compared to rest of euro 2 engined cars.
but what youve said about FAW is irrelevant because I didnt talk about V2,
I talked about the 1000 cc version that they'll assemble here and sell, if 1.3 liter variant that is sold as CBU costs 10 lac pkr then surely id expect the 1.0 version to be around 7.5 - 8lac pkr which is enough to contest mehran and thats a good start if you ask me.

rest about VW, I didnt hear any news after their expression of Interest back in 2015, this only means that they came across hurdles and hence may not produce here at all.

 

[50cent]

Motorcycles assemblqerd are worst at looting ordinary Pakistani since 70s we. Are seeing 125 and 70 time to get rid of it . I hope indian brands are opened to our market

 

[Zibago]

This one is nice but it has bad resale
@PaklovesTurkiye @User @Vapnope @Spring Onion
Its better than swift on every front

 

[!eon]

It's better than swift but problem is with easy spare parts availability. That had been problem with all failed/departed auto makers in Pakistan. FAW is not learning that.
Anyone being inhabitant of remote location in far away district, when just has to come to Lahore, Islamabad or Peshawar for only small parts, he would not buy this car. No matter how much quality product this is.

That's why you will see just abundance of Suzuki and Toyota and recently Honda in all small cities, as people can buy all their parts right in their own cities.

And that's the success story of Toyota in whole world. I have seen in USA to Europe and to Australia, mechanics always recommending Toyotas because of their easy repair and next door spar parts availability. Even they were the first to open their computer codes for OBD tool makers and Germans are still hiding these from open market.
In German every mechanic has OBD tools for Japaneses Toyotas and can fix any of their model while for their own German autos you have to go to their dealers and company mechanics.

This one is nice but it has bad resale
@PaklovesTurkiye @User @Vapnope @Spring Onion
Its better than swift on every front

 

[Zibago]

It's better than swift but problem is with easy spare parts availability. That had been problem with all failed/departed auto makers in Pakistan. FAW is not learning that.
Anyone being inhabitant of remote location in far away district, when just has to come to Lahore, Islamabad or Peshawar for only small parts, he would not buy this car. No matter how much quality product this is.

That's why you will see just abundance of Suzuki and Toyota and recently Honda in all small cities, as people can buy all their parts right in their own cities.

And that's the success story of Toyota in whole world. I have seen in USA to Europe and to Australia, mechanics always recommending Toyotas because of their easy repair and next door spar parts availability. Even they were the first to open their computer codes for OBD tool makers and Germans are still hiding these from open market.
In German every mechanic has OBD tools for Japaneses Toyotas and can fix any of their model while for their own German autos you have to go to their dealers and company mechanics.

Yes but for folks in big cities this caris heaven sent its better than swift and chevloret spark people only avoid it because of resale

 

[litman]

This one is nice but it has bad resale
@PaklovesTurkiye @User @Vapnope @Spring Onion
Its better than swift on every front

i have been driving it for past 6 months and it is really a nice car in that budget. it is simply better then wagon r , swift, cultus, passo, vitz.

 

[Zibago]

i have been driving it for past 6 months and it is really a nice car in that budget. it is simply better then wagon r , swift, cultus, passo, vitz.

To increase their sales they shoukd increase their spare parts availability in all major districts people will be interested if a car like this increaes its support base

 

[v9s]

“GNL is in process of finalising with Nissan Motor Japan for the necessary preparation to start production of Nissan and Datsun initially,” Senior Executive Director Marketing and Sales, GNL, Muazzam Pervaiz Khan told Dawn.

“Efforts are underway to initially assemble two brands at the company’s existing production facilities for which the company is expanding production capacity and investing in jigs, fixtures and tooling etc.”

GNL expects an investment of over Rs2 billion for Nissan and Datsun vehicles as the infrastructure of production facility already exists. Vehicle production would create a number of jobs.“We plan to enter the market by the end of 2016 or first quarter of 2017,” Muazzam said.
http://carspiritpk.com/2016/06/14/nissans-comeback-possible-launch-of-datsun-go-in-pakistan/

so hopefully we can expect some model from GNL next year,

Doubt they'll enter by 2017. The facility needs massive up-gradation, despite what GNL wants the public to hear.

JAC may be making rubbish cars for international standards yet they'll be leaps better than the ones presented by Suzuki here, their low end model if marketed right would still beat the likes of mehran and cultus,
its always good to have more players in the market, so lets not speculate before they enter our market.

Success of a car isn't dependent on the number of features it offers over competition. Chinese cars have questionable quality among consumers, even among those that can barely afford a mehran. To mitigate this perception, the Chinese manufacturer will have to set up a wide network of 3s dealerships, have trained mechanics able to work on their car, before people go for it - lets see how well they do that here.

Give me the official FIgures of FAW v2 sales, i doubt the number youve stated, its still the cheapest 1300cc car available in Pakistan and ofcourse has a euro 4 engine as compared to rest of euro 2 engined cars.

And yet they only sold around 200 vehicles (roughly) during FY15-16. They're not registered with PAMA so you will never get official figures. This figure has been obtained by other means.

I talked about the 1000 cc version that they'll assemble here and sell, if 1.3 liter variant that is sold as CBU costs 10 lac pkr then surely id expect the 1.0 version to be around 7.5 - 8lac pkr which is enough to contest mehran and thats a good start if you ask me.

Agreed. Lets see how well they fare.

rest about VW, I didnt hear any news after their expression of Interest back in 2015, this only means that they came across hurdles and hence may not produce here at all.

Yup. expect after 2020 only.

 

[Max Pain]

Doubt they'll enter by 2017. The facility needs massive up-gradation, despite what GNL wants the public to hear.

you can doubt it and maybe as we talk they already are upgrading their facility to bring cars at the earliest.
else I guess they'll be dishonest for stating the wrong timeline

Success of a car isn't dependent on the number of features it offers over competition. Chinese cars have questionable quality among consumers, even among those that can barely afford a mehran. To mitigate this perception, the Chinese manufacturer will have to set up a wide network of 3s dealerships, have trained mechanics able to work on their car, before people go for it - lets see how well they do that here.
.

Indeed and thats how FAW slowly started to gain a foothold here by having their own 3s dealers in bigger cities, expect this number to increase,
and If JAC is to get any market share in the foreseeable future, It'll have to do the same and I expect them to do so,

And yet they only sold around 200 vehicles (roughly) during FY15-16. They're not registered with PAMA so you will never get official figures. This figure has been obtained by other means.

.

Id like to know about those "other means"

Agreed. Lets see how well they fare.



Yup. expect after 2020 only.

I hope that 1 liter version does somehow shake the market of Mehran,
yes.