Auto policy approved, door wide open for new entrant

[Max Pain]

looks like the current auto policy has only succeeded in pissing the existing assemblers here in Pakistan

 

[The Sandman]

looks like the current auto policy has only succeeded in pissing the existing assemblers here in Pakistan

I think GOV should do more i mean don't you think it's their job to go to big brands and convince them for investment?

 

[Max Pain]

I think GOV should do more i mean don't you think it's their job to go to big brands and convince them for investment?

They have to add even more incentives for the new brands and brands with sick units.
If all else fails.
Make a homegrown brand.

 

[VCheng]

They have to add even more incentives for the new brands and brands with sick units.
If all else fails.
Make a homegrown brand.

Yes, the Adam Revo was such a huge success.

 

[Max Pain]

Yes, the Adam Revo was such a huge success.

They Tried,
and the scenario was wayy too different than the one we're facing today.

 

[VCheng]

They Tried,
and the scenario was wayy too different than the one we're facing today.

So how is today going to be different for a new domestic carmaker from Revo's experience back then?

 

[Moon]

Yes, the Adam Revo was such a huge success.

The car was hardly local. The main mechanism of the engines (the entire engine was sourced from China ), transmission and suspension were foreign. The plastics were also foreign, so was the metal.

 

[Max Pain]

So how is today going to be different for a new domestic carmaker from Revo's experience back then?

Shauqat Aziz back then promised to give Adam a contract to keep the production line going but he didnt,
secondly back then Pakistani's had many good cars to choose from with the likes of Chevrolet, Hyundai and Nissan,
back then Suzuki wasnt as crappy as it is now,
now people either have good choice nor the locallly assembled cars are any good,
aslo back then the Auto policy wasnt focussed on getting a new competitor in market to produce cars here and compete but its more focussed in benefiting the new entrants.The market also is much bigger than it was back in 2003,2004.
So yeah the situation today is much different than the situation over 12 years ago. and if there's some good local company, im sure people will be compelled to buy their products.

The car was hardly local. The main mechanism of the engines (the entire engine was sourced from China ), transmission and suspension were foreign. The plastics were also foreign, so was the metal.

It still was a start,They had to start from somewhere, if they got good sales and support they surely wouldve localized.
but that wasnt the case.

 

[Moon]

Shauqat Aziz back then promised to give Adam a contract to keep the production line going but he didnt,
secondly back then Pakistani's had many good cars to choose from with the likes of Chevrolet, Hyundai and Nissan,
back then Suzuki wasnt as crappy as it is now,
now people either have good choice nor the locallly assembled cars are any good,
aslo back then the Auto policy wasnt focussed on getting a new competitor in market to produce cars here and compete but its more focussed in benefiting the new entrants.The market also is much bigger than it was back in 2003,2004.
So yeah the situation today is much different than the situation over 12 years ago. and if there's some good local company, im sure people will be compelled to buy their products.


It still was a start,They had to start from somewhere, if they got good sales and support they surely wouldve localized.
but that wasnt the case.

But the fear of Adam becoming another of the big three was also there. Think you only had one big car making company. Which kept rolling out the same car (Revo) with no change for the next 10 years.
The only way is for joint ventures with foreign car companies.
Like FAW and Al-Hajj, or like Renault Pars.
Unless of course a filthy rich business tycoon swoops out of nowhere and sets up a car manafacturing plant in the country.

 

[VCheng]

The car was hardly local. The main mechanism of the engines (the entire engine was sourced from China ), transmission and suspension were foreign. The plastics were also foreign, so was the metal.

Most cars are made from components sourced from all over the world, just like you describe.

Shauqat Aziz back then promised to give Adam a contract to keep the production line going but he didnt,
secondly back then Pakistani's had many good cars to choose from with the likes of Chevrolet, Hyundai and Nissan,
back then Suzuki wasnt as crappy as it is now,
now people either have good choice nor the locallly assembled cars are any good,
aslo back then the Auto policy wasnt focussed on getting a new competitor in market to produce cars here and compete but its more focussed in benefiting the new entrants.The market also is much bigger than it was back in 2003,2004.
So yeah the situation today is much different than the situation over 12 years ago. and if there's some good local company, im sure people will be compelled to buy their products.

So yes, the situation is different as you describe, but is it so much better that a new domestic manufacturer can take wing? Besides, the domestic market is so used to following the herd in buying Mehran ad Corolla that a locally produced car will have a very tough time, unless there are large numbers of assured government orders for its own use,

 

[Max Pain]

But the fear of Adam becoming another of the big three was also there. Think you only had one big car making company. Which kept rolling out the same car (Revo) with no change for the next 10 years.
The only way is for joint ventures with foreign car companies.
Like FAW and Al-Hajj, or like Renault Pars.
Unless of course a filthy rich business tycoon swoops out of nowhere and sets up a car manafacturing plant in the country.

as of now there isnt one, so lets wait for one to begin with, and it doesnt matter which company, as long as any company keeps on manufacturing the same obsolete cars, people will eventually be tired of it.what have joint ventures really done for us? Indus motors havent really provided the cutting edge features in their new toyota corolla.

Most cars are made from components sourced from all over the world, just like you describe.



So yes, the situation is different as you describe, but is it so much better that a new domestic manufacturer can take wing? Besides, the domestic market is so used to following the herd in buying Mehran ad Corolla that a locally produced car will have a very tough time, unless there are large numbers of assured government orders for its own use,

yes thats what im trying to say, government backing is important initially, there are many examples.
and no trend is changing, you can notice quite a bit of FAW vehicles here so people are changing mentality.
A local entrant will only increase competition. The situation is indeed better however will any domestic manufacturer dare to take this risk, thats something only time can tell.

 

[VCheng]

yes thats what im trying to say, government backing is important initially, there are many examples.
and no trend is changing, you can notice quite a bit of FAW vehicles here so people are changing mentality.
A local entrant will only increase competition. The situation is indeed better however will any domestic manufacturer dare to take this risk, thats something only time can tell.

Can the bureaucracy tolerate using a domestic nameplate? That is the key question to ask.

 

[Moon]

Most cars are made from components sourced from all over the world, just like you describe.



So yes, the situation is different as you describe, but is it so much better that a new domestic manufacturer can take wing? Besides, the domestic market is so used to following the herd in buying Mehran ad Corolla that a locally produced car will have a very tough time, unless there are large numbers of assured government orders for its own use,

Yeah, but at the end of the day, those cars are built to utilize their components in the best and most efficient way possible. Revo however didn't.

as of now there isnt one, so lets wait for one to begin with, and it doesnt matter which company, as long as any company keeps on manufacturing the same obsolete cars, people will eventually be tired of it.what have joint ventures really done for us? Indus motors havent really provided the cutting edge features in their new toyota corolla.

yes thats what im trying to say, government backing is important initially, there are many examples.
and no trend is changing, you can notice quite a bit of FAW vehicles here so people are changing mentality.
A local entrant will only increase competition. The situation is indeed better however will any domestic manufacturer dare to take this risk, thats something only time can tell.

Well, let's say there was one. Would you have bought a Revo, in 2006? Or a Vitz? Or a dozen other Kei cars?. Now to foreign joint ventures, if we could've handled the big three properly, maybe we would have a 100 percent manafacturing rate.
But if joint venture is a way to bring, say Volkswagen to make cars in Pakistan, I would let one commence.

 

[VCheng]

Yeah, but at the end of the day, those cars are built to utilize their components in the best and most efficient way possible. Revo however didn't.

It is not just cars. Anything that Pakistan makes can be made better, cheaper or faster somewhere else in the world. It is up to Pakistan to decide whether it wants to adopt protectionist policies to support local production and have its citizen put up with poor quality products at high prices, or to adopt free market policies which will kill off local industries but provide its markets with world quality good at fair prices.

 

[Moon]

It is not just cars. Anything that Pakistan makes can be made better, cheaper or faster somewhere else in the world. It is up to Pakistan to decide whether it wants to adopt protectionist policies to support local production and have its citizen put up with poor quality products at high prices, or to adopt free market policies which will kill off local industries but provide its markets with world quality good at fair prices.

If Pakistan was just slightly a bit more "well off"
We could've lobbied our market size in trade for local production. But, it's a sad state of affairs.