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Congrats: Zero Auto Sales for Monoply of Corolla, Suzuki & Honda in Pakistan

It's a monopoly. They don't really compete with one another. Each has their own niche. Toyota here will never sell cheap hatchbacks. Because that's Suzukis domain. Vice versa

Sorry Sir, The word 'Mono' in Greek means 'One'. A monopoly means a single seller with no competitors. Look into any dictionary or Economics book. If there are three companies in the market, it can not be a monopoly.
 
Just like everything else in Pakistan, this too is a mafia. I hope the government goes after them just like its going after sugar cartel.
 
These are three companies hence it cannot be a monopoly. Technically it would be an “Oligopoly”. Car sales are down worldwide; in UK new car sales dropped 97% in April!

When foreign companies invest in Pakistan with or without a local partner, it is a good thing. Zero car sales indicate a massive decline in the country’s productivity and could result in many Pakistanis losing their job. What is there to congratulate about???

so we are just going to let the mafia run its corruption till end of time?
 
so we are just going to let the mafia run its corruption till end of time?
like imran said we will live with corona.
and we will live with cartel,s . mafia,s and corruption........thanks for cheering slogan of accountability, justice , merit and punishment, they r as bogus as all the roti , kapra and makaan.
 
so we are just going to let the mafia run its corruption till end of time?

Hon Sir,

Unfortunately in Pakistan, instead of putting the blame on the bad policies formulated by the incompetent governments, we blame the people who make a lot of money by taking advantage of the policy. For example if PTI gov’t had not allowed export of sugar, the so-called ‘Sugar Mafia’ could not have made billions of rupees in profit. But the PTI Gov’t is blameless and the Sugar mill owners are guilty! If the car assemblers are milking money, it is because GOP policies allow them to do so.

Our media has started applied the label ‘Mafia’ to anyone they like to associate with the alleged criminal activities. For example there are nearly 80 sugar mills in Pakistan but it is called Sugar Mafia, you are calling the three car companies as Mafia. The proper word is Cartel. The size of the Pakistani market is small, that's why there are few companies; if & when the market increase to say about 250K cars per, you would that number of car companies would also mushroom.

Everyone must realize that all entrepreneurs go into business with only one objective, to make money. It is the GOP’s job to ensure that the profit margin remains within limits. Breaking up cartels in Pakistan would not solve Pakistan’s problems. ZA Bhutto broke up the 22 family’s cartel by nationalizing nearly all of the industry; did it make Pakistan progress more? Instead it killed off the investment in Pakistan for nearly 30 years. If the assembly plants are closed off, it will the car importers who will start making money, how would it benefit the country?

Cars in Pakistan are no doubt expensive especially after the fall in the value of Rupee. This was evident when during 2018-2019 (before the Covid-19) annual car sales dropped to about 50 K compared to more than 100K during the previous year. The real reason for the cars being expensive in Pakistan is because nearly every part is imported and simply put together in Pakistan. The price of cars will come down substantially when we start manufacturing most of the parts and also use the locally made metal sheets for the body.

However there are two impediments to this strategy; firstly, unlike India & China, we may not have the capability to manufacture the car parts of the same quality. Secondly, it is in our DNA that “rightly or wrongly”, we consider items manufactured in Pakistan being of lesser quality. Hence cars assembled from Pakistani made parts may have problems finding buyers.

Finally, do we want to produce /assemble cars, trucks, and other automobiles in Pakistan or simply rely on imports till kingdom come? Assembly not only provides jobs to fellow Pakistanis it also increases the pool of skilled labor and saves the country foreign exchange. In view of this, please tell me, is ‘Zero’ sales of locally assembled cars a reason for jumping with joy or crying over the state of the economy?

The problem is that many of my compatriots are easily swayed by media sensationalism. Why are you so incensed at the alleged profits that you seem happy that no one is buying cars? Do you think that the parent companies like Toyota would make less ‘Profit’ if these plants are shutdown cars were imported fully assembled?
 
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Cars in Pakistan are no doubt expensive especially after the fall in the value of Rupee. This was evident when during 2018-2019 (before the Covid-19) annual car sales dropped to about 50 K compared to more than 100K during the previous year. The real reason for the cars being expensive in Pakistan is because nearly every part is imported and simply put together in Pakistan. The price of cars will come down substantially when we start manufacturing most of the parts and also use the locally made metal sheets for the body.

One important factor to keep in mind is the costs associated with allowing widespread use of cars is the secondary imports generated for fuel, parts and maintenance etc. The government is therefore forced to impose heavy taxes to discourage widespread use of cars by the general public, considering it as a luxury rather than necessity. Given this environment, the carmakers are forced to decontent their vehicles as much as possible to keep the prices somewhat affordable for those who have the means to consider buying cars.

Hence, poor quality cars at high prices for a captive market.
 
Pakistan has to invest in electric vehicle technologies so that it can leapfrog and ultimately produce an entirely Pakistani product; the same way the Turkish are doing. Turkey is investing $3.7 billion to produce 175,000 electric vehicles a year. This will reduce the account deficit of Turkey by $7.5 billion a year by saving on vehicle and oil imports. Pakistan has to follow the same model and do it fast so that it can export to markets in the developing world & reap big dividends. More importantly, Pakistanis have to be lobbying their government to invest in such technologies. The number of jobs created will be phenomenal as the unemployed graduates in Pakistan can be employed. it will also kickstart a science and technology revolution in Pakistan.

https://electrek.co/2019/12/30/turkey-electric-vehicles-togg/
 
Pakistan has to invest in electric vehicle technologies so that it can leapfrog and ultimately produce an entirely Pakistani product; the same way the Turkish are doing. Turkey is investing $3.7 billion to produce 175,000 electric vehicles a year. This will reduce the account deficit of Turkey by $7.5 billion a year by saving on vehicle and oil imports. Pakistan has to follow the same model and do it fast so that it can export to markets in the developing world & reap big dividends. More importantly, Pakistanis have to be lobbying their government to invest in such technologies. The number of jobs created will be phenomenal as the unemployed graduates in Pakistan can be employed. it will also kickstart a science and technology revolution in Pakistan.

https://electrek.co/2019/12/30/turkey-electric-vehicles-togg/

Sir,

You may have a good idea but does Pakistan have $3.5-billion to invest? Additionally, the design & production of an all-electric car from scratch is a risky business. You may have heard of Sir James Dyson, inventor of the Dual Cyclone bagless vacuum cleaner. He recently announced the cancellation of the electric car project because it was considered too expensive to be commercially viable.

"Dyson cancels electric car project.

Dyson has abandoned its attempts to break into the automotive industry and will wind down its electric vehicle project, ending a venture that founder James Dyson claimed would redefine his business. The company failed to find a buyer for its designs, and said its plans to build a car from scratch in Singapore were no longer commercially viable. Dyson’s ambitions faced a mounting challenge from established carmakers, while electric vehicle makers such as Tesla have raised large sums on the stock and bond markets. Many new entrants such as China’s Nio have struggled with the cost of competing against deep-pocketed incumbents. Sir James’s decision represents a humbling U-turn for a man who is one of Britain’s most celebrated living inventors. The billionaire businessman had hoped to harness his privately owned group’s expertise in battery systems, aerodynamics and high-tech manufacturing to break into a fiercely competitive industry. “Though we have tried very hard throughout the development process, we simply can no longer see a way to make it commercially viable,” Sir James wrote in an email to staff on Thursday. “We have been through a serious process to find a buyer for the project which has, unfortunately, been unsuccessful so far.” Unveiled to great fanfare two years ago, Dyson had promised a “radically different” electric car that would have been the crowning achievement of a brand famous for its high-end domestic appliances. The company even filed patents showing the potential shape of the vehicle, and Sir James said on Thursday the team had developed a “fantastic car”. The failed automotive gamble was part of a £2.5bn investment push into a range of new technologies, including artificial intelligence and robotics and batteries. Out of that war chest, £1bn was originally earmarked for the car and £1bn for battery development."

Full article: https://www.ft.com/content/f04e1fda-eb6d-11e9-a240-3b065ef5fc55
 
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Sir,

You may have a good idea but does Pakistan have $3.5-billion to invest? Additionally, the design & production of an all-electric car from scratch is a risky business. You may have heard of Sir James Dyson, inventor of the Dual Cyclone bagless vacuum cleaner. He recently announced the cancellation of the electric car project because it was considered too expensive to be commercially viable.

"Dyson cancels electric car project.

Dyson has abandoned its attempts to break into the automotive industry and will wind down its electric vehicle project, ending a venture that founder James Dyson claimed would redefine his business. The company failed to find a buyer for its designs, and said its plans to build a car from scratch in Singapore were no longer commercially viable. Dyson’s ambitions faced a mounting challenge from established carmakers, while electric vehicle makers such as Tesla have raised large sums on the stock and bond markets. Many new entrants such as China’s Nio have struggled with the cost of competing against deep-pocketed incumbents. Sir James’s decision represents a humbling U-turn for a man who is one of Britain’s most celebrated living inventors. The billionaire businessman had hoped to harness his privately owned group’s expertise in battery systems, aerodynamics and high-tech manufacturing to break into a fiercely competitive industry. “Though we have tried very hard throughout the development process, we simply can no longer see a way to make it commercially viable,” Sir James wrote in an email to staff on Thursday. “We have been through a serious process to find a buyer for the project which has, unfortunately, been unsuccessful so far.” Unveiled to great fanfare two years ago, Dyson had promised a “radically different” electric car that would have been the crowning achievement of a brand famous for its high-end domestic appliances. The company even filed patents showing the potential shape of the vehicle, and Sir James said on Thursday the team had developed a “fantastic car”. The failed automotive gamble was part of a £2.5bn investment push into a range of new technologies, including artificial intelligence and robotics and batteries. Out of that war chest, £1bn was originally earmarked for the car and £1bn for battery development."

Full article: https://www.ft.com/content/f04e1fda-eb6d-11e9-a240-3b065ef5fc55


First of all, you are not investing that money in one go. It’s spread over number of years. Secondly, have you ever taken a look at your country’s budget or followed the news. Each years billions of rupees earmarked for provincial development lay unclaimed. The problem isn’t the lack of funds but rather misuse of funds. A smart budgeting that eliminates waste and funding of unproductive projects such as the useless sparsely utilized motorways, can save a lot of money annually. Finally, investments in such technologies will create dividends in critical sectors such as improving the quality of education, advancement of science and technology and most importantly help create high tech jobs in Pakistan and save on account deficit.

I don’t buy the argument that simply because one company in the UK failed, that the prospects look bleak for Pakistan. This is typical of the defeatist and knee-jerk arguments often spun on this website. The other being “we don’t have money” Dayson attempted to create an EV company in an overly saturated market which already is home to some of the most exclusive automative companies in the world. Your country is importing outdated 1970s style Suzuki, Honda and Toyota from japan which are sold at exuberant prices. There’s a real opportunity to create EV technology that’s centered around the middle class in the developing world and Pakistan can become a model on how to do so with its more than 200 million population. The Turks brought together both public and private sector in creating their EV company, there’s no reason why the same can’t be done in Pakistan.
 
so we are just going to let the mafia run its corruption till end of time?

The car mafia is again increasing prices, is there a check or stop to this outrageous price increase of used and new cars in Pakistan. Will the government finally act on this loot.
 
Sorry Sir, The word 'Mono' in Greek means 'One'. A monopoly means a single seller with no competitors. Look into any dictionary or Economics book. If there are three companies in the market, it can not be a monopoly.
The terminology used in marketing for such scenarios is Oligopoly.
 
soon they wll start giving them away for free

regards
 
The terminology used in marketing for such scenarios is Oligopoly.

Agreed. To be more precise:

"In economics, an oligopoly is a market structure where the industry is dominated by a small number of sellers (oligopolists). The dominant sellers, since they are so few in number, are each likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms.

A cartel is a special case of oligopoly when competing firms in an industry collude to create explicit, formal agreements to fix prices and production quantities. In theory, a cartel can be formed in any industry but it is only practical in an oligopoly where there is a small number of firms. Cartels are usually prohibited by anti-trust law."

https://www.diffen.com/difference/Cartel_vs_Oligopoly

In my humble opinion, in the case of Pakistani Sugar, the cartel is probably more suited. However, Oligopoly is equally applicable. My point was simply to point out that it was not a 'Monopoly'.
 
fuel, parts and maintenance etc.
nothing can be done about fuel(even that could be offset if some of those manufacturers were exporting stuff). parts and maintenance can be easily localized but arent.

. Given this environment, the carmakers are forced to decontent their vehicles as much as possible to keep the prices somewhat affordable for those who have the means to consider buying cars.

Hence, poor quality cars at high prices for a captive market.
also, they have been increasing prices even when there were no additional taxes being imposed, or even when the $ was stable. they just have a habit of ripping people off,
 

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