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

[VCheng]

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.

The huge burden of energy imports has many deleterious effects on Pakistan and the quality of life of Pakistanis, the present thread being only one example, not to many the costs of other imported inputs.

While remittances are good for balancing the books, they create a huge demand of imported goods on their own by virtue of those who get the remittances to spend.

The only solution lies in creating enough exports to offset the imports, which will take decades. At least.

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,

It is not their fault, but the environment in which they operate.

 

[S.Y.A]

The only solution lies in creating enough exports to offset the imports

that is what i said. and no, it wont take decades, one just have to get this simple thing through the thick skull of our saiths that new technology = better output and lower consumption = high quality goods = ease of competing in the intl market = more exports = more money. and that you have to reinvest your money, not take it to your grave.

It is not their fault, but the environment in which they operate.

yes, it is. they are saiths, all of them, i have worked for one of them, some relatives worked for another one, and i know their mindset.

 

[VCheng]

that is what i said. and no, it wont take decades, one just have to get this simple thing through the thick skull of our saiths that new technology = better output and lower consumption = high quality goods = ease of competing in the intl market = more exports = more money. and that you have to reinvest your money, not take it to your grave.

yes, it is. they are saiths, all of them, i have worked for one of them, some relatives worked for another one, and i know their mindset.

The three major car companies must report their results to their parent companies, which also influence production and sales strategies suitable for each market, given the unique local conditions.

 

[S.Y.A]

The three major car companies must report their results to their parent companies, which also influence production and sales strategies suitable for each market, given the unique local conditions.

their only strategy is to charge extremely high premiums, they dont care about reducing prices by selling more, or mass production. lets say they make a profit of a million per car, they wont ever instead reduce the per car profit to 1/4 and sell 4 cars instead (despite having the capacity). this is their entire mindset.
i talked to one of the upper management, of IMC, those who were close to the decision makers, back when vitz was all the rage, and talked to them about introducing smaller cars, and ramping up production, the only answer he had was that "aray chorho fail hojye gi, koi future nahi hai, do din baad fail". looks like their vision is the one that failed. you will see hundreds and thousands of small cars running around today, while IMC turned out to be wrong. ali habib, the one who died recently, instead chose to lobby and bribe the govt to increase duties on imported vehicles, to kill their market, instead of keeping up with the times.

 

[VCheng]

their only strategy is to charge extremely high premiums, they dont care about reducing prices by selling more, or mass production. lets say they make a profit of a million per car, they wont ever instead reduce the per car profit to 1/4 and sell 4 cars instead (despite having the capacity). this is their entire mindset.
i talked to one of the upper management, of IMC, those who were close to the decision makers, back when vitz was all the rage, and talked to them about introducing smaller cars, and ramping up production, the only answer he had was that "aray chorho fail hojye gi, koi future nahi hai, do din baad fail". looks like their vision is the one that failed. you will see hundreds and thousands of small cars running around today, while IMC turned out to be wrong. ali habib, the one who died recently, instead chose to lobby and bribe the govt to increase duties on imported vehicles, to kill their market, instead of keeping up with the times.

What do you think these companies are in business for? They are answerable to their shareholders for maximizing returns on their investments, that is all, by selling according to the conditions prevailing in the local markets.

 

[S.Y.A]

What do you think these companies are in business for? They are answerable to their shareholders for maximizing returns on their investments, that is all, by selling according to the conditions prevailing in the local markets.

your argument doesnt make any sense, at all.
the conditions prevailing in the market favored smaller cars like vitz mira etc. they failed to capitalize the situation, instead tried to bribe and sabotage the import based industry. they could have easily maximized their profits, they didnt.
look at what happened recently (before corona) when the inventory piled up, what profit did they make then? what maximization of the profit occurred? their fault entirely, one, for not localizing the vehicles, two, failure to recognize market trends.

Indus Pakistani is right, they are a bunch of rent seekers.

i have already informed of their mindset, they are stuck in the past, and dont want anything to change. simple as that.

 

[VCheng]

your argument doesnt make any sense, at all.
the conditions prevailing in the market favored smaller cars like vitz mira etc. they failed to capitalize the situation, instead tried to bribe and sabotage the import based industry. they could have easily maximized their profits, they didnt.
look at what happened recently (before corona) when the inventory piled up, what profit did they make then? what maximization of the profit occurred? their fault entirely, one, for not localizing the vehicles, two, failure to recognize market trends.

Indus Pakistani is right, they are a bunch of rent seekers.

i have already informed of their mindset, they are stuck in the past, and dont want anything to change. simple as that.

Perhaps my point would be clearer if you consider that making any changes - newer models, localizing content etc. would all take significant investments compared to just making the same tired old models to be sold to a captive market.

Why would anyone make additional investments when the old ones can be counted on to still deliver adequate returns?

 

[S.Y.A]

Perhaps my point would be clearer if you consider that making any changes - newer models, localizing content etc. would all take significant investments compared to just making the same tired old models to be sold to a captive market.

Why would anyone make additional investments when the old ones can be counted on to still deliver adequate returns?

well then, hurray for adequate returns (prior to corona shutdown)

 

[Asian.Century]

Honda, Toyota suffered biggest losses ever in 2020. Congrats Pakistanis!!

 

[Asian.Century]

Looks like Honda City 2021 failed massively, never lived up the hype, low build quality and very expensive car, similarly Toyota Corolla sales has drastically gone down after Kia, Alswin, Hyundai, Havel SUV and Car revolution in Pakistan.

 

[Wood]

Looks like Honda City 2021 failed massively, never lived up the hype, low build quality and very expensive car, similarly Toyota Corolla sales has drastically gone down after Kia, Alswin, Hyundai, Havel SUV and Car revolution in Pakistan.

What is the most popular car in Pakistan? Honda, Hyundai, Toyota and Kia are typically very popular in developing countries. If not for them, then what do Pakistanis prefer?

 

[Aesterix]

Their cats are a death trap and kill people.
No structural integrity and get crushed like soda can.

 

[Cookie Monster]

I wish Pakistan could eradicate the 3 mafia from the country. They are selling 1st or 2nd generation cars with same prices each year while rest of the world gets 4th generation with more options.

Will need a local solution for that to fulfill the demand. For this the government needs to be serious...and not create unnecessary regulatory hurdles for the domestic industry...
...investors to come together to start a domestic car producing company...
...and ppl to have enough awareness to boycott these established car mafias.

If SK can have Hyundai, India can have Tata...then why can't Pakistan have its own car manufacturing company? They can start small and slowly build up capability.

What is the most popular car in Pakistan? Honda, Hyundai, Toyota and Kia are typically very popular in developing countries. If not for them, then what do Pakistanis prefer?

It's not that...
...the car mafias in Pakistan offer up cars that are more expensive(comparatively) and inferior. U can compare similar cars sold in India(of the same brand) and the prices(adjusted for currency differences)...and u will see why there is hate towards these car mafias.

 

[RangeMaster]

What is the most popular car in Pakistan? Honda, Hyundai, Toyota and Kia are typically very popular in developing countries. If not for them, then what do Pakistanis prefer?

Historically Toyota Corolla has been the most popular car in Pakistan. Recently new entrants have changed the situation, but still Toyota, Honda is among the most reliable and sought after brands.

Most popular cars in Pakistan
(Based on recent data of production/Sales)

Hatchback : Suzuki WagonR, Suzuki Cultus
Entry Level Sedan : Toyota Yaris (bestseller)
Mid Range Sedan : Toyota Corolla
Premium Sedan : Honda Civic
Compact SUV : Kia Sportage
Luxury Sedan : Hyundai Sonata
Mid size SUV : Toyota Fortuner
Premium SUV : Toyota Prado/LC
Premium Pickup : Toyota Hilux/Vigo
Premium Electric : Audi E-tron

 

[baqai]

the only car coming to my auqaat was Alto, i was thinking of getting it and gathering funds, the price of that car in 6 months went from 11 lakh to 16lakh, now i can't think of buying it as my income or purchasing power has not gone up with the same proportions neither getting any relief from government so these guys can blame themselves for this.