Honda halts production in Pakistan, Indus to follow

[lightoftruth]

High prices >low consumption>lower GDP growth>lower valuation for companies > no foreign investment.

 

[Sugarcane]

So on one end we want them to produce more parts locally and on other we introduced so many players that our existing market can't handle them.

They have been only players in Pakistan under protection for decades, How much they have localized?

 

[Shabi1]

With car premiums going down the people who were profiteering from this racket would stop making orders and that would be a big reason for sales to drop. However production rates will be healthy as import of used cars almost stopped, passed by port and it was almost empty.

In the meanwhile used Civic's and Corolla's rising in demand and price.

 

[Syed1.]

Late last year I bought an Acura TLX at cost.... The reason I managed to get at cost was because the dealership was expected to get the 2019 model in a couple of weeks and they wanted to get rid of all the 2018 models. It didn't come easy I had to negotiate but the dealership agreed. In Pakistan all hell will break loose if a dealership sells a car at cost.

Keep in mind Acura is also Japanese, they have different rules in Canada vs Pakistan. Basically jo dabta hai osko aur dabao.

 

[war&peace]

Car companies offer 0% apr and discounts to customers all the time in UK. I have even seen BMW dealers selling cars at zero margin just to keep the stock moving but in Pakistan, companies wont cut the profit margins and try to charge premiums on top of it.

Because of the captive market. These corrupt companies bribe the policy makers so they impose high duties on imported cars and they have not let new players to enter the market for years.

High Profit margin 100% agreed.

But the Real question is do we have enough market for all these upcoming players.
Answer is absolutely no. & in present condition some might not survive for long.

More Companies and more options of same car means less sales of a specific model resulting in smaller order for sub parts.

So on one end we want them to produce more parts locally and on other we introduced so many players that our existing market can't handle them.

Well, Pakistan is a market of 210 million people. If the prices are realistic, there should be no problem. They have been charging exorbitantly high prices.
This ugly, low quality, piece of shit costs PKR 1.295 millions for new car with an engine of 658cc

For this amount (converted into SEK), one can get

Nissan Micra 2017-model with 1.2L i.e. 1200cc engine with a lot more features, better quality and materials, more space.
Or Ford Ka 2017-model with 1.2L etc

Shouldn't a tin-box manufactured in Pakistan with half the engine (650cc) @cheap labour be half the prices of these cars? So they are sucking the blood.

 

[Pakistan Space Agency]

Inexperience of PM Khan / PTI continues to devastate the Pakistani economy.

PTI is behaving like the Communist Soviet Union, just attack and torture to death anyone who complains of hardship.

 

[B.K.N]

PTI is behaving like the Communist Soviet Union, just attack and torture to death anyone who complains of hardship.

This is what we want them to do but they are not behaving like this

 

[Syed1.]

PTI is behaving like the Communist Soviet Union, just attack and torture to death anyone who complains of hardship.

Well said, that is exactly what we want.

 

[Wa Muhammada]

The only way these companies will survive is by dropping their current suppliers and going for suppliers who make low quality products.... Toyota Indus used to import their windscreens and glass from Italy before, then they switched to locally made ... I shudder to think the crap they will go for now

Present govt is not business friendly at all...they have failed to create a business friendly environment

 

[Crusher]

This is what we want them to do but they are not behaving like this

Yes Pakistani people have got spoiled in the last 2 decades because they have been pampered a lot through subsidized imports and energy. Believe me Pakistanis used to have a life of hardship until late 80s because the state of Pakistan used to live "within its means" and not on "borrowed money from others" which Pakistan was not able to pay back.

 

[American Pakistani]

No they are cutting production due to fall in demand

They could export but no they are black mailers. They want foolish awam to buy piece of junk Euro 2 standard while even India use Euro 4 and planning to jump to Euro 6 equivalent by 2020.

India's car export alone is equal to Pakistan's entire car production. These black mailing companies should be thrown out and blacklisted in Pakistan, meaning no imports from them.

 

[Yaseen1]

it will be good oppurtunity to introduce electric vehicles with help of chinese companies to replace them

 

[BATMAN]

my message to the employees of Honda and Indus motors and to their dependents..... change has been delivered to you as promised, so Ghabrana Nahi and welcome to the club of jobless.

They could export

Why should they export out of Pakistan and not Japan?
Anything exported out of Japan would be cheaper to build, better build quality, latest technology as compare to Pakistan.... and last but not least more profit !
Exporting out of Pakistan is like risking their brand name!!!!!

it will be good oppurtunity to introduce electric vehicles with help of chinese companies to replace them

I believe auto policy is same for everyone!
So if the manufacturing good quality cars is not profitable in Pakistan, than obviously the market will switch to low quality products!
Before embarking on electric cars, infrastructure of $ billions is required to setup.
Don't buy political lollipops, you were promised naya Pakistan... do you see it any where?

 

[B.K.N]

it will be good oppurtunity to introduce electric vehicles with help of chinese companies to replace them

Why Pakistanis can't live without cars government should take steps to improve public transport and increase the prices of every type of cars and should start a propaganda campaign to make bicycles popular

do you see it any where?

This is real change Pakistan can't afford such luxuries at borrowed money

 

[Crusher]

Why Pakistanis can't live without cars government should take steps to improve public transport and increase the prices of every type of cars and should start a propaganda campaign to make bicycles popular



This is real change Pakistan can't afford such luxuries on borrowed money

Yes hell with the cars, Pakistan government should invest only in public Buses, Trams and Trains as means of mass transport policy.