The Mehran is face of all that is wrong with so called Pakistani industry. Enjoying protection, after 28 years production of what is a simple model, not too differant from what was being made 60 years ago in second rate European countries like Poland. Yet even now they have achieved only 70% indigenous production.
Like I have said before these so called industries are nothing but rackets. In fact I would categorize these industries, in particular the large concerns in Karachi as "
legal bhattas" . Holding an entire country of 190 million as hostage, cartels enjoying legal monopoly to fleece the customer with shoddy product - the customer of course having no choice to go anywhere else.
The cartels are unholy alliances involving :-
(i) foreign companies who get to earn profits from the products that they stopped making three decades ago in rest of the world. In this instance Suzuki.
(ii) Local employees - who use the employment as 'welfare benefits'. No real competition. Shoddy work practices. Lazy work routine reflecting low productivity. The unions and managers connected up with local political parties (in Karachi this being MQM mafia) make sure jobs are protected and given to their favourites. Jobs are sold. In return for payment and or connections a regular income is assured. This means most jobs will go to within the MQM fraternity. Indeed chances are a illegal migrant from India will stand more chance to get a job in these cartels then somebody from the north. This is most unfair as the cartels milk the entire country but then make sure the benefits accrue only to their local community. This applies to all cartels including PIA.
(iii) These cartels have bought out political power and any attempt at change is difficult as they use street power and their connections to frustrate change. We saw this in PIA, K-Electric and same applies to the auto industry.
How bad the Pakistani customer is being fleeced? How much of his hard earned money is keeping these lazy workers who are nothing but parasites fed? Some of that money doubt going to India as remittances.
Well this piece (below) of junk apparently costs £5,065. I used this site >
http://www.paksuzuki.com.pk/automobile/pages/allpricesautomobile.aspx
For £5,490 in UK you can buy Romanian made Dacia Sandero
This Dacia is made in Romania. Transported across whole of Europe. Sold in one of the richest markets in the world. Subjected to very strict legal safety requirements and yet it is on sale for
almost the same as Mehrani is sold in Karachi, the city where it is made in. Is there something wrong here? Does that tell you what
pelf is going on under the 'guise' of industry?
That is why it is time CPEC opened up Pakistan to Chinese industry. This would create sufficient political pressure (from China) that would force the Pak establishment to start dismanting these 'bhattas'. Nobody defends the criminal bhatta groups on the grounds that it gives employment to people. Well there is not much differance here, although I would say the legal bhattas are worse because they prevent genuine competive industry from emerging.
Any Indian members here who could shed light on what £5,000 buys on the car market in India?
@Sinopakfriend @AndrewJin @Nilgiri @flamer84