Renault signs MoU with Majid Al Futtaim to set up car production plant in Pakistan

[Hell hound]

ahem ahem

 

[VCheng]

The problem is that there is no revenue to begin with. What kind of revenue we are talking about from no investment?

Please keep in mind the revenue that the government is presenting generating from taxing existing production facilities and imports of vehicles, plus their running costs. Giving tax breaks here would reduce it immediately and cause an issue it cannot afford to solve in the long term.

 

[Finer]

Please keep in mind the revenue that the government is presenting generating from taxing existing production facilities and imports of vehicles, plus their running costs. Giving tax breaks here would reduce it immediately and cause an issue it cannot afford to solve in the long term.

Right now, there is no investment. To get the investment rolling, the government has to be flexible. And flexible only for the local assembly line to encourage the Automakers to invest. And no flexible towards import.

Otherwise, it is short term for the government meaning no investment which means nothing to lose then.

 

[VCheng]

Right now, there is no investment. To get the investment rolling, the government has to be flexible. Otherwise, it is short term for the government meaning no investment which means nothing to lose then.

Sir, the government cannot afford to be flexible. That is the problem.

 

[Finer]

Sir, the government cannot afford to be flexible. That is the problem.

Because the government has everything to lose from the nothingness (no investment)?

The government makes more money from the boosting economy than the government does from the nothingness (no money).

 

[VCheng]

Because the government has everything to lose from the nothingness (no investment)?

I hope someone in government understands what you are saying and takes the bold steps necessary, while I remain unconvinced that it is likely to happen anytime soon.

 

[Finer]

I hope someone in government understands what you are saying and takes the bold steps necessary, while I remain unconvinced that it is likely to happen anytime soon.

Ever since the reformative Automotive policy, i was convinced that the government is looking for the long term solution but the problem is that that government is disqualified. So the future is unknown in regards to the background of the future governments.

 

[VCheng]

Ever since the reformative Automotive policy, i was convinced that the government is looking for the long term solution but the problem is that that government is disqualified. So the future is unknown in regards to the background of the future governments.

We can discuss any further developments on PDF if and when they occur. No rush.

 

[-BAJWA-]

Majid Al Futtaim already has shares in Al-Ghazi tractors Ltd, Pakistan. So MAF has market experience of Pakistan.

 

[BATMAN]

Actually, the Duster is sold with an automatic transmission
since last year but it gets the topnotch Renault EDC which
brings the price up by 1 300 € on any of the models.

As for price, using the French main market, 18 to 19 000 €
for the EDC equipped diesel versions ( 5,5 l per 100 km ).

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Good day to you and all, Tay.

Yes, I realized. Automatic transmission has been introduced in new model, which is quite Ok as compare to its price.
They are selling expensive in France, I believe Kadjar is Duster with slight make over and Renault logo.

Now I understand why you guyz guyz hate them.

Most of it is a tax, which we pay to Pakistani politicians to take care of Indian interests!

 

[airmarshal]

Now I understand why you guyz guyz hate them.


Suzuki pricing in Pakistan

Suzuki pricing in India

Now you get it!!

Suzuki in India makes world class cars that are export ready. I wish I see a day in my life when we can go to each others country. And on that day when you visit a Suzuki dealership in Pakistan, you will see a WagonR which has a panel with an extremely thin and patchy lacquer. It will look as if Suzuki added water to lacquer to save cost. The lacquer is the transparent coat that gives shine to the car.

This is not just Suzuki. Toyota and Honda are same. Within one year, the lacquer begins to crack and you see spider web like cracks all over.

Paint is just one example. Toyota sells its lower end Corolla for PkRs 1.7 million. It has manual windows!! Can you imagine this day light robbery!

In Pakistan, price of Civic and Corolla is same as the price in USA in US dollars. Do we Pakistanis earn as much as an American? Does Toyota manufacture the same quality car in Pakistan that it does in USA?

This is what lack of competition does.

 

[Lavrentiy]

Now you get it!!

Suzuki in India makes world class cars that are export ready. I wish I see a day in my life when we can go to each others country. And on that day when you visit a Suzuki dealership in Pakistan, you will see a WagonR which has a panel with an extremely thin and patchy lacquer. It will look as if Suzuki added water to lacquer to save cost. The lacquer is the transparent coat that gives shine to the car.

This is not just Suzuki. Toyota and Honda are same. Within one year, the lacquer begins to crack and you see spider web like cracks all over.

Paint is just one example. Toyota sells its lower end Corolla for PkRs 1.7 million. It has manual windows!! Can you imagine this day light robbery!

In Pakistan, price of Civic and Corolla is same as the price in USA in US dollars. Do we Pakistanis earn as much as an American? Does Toyota manufacture the same quality car in Pakistan that it does in USA?

This is what lack of competition does.

You right about the lack of competition but there is catch here.

Pakistan's business risk profile is high due to many reasons including law and order. Our unstable governments have no long term policies to induce foreign investors. Policies change here overnight. In addition, the market size is too small to take a risk. There is no trained labour force here. The tax rates are too high. We are unable to even provide electricity for industries.

The Japanese car makers came here decades ago and have build a network of dealerships across the country. The availability of spare parts is not a problem. Parts are available even in mid-sized and small cities.

A new car maker cannot invest such large amounts of capital to build this supply chain and after-sale services for market that is too risky and too small. The only option is to assemble cars initially and then think about local production later.

 

[VCheng]

The only option is to assemble cars initially and then think about local production later.

There is a catch here too: imported cars and parts are subject to higher taxes, making them noncompetitive compared to locally manufactured cars leading to low sales leading to an adverse decision regarding more investment. If the government reduces taxes on imports to the same level as locally produced cars, it will destroy the domestic production industry in short order.

 

[Lavrentiy]

There is a catch here too: imported cars and parts are subject to higher taxes, making them noncompetitive compared to locally manufactured cars leading to low sales leading to an adverse decision regarding more investment. If the government reduces taxes on imports to the same level as locally produced cars, it will destroy the domestic production industry in short order.

I agree that the local industry must be protected. I was only talking from the perspective of a foreign car maker.

Cars are not essential items so there is no problem with their high prices. It doesn't matter if cars are expensive and crappy here.

 

[VCheng]

I agree that the local industry must be protected. I was only talking from the perspective of a foreign car maker.

Cars are not essential items so there is no problem with their high prices. It doesn't matter if cars are expensive and crappy here.

Many would disagree with you in wanting good quality vehicles at competitive prices.