Honda halts production in Pakistan, Indus to follow

[Hitman]

Wth Alto is so expensive in pak that’s like 5 point something lakhs in India, I remember a Swift for that price .

This is insane. An alto costs more than 10 lakh PKR? It’s a junk among cars anyways.

 

[JaDed]

Well, Honda and Toyota nees to stop producing thrash then may be people will buy their products. In a globalised world, Pakistani awam has finally understood the thrash that they were offered for decades. Hopefully, the likes of VW take lead in Pakistani market and there is healthy competition so the general awam can benefit.

VW has at best two good cars for south Asia, Except Hyundai only Honda-Suzuki-Toyota will give what south asian customers are looking for.

India has more options with Mahindra and renewed Tata(had a slump for 10 years) .

South Asia is a diff market GM, VW or even Renault might not be able to conquer, Ford though with again two cars custom for South Asia has better chance.

In India After sale service is a huge thing and Hyundai,Maruthi-Suzuki excel in it others are catching up.

 

[JaDed]

This is insane. An alto costs more than 10 lakh PKR? It’s a junk among cars anyways.

It has nothing fancy but i had one for years in India and it was way more reliable than other big names.
Only Indica or Swift are that reliable on Indian roads and climate.

 

[Pete Rose]

https://www.pama.org.pk/statistical-information/sales-production/monthly-sales-production
This is the source of production and sales of vehicles in Pakistan monthly. Nothing new to report honestly.

 

[GBK_Fan]

Wth Alto is so expensive in pak that’s like 5 point something lakhs in India, I remember a Swift for that price .

PKR bhai. It’s nearly 2 times INR. Nothing wrong with the pricing

 

[cricketjoshila]

New costs around 80 lacs.

https://www.pakwheels.com/new-cars/toyota/fortuner/

80 lacs, thats freaking costly. Yikes.

 

[JaDed]

PKR bhai. It’s nearly 2 times INR. Nothing wrong with the pricing

I converted the price to InR and said,, its 11k PKR...

 

[King-Misbah]

VW has at best two good cars for south Asia, Except Hyundai only Honda-Suzuki-Toyota will give what south asian customers are looking for.

India has more options with Mahindra and renewed Tata(had a slump for 10 years) .

South Asia is a diff market GM, VW or even Renault might not be able to conquer, Ford though with again two cars custom for South Asia has better chance.

In India After sale service is a huge thing and Hyundai,Maruthi-Suzuki excel in it others are catching up.

Do you even know how many brands VW has? It can offer Skoda, VW and may be the likes of Audi A3, A4. Even Hyundai is a much better option then the thrash that is being offered now.

Toyota, Hoda and Suzuki can go home. People are not stupid enough to buy garbage. Just look at the Suzuki Mehran, it has the same shape since the 80s.

 

[GBK_Fan]

I converted the price to InR and said,, its 11k PKR...

Ahh right!! Been so long since I am out, missed the Alto/Swift price difference

 

[JaDed]

Do you even know how many brands VW has? It can offer Skoda, VW and may be the likes of Audi A3, A4. Even Hyundai is a much better option then the thrash that is being offered now.

Toyota, Hoda and Suzuki can go home. People are not stupid enough to buy garbage. Just look at the Suzuki Mehran, it has the same shape since the 80s.

Ok sir..

 

[Mamoon]

The government needs to subsidize hybrids if they are going to drive Honda and Atlas out of the country and make people jobless, since the other imported cars including the ones from our Chinese masters are very expensive as well. People will have to buy cars, so what are they expected to do so?

Unfortunately, we cannot ask these pertinent questions from this joker government.

 

[Major]

Toyota is not trash. Its the only company that offers cars that are good for pakistani roads

The car prices are a joke. A japense imported passos actual price is 2-3 lakh. But taxes and all makes the car proce at 12 lakh.

Its ridiculous.

It has been 1 year and this joke of govt of pti cant provide public transport..

These idiots can only do dharnas nothinf else

 

[Rellu_Katta]

Toyota is not trash. Its the only company that offers cars that are good for pakistani roads

The car prices are a joke. A japense imported passos actual price is 2-3 lakh. But taxes and all makes the car proce at 12 lakh.

Its ridiculous.

It has been 1 year and this joke of govt of pti cant provide public transport..

These idiots can only do dharnas nothinf else

yes the joke cannot provide transport .. we need those drunken jokers who had made larkana the heaven on earth... those amazing dealers of love who have made sindh the diamond in the rough.. thts the level we want... seriously wish tht people who believe in the jokers of PPP get to live the way people live n die in larkana

 

[Mr.Q]

Do you even know how many brands VW has? It can offer Skoda, VW and may be the likes of Audi A3, A4. Even Hyundai is a much better option then the thrash that is being offered now.

Toyota, Hoda and Suzuki can go home. People are not stupid enough to buy garbage. Just look at the Suzuki Mehran, it has the same shape since the 80s.

I think your argument is flawed brother. [MENTION=137142]JaDed[/MENTION] is right. Japanese and Korean car makers are very successful because they know how to make reliable, low cost cars. The European and American makers create fancy cars but they’re less reliable and expensive to maintain. That’s why they are less popular among the middle class.

And then there’s the demand and supply thing. Mehran is still being offered because there is demand for it. Maruti Suzuki India made the move from the 800 (Mehran’s cousin) to the Alto as the base offering in 2011 I think. It’s true that the Japanese have been overpricing their cars in Pakistan. But bringing in the Germans isn’t the solution for that. They’ll charge you even more. Even the wiper blades will be imported .

 

[Mamoon]

Toyota is not trash. Its the only company that offers cars that are good for pakistani roads

The car prices are a joke. A japense imported passos actual price is 2-3 lakh. But taxes and all makes the car proce at 12 lakh.

Its ridiculous.

It has been 1 year and this joke of govt of pti cant provide public transport..

These idiots can only do dharnas nothinf else

These overseas junoonis have no clue. They look at the features of Toyota Corolla in Pakistan and conclude that it is not worth the price. What they don’t know that it is the most practical car for Pakistani roads and is very low-maintenance.

This joker government cannot provide public transport. The Peshawar BRT is just one example of their incompetence, and the imported cars are either too small or too expensive.

Pathetic, clueless leadership, but the overseas junoonis think that rivers of milk and honey are flowing in the country. All the talk about is corruption because that is the depth of their intelligence.

 

[Mamoon]

Do you even know how many brands VW has? It can offer Skoda, VW and may be the likes of Audi A3, A4. Even Hyundai is a much better option then the thrash that is being offered now.

Toyota, Hoda and Suzuki can go home. People are not stupid enough to buy garbage. Just look at the Suzuki Mehran, it has the same shape since the 80s.

How much does Audi A3 or A4 cost in Pakistan? Do you have any idea? Is the joker government willing to subsidize their production and is it willing to subsidize fuel considering their mileage?

 

[Major]

Im really surprise by the posts of some of the posters here.

Toyota is one of the best cars for pakistan.

The company is known for producing products that suits the region and their cars have such great demand that you get good value on resale.

Indus going out is big concern, honda and other comapanies cant produce cars that are good for this region.

 

[Major]

These overseas junoonis have no clue. They look at the features of Toyota Corolla in Pakistan and conclude that it is not worth the price. What they don’t know that it is the most practical car for Pakistani roads and is very low-maintenance.

This joker government cannot provide public transport. The Peshawar BRT is just one example of their incompetence, and the imported cars are either too small or too expensive.

Pathetic, clueless leadership, but the overseas junoonis think that rivers of milk and honey are flowing in the country. All the talk about is corruption because that is the depth of their intelligence.

Exactly. The company adopts the toyota way of production. They have very good suspension and its worth its price

And the govt has two options. Sort out this mess they have created or bring in public transport.

Pmln and PPP were rightly bashed for the public transport but now we have a new govt and yet see nothing.

Overseas pakistanis have no clue the joke public transport has become here

 

[kk1992]

These overseas junoonis have no clue. They look at the features of Toyota Corolla in Pakistan and conclude that it is not worth the price. What they don’t know that it is the most practical car for Pakistani roads and is very low-maintenance.

This joker government cannot provide public transport. The Peshawar BRT is just one example of their incompetence, and the imported cars are either too small or too expensive.

Pathetic, clueless leadership, but the overseas junoonis think that rivers of milk and honey are flowing in the country. All the talk about is corruption because that is the depth of their intelligence.

LOL,What?

I do not think any PTI supporters believed in that, we just wanted to give opportunity to someone who is not corrupt.

Rivers of milk and honey? Even UAE, USA and China can't provide that.

 

[Mamoon]

Exactly. The company adopts the toyota way of production. They have very good suspension and its worth its price

And the govt has two options. Sort out this mess they have created or bring in public transport.

Pmln and PPP were rightly bashed for the public transport but now we have a new govt and yet see nothing.

Overseas pakistanis have no clue the joke public transport has become here

If you don’t have heavy duty usage and don’t mind the relatively higher maintenance, then Civic is far better. Aesthetically and comfort wise it is comfortably superior than Corolla.

However, Corolla is more durably, hardly requires maintenance and sells like hot cakes.

This whole public transport business is just fantasy. Pakistani culture will never embrace public transport like the west. It is only a backup option in case of emergency.

If the joker government thinks that they can encourage people to shift towards their broken BRTs by driving Indus out of the market, they are in for a reality check.

 

[Hamza_]

[MENTION=131701]Mamoon[/MENTION]

Even prices of new entrants like Kia & Hyundai are insane.

Cost of doing business in pakistan right now is massive thus the sky high prices.

 

[King-Misbah]

How much does Audi A3 or A4 cost in Pakistan? Do you have any idea? Is the joker government willing to subsidize their production and is it willing to subsidize fuel considering their mileage?

VW is planning set up a £135 MLN production facilities in Pakistan. They plan to introduce Skoda, Caddy and Amarok. All these are better alternatives to the current Toyota offerings. When the monopoly will break, the prices of these cars will not be high as they are now. Stop blaming the current govt when this is the doings of the incompetent previous govt, PTI did not make this monopoly.

 

[Mamoon]

VW is planning set up a £135 MLN production facilities in Pakistan. They plan to introduce Skoda, Caddy and Amarok. All these are better alternatives to the current Toyota offerings. When the monopoly will break, the prices of these cars will not be high as they are now. Stop blaming the current govt when this is the doings of the incompetent previous govt, PTI did not make this monopoly.

Firstly, there was nothing wrong with the Toyota/Honda duopoly. People who couldn’t afford them opted for cheaper alternatives like Suzuki or the older models of Toyota/Honda. People who could afford it were more than content with what they were getting. The new Honda Civic (2016 onwards) is a beast of a car and Corolla remains the sturdiest option in the market.

VWs are ugly and it will be a huge challenge for them to match Toyota’s reliability without making their products too expensive for the Pakistani market. Hence, it will not be easy for them to attract that Civic and Corolla users, because most of them would end up buying older models for the aforementioned reasons.

This joker party has an obsession of messing with everything that the previous governments did, even if it didn’t require meddling. Since they are spectacularly incompetent, they only end up making things worse - everything they touch turns to ****.

Secondly, it will take years before VW is up and running in Pakistan (and they starting with vans anyway), and since the joker party is driving Indus and Honda out of the market with its stupidity, what is their plan?

 

[Mamoon]

[MENTION=131701]Mamoon[/MENTION]

Even prices of new entrants like Kia & Hyundai are insane.

Cost of doing business in pakistan right now is massive thus the sky high prices.

This joker party is only good for showing “sabz baagh” but the end result is “daddu”. Unfortunately, the cult members keeping falling for their nonsense.

Apparently, the military is divided into two groups at the moment. The pro-joker party group and the anti-joker party group. It appears that some generals are losing patience with their incompetence and are being influenced by influential traders and businessmen, while the pro-party is happy to see them run the country into the ground as long as they are dancing to their tunes.

I hope for once the military puts the country above their selfish interests and puts an end to this nightmare. Pakistan will turn into Afghanistan after 10 years of PTI rule.

 

[Hamza_]

[MENTION=131701]Mamoon[/MENTION]

Really tough times.

Multinationals are downsizing.

 

[King-Misbah]

Firstly, there was nothing wrong with the Toyota/Honda duopoly. People who couldn’t afford them opted for cheaper alternatives like Suzuki or the older models of Toyota/Honda. People who could afford it were more than content with what they were getting. The new Honda Civic (2016 onwards) is a beast of a car and Corolla remains the sturdiest option in the market.

VWs are ugly and it will be a huge challenge for them to match Toyota’s reliability without making their products too expensive for the Pakistani market. Hence, it will not be easy for them to attract that Civic and Corolla users, because most of them would end up buying older models for the aforementioned reasons.

This joker party has an obsession of messing with everything that the previous governments did, even if it didn’t require meddling. Since they are spectacularly incompetent, they only end up making things worse - everything they touch turns to ****.

Secondly, it will take years before VW is up and running in Pakistan (and they starting with vans anyway), and since the joker party is driving Indus and Honda out of the market with its stupidity, what is their plan?

I have never seen so much incorrect information in one post. VW want to offer Skoda (this is a car), Caddy (a small van) and Amarok (a superb pick up truck). Now skoda offers saloon cars such as the Superb, Octavia and also smaller cars. Please read up on cars at the very least and then have an input.

Honda/Toyota sold in Pakistan are basic models and are sold at a shade of the cost else in the world. Why should Pakistanis pay so much for a 3rd rate good?

Now coming to reliability, VW are more reliable then Toyota. Example is that UK taxi drivers have significantly switched to Skodas over the years from Toyota. Skoda Octavia has an Audi A4 engine and if you think that Toyota has a better engine then your misinformed. Plus, Skoda is a basic VW car so being too expensive wont really be an issue.

And the only one that is a joke is you. Go and read up before commenting.

 

[Kaptan]

I have never seen so much incorrect information in one post. VW want to offer Skoda (this is a car), Caddy (a small van) and Amarok (a superb pick up truck). Now skoda offers saloon cars such as the Superb, Octavia and also smaller cars. Please read up on cars at the very least and then have an input.

Honda/Toyota sold in Pakistan are basic models and are sold at a shade of the cost else in the world. Why should Pakistanis pay so much for a 3rd rate good?

Now coming to reliability, VW are more reliable then Toyota. Example is that UK taxi drivers have significantly switched to Skodas over the years from Toyota. Skoda Octavia has an Audi A4 engine and if you think that Toyota has a better engine then your misinformed. Plus, Skoda is a basic VW car so being too expensive wont really be an issue.

And the only one that is a joke is you. Go and read up before commenting.

Here in India, Skodas are costlier than Toyotas. They are less reliable and have very poor ***. Their dealer network is tiny when compared to Toyota. However their look, fit and finish is superior and are more fun to drive.
But, for some reason they stopped launching small cars, all their cars are pretty much unaffordable by aam junta.

VW is better as it offers small cars (Polo and Vento). However, VW India has last launched a car in 2017 and the last major update on Polo was way back in 2014.

So if you are relying on WV and Skoda to completely overhaul your automobile sector then I think your wrong.

You need someone like Hundai to complete with Suzuki. Then try to bring in Kia, Datsun-Renault-Nissan and maybe some Chinese companies like MG.

 

[King-Misbah]

Here in India, Skodas are costlier than Toyotas. They are less reliable and have very poor ***. Their dealer network is tiny when compared to Toyota. However their look, fit and finish is superior and are more fun to drive.
But, for some reason they stopped launching small cars, all their cars are pretty much unaffordable by aam junta.

VW is better as it offers small cars (Polo and Vento). However, VW India has last launched a car in 2017 and the last major update on Polo was way back in 2014.

So if you are relying on WV and Skoda to completely overhaul your automobile sector then I think your wrong.

You need someone like Hundai to complete with Suzuki. Then try to bring in Kia, Datsun-Renault-Nissan and maybe some Chinese companies like MG.

Do you even know what Toyota and Honda charge for a new car in Pakistan?!?! I guess not.

Skoda has been in the UK for years and reliability has never been an issue. Its an Audi in disguise and Pakistani road infrastructure is not that bad.

Pakistan is a massive market and VW can offer the goods to make good money. I endorse other brands being invited too so there is competition and the local population can benefit.

 

[mgtow]

VW/Sloda/Audi are not meant for harsh environment especially pothole. You are gonna feel trashy in terms of suspension on VW. I own one albeit it is complete independent front and rear suspension that is above torsion bean on Toyota but suitable for Pakistani roads given the suspension which is marketed accordingly.

Plus the maintenance is high never mind the question mark on Volkswagen in terms of reliability. It won’t work. Being VW guy, I would love to see VW enter in Pakistan market.

 

[Kriketer]

Reading Mamoon ji makes me wonder if he recently moved from Switzerland or something. Every problem circles back to PTI and someone who thinks Bilawal will be the saviour ......

 

[Kriketer]

Plant shutdown or halt happen all over the world. Nothing unique about it so sweating over it and blaming PTI for it is idiotic. Competition is good and VW/Audi coming to Pakistan will only drive up the competition and local production will only get better. Use common sense before hitting the panic button.

 

[Greenstorm]

Im really surprise by the posts of some of the posters here.

Toyota is one of the best cars for pakistan.

The company is known for producing products that suits the region and their cars have such great demand that you get good value on resale.

Indus going out is big concern, honda and other comapanies cant produce cars that are good for this region.

Its best because of lack of competition. In reality they are offering kachra cars with teen daba body. 2006-7 afterwards models of Honda and Toyota have been of poor quality, less said about Suzuki the better. Only a fool will buy trash at such high prices.

Toyota-Suzuki-Honda had monopoly over automobile sector. They made it impractical to import cars, did not allow any other companies to get a foothold in the market, intentionally truncated supply despite of high demand during last decade. There is no standard control, checks and regulations, so these companies can get away with anything.

It is a poor excuse that only Toyota/Suzuki can offer vehicles suitable to Pakistani conditions. Our road infrastructure has improved a lot during last 20 years and Honda, Mitsubishi (Lancer,double cabins), Nissan (sunny, ad etc) are the most reliable cars out there, running on Pakistani roads since late 80s.

 

[Major]

Its best because of lack of competition. In reality they are offering kachra cars with teen daba body. 2006-7 afterwards models of Honda and Toyota have been of poor quality, less said about Suzuki the better. Only a fool will buy trash at such high prices.

Toyota-Suzuki-Honda had monopoly over automobile sector. They made it impractical to import cars, did not allow any other companies to get a foothold in the market, intentionally truncated supply despite of high demand during last decade. There is no standard control, checks and regulations, so these companies can get away with anything.

It is a poor excuse that only Toyota/Suzuki can offer vehicles suitable to Pakistani conditions. Our road infrastructure has improved a lot during last 20 years and Honda, Mitsubishi (Lancer,double cabins), Nissan (sunny, ad etc) are the most reliable cars out there, running on Pakistani roads since late 80s.

1. our roads havent improved. Just having a good road doesnt mean nothing, all other roads are filled with potholes.

2. Cars cannot be imported due to the high prices set by the govt. A toyota Passo's actual price is only 2 lakh, but with tax and all other cost the price goes to 12 lakh atleast.

3. Suzuki is making junk at high price, that i agree with. But i wont critisize Toyota that much, they are the one of the few companies known for making cars accoriding to the region.

4. after 2007 the carolla models have improved, they didn't had ABS breaks in the past.

5. Honda might not be doing well in cars, but their bikes lead the demand. Honda bikes ofer what Carolla cars offer, good quality, durable.

6. I never said Suzuki is a great company, infact its a joke of a company. A Toyota Passo worth 2 lakh has better quality than a 8 lakh mehan.

 

[Major]

Plant shutdown or halt happen all over the world. Nothing unique about it so sweating over it and blaming PTI for it is idiotic. Competition is good and VW/Audi coming to Pakistan will only drive up the competition and local production will only get better. Use common sense before hitting the panic button.

bro, there are only 3 companies producing cars here.

Honda Atlas
Toyota Indus
Suzuki

Rest are japanese importe cars with high tariffs.

Audi/VW will probably sell cars at the price range of above 20 lakh.

The real deal is when cars between the price of 2-5 lakh show up in the Pakistani market.

 

[Mamoon]

I have never seen so much incorrect information in one post. VW want to offer Skoda (this is a car), Caddy (a small van) and Amarok (a superb pick up truck). Now skoda offers saloon cars such as the Superb, Octavia and also smaller cars. Please read up on cars at the very least and then have an input.

Honda/Toyota sold in Pakistan are basic models and are sold at a shade of the cost else in the world. Why should Pakistanis pay so much for a 3rd rate good?

Now coming to reliability, VW are more reliable then Toyota. Example is that UK taxi drivers have significantly switched to Skodas over the years from Toyota. Skoda Octavia has an Audi A4 engine and if you think that Toyota has a better engine then your misinformed. Plus, Skoda is a basic VW car so being too expensive wont really be an issue.

And the only one that is a joke is you. Go and read up before commenting.

You are ill-informed when it comes to the Pakistani market and the Pakistani consumer psyche. You literally have zero clue.

You are making assessments based on your knowledge of the UK market and the UK consumer preferences.

Honda and Toyota are not viewed as ‘3rd rate goods’ in Pakistan. People are happy with what they get from them because it fulfills their needs. They have genuine brand loyalty.

Now because the two manufacturers flourished under the previous governments, this joker government had to do something about it.

Since it believes that other manufacturers are able to offer better features at a lower price in other markets, they will flourish in Pakistan as well.

As usual, this joker government is biting more than they can chew - they are trying to create demand in an established market that is loyal to other manufacturers.

Furthermore, VW is not well-known in Pakistan and it doesn’t have a strong reputation. People are going to be skeptical and will buy the tried and tested Toyotas and Hondas. Since the new cars are now unaffordable thanks to the joker government, they will end buying used cars.

There is also another factor that you need to understand. The difference between Pakistani-manufactured cars and Japanese/German/American manufactured cars.

Regardless of who the manufacturer is, there is going to be a drop in quality. Unless the joker government is willing to subsidize the production, VW will have no choice but to lower the cost of production which is the only way they can make the cars affordable for the Pakistani market without losing money. That is what Toyota and Honda do.

So if you think that the Pakistani-manufactured Skoda will be the same as the European-manufactured Skoda, you are in for a surprise.

There is nothing wrong with increasing competition. However, the joker government is not increasing competition by crippling Toyota and Honda to the point where they have to shut down for 15 days per month and fire workers.

Like most of the decisions of this incompetent government, this is also going to blow in their faces if it hasn’t already.

 

[Mamoon]

Reading Mamoon ji makes me wonder if he recently moved from Switzerland or something. Every problem circles back to PTI and someone who thinks Bilawal will be the saviour ......

Born and brought up in Pakistan, which is why I understand that this whole tabdeeli business is just a drama and how this incompetent and clueless government is driving everything into the ground.

There are no saviors. Pakistan will remain a mess as long as the military runs the country. Bilawal will also have to strike a deal with the establishment to come into power, just like Imran did after selling the fake tabdeeli drama.

The real tabdeeli will happen the Army Chief will be subservient to the PM.

 

[Major]

You are ill-informed when it comes to the Pakistani market and the Pakistani consumer psyche. You literally have zero clue.

You are making assessments based on your knowledge of the UK market and the UK consumer preferences.

Honda and Toyota are not viewed as ‘3rd rate goods’ in Pakistan. People are happy with what they get from them because it fulfills their needs. They have genuine brand loyalty.

Now because the two manufacturers flourished under the previous governments, this joker government had to do something about it.

Since it believes that other manufacturers are able to offer better features at a lower price in other markets, they will flourish in Pakistan as well.

As usual, this joker government is biting more than they can chew - they are trying to create demand in an established market that is loyal to other manufacturers.

Furthermore, VW is not well-known in Pakistan and it doesn’t have a strong reputation. People are going to be skeptical and will buy the tried and tested Toyotas and Hondas. Since the new cars are now unaffordable thanks to the joker government, they will end buying used cars.

There is also another factor that you need to understand. The difference between Pakistani-manufactured cars and Japanese/German/American manufactured cars.

Regardless of who the manufacturer is, there is going to be a drop in quality. Unless the joker government is willing to subsidize the production, VW will have no choice but to lower the cost of production which is the only way they can make the cars affordable for the Pakistani market without losing money. That is what Toyota and Honda do.

So if you think that the Pakistani-manufactured Skoda will be the same as the European-manufactured Skoda, you are in for a surprise.

There is nothing wrong with increasing competition. However, the joker government is not increasing competition by crippling Toyota and Honda to the point where they have to shut down for 15 days per month and fire workers.

Like most of the decisions of this incompetent government, this is also going to blow in their faces if it hasn’t already.

exactly.

DIfferent market.

In Pakistan, people look at the resale value. THat plays a very huge factor, You can get a Toyota and resale it after 5-6 years with a difference of 1-2 lakh in price.

THan another thing is spare parts, maintenance and mechanics.

You can easily find geniunee Toyota parts at good price, but the most important thing is mechanics.

If VW shows up today, it will take 10 years atleast to come into the market properly. Biggest issue in Pakistan is getting a mechanic who knows about the cars.

There are many mechanics in Pakistan who still dont know how to work on a car which has a cataylact attached. They end up pouring washroom grade Acid.

United Bravo is a cheap car for 8 lakh, but its spare part is not as cheap, plus mechanics will still have to learn aboiut the car.

 

[Abdullah719]

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[King-Misbah]

You are ill-informed when it comes to the Pakistani market and the Pakistani consumer psyche. You literally have zero clue.

You are making assessments based on your knowledge of the UK market and the UK consumer preferences.

Honda and Toyota are not viewed as ‘3rd rate goods’ in Pakistan. People are happy with what they get from them because it fulfills their needs. They have genuine brand loyalty.

Now because the two manufacturers flourished under the previous governments, this joker government had to do something about it.

Since it believes that other manufacturers are able to offer better features at a lower price in other markets, they will flourish in Pakistan as well.

As usual, this joker government is biting more than they can chew - they are trying to create demand in an established market that is loyal to other manufacturers.

Furthermore, VW is not well-known in Pakistan and it doesn’t have a strong reputation. People are going to be skeptical and will buy the tried and tested Toyotas and Hondas. Since the new cars are now unaffordable thanks to the joker government, they will end buying used cars.

There is also another factor that you need to understand. The difference between Pakistani-manufactured cars and Japanese/German/American manufactured cars.

Regardless of who the manufacturer is, there is going to be a drop in quality. Unless the joker government is willing to subsidize the production, VW will have no choice but to lower the cost of production which is the only way they can make the cars affordable for the Pakistani market without losing money. That is what Toyota and Honda do.

So if you think that the Pakistani-manufactured Skoda will be the same as the European-manufactured Skoda, you are in for a surprise.

There is nothing wrong with increasing competition. However, the joker government is not increasing competition by crippling Toyota and Honda to the point where they have to shut down for 15 days per month and fire workers.

Like most of the decisions of this incompetent government, this is also going to blow in their faces if it hasn’t already.

Let me tell you one thing, the only person that sounds like a joke is you!

And people have realised the con that are Honda and Toyota. Have a read the views of social media, newspaper comments and even general awam. They are no willing to be ripped off. Do you even live in Pakistan??

The Pakistani VW will not be equivalent to European models but most likely much better then the thrash that Toyota and Honda are producing in Pakistan.

Stop being bitter as PTI/Imran Khan are here to stay. They will win next elections too with a majority. There will be a minimum of 9 painful rhona dhona from you IA.

 

[Hamza_]

People of Pakistan were happy with Civic and Corolla.

But price increase in PTI tenure has lead to them being out of reach, price increase has been brought upon due to cost increase.

 

[Hamza_]

[MENTION=131701]Mamoon[/MENTION]

This forum cannot understand practical and logic grounds for criticism of this joke of a government.

 

[King-Misbah]

People of Pakistan were happy with Civic and Corolla.

But price increase in PTI tenure has lead to them being out of reach, price increase has been brought upon due to cost increase.

Just like people of Pakistan were happy with Nawaz Sharif and now he is history lol

 

[daytrader]

You are ill-informed when it comes to the Pakistani market and the Pakistani consumer psyche. You literally have zero clue.

You are making assessments based on your knowledge of the UK market and the UK consumer preferences.

Honda and Toyota are not viewed as ‘3rd rate goods’ in Pakistan. People are happy with what they get from them because it fulfills their needs. They have genuine brand loyalty.

Now because the two manufacturers flourished under the previous governments, this joker government had to do something about it.

Since it believes that other manufacturers are able to offer better features at a lower price in other markets, they will flourish in Pakistan as well.

As usual, this joker government is biting more than they can chew - they are trying to create demand in an established market that is loyal to other manufacturers.

Furthermore, VW is not well-known in Pakistan and it doesn’t have a strong reputation. People are going to be skeptical and will buy the tried and tested Toyotas and Hondas. Since the new cars are now unaffordable thanks to the joker government, they will end buying used cars.

There is also another factor that you need to understand. The difference between Pakistani-manufactured cars and Japanese/German/American manufactured cars.

Regardless of who the manufacturer is, there is going to be a drop in quality. Unless the joker government is willing to subsidize the production, VW will have no choice but to lower the cost of production which is the only way they can make the cars affordable for the Pakistani market without losing money. That is what Toyota and Honda do.

So if you think that the Pakistani-manufactured Skoda will be the same as the European-manufactured Skoda, you are in for a surprise.

There is nothing wrong with increasing competition. However, the joker government is not increasing competition by crippling Toyota and Honda to the point where they have to shut down for 15 days per month and fire workers.

Like most of the decisions of this incompetent government, this is also going to blow in their faces if it hasn’t already.

You mean the Corollas and Civics without the safety features of their western counterparts i.e. lack of air bags. Shame on Toyota and Honda to provide sub quality vehicles when compared to their cars in other markets. Their profit margins are also much higher. These companies are just taking advantage of the Pakistani consumer due to no competition. It's about time the government curbs these thugs

 

[cricketjoshila]

[MENTION=131701]Mamoon[/MENTION]

This forum cannot understand practical and logic grounds for criticism of this joke of a government.

I ses most pakistani residents not satisfied with PTI, while non residents are gung ho. Why this?

 

[Hamza_]

[MENTION=76058]cricketjoshila[/MENTION]

Because non-residents are living in lala-land.

They support PTI as a cult, whereas following a tunnel vision approach by pin pointing one or two indicators while ignoring many other brutal facts and results which demonstrate incompetence of this government.

No one is happy in Pakistan with this dud government.

 

[King-Misbah]

I ses most pakistani residents not satisfied with PTI, while non residents are gung ho. Why this?

Pro Nawaz Indian supporters to the rescue who want the destruction of Pakistan Go and focus on your own country.

 

[Mamoon]

You mean the Corollas and Civics without the safety features of their western counterparts i.e. lack of air bags. Shame on Toyota and Honda to provide sub quality vehicles when compared to their cars in other markets. Their profit margins are also much higher. These companies are just taking advantage of the Pakistani consumer due to no competition. It's about time the government curbs these thugs

All corollas, including the basic model XLI 1.3 as well as all Civics including Honda City hava airbags.

 

[Mamoon]

I ses most pakistani residents not satisfied with PTI, while non residents are gung ho. Why this?

That is because they are getting richer and richer.

 

[Mamoon]

Let me tell you one thing, the only person that sounds like a joke is you!

And people have realised the con that are Honda and Toyota. Have a read the views of social media, newspaper comments and even general awam. They are no willing to be ripped off. Do you even live in Pakistan??

The Pakistani VW will not be equivalent to European models but most likely much better then the thrash that Toyota and Honda are producing in Pakistan.

Stop being bitter as PTI/Imran Khan are here to stay. They will win next elections too with a majority. There will be a minimum of 9 painful rhona dhona from you IA.

Born and brought up in Pakistan. We have owned generations of civics and corollas. What general awaam and what access do you have?

See the problem is that your views are shaped and influenced by PTI fans on social media, who have now turned their backs on Toyota and Honda because their cult-leader said so.

There are no basis to your assessment that the Pakistani VW will be better.

 

[Hamza_]

I'm pretty sure establishment will find a way to get rid of Imran Khan once they have looted this country well enough, afterall, they have connections with businessmen too.

 

[Mr.Q]

bro, there are only 3 companies producing cars here.

Honda Atlas
Toyota Indus
Suzuki

Rest are japanese importe cars with high tariffs.

Audi/VW will probably sell cars at the price range of above 20 lakh.

The real deal is when cars between the price of 2-5 lakh show up in the Pakistani market.

Hi what about cars like Honda’s BR-V which I hear was recently launched there? Do they arrive as completely built units or is the production localised?

 

[cricketjoshila]

How much is a Suzuki Mehran?

 

[King-Misbah]

Born and brought up in Pakistan. We have owned generations of civics and corollas. What general awaam and what access do you have?

See the problem is that your views are shaped and influenced by PTI fans on social media, who have now turned their backs on Toyota and Honda because their cult-leader said so.

There are no basis to your assessment that the Pakistani VW will be better.

We had a show room in Pakistan not so long ago so calm down. Besides that, 90% of my family resides in Pakistan and I normally visit twice a year. We reside in Bahria town in Rawalpindi/ Islamabad and have a few cars there too. Want to ask more?

Personally, I have driven Toyota, Lexus, Audi, Skoda, Honda so I know what I am talking about. A German whip is German whip.

Only a joker would support 3rd grade goods at high prices. No thanks! Have you ever bothered even going on the Pakistan Honda FB page before sprouting your propaganda? The outrage is clear from the awaam.

 

[King-Misbah]

That is because they are getting richer and richer.

Amazing analysis! Have only given to the country unlike your family we have never benefited a rupee. Desperate times calls for outrages claims

 

[Major]

Hi what about cars like Honda’s BR-V which I hear was recently launched there? Do they arrive as completely built units or is the production localised?

Dont know. But its price is really expensive. Only gew could afford.

What pakistan needs is cars under 5 lakh

 

[Major]

How much is a Suzuki Mehran?

8 -9 lakh. Its the cheapest car.

Has no air bags. No ac. No abs brakes.

People buy it because of limited options in the low price range.

Japanese cars are worth upto 2-3 lakhs in japan, but in pakistan they are priced at 12 lakh and above.

 

[cricketjoshila]

8 -9 lakh. Its the cheapest car.

Has no air bags. No ac. No abs brakes.

People buy it because of limited options in the low price range.

Japanese cars are w

orth upto 2-3 lakhs in japan, but in pakistan they are priced at 12 lakh and above.

No AC. No bloody AC.

 

[Major]

No AC. No bloody AC.

forget AC, no ABS breaks. Pluus the thing that thing that stops the sun coming in is literally made from card board

 

[Mamoon]

We had a show room in Pakistan not so long ago so calm down. Besides that, 90% of my family resides in Pakistan and I normally visit twice a year. We reside in Bahria town in Rawalpindi/ Islamabad and have a few cars there too. Want to ask more?

Personally, I have driven Toyota, Lexus, Audi, Skoda, Honda so I know what I am talking about. A German whip is German whip.

Only a joker would support 3rd grade goods at high prices. No thanks! Have you ever bothered even going on the Pakistan Honda FB page before sprouting your propaganda? The outrage is clear from the awaam.

You don’t know what you are talking about because you are comparing German-manufactured cars with Pakistani-manufactured cars.

A German whip is a German whip, but a Pakistani-German whip is not.

Pakistani Honda FB is full of PTI trolls too, they do not represent the general public. Instead of doing us a favor by bothering to visit twice a year, move to Pakistan permanently (the country that you pretend to care about from your couch in the UK) and perhaps you will get a good idea about the public.

The only outrage from the awaam is against this joker government that has made life hell for the public thanks to their incompetence.

 

[Mamoon]

Amazing analysis! Have only given to the country unlike your family we have never benefited a rupee. Desperate times calls for outrages claims

You have given nothing to the country. You are an expat and your patriotism is worthless. Showing faux patriotism over the Internet while enjoying the comforts and the higher standard of living of the west is the easiest thing to do.

 

[Greenstorm]

Interesting discussion on this topic.

 

[Savak]

You have given nothing to the country. You are an expat and your patriotism is worthless. Showing faux patriotism over the Internet while enjoying the comforts and the higher standard of living of the west is the easiest thing to do.

This is the biggest misconception. Life in the west is not comfortable and neither is the standard of living high either. In fact you can enjoy a much higher standard of living in Pakistan compared to the West with a decent amount of money and literally live like a king back home. To enjoy the same lifestyle in the West, you need Hollywood style salaries.

 

[King-Misbah]

You have given nothing to the country. You are an expat and your patriotism is worthless. Showing faux patriotism over the Internet while enjoying the comforts and the higher standard of living of the west is the easiest thing to do.

Yes because you know my family or me personally? Are you not sat abroad too?

 

[Mamoon]

This is the biggest misconception. Life in the west is not comfortable and neither is the standard of living high either. In fact you can enjoy a much higher standard of living in Pakistan compared to the West with a decent amount of money and literally live like a king back home. To enjoy the same lifestyle in the West, you need Hollywood style salaries.

It is not a misconception. There is no doubt that standard of living is better in the west compared to a third world, overpopulated country like Pakistan full of pollution and diseases, and where life security is always low.

Obviously if you are rich, you can live an excellent life in Pakistan. However, that is true for most country. However, if you are poor, life is hell for you.

In the West, unless you are homeless, you can still live a decent life with humble jobs. You can buy a car, have a nice home, send your children to school, have good meals etc. I will give you an example. My uncle in the UK has employed a gardener who has his own pickup van that he bought on his gardening salary.

Do you think a gardener in Pakistan will ever make enough salary to buy a car for himself? No he cannot even if he works for a 100 years. There is no concept of minimum wage in Pakistan. Forget the west, a taxi driver in the Middle East earns roughly as much as a entry-level bachelor’s degree job in Pakistan.

Don’t get me wrong on expats - I have nothing but respect for people who were struggling to make ends meet in Pakistan and ended up immigrating to the West to better the lives of their families.

However, on the other hand, you have these hypocritical expats who have enough means to live a comfortable life in Pakistan but will come up with a million excuses and justifications to explain why they cannot come back to Pakistan and provide their services here.

I personally know of dozens of highly-qualified doctors who were in my specialization program in the U.S. They are mostly hardcore PTI supporters who don’t shy away from showing their patriotism over the Internet, but when you ask them to come to Pakistan and try to improve the health system here, they start making excuses.

Brain-drain is a massive issue for Pakistan and we need to keep our qualified human capital in the country for economic development. However, armchair and online patriotism comes easy. It is easier to post on forums and fire tweets, but when it comes to doing something practical, it is much harder.

 

[Mamoon]

Yes because you know my family or me personally? Are you not sat abroad too?

I don’t know you or your family, but by your admission, you own several showrooms in Pakistan which means you are in a financially strong position. Since you are a staunch Imran Khan supporter and believe that he will create Naya Pakistan, what is stopping you from coming back to Pakistan for good? Why only visit twice a year? Before you come up with a litany of excuses, let me tell you that I don’t care. I just wanted to highlight your hypocrisy.

 

[Mamoon]

Yes because you know my family or me personally? Are you not sat abroad too?

And no, I am not abroad. I have first-hand experience of PTI’s failures and incompetency.

 

[Bewal Express]

And no, I am not abroad. I have first-hand experience of PTI’s failures and incompetency.

You keep running- Come onto the correct thread and lets see hear you.

 

[Abdullah719]

In Pakistan, car sales slump 38% to 12,069 units in Dec

The auto sector continued to suffer as sales for December 2019 slumped 38% on a year-on-year basis following sluggish demand in the market coupled with high lending rates for automobile financing. Demand had remained subdued due to frequent hike in prices by automakers on account of high cost of production.

According to the data released by the Pakistan Automotive Manufacturers Association (Pama) on Monday, auto sales were recorded at 12,069 units in December 2019 compared to 19,423 units in the same month of 2018.

“Weak demand dynamics were again evident from a 38% year-on-year fall in sales in December 2019, taking the cumulative decline in the first half of fiscal year 2019-20 to 44%,” stated Topline Securities analyst Hammad Akram. “The fall is primarily attributable to high car prices mainly due to rupee devaluation and higher interest rates.”
The outlook of the industry remained gloomy as all three automakers posted a year-on-year decline in sales.

Honda Atlas Cars remained the major laggard with a 58% drop in sales to 1,005 units in December 2019. The company had sold 2,367 units in December 2018.

“Sales of Honda Atlas Cars fell following combined sales of City and Civic variants declining by 56% on a year-on-year basis,” the analyst said.

Indus Motor Company fared no better and posted a 56% fall in sales from 5,324 units in December 2018 to 2,332 units last month. The analyst pointed out that the main reason behind the decline was sales of Corolla variant falling by 50% during the period.

The sales of Pak Suzuki Motor Company fell 26% to 8,732 units in December 2019. The company sold 11,732 units in December 2018.

However, car sales registered an increase of 23% on a month-on-month basis, the data showed.

“Overall, car sales jumped by 23% month-on-month to 12,100 units in December 2019, however, the rise was largely led by a 49% increase in sales of Pak Suzuki Motor Company,” the analyst said.

“The other two major manufacturers, Indus Motor Company and Honda Atlas Cars dropped by 12% and 23%, respectively.” The analyst added that increase in sales of Pak Suzuki was largely driven by the announcement of an increase in car prices by the manufacturer in mid of December, which became effective from January 1, 2020.

The research house expected a recovery in car sales volumes from start of 2020 as it believed volumes to have bottomed out in December 2019.

https://tribune.com.pk/story/2136598/2-pakistan-car-sales-slump-38-12069-units-dec/

 

[The Viper]

United Motors to Launch its 1000cc hatchback Alpha today

After introducing the cheapest hatchback 800cc Bravo to the Pakistani automobile market, United Motors is launching another hatchback, the 1000cc United Alpha, at an event at the PC Hotel in Lahore today.

Alpha is a Chinese car, which was previously launched by Karakoram Motors as Chery QQ more than a decade ago and was discontinued after its production stopped.

This hatchback's features and engine size is similar to its main competitors, Suzuki Cultus, Wagon-R and KIA Picanto. However, it will also compete with Suzuki’s 660cc Alto because of its affordable price.

The United Alpha will feature a 993cc 4-cylinder engine with 5-speed manual transmission. It will also have power steering, power windows, and 13-inch alloy wheels, as reported by Pakwheels.com

This hatchback will be assembled in Pakistan under the green-field status as the company hopes to benefit from the government’s Auto Development Policy (ADP 2016-21).

https://www.brecorder.com/news/40046756/united-motors-to-launch-its-1000cc-hatchback-alpha-today

 

[MenInG]

The automobile sector of Pakistan picked up pace in January 2022 as car sales rose 18% to 20,610 units.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Friday, the car sales stood at 17,515 units in January 2021.

A report of Arif Habib Limited stated that the year-on-year increase in car sales was mainly attributable to the improved purchasing power of consumers coupled with better mobility within the country owing to continued recovery from the Covid-induced disruptions.

Topline Securities analyst Sunny Kumar said that local car sales (including sales of non-PAMA members) came in at around 24,000 units in January 2022, which were down 25% month-on-month.

“The decline in month-on-month sales is due to high base and pre-buying in anticipation of price increase by auto assemblers, we believe,” he said in a report.

According to company-wise breakdown, Honda Atlas Cars reported the largest growth of 66% as its sales rose from 2,450 units in January 2021 to 4,064 units in January this year.

It was followed by Indus Motor Company that recorded a 25% jump in car bookings that reached 6,797 units in January 2022. The company had managed to sell 5,452 units in January 2021.

Hyundai Nishat Motor’s sales grew from 515 units in January 2021 to 612 units in the corresponding month of current year.

Sales of Pak Suzuki Motor Company increased slightly from 9,013 units in January 2021 to 9,037 units in January 2022.

“Pak Suzuki Motor Company and Honda Atlas Cars posted declines of 42% and 14% month-on-month respectively due to a high base effect and supply constraints for Pak Suzuki,” said Kumar.

“Indus Motor Company’s sales were up 9% month-on-month in January 2022, led by increase in sales of Fortuner and Hilux variants.”

He pointed out that the new entrant into Pakistan’s automobile arena, Hyundai Nishat, sold 612 units in January 2022, down 20% month-on-month.

He said that tractor sales in January 2022 rose 11% month-on-month, but fell 5% year-on-year.

Al Ghazi Tractors recorded an increase of 66% month-on-month and 45% year-on-year in its sales while Millat Tractors’ sales declined 9% month-on-month and 22% year-on-year.

Bike sales went up 8% month-on-month, while the demand was down 6% year-on-year in January 2022.

It took bike sales in first seven months of fiscal year 2021-22 to 1.1 million units, down 2% year-on-year, he said.

“Trucks and bus sales were up 132% month-on-month and 114% year-on-year in January 2022, led by increased transportation activity,” he said.

In the first seven months (July-January) of the ongoing fiscal year, automobile sales came in at 156,586 units, which was 61% higher than 97,469 units in the same period of previous fiscal year.

“During first seven months of fiscal year 2021-22, Pakistan’s auto sales increased due to macroeconomic recovery and single-digit interest rate,” Kumar said.

https://tribune.com.pk/story/2343137/auto-sales-accelerate-18-in-jan-2022

 

[Hassaan HS]

Indus Motor Company hikes car prices by 18-21%

KARACHI:

Indus Motor Company (Toyota) has increased prices of several models of its completely built-up (CBU) units by Rs1.16-2.28 million following a jump in freight cost and international commodity prices.

Speaking to The Express Tribune, Topline Securities analyst Sunny Kumar said that the company hiked prices of cars in the range of 18-21%.

The company increased the prices of Corolla Cross 1.8L from Rs9.249 million to Rs11.179 million, a jump of Rs1.93 million.

Similarly, the price of Corolla Cross Smart 1.8L variant jumped Rs2.09 million and it is now available at Rs11.959 million.

The cost of Corolla Cross Premium 1.8L has risen by Rs2.140 million to Rs12.249 million.

Prius 1.8L is now priced at Rs13.389 million following a hike of Rs2.28 million. Earlier, the vehicle was available at Rs11.1 million.

Prices of Rush GMT 1.5L and GAT 1.5L models have risen to Rs7.33 million and Rs7.62 million respectively from Rs6.22 million and Rs6.44 million.

“The firm jacked up prices to pass on the cost pressure to the consumers,” he said. “The cost pressure is driven by rising freight charges and soaring commodity prices.”

Other industry players such as MG also increased car prices.

Insight Securities analyst Ali Asif said that since the end of fiscal year 2020-21, KIA has raised prices of its vehicles three times, while other automakers have increased rates at least twice.

The first increase occurred in November owing to the spike in rates of cold-rolled coils, devaluation of Pakistani rupee and a rise in freight cost.

The second increase was made in January 2022 on the back of imposition of federal excise duty (FED) and sales tax.

The ongoing third wave of price hikes is mainly attributable to the increase in freight costs.

He forecast that after KIA and Indus Motor, other players in the automobile sector are also expected to follow the trend and increase prices.

Since the end of fiscal year 2020-21, the prices of completely knocked down (CKD) units have surged by 14-22%.

On the flip side, CBU units witnessed a price increase of 40-48%.

Major factors contributing to the increase in prices of automobiles in Pakistan include increase in shipping time and availability of essential raw material, said automobile expert Mashood Ali Khan.

In addition, the international petrol price was at its highest since 2018, he noted.

All these factors have a direct or indirect effect on prices of manufactured goods all around the world, he said.

Arif Habib Limited Head of Research Tahir Abbas said that Indus Motor Company increased prices of its CBUs including Corolla Cross, Prius and Rush amid a surge in import duties in the mini-budget tagged with the higher global freight charges.

Khan said cars in Pakistan were manufactured with a combination of localised parts and imported CKDs.

“Forecasting is becoming more and more difficult for any business that is operating with international supply chains,” said Khan. “New bottlenecks are appearing day by day which increase the cost of operation.”

In the end, the cost increase will be shifted to the end-consumer, he said.

Prices of automobiles in Pakistan have increased by an average of 10% for all models, but this is not the end, he cautioned.

He expected a price increase of 10-15% in the next few months if the present situation persisted.

https://tribune.com.pk/story/2346463/indus-motor-company-hikes-car-prices-by-18-21

 

[MenInG]

Auto industry players anticipate a 30 per cent sales drop in 2022-23 in view of uncertainty after the increase in withholding tax on filers and non-filers, imposition of one per cent capital value tax on vehicles exceeding 1,300cc, strict auto financing rules to compress demand, high interest rates and more price shocks on the cards.

Speaking to Dawn, market sources said assemblers are also flexing their muscles to pass on the impact of the continuous rupee devaluation against the dollar and high sea freight rates in the form of price hikes in vehicles after Eidul Azha, with many stressing that the industry is passing through a crisis.

Indus Motor Company (IMC) has already closed down the advance booking of vehicles from May 18, followed by Lucky Motor Corporation Limited (LMCL) from May 20 on Picanto Automatic and Sportage and Pak Suzuki Motor Company Limited (PSMCL) from July 1.

These decisions were taken by the assemblers owing to looming exchange crisis and the SBP’s decision to disallow the opening of letters of credit (LCs) for the import of parts and accessories from May 20, 2022.

New taxes, curbs on auto financing, soaring fuel prices cause anxiety among buyers

Talking to Dawn, IMC CEO Ali Asghar Jamali anticipates at least a 30pc plunge in vehicle sales in FY23 due to rising fuel prices, SBP’s restrictions on opening LCs for auto parts and new taxes imposed from July 1.

On the chances of a price increase after Eid, Mr Jamali said, “We have to jack up prices. No [other] choice.”

According to auto industry insiders, the impact of increase in various taxes, soaring interest rates, vehicle prices, high petrol and diesel prices, LC restrictions, and reduction in consumer financing tenure will be visible in September 2022 vehicle sales data, as assemblers are currently upbeat over thousands of advance booking orders for cars, jeeps, SUVs, and pickup made a few months ago and would be delivered in the next few months.

Around 26pc of total sales of IMC are from auto financing, while the share of consumer financing in total sales of Pak Suzuki stands at 35pc.

Fearing a 25-30pc sales fall in FY23, a Korean vehicle assembler said the company has not increased the prices of Kia vehicles. Some changes have emerged after the Finance Act relating to the implementation of 1pc CVT on vehicles above 1,300cc from July 1. As a result, two Kia Stonic models now have a 1pc CVT for Rs44,250-47,250, three Sportage models for Rs53,000-64,990, and three Sorento models for Rs68,360-74,990.

According to Honda Atlas Cars Limited (HACL), the 1pc CVT on the City 1.5 ranges between Rs35,890-38,990 while on two modes of the Honda BR-V, the CVT hovers between Rs42,490-42,740. The 1pc CVT on six Honda Civic models costs between Rs55,490-66,740.

On withholding tax on filers and non-filers, the HACL official said there is no change in WHT on filers in the Honda product line. However, Rs75,000 is charged for non-filers on purchasing the Honda City 1,200cc, which was Rs50,000. For the 1,301,600cc version, the rate of non-filers is Rs150,000 instead of Rs100,000.

PSMCL has informed its authorised dealers to charge Rs10,000 for Alto (all variants), Bolan and Ravi from filers, which was Rs7,500, while the non-filers will pay Rs30,000 instead of Rs15,000 on the same models.

Income tax filers interested in purchasing a WagonR or Cultus (all variants) will need to pay Rs20,000 instead of Rs15,000, while Swift buyers will pay Rs25,000.

The non-filers of Wagon R and Cultus will have to deposit Rs60,000 instead of Rs30,000, while a non-filer will make a payment of Rs75,000 instead of Rs50,000.

An Excise and Taxation Sindh official, who asked not to be named, said the motor vehicle registration charges have been the same in the last two years but the rate of WHT on filer and non-filer and CVT has been raised from July 1.

The motor registration fee payable at the time of registration for cars/jeeps not exceeding 1,000cc is 1pc of the value of the vehicle, followed by 1.25pc on 1,000-1,300cc vehicles, 2.25pc on 1,301-2,500cc vehicles, and 5pc on cars/jeeps exceeding 2,500cc.

A private bank employee dealing in the auto leasing said, “Targets to achieve auto financing are tough due to limited enquiries from the customers.”

Car sales of Pakistan Automotive Manufacturers Association members soared to 210,633 in 11MFY22 from 139,613 units in the same period last fiscal. Sale of LCVs, vans and jeeps swelled to 40,255 from 45,891 units.

Published in Dawn, July 10th, 2022

 

[MenInG]

Facing serious hardships in importing raw materials, Pakistan’s leading car manufacturer, Indus Motor Company (IMC), has decided to temporarily shut down its auto production plant from August 1-13.

The company secretary announced via a notice to the Pakistan Stock Exchange on Friday that rupee devaluation and government restrictions were adversely affecting the supply chain and production activities. Restrictions, including letters of credit constraints, had made it impossible to import completely knocked down (CKD) kits without prior permission as well as components, which had resulted in delay and insufficient inventory levels as would be required to maintain further production.

“The situation is forcing the company towards a temporary production shutdown and closure of the company’s plant,” he said. “In the light of above, the company has today decided to temporarily shut down its production plant from August 1, 2022, to August 13, 2022.”

This information at the PSX invited buying in the shares of the IMC, whose share price rose by 4.5 percent or Rs43.18 to close at Rs994.60/share.

Rupee free-fall and higher prices of raw materials have already resulted in a price hike of the company’s locally manufactured variants of Corolla, Yaris, Fortuner and Revo effective from July 28.

Starting price of Corolla 1.6 went up Rs990,000 to stand at Rs4.899 million, while ex-factory price inclusive of CVT went up Rs1.130 million to stand at Rs5.639 million. Corolla 1.8 price jumped up Rs1.180 million to stand at Rs1.290 million, whereas 1.8 Altis Grande now stands at Rs6.189 million per unit.

The price of Yaris 1.3 and 1.5 increased from a minimum of Rs760,000 to Rs910,000. Thus, Yaris 1.3 starts at Rs3.799 million and 1.5 starts at Rs4.569 million.

Toyota Fortuner’s prices increased by Rs2.530 million to Rs3.160 million, with the new price now Rs12.489 million for Fortuner 2.7 G and Rs15.839 million for Fortuner Legender Diesel. Prices for different variants of Revo increased by Rs1.830 million to Rs2.270 million. Hilux E prices was jacked up by Rs1.680 million to now stand at Rs9.039 million per unit.

However, booking for all cars has been put on hold by the company.

IMC is a joint venture between certain companies of House of Habib of Pakistan, Toyota Motor Corporation (TMC) and Toyota Tsusho Corporation (TTC) of Japan. Incorporated in 1989, the company manufactures and markets Toyota brand vehicles in Pakistan. These include several variants of the flagship Corolla and Yaris in the passenger car segment, Hilux in the light commercial vehicle segment, and Fortuner in sports utility vehicle segment.

Over 31 years since its inception, IMC has sold more than 961,500 CBU/CKD vehicles. It has also demonstrated impressive growth in terms of volumetric increase. From a modest beginning of 20 vehicles per day production in 1993, the daily production capacity has now increased to 288 (with overtime) units per day.

The company has a workforce of around 3,000 employees and a strong network of 50 independent 3S Dealerships spread across the country. It has 52 local vendors that supply parts.

Auto analyst and former chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Mashood Ali Khan said Indus shut down came because of the government policy related to the import of CKD. “When the supply chain is disturbed, production is disturbed. Last month, we also saw a shutdown of 10-12 days,” he said.

He suggested that all original equipment manufacturers (OEMs) should unite on one point agenda, as the CKD issue would not relate to one manufacturer only. “All OEMs should form a long-time strategy. They should decide whether they would shut down their plants for the first 10 days or the last 10 days of the month. If all of them do not close production at the same time, the part manufacturers will have to work while there will be a problem for the part manufacturers as well. They are also facing challenges, as prices are uncertain,” he said.

Khan said the government's performance was almost null in controlling the falling rupee. “All industrialists and economists should be taken on board, as the government alone cannot set the direction.” He said the economy was deteriorating day by day and the situation would continue until they generate some funds.

https://www.thenews.com.pk/print/978112-indus-motor-to-go-on-13-day-production-break

 

[daytrader]

ATLAS HONDA SHUTS DOWN PRODUCTION PLANT

Pakistan’s automaker Honda Atlas Cars (Pakistan) Limited (HCAR) has temporarily shut down its plant from March 9 to 31, citing supply chain disruptions, ARY News reported on Wednesday.

The company announced its decision in a notice to the Pakistan Stock Exchange (PSX).

“Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting the opening of Letters of Credit (LCs) for import of CKD kits, raw materials and halting foreign payments, the company’s supply chain has also been severely disrupted by such measures,” read the notice.

“As a result, the company is not in a position to continue with its production and ultimately has to shut down its plant from March 09, 2023 to March 31, 2023,” Atlas Honda added.

It is worth mentioning here that Pakistan’s auto sector remains engulfed in various crises, with a number of automakers announcing complete or partial shutdowns in recent months citing various reasons.

Recently, Pak Suzuki Motor Company Ltd (PSMCL) announced plant shutdown due to low inventory supply.

ARY

 

[FearlessRoar]

Indus Motor Company Limited, the firm responsible for the assembly of Toyota vehicles in Pakistan, has recently announced a temporary suspension of its production operations until October 9. This significant decision was formally communicated through a notice submitted to the Pakistan Stock Exchange (PSX).

The rationale behind this temporary cessation of production is primarily linked to the company’s current vehicle inventory status. Indus Motor Company Limited has set the production plant’s closure period from September 28 through October 9 to address these concerns.

This pause in production is the latest in a series of similar actions undertaken by the company. Previously, Indus Motor Company Limited had temporarily halted production from August 25 to September 6, attributing it to reduced demand and inventory challenges. Additionally, the company faced a production plant shutdown from July 21 to August 3, driven by complications in the importation of raw materials, logistical hurdles in clearing consignments, and disruptions in the supply chain from select international vendors.

These issues collectively hampered the company’s supply chain, leading to insufficient inventory levels to sustain uninterrupted production. Furthermore, a similar production hiatus had occurred earlier, from June 26 to June 27, with the same underlying reasons.

Source: The Current

 

[BouncerGuy]

Honda Atlas Cars’ profit plunges

Despite easing import restrictions on opening letters of credit, Honda Atlas Cars Ltd (HACL) company’s profit plunged to Rs143m in October-December 2023 from Rs810m in the same period last year.

In a stock filing on Wednesday, the auto assembler informed that its sales posted a steep drop to Rs12bn in the three months from Rs23bn in the same period ending December 2022.

HACL did not declare any cash dividend, bonus shares or right shares.

The auto sector had been under pressure due to various factors, including dwindling demand caused by rising prices and expensive auto financing. The sector also faced challenges such as frequent plant closures due to restrictions on opening LCs for the import of parts, leading to a shortage of essential components.
​

SOURCE: DAWN

 

[FearlessRoar]

Indus motor company halts production

Indus Motor Company (IMC) has announced a shutdown of its plant for seven days citing low inventory and shortage of components.

The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.

“Based on current low level of inventory of manufactured vehicles, and shortage of parts and components for manufacturing of vehicles, due to supply chain challenges, the company has decided to close its production plant from 15th July 2024 to 22nd July 2024 (both days inclusive),” read the notice.

Earlier, the indus Motor Company Limited had closed its production plant from March 6 to March 11 2024.

Indus motor company halts production

Indus Motor Company (IMC) has announced a shutdown of its plant for seven days citing low inventory and shortage of components. The company shared the

arynews.tv

 

[FearlessRoar]

Another autopart manufacturer shuts down plant in Pakistan

This decision follows the recent closures of the Suzuki Karsaz plant and Millat Tractor, marking a troubling trend in the industry.

In a letter addressed to the Pakistan Stock Exchange, Bolan Casting Limited cited a significant decline in the sales of trucks and buses, leading to severe financial difficulties.

The lack of demand has forced the company’s management to halt operations for an indefinite period, effective from August 26, 2024.

This development adds to the growing concerns within Pakistan’s auto sector, which has been struggling with dwindling demand and financial instability.

The shutdown of Bolan Casting’s plant underscores the broader challenges faced by the industry, raising alarms about the future of auto manufacturing in the country.

Another autopart manufacturer shuts down plant in Pakistan

KARACHI: The auto sector in Pakistan faces another blow as Bolan Casting Limited, a manufacturer of bus and truck parts, has announced the indefinite

arynews.tv

 

[BouncerGuy]

Indus Motor Company temporarily shuts operations

Indus Motor Company (IMC), the assembler of Toyota vehicles, has announced that production operations will be temporarily suspended from Sept 26 to 30 due to parts shortage.

In a stock filing on Wednesday, the company said it is currently experiencing low levels of raw materials and component inventory, besides facing ongoing supply chain challenges. This has resulted in a shortage of parts and components necessary for vehicle production.

The company added that it is unable to meet its production requirements. IMC also closed its plant from Aug 6 to 8 for the same reasons.

Siemens plans job cuts

As certain employees will part ways, Siemens Pakistan Engineering Company has decided to transform one of its operational segments within Smart Infrastructure — Electrification and Automation Business. The estimated cost of a one-time transformation is approximately Rs556 million.

In a regulatory filing, Siemens said this change better aligns the business to serve the local market and its customers, enhancing shareholders’ value by embedding the required flexibility in its operation.

OGDCL finds gas

OGDCL has announced a gas discovery in Khairpur district of Sindh, which will help improve energy security from indigenous resources and add to the hydrocarbon reserve base. In a stock filing, the company said that Sawan South Joint Venture, comprising OGDCL (20pc working interest), United Energy Pakistan Ltd, the operator (75pc), Government Holding Private Ltd (2.5pc), and Sindh Energy Holding Ltd (2.5pc), has discovered gas from Lower Gour B Reservoir Sand of Akhiro-1 well located in Khairpur.

Security Papers profit surges

Security Papers Ltd (SPL) reported a 54pc year-on-year increase in its profit-after-tax to Rs1.489 billion, and a record sales revenue of Rs7.312bn in FY24. The shareholders at a board meeting also approved the highest-ever dividend of Rs12.50 per share.

DAWN NEWS