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Old 23rd November 2015, 18:20   #16
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

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Originally Posted by RJ411 View Post
Interesting piece of information and thanks to Rajeevraj for sharing this. I have seen a lot Toyota pickup trucks shown in news channels when ever they show Pakistan. But not able to see them featuring in this list.
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Originally Posted by deepfusion View Post
Thanks Rajeevraj for the update. But what we watch on TV, either in news or in serials, there are other cars and other models of the three companies driving on the roads in Pakistan. Could it be that imports dominate Pakistan's roads while the manufacturers, despite having set up business there, are ramping up their production if the Government there would have changed some policies?
Did some digging on this. The import industry is flourishing one in Pakistan, but the 3 biggies are putting influence to ensure that import norms are made stricter.

Some key points I found

Conditions of Import:

Quote:
The import of used cars is allowed under three schemes — as personal baggage (once in two years), bringing the vehicle into the country on transfer of residence from another country, and sending a vehicle as a gift to a family member residing in Pakistan (once in two years)
Considering that Pakistan also has a huge expat population, it should not be too difficult to import cars in. Especially at the higher end. Probably explains all the different cars we see on TV.

Costs/Duties involved

Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry-pakcustomduties.jpg

Source: carjunction.pk


Numbers

Quote:
In 2011-12, the import of used cars reached an all time high of 57,000 cars due to relaxation in age limit from three to five years. In the subsequent year, however, the age limit was reduced to three years and the imports dropped to 45,000 cars in 2012-13 and 29,000 in 2013-14.

The age limit will continue to be three years under the new policy as “it has produced desired results and provided enough protection to local players”, the official said.
So if you see, imports used to make up a significant number (Almost ~50 % of the new car sales in 2012-13), but it is down now.

Another tidbit I found. As GTO mentioned in his post, VW were in talks to enter Pakistan. One reaction that I found in one of the news articles.

Quote:
The news that Volkswagen was exploring options to enter the Pakistani market has excited car enthusiasts, who are tired of high prices and limited choices.

"I think it is a great idea because Volkswagen cars are value for money and reliability," said Romano Karim, a fan of the classic Volkswagen Beetles from the 60s and 70s that can often be seen on Pakistan's roads.

Haji Mohammad Shahzad, chairman of the All Pakistan Motor Dealers Association, added that having Volkswagen in the market would help drive costs down.
The public is looking towards a company like VW to bring in reliability and ease of maintenance and drive costs down. Ironic, considering that in India cheap, reliable and ease of maintenance are not words associated with VW.
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Old 23rd November 2015, 22:47   #17
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

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Of course India pressed the gas pedal in the 90s and has now left our neighbor far behind.
Similar to how India & China were once of a comparable size...then China pressed the gas pedal .

In 2015, China is averaging about 16 lakh car sales a month (India is about 2 lakh). China alone is perhaps bigger than the rest of Asia combined....and that includes Japan, India, Pakistan etc. Again, combined.

@ Rajeevraj: I smell a sales thread on China coming up.
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Old 23rd November 2015, 22:53   #18
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

Very nice thread. But did not like the comparison with India in car sales. India is worlds third largest economy. And even Bangladesh economy is doing better than that Pakistan
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Old 24th November 2015, 05:25   #19
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

Interesting read! But a Corolla with a 1.3 litre 63 bhp engine? I wonder what that engine is? From what time in the century!
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Old 24th November 2015, 07:49   #20
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

Very interesting thread indeed. After looking at this, I feel Indian car scene better by leaps and bounds. Shockingly, Altis gets no airbags in any of lower variants, and only one airbag in top end variant, for the car which costs 20-22 lacs
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Old 24th November 2015, 08:10   #21
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

Extremely Interesting. I am amazed as I expected the budget cars (like 800 or Omni) to be the best sellers. But its the Corolla !

Rajeevraj, the list of top 10 cars sold has Hyundai Santro at 10th place, with only 3 units. Does it mean there are other cars which sell 1-2 per month or does it mean that the market ends there. No more cars are up for sale?
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Old 24th November 2015, 10:24   #22
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

This is an interesting read! Just a few days ago, I was doing some reading on Pak Suzuki. Suzuki basically seems to sell only previous gen cars with practically no safety features, their version of the 800 being a good example. Also FYI, they sell the Kizashi at a price of 50,00,000!

If Pakistan does have steep taxes for CBU's like India, they should consider reducing it. Almost all companies manufacture cars in India, they could consider exporting it from here.
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Old 24th November 2015, 10:38   #23
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

apologies if i have missed reading something in between, why we aren't seeing any TATAs or Mahindras? is that specifically a political decision taken or a business decision?
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Old 24th November 2015, 12:50   #24
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

Considering the fact that Pakwheels.com website lists Audi/Lexus / Merc as car companies, I think that the neighbour is still using imported cars rather than local manufactured. I am sure that there are affluent class in the neighbouring country also who want to use something better than an Corolla Altis. It will be interesting to add the import numbers on this list.

I think there is also a market for smuggled European cars there. Cars nicked abroad could very well have ended up say in Lahore and wouldn' t show in in these statistics. One thing for sure, if they decide to open up then there is large market right next door for the Indian Manufacturers like Maruti and Hyundai. Compared to what they seem to be using right now, even our Grand i10 may seem like a premium car over there.
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Old 24th November 2015, 14:20   #25
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

A very informative thread.

Pakistan is - to the best of my knowledge - is an import-based consumer economy and not an import-substituted one like ours. The complete picture will emerge only when we consider the number of imported vehicles registered in that country.

Totally agree with the posts here who see a great potential in this emerging market, esp. with that kind of growth rate. On the other hand, Bangladesh has an economy with a better growth rate too...

A trivial fact is Mahindra & Mahindra was founded as Mahindra & Mohammad and when Ghulam Mohammed, one of the founders of the company emigrated to Pakistan in 1947, Mahindra & Mohammed became Mahindra & Mahindra.
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Old 24th November 2015, 14:21   #26
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

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Originally Posted by GTO View Post

In 2015, China is averaging about 16 lakh car sales a month (India is about 2 lakh). China alone is perhaps bigger than the rest of Asia combined....and that includes Japan, India, Pakistan etc. Again, combined.

@ Rajeevraj: I smell a sales thread on China coming up.
Aah, you have me hooked now. A cursory browse throws up a lot of interesting info.

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Originally Posted by drive2eternity View Post
Rajeevraj, the list of top 10 cars sold has Hyundai Santro at 10th place, with only 3 units. Does it mean there are other cars which sell 1-2 per month or does it mean that the market ends there. No more cars are up for sale?
I think the mass market ends there. Toyota's cheapest car is the Corolla and Honda is the City/Civic which themselves are very expensive. The higher models are probably out of reach for the masses and also ignored by the super rich (who would probably prefer to import).

Not really sure how or why the Santro appears since Hyundai do not have a presence there.

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Originally Posted by Balaji31582 View Post
apologies if i have missed reading something in between, why we aren't seeing any TATAs or Mahindras? is that specifically a political decision taken or a business decision?
I don't think it is anything to do with politics, even biggies like Hyundai and VW are not able to make an entry. So it is the bigger economic and policy picture.

Quote:
Originally Posted by manishkapadia View Post
Considering the fact that Pakwheels.com website lists Audi/Lexus / Merc as car companies, I think that the neighbour is still using imported cars rather than local manufactured. I am sure that there are affluent class in the neighbouring country also who want to use something better than an Corolla Altis. It will be interesting to add the import numbers on this list.
Import numbers are mentioned in my previous post. As you mentioned, it is a big market and not too difficult. But is continuously falling (apparently due to the pressures exerted by the big 3 (and their partners) Suzuki, Toyota and Honda.
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Old 24th November 2015, 16:38   #27
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

Indian market looks so much better after looking at the cars available there. I think India in 90s had much better cars than those. Only gripe I have is Pakistan has Hilux truck and we don't. If only Toyota Hilux trucks were available here in India.

Took a look at the list of motorcycles available in Pakistan. Mostly commuters till 150cc which look dated.
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Old 24th November 2015, 18:56   #28
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Angry Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

First, For a moment I had to scroll up to make sure I am looking at a "recent" thread or if I am looking at one from the 2000s

Second, This only makes me think - for all the chest beating we are doing about the better cars we have on offer in India against those in Pakistan, I can only imagine how much better cars US/UK (developed countries) are getting compared to India.

Airbags/ABS aren't even a part of standard kit in India and I have to buy a "top-end" version for the privilege to stay safe.
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Old 24th November 2015, 20:59   #29
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

I had read somewhere that smuggled and second hand imports routed via Dubai end up in Karachi port and contribute to the car market there.

Also of note is that the Corolla offered there has multiple engine options including 2 underpowered ones compared to a Wagon R here.
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Old 24th November 2015, 23:25   #30
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Default Re: Pakistan Car Sales (July-Oct 2015) and an analysis of their Auto Industry

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Originally Posted by Balaji31582 View Post
apologies if i have missed reading something in between, why we aren't seeing any TATAs or Mahindras? is that specifically a political decision taken or a business decision?
Indian companies are not allowed to sell in pak.
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