By: Azhar Azam
PMLN-rule was contaminated with blend of incompetence, nepotism, and corruption charges which pushed Pakistan into the external debt trap, increased income inequality, and several other financial and social crises.
The extent of fatal consequences caused by these fiend deliberate or accidental errs is hard to measure but for sure it will plague the economy and people of Pakistan for an indefinite period of time.
And the historic ‘Rupee humiliation’ may be just one of the many plights.
Through the course of endless economic turmoil, the uptick in the sale of high-tier car segment (>1000 cc) is another insignia of PMLN’s pro-rich policies which sadistically expose their poor management to effectively regulate the country’s economy.
Pakistan Automobile Industry
If you have been inferring that the common man’s luxury rides – Suzuki Mehran or Suzuki Bolan – are the largest selling cars in Pakistan then you are indeed mistaken.
Ironically, the elite’s picks – Toyota Corolla/Frotuner and Honda City & Civic/BRV – are strongly dominating the automobile market of Pakistan.
Despite a very little beat of 2.4% or 1,264 units – Toyota Corolla was still the largest selling car across all segments with a sale of 51,412 units in FY2018, ended 30 June.
Toyota Corolla along with Honda City & Civic (42,810 units) and Suzuki Swift (4,916 units) wheeled the >1300 cc segment sale to record 99,138 units in the prior fiscal year, according to latest data released by Pakistan Automotive Manufacturers Association (PAMA).
In addition to this, Toyota Fortuner’s two Jeep variants – currently priced at Rs. 6.1 to Rs. 6.5 million – posted a stellar growth of 204.4%, to 4,186 units in FY2018 as compared to only 1,375 units in the previous fiscal year.
Honda BR-V that’s price starts from Rs. 2.1 million also sold a total of 8,684 units during the same year.
In 1000 cc segment, the sale of Suzuki Cultus and WagonR also increased to 20,483 units and 29,206 units – posting an electrifying growth of 20.4% and 65.3% respectively. This extraordinary increase may however be associated with ride-hailing services.
Although the sale of globally dated Suzuki Mehran also grew by 21.8% or 8,288 units – to 46,221 units in FY2018 and it managed to outrun Honda City & Civic but it still lagged behind Toyota Corolla.
Eventually, a total of 161,697 automobiles of above 1000 cc were sold during FY2018 (July to June) whereas the total cars of below 1000 cc was only 67,959 units. The unit sale is of below 1000 cc cars is nearly 2.4 times less than above 1000 cc category.
In FY, Pakistan automobile market broke the barrier of 200,000 units to note a record 229,656 units of cars (excluding jeeps) in contrast to 185,780 units sold in FY2017 – a growth of 31,006 units or 16.7%.
Suzuki WagonR Tartly Disrupts Pakistan Auto Market
Although Toyota Corolla, Suzuki Mehran, and Honda (Civic & City) have been the top choices of the people in Pakistan but in a span of just few years, Suzuki WagonR has tartly disrupted the automobile market in Pakistan.
In terms of unit growth, the kei car or K-car (light automobile) was the largest selling cars across all segments – registering a unit growth of 11,535 units and at an impressive growth rate of 65.3%, to 29,206 Units.
In February, Pak Suzuki suspended the booking of WagonR VXR for a couple of weeks and VXL for over a month. The experts knotted the step to the clearance of heavy backlog and also to divert WagonR clientele to Suzuki’s other hatchback, Cultus.
At the same time, company’s other variant – Suzuki Mehran – has been under critics’ reproach for being ‘over-priced’ and also for lack of innovation in features. The criticism followed with the rumors that Pak Suzuki has decided to discontinue Suzuki Mehran in 2019. The decades old hatchback will be revamped into 660cc Alto, it is learnt.
It is whispered that Pak Suzuki has assembled 50 units of the new variant which are under different testing, trials, and tweaks. Once it works out all kinds of kinks and possible bugs, Pak Suzuki will launch the new car in the market.
Japanese Automakers Faces Taut Challenge
Hitherto Japanese auto makers – Suzuki, Toyota, and Honda – have greatly dominated the Pakistan automotive market but a few new Korean (Kia and Hyundai) and European (Renault and Volkswagen) players have beating their wings to end their hegemony.
Nissan and United Autos are the other new entrants, expected to launch their cars later this year to blur the three-decade ‘dictatorship’ Suzuki Mehran. Nissan’s Datsun Redi-GO and United’s Bravo are also likely to smash a strong blow to the ‘boss’, Suzuki Mehran.
Ghandhara Industries Ltd. and Nissan Motor Co. Ltd. have collaborated under Ghandhara Nissan Limited through manufacturing and licensing agreement for domestic production of Datsun models. The sale of locally manufactured vehicles is expected to start in the fiscal year 2019.
Hyundai Nishat Motor Private limited (HNMPL) is the other joint venture between South Korean Sojitz Corporation and Nishat Group which will set up assembly plant in Pakistan for Hyundai brand vehicles. After two years of project completion, the plant will have the capacity to produce up to 30,000 vehicles per year.
The new collaborations, partnerships, and joint ventures will certainly jeopardize the decades’ old dominance of Suzuki, Toyota, and Honda in Pakistan – obliging everyone to offer low-cost vehicles with advanced features to the consumers. The hitches of delayed deliveries and additional payment will also be purged.