The reason behind the popularity and success of imported cars

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The question of whether to buy an imported car, such as a Daihastsu Mira, or a  Pakistani-made equivalent, for example a Suzuki Mehran, is something which in most cases is decided by the buying power of the particular customer. Due to the extremely high import tariffs in Pakistan, imported vehicles are almost always more expensive as compared to their locally assembled rivals. What is interesting is that even though the imported vehicles are more expensive, Pakistani buyer will almost always prefer an imported model.

This is due to several reasons such as build quality, reliability, trust, and status. It is a sad fact that the Pakistani public has a very negative view of most Pakistani made products. This is a general perception which pervades throughout the society and therefore the locally produced Toyota Corolla or Suzuki Alto are thought to be less reliable then a for example an imported Suzuki Alto. Is there actual truth to this perception which is held by the public opinion, that the locally assembled cars are not as well built? Often it is heard that the parts and materials used in the locally assembled vehicles is inferior to the ones used by the factories in Japan. I have not done any sort of research on this but I would generally agree that there is a difference in the materials used. One thing, which I have noticed myself, is the quality of the plastics used for the interiors seems to be much better in the imported models.

So due possibly to biased public opinion and possibly some truth as well the wealthier customer prefers to buy an imported vehicle because it is considered to be a better vehicle. This preference gives way to another effect which helps to make the imported cars even more sought-after which is how social status is attached to imported cars. Due to wealthier people preferring to buy imported cars this leads to imported cars being associated with a higher economic status which causes the local car market to suffer.

Added to this problem is that the locally car manufactures have not provided any vehicles which can be classified into the mid-size premium segment of the market. The most premium models locally produced are the Toyota Corolla Altis and Honda Civic VTi Oriel. Although, these cars are very well equipped the problem is that the market is saturated with the lower spec Civics and Corollas and so the fully loaded Altis and VTi Oriel fail to provide enough product differentiation. To fulfil this demand in the market for vehicles which are more premium, one can see many imported cars which fill this gap such as the Toyota Premio, Toyota Mark X, Honda Accord, Toyota Mark II, Toyota Wish, Toyota Camry, Toyota Fielder, and Toyota Crown.

So what we see is that the imported car market fills the gaps, which the local market is unable to fill. The biggest gap is the lack of a reliable subcompact car that would be considered to be as good as an imported Japanese subcompact like the Daihatsu Mira. The next gap is in the mid-size luxury segment for which there are no locally produced Pakistani options hence the large array of mid-sized premium models being imported into Pakistan.

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8 Comments
  1. Shahbaz Nazir says

    tell us something new! this article is useless! we already know wateva u have written over here,,,,,, Please pakwheels at least asses the quality of the article before posting it on your website!
    A 5year old would know all this…..

  2. Afnan Aftab Motiwala says

    not only u cant compare a pakistani made car with a japanese car but u cant compare with any country manufactured one , japanese are pionners in technology n the world buys their producys with faith of high standards of quality n reliability.

  3. Muneeb Saeed says

    ok then how about comparing our local crappy cars with indian made cars ???????

  4. Asif Ali says

    I feel we should patronize our own products even though they may be a little inferior to the imported ones.

  5. Saqib Qazi says

    I am also in favor of buying local cars..however it is the Pirce tags of local Cars which lead users to think of alternatives..for example GLI cost you 17.75 mil after registeration…but 2007 Axio will cost you around 16 mil…u will feel hell of a difference in driving experience..where Aixo is a lot better than GLI…:)

  6. Baber Kaleem Khan says

    We should indeed favor our own. But not Japanese. Pakistani entrepreneurs or ambitious businessmen cannot start an automotive company because Pakistan's automotive policy requires any new entrant (even local) to match the production figures of the big three local assemblers which no automotive company can do in its founding decade, none has done so in the past.
    We should favor them if we're getting some good research and development. I remember we went to General Tyre's factory and went to their 'R&D' room which was just an air conditioned laboratory of a peela school, we even tried to find some teared up frogs.
    If we favor local industry, than they will further erect barriers against new entrants, whether local or foriegn until every other car on Pakistani road is either a Corolla, Mehran or Civic.

  7. Faraz Haroon says

    Saqib Ahmed Good point sir. The Axio you mention must be a used car right? This is testament to Japanese-built cars that even a used Axio gives a better experience then the new locally built Corolla GLI.

  8. Faraz Haroon says

    Muneeb Saeed What are the prices like for Indian cars? How much does an Indian-made Suzuki Alto cost?

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