FAW V2: Some Unconsidered Facts To Give Thought To Before Buying
It has been around 6 to 8 months since FAW launched the V2 EURO 4 in Pakistan with a price tag of 1,049,000 rupees. As compared to the local cars available in the market, FAW is offering a fully loaded 1300cc car with a very competitive price tag. Previously, under this price tag consumers were only left with 2 options i.e.; Cultus and Wagon R which do not offer value for money asked.
No doubt FAW V2 is far better than Cultus and Wagon R in all aspects but I personally believe that a large number of people may overlook some significant facts before buying this car.
As we all know, Pakistan’s auto industry is a monopoly of 3 big companies; Toyota, Honda and Suzuki; these companies do not let new automakers survive in the market. A very recent example; new policy was formulated for the import of Japanese vehicles back in 2012-13 under which cars older than 3 years were restricted just because the local auto manufacturers had to face drastic decrease in their sales. This drop in sales exhibited the change in buying behavior, people are depressed and want change.
Let’s talk about some more examples from the past. From the year 2000 to 2010, many potential automobile companies like Chevrolet, Cherry QQ, Mitsubishi Dewan Motors, KIA, Hyundai, and Nissan came to Pakistan with modern car technologies and designs but failed to sustain their business in Pakistan.
KIA Spectra and KIA Sportage received a great response from the Pakistani market but still KIA failed to sustain its business in Pakistan. Similarly everyone knows Hyundai Santro got immense popularity within no time of its launch but still ended up even after a great journey. Though it may be due to Dewan’s terrible handling of loans and equity, otherwise, they had the country’s most advanced plant. Even FAW came to Pakistan back in 2004-05 and launched FAW Roma in competition to Suzuki’s Bolan which gave a setback to Bolan’s sale. But then, FAW remained silent for many years and re-launched new vehicles a few months back.
Currently FAW V2 has no good resale value as compared to Cultus, Wagon R and Swift. I do not doubt the availability of spare parts for V2 after being convinced in a discussion with an official FAW dealer. Today, people are discussing and comparing this car with the local cars in market. But, what if today the government allows the import of cars up to 5 years old? Would people be discussing FAW V2 to the same extent? Not at all. Majority would be preferring Toyota Passo and other cars over FAW V2. And according some sources, government may allow the import of cars up to 5 years old in the upcoming budget. In such case, where would the resale of FAW V2 stand?
The purpose of writing this article is not to discourage a new entrant in our market but one should not ignore the history of new entrants who failed to continue under tough conditions. FAW V2 is a great car in such a price tag. I truly wish that FAW successfully sustains its business in Pakistan to provide sensibly priced cars with new technology and specifications or in other words, anything better than a 8 lakhs Mehran would be acceptable.
What do you think?
I am sorry, but this sort of monopolistic mindset is what caused many promising startups to close shop and go away. If the government isn’t able to support new comers and provide a competitive environment then we as consumers should stand up for it.
no matter how many automotive companies came to pakistan. people of pakistan would never let them to survive because 99.99% of pakistani papulation is still stuck with 7,30,0000rs worth of shit which is mehran & by the time we are discussing this they are still buying that piece of shit… So no matter who ever come we still got to buy a piece of shit.. Even worse look what they offered in that price.. i think FAW got a potential it should work a bitt hard to make thier place in market!
FAW should start 800cc in front of Ugly Mehran in 5 Lakh Rupees.
FAW requires effective advertisement compaign like Q Mobile. They give a lot of ads even for a mobile phone of RS. 2500…. Faw is not working on effective advertisement compaign.. Some thing might be wrong with them. it is also possible that FAW V2 is Faulty Car… or Faw management is idiot…..
The problem is there is no resale value of this 1 million rupee car
There should be low price against other existing cars. because in Pakistan people are very stuck on previous things they do not want to move because of less confidence on new entrants. but if the price will low then they can move to others.
Where where are some unconsidered facts?? It’s a couple of issues, which every one knows.
Besides don’t forget that FAW is the biggest automaker in the world. If they have started something in Pakistan, then they will definitely have plans for next 10 years.
V2 1.3L won’t be selling like hotcake but I have seen 4 new V2’s in last 2 months in my sector only. It means that ice is breaking. It will take time to establish brand reliability.
Also, if they introduce a 0.9 or 1L V2 with both auto & manual, then they will pose a serious threat to the local automakers.
But all this will get clear in next 2-3 years. So fingers crossed for 2015 !!
I think we should not make Mehran as the minimum cap in car industry. We all know what its worth. Its actual price is not more than 250,000 brand new. New entrant should release 2 door car under 350,000 and 4 door car under 550,000. Just give people AC, seatbelts, decent shape like Mehran and Chev (nothing fancy), normal brakes, 800cc normal engine; thats it. There is a huge market available between 300,000 to 800,000. New entrant can gain this market share, build reputation by providing good after sale service and then move upward in price with new models and specs. Any new entrant with high specs and price tag of 800,000 and above will loose due to numerous popular second hand corollas and hondas in the market.
For FAW pls launch a advertisement blitz .advertize and market ur products. improve ur quality.bring the latest shapes and technology and keep prices low like in india and china. Faw will beat these corrupt mafia at toyota ,honda ,suzuki .Faw go big and bring out all the stops.but pls improve ur quality and maintain it .u will beat the competition
I don’t think that government would allow import of cars older than five years. Because of environmental factors. It is however possible that they may reduce duties on Hybrid cars.
As for FAW V2 well in Karachi I have seen many of FAW XPV getting registered fast recently after such a long time since it’s induction in FAW vehicle line up. It is possible that V2 may go through same phase. Because do not forget people like me who will like to buy zero meter car in affordable range and since people like me use cars for around 10 to 15 years, we do not care much for resale value, knowing we have already used car for best part of it’s life. Last but not least FAW globally is better positioned than Kia or Hyundia and so must have planned well before entering in Pakistani market.
Monopoly of Big 3 can break the same way it was with Hona Motorcycles. If you remember back in 2000 Honda CD 70 was Rs. 68,000. And the very next year the time come when the same model was available for Rs.50,000. Why such a huge cut down in price. It was because of competition. Local Manufacturer imports bikes from China and Local Vendors came together to make same shape parts for bikes, eg: CD-70 Indicators, tail light, headlight all have bolt-on fitting on a Chinese Bike. So the biggest issue for the availability of parts are solved in a blink of an eye. As a result people started to buy cheap bikes with same supported parts. And Honda unable to earn the same profits. Offcourse they were earning something in Rs.50,000 as well. Just imagine how much they were making Rs. 68,000. Same should be done with Car Industry, i dont know about the patents and all but if the same shape car like Mehran/Cultus would offer in a price tag of 400,000 and 550,000 Respectively. Then Suzuki will also cut down its prices
30 years old design of Mehran, only price is changed. Suzuki doesn’t even put a simple cassette / cd player in it.
Whose Responsibility is to check what these companies are selling with continuous price increase?
People need change but there are also people who spend more than a million on a car which doesn’t have ABS or power window.
Well I have been using Faw v2 since last three months and have driven 1500 Kms by now I have personally experienced that car is excellent in terms of fuel efficiency, interior comfort like seating and air conditioning with no cabin noise even on deteriorated roads with pot holes. In a given price tag its a threat for Suzuki Swift and yes up to some extent for toyota vitz. Please dont forget that FAW V-2 is zero meter and offering air bags, adjustable head lamps, door beams which are not even available in honda city and toyota gli. The drive is very smooth and pick is really owesome even when car is fully loaded with luggage and five persons on board. Therefore, resale would not be an issue for Faw v2 as the buyer is making upfront saving of 5 lac when compared with swift and vitz.
U did a great job .I am also willing to buy this after I manage my budget.can u tell me what is the market trend towars FAW v2 because I am in Quetta and here I have seen only one Faw vizi Car.
Driving Faw V2 for past 5 months after my Altis got stollen. Couldn’t be happier. The interior, drive and traction are best value for money. Excellent mileage (20+kms) on highway.
Bought this car………. GOOD PICK……..GOOD MILEGE…….. Comfort….. But cheeky plastic Dash borad…….Else My car Faw v2 is power ful and beautiful.. Zeeshan from Rawalpindi…..
is the dashboard plastic quality is even worse than Suzuki Cultus or is it better than Cultus?
this car is going to hit our road.
wht about the spare parts ppl??? are they avlb easily??
Its Dashboard is like old vitz
why to ignore build quality of suzuki cultus as well specially head lights issue..irresective of my own ride i own a fleet of 18 vehicles at office but every one is suffering from same issue i.e. worst head light
FAW also should introduce V2 Automatic with same features and cc. They also should think for 1000cc and 800cc with price of PKR 749,000 and 549,000. This will not only be beneficial for Pakistani nation but for Al-Haj and Faw also who can easily beat the monopoly of 3 Japanies companies (Honda, Toyota and Suzuki).
Bhai Jan Can you please now tell me what is your engine compartment condition ? is body now rusty? regards.
nice car….best than wagon r …wagon r is a teen dabba …before buying wagon r please comparioson between both cars.
true
Brother, I would like to know your experience of driving faw after one year as I am also thinking to purchase this car. Thanks
go for it, V2 is fabulous value for money
Nop, picture perfect after two years of driving. As new as first day. I have put on 21000 km on it. Just ensured changing oil and filter after every 5000, no other maintenance required. Fuel efficiency is also fabulous. Rs.1000 (15 liter) lasts appx 7 days of city driving
Great.
what about resale value ????
sub log mujhy dara rahy hain that I shouldnt buy !! please guide……
i am going to buy this week inshallah
I took a test drive of Faw V2 recently,the car seems to be good,but when i compared it with Swift(As I Kept Swift for 1.5 years) in terms of the door quality .the dashboard quality, the road grip etc ..Faw v2 lacks there.
Bro if govt allow to import 5 years old cars and I assume price will be approx. 7-8 lakh. So what do u think is it wise decision to buy 5 years old car and save 2.5Lakh? 2nd main thing we should promote our local assembled cars to break monopoly of other brands. I suggest govt should promote FAW through policies. The major benefit is the circulation of money will remain in Pakistan if people buy local products which controls foreign currency rates. Definitely, go for FAW and also intoduce some other brands also to make our lifestyle better and to make our economy more strong. My vote is for FAW and for all local brands even their quality is little low as compare to imported brands. If today we will promote our local brands one day we will set a bench mark of best quality.
I have read many articles about new automobile industry establishing in Pakistan. In my view we all should help these new local brand to save our money from old Three Car Mafias ( Suzuki, Honda & Toyota ). Me also going to by Faw V2 this month.
I’ve fallen in love with V2. The only thing that’s stopping me from grabbing it is the much anticipated closure of business in future (God Forbid) ,e.g., KIA, Hyundai, Chevrolet, Nissan, etc. Whilst I understand that spare parts availability is not a problem at the moment, I just wonder what will happen after they decide to wind up their stuff. I’m not worried about resale because I’d like to keep it for good. But what about spare parts once they are gone?