Two European carmakers to set up plants

[OO7]

Tuesday, May 02, 2006

Two European carmakers to set up plants

By Arshad Hussain

KARACHI: Two more European car manufacturers will introduce their latest model cars in Pakistan by the end of this calendar year.

The government of Pakistan has already allowed the two companies to import their complete build units (CBU) initially.

French company Renault will introduce to the Pakistanis its Logon models.

The government has also allowed a consortium of four investors, including an Arab and three Pakistani investors, to introduce European Black Cap car in Pakistan.

“The federal government is working on an auto policy that would be announced in the next few weeks,” an industry source told the Daily Times here on Monday. “The government is likely to announce a number of incentives for these two European carmakers.”

“The incentives to be announced by the federal government will help the carmakers to set up their plants anywhere in the country,” the source said.

French Renault carmakers had already introduced their vehicles in India and now they are looking towards the Pakistani auto market.

“The company has promised to the Pakistani government to initially invest Rs two billion in Pakistani auto industry and it would import 1000cc to 1300cc cars into the market,” the source said.

The company has demanded a further reduction in customs duty from 35 to 15 percent in the coming budget and exemption from all taxes for the next five year, the source said.

Similarly, a Pakistani consortium, SPL, has been allocated several acres of land in Dhabeji, a place close to Karachi.

The consortium with an initial investment of Rs 2.5 billion would set up a Black Cap car-manufacturing plant in Pakistan and it would introduce 800cc to 1300cc cars. The ministry of finance has allowed the consortium to import 300-400 CBU cars in Pakistan.

“Both the new investors are looking towards the government’s auto policy, which is to be announced,” the official said.

Two European cars, BMW and Mercedes, are already plying in Pakistan and considered prestigious despite being highly expensive.

“The new comers are introducing vehicles below 1300cc power engines and they should be so priced that they should compete with other vehicles like Suzuki, Toyota and Honda,” an analyst said. According to sources, the government has set up a committee, headed by Prime Minister Shaukat Aziz, to listen to complaints of the local auto industry.

The government has refused to give any new incentive to the local auto industry, an industry official said.

Source: http://www.dailytimes.com.pk/default.asp?page=2006%5C05%5C02%5Cstory_2-5-2006_pg5_4

[datzburier]

Good, let them come and break the back of the Honda and Toyota, they are completely ripping off the locals by charging DOUBLE for their cars. Suzuki, although also is equally to blame, but they atleast have introduced many cars, a pick up, a small van, a jeep, that are somewhat outdated but are affordable for the masses.

The main culprits are toyota and honda, which are very rigid and have only been mis-using the auto-deletion policy. To this day, they have only used 20% or so local parts and have been importing 80% parts in shape of kits and assembled them poorly without any regards of quality control and worst of all, charging DOUBLE for what those cars are selling all over the world.

Hopefully, government allows this French Logan car, and many others that are planning to sell at around 6 to 7 Lakh range and THIS IS THE REAL PRICE OF CIVICS AND COROLLAS, all over the World, 6 or 7 Lakh, not more.

[datzburier]

What is worst is that many people believe that New Corolla or New Civic is Actually worth 13 or 14 Lakh or roughly $22,000 Dollars US. That is Bull.

Corolla is being sold for $12,000 for 2006 Model, I have Newspaper sitting by my desk, that has this SALE price of BRAND NEW COROLLA listed in Today's Newspaper by the Dealership. That is about 7 Lakh 20,000 Pakistani Rupees. And this car is being sold for 14 Lakh (On included), in Paksitan. That is beyond, rediculous, that is Day time Robbery, by the local assemblers.

And The worst thing is, many here would not say.. No, No, Corolla and Civic are worth 14 Lakh.

Car Assembler in Pakistan charging you DOUBLE and you as consumer defending them is like someone slapping you in your face and you say, No, No, I actually Deserved to be slapped on my face.

People need to stop supporting this toyota/honda Mafia in Pakistan and demand/protest, organize rallies, at front of parliament in Islamabad, to let more assembler set plants in the country.

toyota and honda are good cars, but they are not like they were in Made in HEAVEN or something, and therefore, no one should raise their voice against these car models. That is rediculous.

I don't understand why people are silently letting these Car Assembler cut their pockets, and loot them, so easily.

This never happens anywhere in the world. Only in Paksitan, where Consumer are Happy letting the Car Assemblers, Rob them.

[portage1]

who is doing day time robbery,I dont like competition................I got a license for day time robbery

[nossee]

Jo boya, wo hee kat rahay hain.
ON bhi ameer log he laay hain.

Chapair marnee chahyeh jab koi dealer ON mangay.

yeh log crore pati bun gaay hain.

[adnan1]

bhai datz. aap joo price deekh rahay hain aus main kiya tax, freight, ac tax, dealership charges include hain. meray pass bhi detroit free press hii hai, i think yehi news paper aap kay pass hoga. aap showroom par price check karain. newspaper par price agar 12000$ hoo tu woh showroom par 18000$ hoti hai. aap showroom par say price check karain wahan aap koo hidden charges pata chaltay hain.

[Storm]

I'll believe it when i see it with my own eyes. (meaning i want to see the product on the roads)

[Vajih102]

the Renault news is old but what about the second one? didn't understand.

[datzburier]

VAJIH, the other company is from Britain. A Pakistani Business man, has successfully negotiated to ship the plant for Black Cab Of London to Pakistan. There is a Pakistani Website also, and the plant is going to be in Dherbeji, or some place like that in Karachi area. I forgot the web address


Adnan Bhai. How's it goin'.

Lets get this argument about Double Pricing and Ripping of Pakistani Assemblers going ... .

I bought a Brand New Corolla, in 1998, 0 Meter, from Toyota Dealership. I was able to bargain the price, to $11,000 from Asking price of 11,899. It was end of Year, the dealer wanted to get rid of 1998 models. So, he let me have it. Plus the taxes you are talking about are no more than 6%. Which is roughly $700. And registration and title was not more than $200. So, I drove the car off from the lot, with papers and everything for $11,900, everything paid.

Still now, the New Shape Corollas 2006 are being put on sale at price of $11,999. I know this is just a limited quantity, as it says in the ad. Only few dozen and also base models, CE. (Common Edition) with Automatic transmission, not LE or XLE, or VE. Those are a bit more, but not more than $15,000. Still under 9 Lakh for top of the line. The base model Corolla CE can be bought, with taxes of $750, plus registration of another $200 to 300. So you still will be able to Buy on CASH, a Brand new 2006 Corolla in USA, not CANADA, for the price of around 7 to 7.5 Lakh Pakistani.

Trust me, I am not a kid, trying to argue with you, I have bought and sold over 15 Cars, in past 10 Years or so. Some brand New, Some Luxury, like Lexus GS300, Lexus ES300, Lexus LS400, LandCruiser, etc. So, rest assured, I know What I talking about brother.

[ABBASIA]

Here is the website:

http://www.ptl.com.pk/

The Pakistani group who is building the auto plant at Dhabeji industrial estate.

[ABBASIA]

The Government of Sindh allocated land to Prime Transport Limited for Car Assembling/Manufacturing Plant at Dhabeji

A meeting was held on 7th April, 2006 at Chief Minister House, which was presided over by the Chief Minister Sindh, Mr. Umer Ahmed Ghuman Minister of State for Privatization, Investment and Special Initiatives was also present in the meeting besides officers of Land Utilization Department and the Directors of Prime Transport Limited. The Minister of State who is also Chairman Board of Investment explained that the project of Prime Transport Limited was one of the initiatives on investments. He also informed that another company intends to establish the Buses, Trucks and Cars of famous Mercedes brand in Pakistan and they will also put-up their plant at Karachi. The Government of Pakistan attaches great importance to these projects which will not only improve the economic conditions of the country but would also provide employment opportunities to the masses. It was decided in principle to establish a new Industrial Estate comprising of an area of 13,000 acres at Dhabeji and allocate 400 acres of land to Prime Transport Limited for establishing a car assembly/manufacturing plant and allied facilities including residential colony for its employees at the proposed Industrial Estate at Dhabeji. The Land Utilization Department accordingly issued Provisional Allotment letter to Prime Transport Limited. The Chief Minister graciously visited the area and announced establishment of a new Industrial Estate at Dhabeji. He also visited the site earmarked for allotment to PTL together with the Federal Minister of State and Chairman of Board of Investment Mr. Umer Ahmed Ghuman and Mr. M. Dawood Khan Chief Executive PTL.

Prime Transport Limited envisages establishing a Car Assembly/Manufacturing plant for assembly/manufacture of the famous Black Cabs of U.K. in Pakistan with rated capacity of 6,000 units per annum on single shift basis. The vehicles will be operated by PTL as Satellite Controlled Taxi Service in all major cities of Pakistan and exported to various countries from Pakistan.

[tsah15]

@adnan1 bro, do u have 2 wait 4 same number of months after paying the full payment in advance? i don't think so, charging high price is 1 issue as highlighted by @datz but producing car from ur money and tht 2 of noot so good quality is really something which bugs me all the time. deposit 1.2 million rupees with the firm for 6 months and after that time, excuses like, the car will b despatched this week/nxt week/ten days etc and then many more days after despatch from the factory.

[tsah15]

The details at the link look OK.
some pics





http://renault-logan.eastrolog.com/

[tsah15]

The details at the link look OK.
some pics













and website is
http://renault-logan.eastrolog.com/

[tsah15]

Initally i was little excited but now i know its not going 2 b a very sophisticated car with City/Liana/other similarly level accessories. Just for info the following link is also useful.

http://www.biz-architect.com/renault_logan.htm

[datzburier]

Thanks Abbasia Bhai for the PTL link, I searched but could not find it, I knew it existed.

Nice info Sajjad Bhai. The Logan may not be exactly at par with High End Jap, cars, at this time, but it certainly would be a good alternative for the cars like Cultus, Santro, Alto, etc. selling in 5 to 6 Lakh Range, it may even pull some buyers who were initially inclined towards City, or Liana by sacrificing some more money for a bigger car.

Logan offers the bigger size of Liana, City, but at a cost of Cultus and Santro. This car and others with similar dimensions, if introduced, can really push prices of the Cultus and Santro down to their Real Level of 3.5 to 4.5 Lakh range, not more.

Hopefully, more assemblers are let in, and take control of Auto Industry. This current local Auto-Mafia of Toyota/Honda/Suzuki is really taking full advantage of this current situation, which they largely created and also customers have also contributed by keep on supporting them and giving them more reason to continue on their path of looting the customers.

Its like, sorry about this example, like a rape victims in U.S. Some people argue that rapes in U.S. occur so rampantly (Most amount of rapes in the world, occur in U.S.), due to Females own attitude and dressing in a way, to attract attention from criminals, with Short Skirts and tight shirts, and going alone thru Parks at night, where most rapes occur.

Samething can be said about Pakistani Consumers, they are getting Raped by the automakers, but the consumer are also to blame by making themselves So Attractive for the Automakers, by giving up all the money so quickly to these Criminals, or shall I say, Money Rapists. They are money Raping(Violating) the customer, by charging so much (double the international level), and the customers are equally to blame, by being so attractive, Moneywise, to the criminals(autoassemblers).

Sorry for this example, but this is exactly what is happening. The People are equally to blame.

[tsah15]

datz bhai, a good xample . Some more about Logan on the following link

http://www.businessweek.com/@@DbK7jIYQLWzeyAwA/magazine/content/05_27/b3941072_mz054.htm

needed 2 ask u a question since u know Mr Feroz Khan, is there a plan of Adam Motors 2 start making some 1.3L or any other capacity sedans

[chevyboy]

The reason cars are double the price in Pakistan is due to government taxes, not "looting" by assemblers. Assemblers pay 35% duty on imported parts, and then income tax 6%, GST 15%, and sometimes additional GST of 5-7%. All this compounds so you end up with very end retail prices.

On a typical imported car, the government taxes more than double the price of the vehicle. The government makes ca. 10x more money on a car than the importer, but all the consumer dissatisfaction is directed at the importer/assembler, rather than the govt taxation which adds to the vehicle prices. Check your facts before ranting in the wrong direction - local assemblers are not making supernormal profits anymore.

[toofast]

8-|

[baqai]

well great news, will give suzuki and toyota to think about their cars

Guys waisay one more thing, remember KID Pride? a small sedan car for cheap ... how big of a flop it was? yeah i know people might debate that the car was a joke or what not ... but point being we accept it or not are very brand consious people, if not brand consious than we are shape consious what we are NOT is economy consious

i am not pointing fingers at anyone else because i am one of the "consious" people myself, i bet more than 70% of people if they had choice for a free car among Liana, City or XLi would either opt for City or XLi ... we would see very very VERY few cases of people going for Liana why? think about it