Current Auto Policy attracted many new players in the country and eventually started giving new options to the consumer. The new entrants are still in the initial stages of operations, with KIA being the oldest with almost nearly two years into production. One of the latest one is Changan and it has recently excited the consumers with teasing of crossover SUV, UNI-T. But is it really coming to Pakistan? Let us discuss.
Auto Development Policy (2016-21):
The new auto companies were established under Auto Development Policy 2016-21, and you guessed it right, we are in the last phase of this policy, and in fact, just a couple of months are left before it expires. There had been news about a specific extension of time in the current policy. This will give the existing companies more time to develop any new or planned products, or maybe the government don’t extend the timeframe, and a new policy comes into play soon.
As of current status, any new company must have a CKD/ local domestic model developed by June 2021 to have tax breaks on imports of parts /other components and other additional benefits, including importing duty-free machinery for an assembly line.
Changan Pakistan Motor’s Entry:
Under the policy, Master Motors, a joint venture with Changan from China, has already introduced a CKD Alsvin sedan earlier this year. Master motors have a crossover SUV planned as well and to compete in the ever-growing attractive segment currently filled with Tucson, Sportage, MG HS, Proton X70 and Glory to some extent.
Recently Master Motors imported CBU single unit each of UNI-T & OSHAN X7. Since then, the internet is buzzed with the post, videos and other details related explicitly to UNI-T. Currently, the UNI-T is on a countrywide tour along with OSHAN X7 and making a stop at various Changan dealerships. As “PLANNED”, UNI-T is attracting a lot of public everywhere.
Many people expect its arrival in the next few months, while some have even shared an estimated price. Before moving forward, let me clear that this piece is my personal opinion and observation, and I fully respect everyone’s opinion on this matter as well. We all here are enthusiasts to share our ideas and thoughts so, every opinion counts.
My Opinion:
While UNI-T might be a great product, and that’s a different topic but is it really coming to Pakistan as locally assembled / CKD? I think it’s a “No”.
Master Motors/ Changan marketing team did an amazing job to attract the public towards the brand. The arrival of imported products like UNI-T and driving it around the country with stops at various dealerships is a hugely successful marketing campaign. Bringing such products for marketing purposes actually develop consumer confidence towards a brand and shows a portfolio, capabilities and advancement of a certain product.
A CBU unit on a countrywide tour can also be obviously for research and study to see consumer opinion, in other words, a survey about a specific product. Does that mean that if we see a particular model from a brand, it will be for sure developed for the local market? Not necessarily.
What Lucky Motors Did?
Lucky Motors did the same approach by bringing the halo car the “Stinger”. The model had worldwide praise and attraction, and bringing such portfolio products automatically attracted the public to the KIA brand. In fact, the Stinger arrival showed globally KIA’s higher level of refinement and technical accomplishment and automatically changed people’s perception about the brand. Stinger truly changed Korean brand’s identity on a global scale, and since then, every other product started becoming a success.
We all have, for numerous times, made assumptions, predictions and even priced a Stinger in Pakistan as locally assembled by Lucky Motors. Even some people shared a month of arrival because we just saw a CBU unit on the roads or at dealerships or at auto-show and made an opinion that it is coming. But in reality, the CBU didn’t convert as CKD, and most probably, we will not see it happening.
Is Changan Really Launching UNI-T?
To me, the same exact seems the case with UNI-T. Alsvin may be a great or best product out there but still have that China’s brand made label attached to it, and many people are still skeptical about the brand. Products like UNI-T automatically pulled strings and created an attraction on social media, and obviously, people started making a predictions about its arrival.
I hope and wish that we see a locally assembled UNI-T, as no one knows the future. But for now, I can say that the model is not in the pipeline for development at this time.
Changan’s this marketing approach/ stunt is probably for something different. The brand is keeping the public on its toes [and we have seen it already very well and successful] so, the consumer remained glued to the brand. Further, the buyers stop/ halt making their decision about buying a product from competitors, but in reality, I think Master Motors is paving a way towards a different product.
So, What is Coming?
As we know and I mentioned earlier in this post, a crossover OSHAN X7 is on the radar. A model that is roaming around right next to the UNI-T on Pakistani roads but hasn’t come to the showroom for a public appearance.
OSHAN X7 is a compact unibody crossover and is lined up under Changan’s OSHAN sub-brand. The Chinese market X7 is powered by a 1.5L Turbo engine with around 175HP +/- while torque hits 265NM. It is available both as a 6-speed manual or DCT. We have already seen the CBU units pictures, and there is a due chance it might go for production instead of UNI-T.
Again nothing is officially confirmed as the company will never publicly share their strategic plans and upcoming product details, and the same applies to UNI-T or X7. Both these vehicles are currently available only as Left Hand Drive (LHD) and nowhere as Right Hand Drive (RHD), so the arrival of such models as RHD also takes time and a lot of investment, especially in a new market and for the first time. Also, if we see multiple models, it does not mean all will become available. It’s not an easy and cheap recipe to develop various products at the same time. It took Alsvin more than a year to get set for our RHD market. Pakistan is the first country where RHD Alsvin is made available.
For now, we should wait and see what rolls out of the assembly line. We should also keep in mind that if Master Motors wants to avail the benefits of the current auto policy, they must develop a vehicle by June 2021 unless the government makes any extension to policy or makes any exceptions.
What Should Changan Do First?
Lastly, I would say that Changan must improve their customer service, improve the production numbers and deliver the Alsvin to the customers quickly.
I still remember the respectable CEO of Master Motors presentation where he said they are here to challenge the status quo. Still, it seems they are becoming part of the same status quo as there is 6 to 7 months of delivery time, has increased price without even delivering the single unit and an ongoing 3 to 400K “ON money” for the early delivery of Alsvin by black marketing. Until these issues are resolved, “FUTURE, FORWARD FOREVER” will just remain slogans FOREVER.
