Pak Suzuki Mehran Vs Maruti Alto 800: But Do We Even Have A Market For Such Comparisons To Hold Value?

mehran-&-alto

Suzuki Mehran, the cheapest available locally assembled car of Pakistan is actually a Suzuki Alto of 1980s. The base VX model of Mehran comes without an Air Conditioning system or airbags or anything that a basic twenty-first-century car offers globally, yet it costs 6.3 lac rupees to get one. In this article, I will compare the price and features of our Mehran with its equivalent in India, Suzuki Alto 800 with respect to the competition and market size of both the countries. Obviously, India is a huge market for not just cars but everything. Therefore, they have such wide variety in cars but I reckon, despite us not having the market-size, we can atleast step into the next century?

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The price of Mehran starts from PKR 630,000 for the base variant VX, and goes all the way up to PKR 753,000 for the VXR CNG variant and don’t forget that metallic color adds PKR 5000 to its price. The differences between VX and VXR model Mehran are a fabric interior for a vinyl interior, colored bumpers and air-conditioning. It’s a second generation Alto of 1980s with a new grille and exterior lamps.

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Alto 800

On the other hand, the base model of Alto 800, i.e. STD variant is priced at INR 256,634 which translates to PKR 400,000. The prices of Alto 800 go all the way up to INR 383,567 which equals to PKR 600,000 for the LXI CNG (O) variant. The STD variant of Alto 800 neither has air conditioning, nor it has air bags. However, LXI (O) variant of Alto 800 comes with air conditioning, fabric interior, driver airbag and central door locking. Moreover, it uses MacPherson Strut and gas filled shock absorbers for its suspension as opposed to our Mehran’s obsolete leaf-spring rigid axle. Most importantly it’s based on seventh generation Alto giving it exterior, interior, features and suspension of a 21st century ‘Kei’ car. In addition to this, any variant of an Alto 800 can get an airbag installed for only INR 6000 equivalent of PKR 9000; this is something Pak Suzuki should adopt.

Screenshot_20160515-185918Suzuki Alto 800, which has long served as the people’s car of India remains the top selling model of not only Maruti Suzuki but also of India’s auto market as shown by the sales chart on the right. The low price of Alto 800 is not due to its lack of sales, the price of a product also depends largely upon the sheer volume of a market since a company which operates in a relatively small volume market needs to squeeze more profits to cover its expenses. In this case, Indian market represents a much higher volume when compared to Pakistani market.

According to PAMA, Pak Suzuki managed to sell only 3000 units of Mehran as compared to the Indian Maruti Suzuki, which sold 11000+ units of Alto 800 in India in March 2016 (refer to the sales figures on the right). This factor somewhat justifies the higher price tag of Suzuki Mehran.

With reports suggesting an imminent launch of the eighth generation Suzuki Alto to replace probably Mehran (unlikely), it remains to be seen whether the low sales of Mehran here are due to it being a 25 plus years old car and the non-existing new small cars segment in a poor country. With something new, the small cars category may ultimately see a boost, because before the new Corolla came out, Indus Motors was experiencing NPDs (Non-production days). In 2013, it had 53 non-production days and ever since the new Corolla happened in 2014, it is posting record sales and production.

So, if we can establish a connection here, a smaller volume market, or a bad economy alone can’t be blamed for the automotive sector’s poor performance, lack of new cars to excite customers does have an impact as well and it is time that they realize it and start populating their portfolios.

 

 

 

 

Mehran Price list

Alto 800 Price list

 

Adan Ali

Adan is a Tribe Leader at Drive Tribe, who writes to share his passion for cars, culture and gadgetry through words. So far his writings and contributions have been able to make their way to media outlets like PakWheels and Dawn. Reach out to him by tweeting @adanali12

  • Kashif Akbar

    I have a Question to writer of this article, out of 630000 price of our mehran, what is company price and what is the tax amount into it. Govt. of all times, are also responsible for collapse of car industry. out of Pakistan, we see low taxes and duties to boost an industry, but here you have to pay tax on life saving drugs also. 22 million people have been made fool by PPP and PMLN equally.

  • Abdullah

    ais ko kehtay hain zakhmoun pai namak chirakna…………..sir we are a very small car market……dont expect cheap good cars in Pakistan when the industry is already highly taxed…..

  • Abdullah

    high taxes on cars are the main reason for high costs……..yehan pai CAR ko luxury samgha jata hai necessity naheen and they tax it accordingly…..

  • cbing

    I don’t understand anyone claiming India has more cars because of the market size. For crying out loud, out of some 170 odd countries, India offers the second, and Pakistan the SIXTH largest market in the world. Market size has a very little part to play in this globalized world, that is why even New Zealand has more options, even with population less than half of Lahore.

  • Abdur Razak

    interesting…..we are the sixth largest auto market in world?????? i didnt know that…..ru sure?????

  • Usama Anwar

    I can’t say Pakistan is sixth largest auto market in world or not but Pakistan is sixth largest population of world which means it has potential to become sixth largest auto market. If we can get mehran with same specs and same price tag as that of Maruti alto that will definitly impact the volume of market. BTW Pakistan is definitely larger market than New Zealand

  • Guest

    Despite the tax and the smaller market, the situation could improve.

    There are countries far smaller than Pakistan having much better commute options.

    In India, in addition to big market and multiple options which promotes competition, they have Bharat-IV and other emissions standards according to which manufacturers must upgrade or cease and desist. Some of the Indian readers may please update us on the crash safety requirements. In some (high pollution zones) cities, 2-stroke is forbidden. Such regulations open up the avenues for advancement.

    Foremost is that India has always had a nationalist government which thinks of the country first when making policies.
    Another plus point for India is that none of the government’s policies were ever disturbed by military coup.

  • Sanjay Natarajan

    Indian crash test – Bharat New Vehicle Safety Assessment Program(BNVSAP) is going to be in effect from April 2017. The crash test facility has already been established in Pune, Maharashtra and the final works such as procuring equipments for manufacturing test dummies are going on.
    This applies to all cars launched after April 2017 and all the existing car models should comply with the crash test norms from April 2019.
    Already upgrading the whole nation to BS IV emission norms have started from April 2016 which means any new vehicle registered after that should comply with BS IV(earlier only the metro cities comply with BS IV).
    Also, India plans to skip BS V to directly leap forward to BS VI (equivalent of Euro VI)

  • cbing

    My comment is not about Pakistan is the sixth largest market, but can be. That is why I made the NZ example. Its not the size that affects the market, but the policy.

  • Only 22 million people?
    What about others?

  • Suzuki Fan (Ghooma Hoa Dimaag)

    Suzuki Mehran is far more tougher , stronger , power full , reliable , shock proof, stable , fuel efficient, comfortable , unbreakbale and above all of superior quality than Indian Maruti Alto 800 , Just Jocking yaaar…………..

  • cbingo

    In Newzealand Car prices are higher than Pakistani Market…………………

  • Yun

    rest gave them vote 🙂

  • Hannibal Lecter

    you have an awful sense of humour.

  • Hannibal Lecter

    yaaaas. drag Suzuki Pakistan.
    i’d rather buy a Porsche bicycle for the same price, Mehran is that useless.

  • You are talking about the REAL jaahils and gawaars (those who gave them vote)

  • Zafar Khan

    Hum Pakistani Bher Bakrian Hain we accept anything. Auto makers lobby is strong and well entrenched, they bribe concerned departments and continue with old models. Changing to new models require changes in assembly plant also older models knock down kits are dirt cheap. Profit profit and profit. No to quality is the slogan of Pakistani auto makers.

  • Waqar

    Pak suzuki jo quality hai like sazgar riksha inko mehran riksha ki price main dayni chaye. Shame on pak suzuki quality and dubble shame on prices.

  • akhtar mir

    I totally agree with Mr. Zafar Khan. Neighboring India’s Maruti was actually Suzuki. It has changed a lot in design and equipment while Pak Suzuki is still turning out 1980 models.while India’s 100% built Nano is great success and is exported. Pak Suzuki, Indus Motors, Atlas Honda are enjoying monopoly, fleecing customers and making huge profits by bribing officials.You can see the Japanese cars flooding on roads because local cars are substandard and not worth the value they are being sold due to monopolist attitude .

  • Akhtar Mir

    Ha, Ha, Ha, very true Mr. Waqar

  • Alto 800 is a basic car targeted towards basic car purchasers. This car is unsafe even in cities. As you may have seen with Maruti 800/Mehran, a small hit by a lorry or LCV/HCV is enough for this tin can to total. Then, we have people on suicide mission taking this car to highways where a small touch of any vehicle can make this car lost control. .

  • Darshan

    Indian government is also thinking to make ABS mandatory on all two wheelers having more than 125 cc.

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