The Public Accounts Committee (PAC) recently called a meeting to discuss the standards of the automotive sector. Chairman PAC Noor Alam Khan got furious over the low quality of locally assembled cars in Pakistan and demanded the Big 3 companies get their act together.
Federal Board of Revenue (FBR) Chairman Asim Ahmed, Secretary Industries and Production Imdad Bosal, CEO of Engineering Development Board (EDB) Raza Abbas Shah, and representatives of car companies were among the attendees of this meeting.
Meeting Agenda
The panel discussed the issues of the Pakistani automotive industry, such as
- Delays in car deliveries
- Poor build quality of locally assembled cars
- Low safety standards of locally assembled cars
- Localization of car parts
Chairman PAC called the CEOs of Big 3 car companies (Pak Suzuki, Toyota Indus, and Honda Atlas) for not bothering to attend the meeting and answering these concerns.
Things got out of hand when the Suzuki representative mentioned that the company has orders for 20,000 units, claiming that the new Suzuki cars contain all the safety features. PAC Chairman snapped at the statement saying Suzuki cars don’t even have airbags and the company should not lie about its safety standards.
The Chairman then went on to point out that these companies committed to localizing the production of car parts in 2010 but failed to make it happen. Meanwhile, Senator Shibli Faraz called the automobile companies a “mafia” and raised the question of why the country has been unable to produce engines locally.
The meeting came to the conclusion that the automakers need to improve their quality and service, and the Engineering Development Board (EDB) should ensure that.
The authorities have arranged a series of meetings to go over these issues, but nothing solid has come out of these sessions. Let’s see if PAC’s words affect the car companies and wake them up.
P.A.C. chairman is wrong to say that Suzuki cars do not contain airbags, as per the brochures of Alto, Cultus, Swift, Vitara there are airbags in these vehicles, as for localisation, I guess he is unaware as to the state of education levels of Pakistan. Most of the people possess degrees but are unable to apply theory to reality that is why not even rickshaw and bike’s engine is being manufactured over here yet, how on earth can engineers even produce engines for cars?
I don’t know a lot but when i take a look at the price of some cars, sure it is overpriced coming from those Ex big three, according to some past new Kia is 3rd today and Honda 4th.
Anyway as exemple of overpriced cars with late deiveries is Toyota land Cruiser J 300, today is better to buy a Mercedes GLS instead with greater comfort and cheaper price. Not only is better but J300 isn’t worth to buy anymore when we know what a Mercedes GLS worth.
@Waqas
Bhai Waqas after the passage of new budget import of every luxury car into Pakistan has been banned, Mercedes is a luxury vehicle and therefore, it cannot be imported now.
@Khurram
Thanks , i remember of the ban, as well the late deliveries of LC J300 up to 4 years, that’s mean once the ban will be lifted Mercedes will be available again, no LC J300.
@Waqas
The ban is in place for an indefinite period, anyways, Land Cruiser has undeniably a palpable presence, not to mention its perception to durability, less frequent maintenance and exceptional off-roading capability.
@Khurram
I don’t think the ban will stay for four years, during july apparently we will get a loan from IMF, it will be a big mistake because Imran Khan was holding himself to get another loan, since he understand the trap, but Shahbaz will take it , it will affect the ban time, and even if the ban took few months it won’t take 4 years.
About Mercedes Durability, you should know , Mercedes Petrol engine are among the best in the world legit to compete against Lexus.
But when it come for the price matters, Mercedes GLS come cheapers than Toyota LC J300 in Pakistan, when it should be otherway around like in the rest of the world. I can only recommand bying a GLS and not buying a LC J300.
Is time to change the cars landscape of Pakistan, that’s what Kia had already boot, followed by Hyundai, Proton now is gearing up as the most car affordable brand of the country 300+ Saga sold in May and it is just a start, and know time for the german as Mercedes to shine, when ii look at how many Toyota Land Cruiser J200 are on the road of Pakistan, i know that the GLS can make the same level of presence on our road.
Mercedes just need to widen his network in the country.
@Waqas
Frankly honest engine is not the only thing, suspension, electronics, body work also matters and in these areas the Land Cruiser has already been tested, that is why it still remains the king of this segment, people have even bought J300s including the GR version, it can be seen in posh areas.
Moreover, no matter how rich people Pakistanis are their prime concern has always been maintenance cost, resale value and frequency of repairs, these areas are playing a major role in sale of Toyota cars in Pakistan a Mercedes is luxury without a doubt but its parts cost is way higher than the LC. and does not have quick resale Moreover, the image also matters, the Mercedes means luxury but when it comes to off-roading people think about Toyota and this image is going to be giving L.C. an edge over GLS. In fact this image is also helping battle Corolla against Sportage, Yaris against Saga and Alsvin you must know that KIA even launched Sportage Alpha and its price was around the same as Corolla, the intention of course was to break market for Toyota Corolla but that model failed miserably, it is still on offer but it is not very popular like the FWD version.
@Khurram
Straighten your fact a little bit brother, everyone know a german parts and cost of maintenance is higher than a Toyota, especially for the german premium brands, but think a little bit when a GLS is far cheaper than a J300 won’t the saving made by buying a GLS will be better invested for the maintenance ?
For Kia they had alpha trim not necessarily to compete against a Corolla, the segment is different, more because people don’t do off roading in Pakistan, the majority of people, even though an AWD system is efficient on wet road, like the snowy road of Muree, but SUV is the tendency of the market, the body type of SUV to be accurate, people love the style.
Thus there is no point to buy an expensive LC J300, and talking about off-road, brother i don’t want to talk about the
4Matic long history and Mercedes long history of off-roading but you know they got one of the best 4×4 in the world ?
Namely Mercedes G class.
If you want to talk about suspension and electronics, well again Mercedes got cutting edge technologies on board like Mercedes MBUX, Proton X-70 was bluffing to had something similar, Mercedes got Acive suspension like a lot of Modern SUV and 4×4, is a very comfortable car, powerful, when you accelerate in a mercedes you don’t even get the time to know but in a great comfort in merely few second you are already driving in high speed outpassing the limit of the rules, thats the strenght of a Mercedes.
I’ve been in a lot of Mercedes from S class to AMG one ( an old one) even in BMW if you know what is a German you wouldn’t blindly defend the J300.
You know my view about J300 is a very good off-roading, but when the price is unfair for what he propose, why buying it ?
You understand why whealthy family of Pakistan are buying Kia Carnival ?
You know why Toyota J300 isn’t sold in North America ?
Again Brother when the price is such overexpensive, why do you stand for J300, when they are better products for the needs of customers on the Market ?
@Waqas
Firstly, thank you for the most illuminating response, I agree that I have never experienced a German car because in Pakistan Japanese are preferred over Germans therefore, there are not many in Pakistan and to be frank my buying power is not very great either. Secondly, you say I am defending a Toyota blindly, well, thankyou for your rudeness, however everyone has personal favourites, yours seems to be Proton. Anyway you may be right about a German vehicle being a best but when it comes to off-roading, Toyota remains best at-least that is what consumer reports say. Besides my dear I am talking about J300 in Pakistan’s context and neither France or Germany or any other developed economy is in my mind. Therefore, please note that in the Pakistani environment the maintenance cost doubles than it would be in France the reason as you may very well know is the quality of fuel, oil, road infrastructure, level of mechanics understanding about technology and since you are more knowledgeable than I am, then perhaps I need not remind you that all these factors combined together are going to make a GLS lot more expensive than you are making it sound. On the other hand, people having a monthly income of PKR 500,000 to 1million are unlikely to buy such a vehicle. Fourthly, you yourself before now have refrained to compare Pakistan with other markets then why are you now citing an example of North American market to reiterate that J300 is overpriced and not worth it, I doubt that a GLS in Pakistan would be priced below it because you said that Mercedes is a luxury, is not then a luxury brand supposed to be priced higher than a mass produced brand? Lastly, correct me if I am wrong but Audi is not as good as Mercedes and even Audi’s basic car costs well over a 1 crore, how can then a Mercedes GLS be priced lower than a Toyota L.C.?
@Khurram
Brother sorry for my rudeness, but here i will make it simple, in Europe and i believe this is applicable all around the world, we have a saying someone who can afford a premium German brand can afford the maintenances.
In Pakistan a whealthy family bought a Lamborghini, maintening it in UK by sending it each year in Lamborghini UK.
By blind i doesn’t you were foolish but you are seeing things in your point of view, i’am not someone who can afford a german too just got some family and friend who can afford it.
I would never compare a GLS with a LC300 but rather with an Lexus LX, because of the price i had to do it.
Here is not a matter of off roading or not, the GLS is available with 4 matic, is just giving another view of the option available, and what seem to be better option for the need of the customers.
At some in this article they are thruth the Japanese, or pakistani sellers to be more accurate are playing it dirty, this is not about personal preferences, i may like Proton it doesn’t i accept al Haj’s fraud.
A LC J300 more expensive than a Mercedes GLS, something wrong here…
I like Porsche as well but we got an interesting news in France about Porsche Pakistan that i didn’t even read in any Pakistani automotive news, the fled of Porsche’s head of Pakistan, because he was a thief.
To sum up the final choice is up for the peoples who can afford those cars, is their choices, they don’t care much about off roading or cost of maintenance,
The only thing we all should worry is the way we earn our money and the way we spent it, like the Zakat is our duty we must pay it, that’s what the Creator Allah will ask us.