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Thread: Why Dewan Motors fail in Pakistan

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    Default Why Dewan Motors fail in Pakistan

    Ever thought there is a God's curse on this group. Dewan Mushtaq and Dewan Farooq must have tons of money but not an iota of immagination and foresight. A country whose half the population lives on 1 dollar a day and 30% on 2 dollars a day, how can 2.0 million worth of cars succeed.

    I find the following variants/brands,a all introduced by Dewans, did not click in Pakistan, simply because of price and to some extent performance. Kia Sportage, Spectra, BMW, Mini, Classic. I am foreseeing the same abysmal performance of Sonata, Coupe, and Terrano. Later Picanto. Today's Dawn carries the advert.

    Shehzore and Santro performed well. Prices were right. Santro Exec CNG will fail. Price above 7 lacs.

    Perhaps its not the brand as well. Camry, Accord, Gallant, Nissan Patrol Pajero, Land Cruiser, Prado (regular import by Indus), X trail, Liana all failed just because of prices. Are we Kennedies, Arab Shiekhs and Rockfellers sitting in Pakistan?

    I fail to understand why can't these groups think if importing smaller cars, 660cc to 1300cc. Not allowed by Government perhaps? Why not Starlet, Vitz, Platz type vehicles imported by these tycoons.

    Come 2006, WTO restrictions lifted and we will have flood of Indian cars. Then how would the government provide protection to Atlas Honda and Indus Motors?

    The Govt. needs to make a THINK TANK for these car manufacturer and importers who could suggest what to import, suitable for Pak community.

    The tragedy of life is not what we suffer, its rather what we miss.

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    well i guess u are right. every car of dewan has failed in pakistan and the main reason is price and delivery time. even though dewan is only producing santro and has annual capacity of 15000 i cant understand why is it a problem for dewan to deliver cars on time it is hardly producing 600 cars a month that shows that company is intrested in black marketing. secondly there is issue of price the price of santro is increased by RS 60000 since its launch which is pathetic even toyota and honda have not increased prices upto that extent. and buying a santro exe CNG with price tang of 680000 is unimaginable. even price of shahzore have increased so much that it is feasible to buy some alternative. I guess hussain u are right it is GOD's curse on this group as each car they have launched has failed in market we have example of mitsubishi, classic, spectra, santro, sportage etc

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    1. They lack production capacity
    2. Their after sales service is crap
    3. Their marketing is utter rubbish
    4. The earlier models were finished well, the new ones are horrible
    5. If you are going introduce Luxury cars like BMW, they should know the market for the executive class isn't really above 3.5 million PKR on a car. Why not resort to CKD based cars which are assembled here in order to make them cheaper? Pakistani assembling CAN BE GOOD, before leasing became common the quality of Honda 1999-2002 was SPECTACULAR (almost the same can be said for Toyota). Why not produce less but produce quality? Quality over quantity.
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    Market research and analysis is carried out by every company and different segments are identified. Some segemnts are profitable, some are for niche market and some are only for comapany imge though they are never profitable. In case of Deewan Motors, same is the case. Santro and classic are quite profitable segments. Sportage and spectra could be graded as for niche market as there is a considerable market share by SUVs and sedans in Pakistan. Sonata is to compete for Camry, Accord, Cefiro and Gallant by different manufacturers. Coupe will try to tatget rich and young at heart as the only sports car available in market.
    Drive safe, life is precious

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    if they really do carry research of market then they should have tried to compete in lower segment where mehran and coure are competing and in sedan where corrolla , city ,civic are competing there they do have some good scope they can launch hyundai accent type of vehicles which could compete them but looking at price of hyundai santro it is unimaginable to guess prices of these sedans may be they would have price tag of LIANA which has also failed

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    when u book a car u r given 2-3 months for club and i think 1 year for GV,ur money is invested by them in other buisness ,in case of dewan he used to bring BMW,and other hyundai cars??
    Giving money and power to government is like giving whiskey and car keys to teenage boys.

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    Yes, Dewan's vehicles are the most over-priced local vehicles. But there's a great misconception regarding the WTO in our country. WTO doesn't require the member countries to bring their tariffs and taxes to zero level. And it isn't going to come in 2006. Our car market dynamics are going to maintain the status-quo in the foreseeable future, unfortunately. We need more and more local assemblers with enhanced capacity to bring in competition and timely deliveries.
    mics420 is very right regarding the launch of vehicles for different segments and for different objectives.
    Evolution interrupted.

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    3 years back Dewan was trying to introduce practical vehicles in differing market segments, e.g. classic was well placed between Mehran and Corolla. Spectra was a segment of its own. an aeroback 1500cc Sedan. Sportage was also first of its kind. Santro was a very good alternative for Cultus, Mehrtan, Alto etc.
    Shehzore took the market by storm and it was well matched with requirements of transporters. Grace van was laos good in its class.
    But for last three years or so they have formed part of tha Cartel that our industry actualy is. Every decisiona nd launch is showing the same.

    They are making some big blunders around, lets see where they land with there santro and Shehzore. Innovation in Marketing is totaly stopped now. I am saying it because importing vehicles is not innovation. It doesnt help our Industry in any way. Even imported vehicles are selling on premium (Chevrolet). This is the clear indication of motives.

    God help our economy. We should all pray.
    Keep a cool head and wear seatbelts!

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    HI Dewan and all other are living in a cocoon, once that is gone in the post-WTO setting, their assembly plants are going to shut down because the over protected industry has failed to attain the technological excellence and the vendor industry has also faltered on bad quality parts, so it is a matter of a couple of years. The auto industry has not shown a significant improvement in quality despite the scale of economy has been on constatnt rise to their advantage. They have also taken advantage of customers money and have not made their own investments to the required level, despite all pampering by the government of Pakistan, what they have produced so far is the rubbish.
    Be polite on the road. Always give way to others, particularly ambulances and pedestrians.

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    As far as I know, there present cars are selling like hot cakes.......
    Apart from pakwheels, my blogs can be also be viewed at http://tajziat.blogspot.com/

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    Than why so little Santros were sold last year ?

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    I have said that assemblers enjoy undue protection and customers have no choice but to buy from them plus a lot of profiteers have booked cars to sell later on premiums, people are paying more not because these funky pieces of junks are very good machines, because they need the vehciles so badly. The import of certain models has also not helped the market as they are even more expensive. The government has allowed the import but kept a duty structure in favour of the local assemblers making imported cars more expensive than the local ones.
    Be polite on the road. Always give way to others, particularly ambulances and pedestrians.

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    @netsurfer
    just to create artificial shortage in market even though they had capacity to build more cars
    as far as i asked one employee in dewan motors he said that they are not able to get engines from korea thats why they were not able to make more cars

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    The problem with the assemblers and manufacturers of cars is that they take the Pakistani public as fool and helpless. They deliberately compromise on quality to earn more profit. It is a pitty that a Pakistani car cannot not be compared with its foreign assembled version. Ours' is a far inferior in material and workmanship. How they do so? By bribing the Government departments. They used every trick to black mail the Government when it was being decided to allow free import of reconditioned cars. They provide cars to the high ups and their kith and kin without premium, whereas they are fleecing the common man. All politicians of the Government party and the big bureaucates get cars on priority basis. So when the assemblers have overpowered the Government agencies, then why to care for the public. So they all are bound to fail if a liberal import policy is enforced. They are working on "dung tapao" basis to derive benefits in minimum possible time.
    It is better to reach late than to never.

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    True Mafias rule Pakisan
    Be polite on the road. Always give way to others, particularly ambulances and pedestrians.

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    Rumor is that Dewaan Motors may lose its BMW franchise is Pakistan. It is believed that their dealerships are not able to service/maintain the BMW cars sold through them.
    CAUTION: DSC OFF!

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    i cant figure out why did dewan motors thought of bringin top of the line hyundai cars and thinkin that tey'll suceed , i mean hyundai has othermodels such as accent elantra which are half da price, why not start wid dose terracan and coupe is gonna sell well i guess but sonata!!!!!
    Tough times never last, but tough people DO...

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    They are bringing lower priced Kia models in a month or two

    Kia Picanto
    Kia Rio
    Kia Sportage

    Mafia does rule our Auto Industry. Dewan was not a part of this mafia 3 years back but now they are the major Bhai Log with defined territory (Market Segments)

    Now that someone has used this word, i should stop calling it a cartel which is a very sophisticated word but implies the same meaning.
    Keep a cool head and wear seatbelts!

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    i dont think they failed,
    they r making money,
    go & c BMW bookings, customers etc.
    sportage was nothing but
    more units have been sold than expected.,
    shahzore a commercial vehicle is making ON,
    wat could they expect more, Dewan group is in the list of Top 40 business groups of Pk.
    by the way check the real sales volume,
    the ratios
    of the high greade car sales
    eg., Accord, Camry, Prados etc etc
    u will b shocked v r far far better than Indians hahahahahahahaha
    they hav v v v high rates of taxes 2 discourage imports.,
    whereas a country like ours having all the luxurious cars is not an ordinary 1.
    change ur ideas guys and
    u need 2 come on for Ground RealitieS.
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    malikg115
    what is there for a common man?

    And what is thEre to be so happy abot shahzore selling on Premium.
    It is a commercial vehicle and should be available easily.
    There are 100s of shehzore's parked in a yard of Twin City Islamabad but they are selling for premium, why?
    U r right about company making a lot of money, They even sold more Spectra's then there expectations but what they r doing with sommon people is pathetic. in any case Pakistani businessman does know how to make money, after all this is why they are doing business, but u cannot change common man's perception unless u offer them something good.

    They started realy well and all there decisions and products showed good and well thought out decisions but now they are part and parcel of auto mafia who are creating artificial shortage and exploiting the common man.
    Keep a cool head and wear seatbelts!

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