Hello,
I know there was a topic on Porsche's presence in Pakistan, but this thread is initiated with complete info and background.
http://www.porschepakistan.com/
After a record year in the Middle East Market, delivering 3,811 cars (up 37% from last year) Porsche, the German sportscar maker, has signed a contract with a Pakistani company, Autotechnik (Pvt) Ltd to open three dealerships, starting with Lahore, in the first quarter of 2006. Islamabad and Karachi are next on Porsche's track.
In a press release, the automaker said it was delighted to announce its expansion into the "highly anticipated Pakistan market" in alliance with Autotechnik, represented by Abuzar Bokhari (Chairman), Attique Ahmed (CEO), and Faisal Farooq (Director Finance). Autotechnik will start operating with the first "Porsche Center" in Lahore - location scouting for which is currently underway.
“We are confident that Porsche along with our partner “Autotechnik Pvt. Ltd.” will set the benchmark for the premium car segment in Pakistan.”
The entry into Pakistan will expand Porsche's already thriving Middle East operations. The automaker has grown from 40 to about 90 countries in the last 10 years.
About the Alliance with Autotechnik (Pvt) Ltd.
Commenting on Porsche’s venture into the Pakistani market, Deesch Papke, Managing Director of Porsche Middle East & Africa, said: “Appointing our importer in Pakistan holds special significance, as it extends our presence into an untapped potential market, where Porsche is bound to prosper...When the first shipment of Porsche cars arrives in November, sports car aficionados will be treated to a true blend of Power and Passion never before witnessed in Pakistan.”
Abuzar Bokhari, Chairman of Porsche Centre Lahore Autotechnik Pvt. Ltd., stressed the significance of the upcoming challenge: “Autotechnik is proud to be selected by Porsche to lead its operations in this key market for Porsche. Our unique business culture of excellence and perfectionism matches that of Porsche, a combination that will help us exploit all of our resources to surpass even the most ambitious goals we have.” “The opening of our first Porsche Centre is only months away, so the recruitment drive is well under way and a number of key positions have already been filled. In the mean time, new employees are attending Porsche technical and administration training; furthermore, all necessary specialist equipment orders have been placed while online support is already in progress.” Bokhari further added that political stability and prudent economic management had led Pakistan to become one of the fastest growing economies in Asia. “Porsche’s presence in Pakistan testifies to the potential this market holds."
“Appointing our importer in Pakistan holds special significance, as it extends our presence into an untapped potential market, where Porsche is bound to prosper"
- Deesch Papke Managing Director Porsche Middle East & Africa
“Porsche’s presence in Pakistan testifies to the potential this market holds."
- Abuzar Bokhari, Chairman Autotechnik
Porsche models most likely to attract Pakistanis
According to its press release, Porsche has been enjoying the success of its younger generation sports cars, the Boxter (above left) and 911 Carrera series. However, it is the Cayenne SUV (bottom left)- a new entrant on the Porsche brand stand. “The Cayenne is a true sports car. It is nimble and safe. It is a perfect car for Pakistani road conditions and climate - superbly suited to the Pakistani lifestyle. Most importantly, it offers sound and solid German engineering and reliability, like all our models.” Papke also added.
The Cayenne has enjoyed a strong demand in the Middle East region, which Porsche expects will continue in Pakistan. They are probably right, given the makeup of the consumer market. It is the industrialists, land owners, and politicians who currently own Pajeros and Landcruisers that are most likely to also (or instead!) own a Porsche. We can see a few Boxters and Carrera 911s roaming the streets in the hands of the younger afficionados whose family funds can afford them such luxurious gifts, with a few middle-aged but young at heart rich industrialists. But mostly, we see the Cayenne taking the lead because not only is it a truly beautiful SUV, it is also practical and sturdy.
Who will buy a Porsche in Pakistan?
With prices upwards of Pak Rs. 3 to 4 million, who can really afford to buy a Porsche in Pakistan, where the annual per capita income in 2004 was $2,200 (Rs.0.13 million)? The answer lies in averages, which mostly ignore the outliers and are not available for the top 1% income earners in any published source.
Much as Pakistan is considered to be a poor, developing country, its urban elite has seldom been short of money. The only tough times in recent history were when the government froze foreign assets and dollar accounts, or when several hundred people's names were printed in national newspapers as part of the loan recovery process. Consumer spending did, perhaps, take a downturn in those days.
However, in Pakistan, those who have the highest debt also have the highest spending power, because you can't get a loan in Pakistan unless you already have a lot of wealth. The consumer finance market has only recently started growing and while it has enabled the upper middle class and salaried professionals to get wheels, their credit caps out at a Honda Civic at most. The most common, newer cars you see on the streets are still various brands of Suzukis, with Hyundai, Kia, and other economy autos. Honda Citi, Civic (especially VTi) and Corollas spell out the higher end of sedans. Pajeros and Land Cruisers abound in big cities and villages but they are out of the commoner's reach.
Pakistan's rich elite pump the urban economy with millions each year, but will Porsche really survive in Pakistan?
But where will you drive your Porsche?
A car born on the autobahn is hardly a fit even for the US, with a 55MPH limit on most highways, the maximum being 75MPH on some interstates. So then, where the devil do you drive a Porsche in a country that has a 60 KM/hour (roughly 35MPH) limit? Answer: on the motorway! The only six lane highway that connects Lahore to Islamabad, where you can safely experience a 55-65MPH driving speed. Of course, many readers are probably snorting because who really cares about speed limits in Pakistan, right? But even from a logistical standpoint, a roadster like Porsche, on the photographed road in Liberty Market Lahore? You'll definitely go from 0 to 100 onlookers in 3 seconds, but will you ever top 30MPH during day time without killing someone? Probably not!
In a world where investor confidence in Pakistan is highly volatile, the news of a major brand like Porsche making a retail advance into the country is encouraging. It is also encouraging to see young entrepreneurs like the owners of Autotechnik (Pvt) Ltd reaching international agreements of this scale and bringing their country some non-political, positive media coverage. Leading publications like Forbes covered the Porsche-Pakistan alliance and whether it means anything for the overall growth of Pakistan's economy or not, it does take the focus away from other issues, and highlights the more normal aspects of life in Pakistan.
(Source thesaturdaypost.com)