I believe Ciaz has a lesser price as compared to its competitors, and the features it is providing. It fits well to your description of how to create demand. But yes, it has a bad repute due to its parent company, and that didn't have anything to do with the previous products of the company. As I said, PSMC provides support for Liana and Baleno till now, it will provide support for Ciaz as well. If people buy it, it will increase their confidence, but they have to be cautious banking on past experiences. Liana and Baleno were technically advanced cars at their time, people didn't buy them. There are absurd issues attached with these cars, which are baseless in my opinion. Liana has the same engine as Swift, but the repute of Swift is good enough, which is illogical.
I am not saying that Ciaz is a very good product above everything else, I am just saying that it is suffering from a bad repute which is baseless. Otherwise, it is as good a product as the competition. This is a problem. FAW is selling V2 at the price of Wagon R, but people would rather buy a Wagon R than a V2, because it is a Suzuki. The quality is almost the same in Wagon R and V2, the features are over the top in V2, but still this is the trend. If our public had been thinking logically, V2 would have smashed away Wagon R and Cultus, forcing Suzuki to reduce prices. But that hasn't happened, for obvious reasons. V2 has now created a niche market for itself, but it hasn't broken the monopoly. This is going to create problems in the future as well. I fear that any number of new entrants will not be able to break the monopolies already established no matter what they do, because people in Pakistan want only resale and cheap parts, which both come with constantly increasing prices and production of obsolete models.
I believe that the infamous resale and spare parts thinking is the root of the problem our auto sector is facing. If an incoming model is priced higher than the outgoing one, the resale price of the outgoing model will stay the same. But if the incoming model is priced same as the outgoing one, people would rather buy a new car in the same price than a used car, hence the resale of the outgoing model will go down. This is why we see high resale of most cars, because they sell at the same price they were bought at. In case of a Liana, a 2006 Liana bought for somewhere around 860k is now sold in 500k-600k, which is an alright resale, not bad, in my opinion. But a cultus bought for 500k at the same time will be sold in 550k, which is more than its value when it was bought. This is an anomaly and it allows the market to keep increasing prices.
As for the spare parts, the older a model is, the more localized its parts are. Hence there are higher number of parts manufacturers manufacturing its parts, which also aggravates the same problem.