In 2021, over 13,000 new cars (CBUs) were imported. That is an unusual number. In the last four years average new CBUs import were 1,400. The increase is mainly due to new entrants (Chinese and Malaysian) which are importing new SUVs and selling in the market.
MG is on top of the list. It was launched with a fan-fare and promise. MG-HS was too good for its price at the time of launch. The sponsors were smart in marketing and their spent was primarily in marketing. They saw the opportunity and didn’t wait for local production and kept on selling the imported (CBU) units. To-date they have sold 10,000 MG-HS – all CBUs. Now the government has applied a regulatory duty on MG-HS category cars. The price of imported unit has increased by an exorbitant amount. Now the survival of MG-HS or any other car by MG is on local production. They have not yet gotten the license to assemble. The process of acquiring license is on-going for over a year. If MG doesn’t get the license, it’s probably dead.
Then there are other players who are mainly relying on imported units to penetrate in the market. In 2021, 695 Haval (Jolian and H6) and 387 Proton Saga & X, new CBUs are being imported. However, not every new Chinese player is relying on imports. Changan is doing it the right way. The company is not selling CBUs as such – just like Kia-Lucky and Hyundai-Nishat. The have recently launched a compact SUV- Oshan. It’s a beautiful futuristic car at a decent price. Many say it’s giving the right value for money. The company has decent number of dealership and seems serious in the business.
However, that doesn’t mean other new entrants are not serious. But till they start producing and selling locally assembled cars, their future will remain questionable. How much the car market will grow in Pakistan depends on a lot of different factors, not just more options made available in the market. The more prominent and visible trend is the conversion to SUVs, which will see more hybrid options into the mix. A big Japanese carmaker is coming up with CKD crossover option, for consumers to watch out.
https://www.brecorder.com/news/40160565/auto-market-size-standing-still
