Upcoming 12th Gen Corolla Fanclub/ Discussion Thread

[hussain182]

The thing is next gen corolla will be outrageously expensive since it is based on a new TNGA platform, starts with a base 1.6 engine and lastly, will require extensive investment in assembly line up gradation. This added cost will be transferred to the consumer making corolla more or less equal to civic in terms of pricing i.e. 3.5-4 Mn+.
What could drive the prices down are 2 factors :
1. Betterment in business environment i.e. Dollar depreciation, tax + duty cuts.
2. Using the new platform for multiple new vehicles instead of just the corolla. The possible contendors are diverse. Namely, RAV4, New Yaris, CHR, Raize, Highlander, prius, Camry all sit on some variation of the TNGA platform but is our market ready for them? Unlikely.

Corolla grande etc already cost 3.5-4.0 mil, as much as civic. What will be difficult is to justify these prices for an older generation. Sales are already super low. A lot of people will delay buying in anticipation of newer generation or move to civic or even sportage etc if they dont launch the newer generation.

Dont see either of the two scenarios you mentioned happening soon. Although personally i think a few of the cars you mentioned could do well in pakistan but i doubt Indus will introduce them.

It will take a little time for buyers to adjust to the new prices but soon enough sales are going to pick up since there are no other options. A newer model will in fact help boost sales.

[usman19854]

I get what you're saying but our current problem is a forex problem and tax revenue doesn't help it. Even if we constrain imports with a tax structure that keeps the imports at the current local sales level it'd add some billion dollars, pakistan only has a few exports that fetch above a billion.
Not to mention the millions employed, already losing jobs and this can aggravate the situation. In the long term though, our govt needs to understand we're not a place for auto manufacturing and start focusing on stuff we can be good at so that we can afford to import our transport needs.

[hussain182]

Even if we constrain imports with a tax structure that keeps the imports at the current local sales level it'd add some billion dollars

No I dont think it would add billions. With the reduction in imports of CKD kits etc and repatriation of profits by assemblers the net increase in foreign exchange being sent out is not gonna be THAT high.

Not to mention the millions employed

Not to sound insensitive but these are highly highly exaggerated figures used by the auto lobby. Even if you count every last employee at every dealership (who tbh will still be employed doesnt matter if we import cars or assemble them here), I doubt millions are employed by our auto industry.

Besides,I am a farmer myself and the the agri sector is by far the biggest employer yet the government has no qualms about withdrawing subsidies and support prices ‘for the greater benefit of consumers’.

Yet the auto industry enjoys protection literally unheard of anywhere else. The import duties and taxes we have on cars are amongst the highest in the world. Even countries that actually have indigenous automakers dont give such a high level of protection. It is understandable to give reasonable benefit to the local industry (although again how local is it really?). By reasonable it would mean max 10-15% extra duty/taxes on imported cars not the current 200-300%. Efficient and innovative industries are born in competitive environments not monopolistic conditions.

[usman19854]

It's not the assemblers themselves that have a lot employed, it's the supply chain with the local vendors who use extremely labor intensive last century production methods, closure of plants would mean quite the permanent loss of employment for these people since most of them are illiterate and unadaptable to other professions. I can assure you it's millions, the companies themselves are direct employers to only a few thousand though.

[hussain182]

I can assure you it's millions

Tbh i find it extremely hard to believe but i’ll take your word for it.

Still, as I said earlier, whatever the number employed in the auto industry, im sure we can agree its not larger than agriculture right? Not even close. Yet no agri output is protected by duties to the tune of hundreds of percent. And im not talking just essential food crops, even cash crops like cotton etc are imported at minimal duties, so farmers are constantly competing with international prices.

Its just a matter of lobbies nothing else.

[usman19854]

Agreed

[suhaibayaz]

Efficient and innovative industries are born in competitive environments not monopolistic conditions.

I could kiss you for that ! I would add, competition and creativity are not the qualities found in Pakistan. Almost all sectors. I am in Financial Services, Pakistani banks enjoy highest spreads, highly inefficient and poorly administered and regulator is equally stupid.

[hussain182]

Youre right...

Its just that with cars its especially painful. Wrong hobby for this country....

Honestly if I leave (which im seriously considering) cars are gonna be a major reason. Lol

[usman19854]

Wrong hobby for this country....

ikrrrr there's literally nothing produced locally that I'd actually want to buyy, its a majboori to buy from these choices.

[wasiqshahab94]

Just the idea of being able to buy a supercar beater C8 corvette in US/Can for less than what a stupid Camry costs in pak is a mouth watering prospect...

[LX_AFFAN]

New corollas look great. I occasionally spot them here. Will take a picture next time I see one.

[hussain182]

https://tribune.com.pk/story/2155580/2-imf-advises-pakistan-open-economy/?amp=1

“The International Monetary Fund (IMF) has proposed that Pakistan should open up its economy to the rest of the world by lowering restrictions on imports and signing new free trade agreements (FTAs)...”

Unless its a ‘yahoodi saazish’ and they actually want to bring us down.

[Zaeem89]

Spotted new corolla many times in Dubai.... Looks much more planted to the ground

[aa78]

What could drive the prices down are 2 factors :
1. Betterment in business environment i.e. Dollar depreciation, tax + duty cuts.
2. Using the new platform for multiple new vehicles instead of just the corolla. The possible contendors are diverse. Namely, RAV4, New Yaris, CHR, Raize, Highlander, prius, Camry all sit on some variation of the TNGA platform but is our market ready for them? Unlikely.

With regards to 1, please note any dollar depreciation will be converted to profits instead of decreasing costs by equivalent percentage. Evidence of this is the fact that PKR depreciation resulted in exorbitant price increases despite tall claims of localization but USD depreciation in last few months has had no positive effect for the consumer; infact prices have only increased since the USD peak.

[aa78]

It's not the assemblers themselves that have a lot employed, it's the supply chain with the local vendors who use extremely labor intensive last century production methods, closure of plants would mean quite the permanent loss of employment for these people since most of them are illiterate and unadaptable to other professions. I can assure you it's millions, the companies themselves are direct employers to only a few thousand though.

And yet the assemblers prefer importing various parts when they could easily be made locally. In fact, I know of a person who suffered due to this since he wasn't able to sell his existing products due to refusal from these assemblers to buy. Same item was imported from abroad and supplied to dealerships countrywide with "Made in Thailand" stickers.

[hussain182]

Honestly the way these companies call themselves ‘automotive manufacturers’ whereas all they are doing is putting together imported parts.

By the same logic every time I shop from IKEA and assemble the tables and chairs at home, i am a ‘furniture manufacturer’

[hussain182]

With regards to 1, please note any dollar depreciation will be converted to profits instead of decreasing costs by equivalent percentage.

Completely agree. No company ever ‘passes on savings to the consumer’.
These are just buzzwords used by lobbyists to maintain their monopolies.
Lies like ‘Give us complete control of the market and we will achieve economies of scale and the consumers will get a cheaper product’ ..Never happens.

Why the hell would any company sell something for cheap when it has no competition?

[Arsl984]

I think yaris is good option for your usage as u dont need trunk. Plus u want to keep for long duration hence a brand new car is the best choice

[Arsl984]

U can drive with ur ears turned off.Disconnect BT connection rattle wont be there . Surely it will help
Living with it as well

[Alir1]

Well, that's one way to go about it..