Why companies dont bring budget small cars

[muhammadhuzaifagamer]

i was looking into new car section, and going through each company, i see alot of suvs and electric car, man we are pakistanis, most of us are middle class, why does companies brings big suvs and sedans that are of like from 80 lakh to even 1.7 caror who's gonna buy them.
why can't they bring small cars, like alto or other 660 cc cars, their sale would sky rocket, because most of us can afford those
i wanna know is this deliberate and a reason behind it?

[saad0irfan]

Expensive cars have a higher profit margin for automakers.

And like you said, comparatively less people buy them which means after sales will be easy. Hence, the brand will be able to satisfy it's customers more easily which will in turn make their brand image stronger. That will result in even more sales!

As an example, Toyota usually sells around 500 units of Hilux and Fortuner and Suzuki sells thousands of alto units.

After sales of the 4x4's for Toyota will be way easier because of less customers of the duo compared to Suzuki which has to provide for thousands of people.

[syncview]

they have low budget cars, just that the definition of low budget has been changed. What was for 0.8 million is now for 2.3 million..

[Xulfiqar]

I think you have it backwards

High volume means better after sales support, both with and without brand ownership repair.

E.g. you can probably get a set of injectors for a 1KD in Bannu as compared to a DCT unit for a new chinese SUV regardless of dealership or not.

[saad0irfan]

Sir the question was about why automakers don't launch competitors against cars like alto or cultus.

Now we know that the other two Japanese companies aren't interested in that. That leaves the Chinese and Koreans. Their spares can only be found in dealerships at the moment. So most probably the new entrants won't be able to keep up with the demand of spares because of a comparatively weaker supply chain for the mean time.
That will hurt their image as a brand.

The Chinese already being hurt badly because of the word "Chinese" stuck with them, probably aren't ready to launch something for the middle class because that class isn't ready to spend their hard earned money on a "Chinese" car either.

[sohikun]

Sorry bro !!I can't agree with this. Releasing a 660cc car is more profitable, dealerships make a lot of money from after-sales services (maintaince) and even sell fake parts as 'jinyin'. Hate to break it to you bro, but some dealerships do this. Even if they don’t, they still make a lot from after-sales services (maintaince). Jab bhi ap dealership jaye gaay, bill phele ready hota haay, aor yeh logh banday ki pent bhi uthar letay haay.

Back to the topic, I've been in this sh**ty market for years, running my shop. What I have noticed is that pakistanis love "pfuel averageii", so when they hear "hybrid", they automatically think "phuel average gud" and decide to buy the car.

Anyway, the current trend in pk is for hybrid and electric cars. There ain't much competition right now, so whoever dominates will win, like haval. Some Haval users will defo switch to BYD. Plus, current laws are supporting electric and hybrid vehicles. OBV, auto manufactures will take advantage of it. MEH !!!

[saad0irfan]

Releasing a 660cc car is more profitable

Maybe that's why Suzuki suffered a loss of 10 billion rupees in 2023

[sohikun]

So, a single 660cc car ( Alto ) led to that ? Hope that ans the question.

[saad0irfan]

No but it contributed. Because literally all of pak Suzuki cars are "budget cars" except swift.

[sohikun]

Blame this stupid mulk for the loss of "suzuki". Anyway, I think this thread has ran its course. The agruement will keep getting longer. We have different opinions. Simple !! I go my own way, sir, you go your own way.

[saad0irfan]

Agreed.

To each their own.
Although I would have liked it if you had explained your first sentence

[sohikun]

Although I would have liked it if you had explained your first sentence

Please check my previous posts about "pk". I might throw a temper tantrum again about pk or something, lol. Also, sir you guys are much more knowledgeable than me. I'm pretty sure, you have already understood what will i get at. I'm just a paindu, offering my 2 cents on the current situation.

[saad0irfan]

Bhaijan I'm most probably younger than so no need to call me "sir". It feels weird.

Also whatever I've learned about our auto industry, I've learned from this forum. My argument in the first post about why the new entrants can't and won't launch (and afraid of launching) budget cars comes from this forum as well.

And I'm not that knowledgeable lol I'm only sharing what I read here in an year. But still, thanks a lot!

[sohikun]

Ok bro

[muhammadhuzaifagamer]

bro, what can you predict about pak automobile industry in like 1.5 year, because, ughh i;ll just say, my dad is a gov employee and he'll get around 27 lakh, when suzuki alto was 14 lakh we were so happy that we were gonna buy our first car, but fk man, this mulk, its 31 lakh now, and i dont think its worth that money, same car in india is 4 lakh, then if currency conversion applies it became around 11 lakh, whyyyyyyyyyyyyy ussssssss, and there was united bravo, which is shit and got discontinewd, united alpha too, and prince pearl is also not that attractive in build and reviews and is of 20 lakh now, shit man, what are ur thoughts

[muhammadhuzaifagamer]

read my last comment please

[sohikun]

Asking me? I can't say sh*t, unfortunately n fortunately !! This mulk is unpredictable. Kabhi bhi kuch ho sakta ~ our policies are like a seesaw ~ halal n haram. But yea, things ain't getting better anytime soon. Even hyundai recently increased their prices, i read the pakwheels blog. Apparently " freight cost" has increased. The market is already dead and they expect users to purchase their cars after the "price" increase.

Here's the blog
https://www.pakwheels.com/blog/hyundai-car-prices-increased-in-pakistan/

[saad0irfan]

In my opinion, the only way to lower prices right now would be a mass boycott or competitors or local manufacturing.

No one's ready to boycott, most probably we won't get competitors, and local companies are too lazy and greedy to make anything here because it requires investment.

Rest @ifadey @fastian04 @darthvader @pwuser167550015690 @alitayyab can give better analysis. (Sorry if I missed someone I don't remember everyone's name tag)

[muhammadhuzaifagamer]

yeah boycoott, i saw a post which says there was increase i ncar sale from 5k to 10k in the month of may i guess but it was 2024, man why are they buying it, 10k car sold in a month, boycotttttt

[alam2632]

I get your point, but on the comparison with India - please don't do that, they are on another level, we couldn't fully manufactured a Suzuki Mehran locally, until it was discontinued, I think it was still around 90-95pc manufactured locally and some parts still imported.

We die for the imported stuff, we, as a nation, like to sit around and see things happening on their own. Don't like hardwork, spending days / nights on solving issues - how can you expect to compete or even compare yourself to other developing nations - automotive industry is in a similar state, they could fully manufacture the cars, but why would they do it when they are still making profits with this assembling approach, and no one asks / questions them.