Auto policy approved, door wide open for new entrant

[Moon]

The real Ermagherd comes from comparing the price of the El-Stripo models sold in Pakistan with these figures.

I literally have no idea, what that means.

 

[VCheng]

I literally have no idea, what that means.

It means that the cheap, poorly made Pakistani models of the Corolla and Civic have very few options, and yet are sold at a much higher price that the models you mentioned earlier. The OhMyGod moment comes when one realizes the magnitude of the difference.

 

[Moon]

It means that the cheap, poorly made Pakistani models of the Corolla and Civic have very few options, and yet are sold at a much higher price that the models you mentioned earlier. The OhMyGod moment comes when one realizes the magnitude of the difference.

That's what I said .
I just quoted the price in dollars so it would be easier for you to understand. I went to Honda in Pakistan.

 

[Asian.Century]

Government should stiff up, wake up now, Toyota, Suzuki & Honda sending low quality cars to Pakistan. Japanese manufacturers are giving low quality cars at high prices to Pakistanis. I was astonished to hear that there is no airbag in many of the cars. These are so unsafe and price is way too high. Government should open market for other investors, like Nissan, Hyundai, Audi, Volkswagen, BMW & FAW Luxury cars,If Renault, Fiat and Nissan invest we wont need their investment. enough is enough. That will help the people to get better cars and also the local industry will grow and jobs will be created.

This Honda-Suzuki-Toyota car-tel in Pakistan needs to be broken.

 

[airmarshal]

Government should stiff up, wake up now, Toyota, Suzuki & Honda sending low quality cars to Pakistan. Japanese manufacturers are giving low quality cars at high prices to Pakistanis. I was astonished to hear that there is no airbag in many of the cars. These are so unsafe and price is way too high. Government should open market for other investors, like Nissan, Hyundai, Audi, Volkswagen, BMW & FAW Luxury cars,If Renault, Fiat and Nissan invest we wont need their investment. enough is enough. That will help the people to get better cars and also the local industry will grow and jobs will be created.

This Honda-Suzuki-Toyota car-tel in Pakistan needs to be broken.

They are not sending low quality cars. Pakistanis are buying low quality cars because government failed to take effective control of quality. In the price of the car, there are layers of taxes over taxes that consumer pay. Government needs to intervene to regulate and improve quality.

This auto assembly units have become a cartel as governments past and present give in to blackmail and monopoly. New auto policy might add a 4th member to this cartel, not much if you read it.

 

[Asian.Century]

ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Friday approved much delayed Automotive Development Policy 2016-21 aimed at facilitating higher volumes, better investment, enhanced competition and better quality with latest technology.

The ECC, which met under the chair of Finance Minister Ishaq Dar, has also approved levy of 15 percent additional regulatory duty on import of finished iron and steel products till 30th June 2016. ECC also approved levy of regulatory duty @10 percent on aluminum alloy. The decision would help in generating Rs1.7 billion for the government in remaining few months of the ongoing financial year.

The top economic decision making body of the country, the ECC allowed increase in the limit of the GoP guarantees for PIA from Rs. 146 billion to Rs. 151 billion to help the National Carrier pay its liabilities. The ECC gave approval for extension in the date for reduced withholding tax @ 0.4 percent for non-filers under section 236p of the Income Tax Ordinance, 2001 up to 31st March, 2016.

The Committee after detailed deliberations approved the Automotive Development Policy 2016-21. The policy aims to facilitate higher volumes, better investment, enhanced competition and better quality with latest technology. The Policy also aims to create a balance between industrial growth and tariffs to ensure sustainability for all stakeholders. It would also ensure consumer welfare besides aiming at providing policy consistency and predictability for investors. TheAutomotive Development Policy (ADP) 2016-21 will be formally launched on Monday, 21 March, 2016.

In October 2013, the ECC constituted a committee to propose the new automobile policy. The government took two and half years to approve the policy. The government under new Auto policy would give incentives to new the entrants in this sector, as duty on localised parts will be 10 per cent whereas duty on non-localised parts will be 25 per cent for five years, however, no localisation plan is in hand for the new entrants. This implies that after five years, tariff for new entrants will be doubled. Similar incentives are being offered for revival of closed units for three years.

However, the government has not offered any incentive to the existing Original Equipments Manufacturers (OEMs). Under the policy, the amount of advance payment will be limited up to 50 percent of the total price. Price and delivery schedule, not exceeding two months will be firmed up at the time of booking. Any delay over two months will result in a discount @ Kibour + 2 per cent prevailing on the date of final delivery / settlement from the final payment; this will help shorten delivery lead time.
The government in the policy has also offered incentives to revive closed units for three years.
Much delayed Auto Policy 2016-21 finally approved

Source: https://defence.pk/threads/much-delayed-auto-policy-2016-21-finally-approved.426276/#ixzz4ThVfCmm8

 

[VCheng]

So how many new entrants have actually walked through this door thrown wide open by the new auto policy by now? We have heard lots of announcements.

 

[Max Pain]

So how many new entrants have actually walked through this door thrown wide open by the new auto policy by now? We have heard lots of announcements.

Renault

 

[VCheng]

Renault

Can you please point me to a source confirming a Renault manufacturing plant in Pakistan? Thanks!

 

[Max Pain]

Can you please point me to a source confirming a Renault manufacturing plant in Pakistan? Thanks!

Ofcourse,

http://www.dailymail.co.uk/wires/afp/article-3902064/Renault-open-plant-Pakistan-2018-Govt.html

They are currently upgrading the gandhara nissan plant currently located in Karachi intitally they will launch 2 vehicles as CBU's. One of them is the famed Duster with the price range of 2.5 million pkr


"They will start assembling cars in Pakistan by 2018."

A Renault spokesman in Paris confirmed the plans, saying the company "has entered into exclusive negotiations with Ghandhara and Al Futtaim Groups to develop the Renault brand in Pakistan, including a manufacturing plant on the Ghandara site in Karachi".

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

alsi there is also an official tweet

 

[VCheng]

Ofcourse,

http://www.dailymail.co.uk/wires/afp/article-3902064/Renault-open-plant-Pakistan-2018-Govt.html

They are currently upgrading the gandhara nissan plant currently located in Karachi intitally they will launch 2 vehicles as CBU's. One of them is the famed Duster with the price range of 2.5 million pkr


"They will start assembling cars in Pakistan by 2018."

A Renault spokesman in Paris confirmed the plans, saying the company "has entered into exclusive negotiations with Ghandhara and Al Futtaim Groups to develop the Renault brand in Pakistan, including a manufacturing plant on the Ghandara site in Karachi".

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst

alsi there is also an official tweet View attachment 368912

So thus far, Renault itself has confirmed only negotiations, no end result announced?

 

[Thəorətic Muslim]

They are not sending low quality cars. Pakistanis are buying low quality cars because government failed to take effective control of quality. In the price of the car, there are layers of taxes over taxes that consumer pay. Government needs to intervene to regulate and improve quality.

It's not for the government to "demand" effective quality controls. It's not the government spending 11,000,000 Rupees on a car, it's the consumer. If you're willing to drive around in a coffin, Mehran, then it's not Suzuki's fault if Suzuki Pakistan LLC wants to import and assemble a 1970s model, Suzuki is getting royalties for each and ever Mehran produced using it's blueprints.

If the desire to have a car is greater than the desire to have a safe car with airbags and seatbelts with A/C then who's fault is it? Indus Toyota or Honda will sell their assembled cars for a price they can sell enough to have profits>costs. The Pakistani government allowed the Japanese access to the market on the condition that they will design and manufacture their autos in Pakistan. You can argue for such a small market it doesn't make sense for Pakistan to have a complete manufacturing plant, but designing? Or making plastic covers? Seatbelts? Or the various other low-tech inputs that make a car.

Iran produces millions of quality cars domestically, with the ability to ramp up production and meet Pakistan's demand, how far is Iran from Pakistan? China also has the ability to not only meet but set up facilities in Pakistan. The lack of an environment isn't the fault of JAW or Toyota.

I think it was on Pakwheels about the poor assembly of a Honda Civic/Accord?

 

[Max Pain]

So thus far, Renault itself has confirmed only negotiations, no end result announced?

If cars rolling out of the plant is the end result then you would have to wait till 2018,
as of now Renault is upgrading the Gandhara Nissan plant to accomodate the production tools for the subsequent assembly of their vehicles which will take time,

you will find plenty of info if your simply google it.

I gave you the official confirmation from one reputed auto manufacturer,

I remember when the policy was announced almost a year ago you used to ask the same but back then their was no official confirmation from anyone but just interest but this time its different,

 

[VCheng]

If cars rolling out of the plant is the end result then you would have to wait till 2018,
as of now Renault is upgrading the Gandhara Nissan plant to accomodate the production tools for the subsequent assembly of their vehicles which will take time,

you will find plenty of info if your simply google it.

I gave you the official confirmation from one reputed auto manufacturer,

I remember when the policy was announced almost a year ago you used to ask the same but back then their was no official confirmation from anyone but just interest but this time its different,

All I asked for was an announcement from Renault, which is nowhere to be found, still.

 

[AZADPAKISTAN2009]

We might see more cars from China / Iran into Pakistan's market
An Iranain/Pakistani auto manufucturing plant in Baluchistan would make a long term entry for Iranian Vehicles into Pakistan

Higher Quality vehicles being made just across the border from Pakistan , the arrival of some of these models is only a matter of time

• Similarly it is expected to see more Chinese Sedans on Pakistani Roads

On same account Suzuki has reduced the value of Japanese brand into dust due to their below standards vehicles in Pakistan such as Suzuki Meharan and reluctance to improve quality

Only suzuki itself is to blame for low quality as cars of similar style are sold with full feature in Japan

They list "steering wheel" as a feature