Honda halts production in Pakistan, Indus to follow

[Mav3rick]

They are losing business due to new competitors in market offering products at cheaper price. I mean that piece of shit Suzuki Alto costs 1.25 Million. Seriously who would buy that piece of junk with even inferior materials used than those used on Suzuki Mehran. I mean seriously look at its build quality as if someone built it from recycled plastic. Although new compnies statrted off at slightly higher prices they will reduce them after they start getting reasonable orders. Its all about economy of scale. If someone wants to know how much Suzuki Honda Rip us off on yearly basis

Suzuki 2017: 3.28 Billion Rs Profits 2018: 1.35 (Mainly due to new and cheaper competition in market)
Honda 2017: 3.7 Billion, 2018: 2.08 Billion
Toyota 2017: 13.8 Billion, 2018: 15.77

Although i doubt these fudged number from these corporations this is still a ridiculous amount of profit being generated whereas in other countries these same companies are going in major losses on yearly basis. These companies finally got a bit of competition which is good for our economy especially consumers.

All the dumb idiots blaming PTI government are morons of epic proportions.

Very nice post, very intelligent too. Kudos on your attempt to win arguments with non-linear language. Anyway, I would advise you to reconsider and research the profits you have posted, and to focus on net profit rather than gross. I would also like to do some math, please correct me if I am wrong (we shall consider M/s. Suzuki as an example):

M/s. Suzuki's Net Profit for FY 2018/19: Rs. 1.89 Billion = Rs. 1.89 * 1,000,000,000 = Rs. 1,890,000,000

Units produced by M/s. Suzuki in FY 2018/19: 161,149
Average profit per assembled vehicle = Rs. 1,890,000,000/161,149 = Rs. 11,728 ONLY!

Do you really believe that Suzuki is ripping us off by charging an average profit of Rs. 11,728 per vehicle?

Also, please enlighten us which locally available alternate should one consider instead of Alto, Cultus, Gli, Xli, Altis, VTec, Turbo etc.? What choices really are available to us?

P.S. It is the insane exchange rage, I mean rate, that is driving up the prices to insanity, add to that the enormous import duties and you have madness! And yes we import 70-80% of locally assembled vehicles in KDC including chassis for most of the locally assembled cars, engines, transmissions, bodies etc.

Public transport for longer distances and bicycles for shorter distances

Be realistic instead of being idealistic, that too while riding on a horse of revenge or hatred for those who can afford cars.

Good. Let the pack bags and leave ...

They will also take away hundred of thousands of jobs which are directly or indirectly associated with the auto industry. You literally cannot imagine the repercussions and damage to economy.

 

[B.K.N]

Be realistic instead of being idealistic

They way majority population of Pakistan is living is idealistic?

 

[Pandora]

Well said.

Some members of this forum have this unfortunate habit of bashing everything in relation to Pakistan.

Throw out Japanese auto brands and bring in Chinese auto brands? Like seriously?

Quality comes from competition in any environment. Otherwise, complacency sets in.

PAK Suzuki have introduced a new line-up of cars (with safety features) recently because of competitive pressures from new entrants in Pakistani auto markets. All PML(N)-led GOP needed to do was to introduce an auto policy.

If automobile manufacturing industry of Pakistan is in trouble then PTI-led GOP need to revisit auto policy.

Also, new entrants be they Chinese or American, won't sell you cars for free. You will have to pay for quality no matter what.


And what about the Chinese junk called United Bravo? You OK with it?

PAK Suzuki Alto options are similar to Japanese - similar built quality - much better than Suzuki Mehran.

Suzuki Alto VXL is fully loaded with safety features, computerized and automatic transmission. It cost about the same as Japanese imports here but the imports are REFURBISHED.

You are bullshitting.

Sometime when people eat bullshit 24/7 become accustomed to it. I have lived both in pakistan and overseas in several countries and nowhere i have seen the junk these japanese companies feed us in Pakistan. As for safety feature they merely added an airbag for driver seat. When i came to australia first time i bought suzuki swift that car has 8 airbags so you can just suck your own bullshit downwards up.

 

[Crusher]

Pakistan is trying to artificially raise the standard of living of it's people
Pakistan can't afford luxuries like cars etc

Anyone with a reasonable IQ will indeed reach to the conclusion that you have reached, also a correction from my side
"Pakistan is trying to artificially raise the standard of living of a small segment of its population (maryam nawaz types)"

and this is the reason we are in debt and we need imf bailout packages
If government is sincere it's only priority should be to cut such type of expenses

The "debt" in itself is not a problem, the problem is taking debt beyond your "capacity to repay" and that is what has been happening in Pakistan for the last 2 decades. They have been on a "debt accumulation spree" knowing pretty well that they don't have the "capacity" to repay this "huge amount of debt on time".

 

[Mav3rick]

Toyota, Honda and Suzuki have introduced very good cars in Pakistan in recent years.

Some people will continue to bark no matter what. Dog bark - wuff wuff wuff. Bloody...

Problem is that Toyota, Honda and Suzuki do not have relief in Pakistan's existing auto policy. If these brands exit from Pakistan, think how many livelihoods will be ruined.

Solution is to provide relief to these brands, and soon.

Some of the posters here are so darned stupid; they are unable to deduce that the Government is taking away commerce and the people's ability to better their lives. The attempt of the Government should be to encourage commerce and to entertain healthy competition. More commerce means a larger economy and more tax for the Government. It also means lifting the lower and lowest section of the society's economic division into higher brackets.

The Government's job is to bring a better quality of life, this Government is ripping the quality apart and supporters are dancing in joy at even their own expense.

 

[Pandora]

Very nice post, very intelligent too. Kudos on your attempt to win arguments with non-linear language. Anyway, I would advise you to reconsider and research the profits you have posted, and to focus on net profit rather than gross. I would also like to do some math, please correct me if I am wrong (we shall consider M/s. Suzuki as an example):

M/s. Suzuki's Net Profit for FY 2018/19: Rs. 1.89 Billion = Rs. 1.89 * 1,000,000,000 = Rs. 1,890,000,000

Units produced by M/s. Suzuki in FY 2018/19: 161,149
Average profit per assembled vehicle = Rs. 1,890,000,000/161,149 = Rs. 11,728 ONLY!

Do you really believe that Suzuki is ripping us off by charging an average profit of Rs. 11,728 per vehicle?

Also, please enlighten us which locally available alternate should one consider instead of Alto, Cultus, Gli, Xli, Altis, VTec, Turbo etc.? What choices really are available to us?

P.S. It is the insane exchange rage, I mean rate, that is driving up the prices to insanity, add to that the enormous import duties and you have madness! And yes we import 70-80% of locally assembled vehicles in KDC including chassis for most of the locally assembled cars, engines, transmissions, bodies etc.



Be realistic instead of being idealistic, that too while riding on a horse of revenge or hatred for those who can afford cars.



They will also take away hundred of thousands of jobs which are directly or indirectly associated with the auto industry. You literally cannot imagine the repercussions and damage to economy.

Dude go buy a suzuki Alto you deserve it.

 

[Sabretooth]

If Japanese big three keep this up, then Korean (KIA, Hyundai) and European (VW, Renault) brands will take over. No worries for the end user. Let them cry rivers for all we care.

 

[Crusher]

If Japanese big three keep this up, then Korean (KIA, Hyundai) and European (VW, Renault) brands will take over. No worries for the end user. Let them cry rivers for all we care.

Indeed vacuum never remains "unfilled".

 

[Sabretooth]

Indeed vacuum never remains "unfilled".

Hyundai and KIA have already given Japanese brands a run for their money in UAE and KSA. It is only a matter of time in Pakistan.

 

[Mav3rick]

The "debt" in itself is not a problem, the problem is taking debt beyond your "capacity to repay" and that is what has been happening in Pakistan for the last 2 decades. They have been on a "debt accumulation spree" knowing pretty well that they don't have the "capacity" to repay this "huge amount of debt on time".

Our debt in 2003 was the same as our debt in 2000, and there was small difference in the debt by 2006 (from USD 32 Billion to 38 Billion). The larger accumulation started in 2007, so roughly 11 years of large debt borrowed under PPP and PML Government.

But while most of the PTI followers, blind followers, flaunt the larger debt bill, they very conveniently ignore 2 major aspects of the whole story 1. growth of the economy due to which gdp to debt ratio was still under control and 2. USDKR exchange rate due to which the debt was around Rs. 24000 Billion by the time PML Government concluded, ofcourse it is over 45,000 Billion (devaluation from 110 to 160 and additional loans). Devaluation alone has added Rs. 11,000 Billion to our external debt.

All in all, the way the economy was growing under PML, external loan would have been kept under control. Debt is not a bad thing, every country in the world is under debt., except maybe Qatar. Debt is taken to expand the economy and the way Dar handled the economy I can only consider him a genius when compared to PTI finance managers.

They way majority population of Pakistan is living is idealistic?

No, but my argument is because the majority is being further pushed into poverty. Your argument is political, in favor of PTI.

Dude go buy a suzuki Alto you deserve it.

So no answer, really. Well it was expected.

Government should confiscate all the cars of Maryam Nawaz and make her travel with public transport, I will see how much "inqilabi" she would still remain if forced to travel on public transport on daily basis like 90% of the women in Pakistan.

Government should do that with all the politicians. But give them fair warning and some time so that they implement a transport system.

If Japanese big three keep this up, then Korean (KIA, Hyundai) and European (VW, Renault) brands will take over. No worries for the end user. Let them cry rivers for all we care.

Unless KIA, Hyundai and others ends up as KIA did last time, when NS was toppled.

 

[ColonelSanders]

They could export but no they are black mailers. They want foolish awam to buy piece of junk Euro 2 standard while even India use Euro 4 and planning to jump to Euro 6 equivalent by 2020.

India's car export alone is equal to Pakistan's entire car production. These black mailing companies should be thrown out and blacklisted in Pakistan, meaning no imports from them.

They can't export because the crap made by indus and atlas will not meet international quality standards.

The only way these companies will survive is by dropping their current suppliers and going for suppliers who make low quality products.... Toyota Indus used to import their windscreens and glass from Italy before, then they switched to locally made ... I shudder to think the crap they will go for now

Present govt is not business friendly at all...they have failed to create a business friendly environment

Reason for using substandard parts is not affordability but to boost profits. There is no car part that can not be manufactured in Pakistan. It is just greed and corruption that has taken roots.

 

[Indus Pakistan]

They will also take away hundred of thousands of jobs which are directly or indirectly associated with the auto industry. You literally cannot imagine the repercussions and damage to economy.

That is like purging the Mafia and some people crying about loss of jobs and livelihoods. Fact is most of car industry is a mafia racket that is made up of foreign companies and local gangsters. All intended to scalp the captive local consumer. After enjoying nearly four decades of state protection and monopoly please tell me one achievement of the car mafia other than raping the poor Pak consumer? Exactly how many cars do they export? If not why not? Think of the cheap labour costs in Pakistan? Think of number of Paks killed by this mafia caused by producing cars that are at least two decades behind in safety technology?

Time to turf out the weed and let some fresh grass take root.

 

[LeGenD]

Sometime when people eat bullshit 24/7 become accustomed to it. I have lived both in pakistan and overseas in several countries and nowhere i have seen the junk these japanese companies feed us in Pakistan. As for safety feature they merely added an airbag for driver seat. When i came to australia first time i bought suzuki swift that car has 8 airbags so you can just suck your own bullshit downwards up.

Auto Policy - ever heard this term?

Australian auto policy mandate safety features - above GLOBAL norm.

You won't find Suzuki Swift with 8 safety bags outside Australia - 2 is norm in many countries (front seats).

Pakistan is really late to devise an auto policy because governments were sleeping here. PML(N)-led GOP did the needful in its most recent term. Thanks to this initiative, new companies are opening showrooms here and driving competition.

Due to new entrants such as KIA, Hyundai and Renault, existing brands such as Honda, Toyota and Suzuki are under pressure to introduce better cars here.

Suzuki have revisited its line-up and introduced a new set of cars with necessary safety features which is a POSITIVE development. These cars might not be world class but still better than previous ones. In fact, better than expected but many won't give as much credit due to preconceived notions.

Suzuki Alto is a big leap from Suzuki Mehran - a step in the right direction. In the given price range, their are no locally manufactured alternatives in Pakistan, and imported ones are all REFURBISHED.

Chinese alternative for Suzuki Mehran in Pakistan (United Bravo) is FRAUD - very poor built quality.

Yes, you are bullshitting. You suck your own bullshit downwards up and more.

Better yet don't draw silly comparisons. Pakistani auto market conditions are vastly different from Australian auto market conditions.

PTI-led GOP can improve Pakistani auto market conditions if it really want to. However, this is not its priority at present.

 

[ColonelSanders]

Auto Policy - ever heard this term?

Australian auto policy mandate safety features - above GLOBAL norm.

You won't find Suzuki Swift with 8 safety bags outside Australia - 2 is norm in many countries (front seats).

Pakistan is really late to devise an auto policy because governments were sleeping here. PML(N)-led GOP did the needful in its most recent term. Thanks to this initiative, new companies are opening showrooms here and driving competition.

Due to new entrants such as KIA, Hyundai and Renault, existing brands such as Honda, Toyota and Suzuki are under pressure to introduce better cars here.

Suzuki have revisited its line-up and introduced a new set of cars with necessary safety features which is a POSITIVE development. These cars might not be world class but still better than previous ones. In fact, better than expected but many won't give as much credit due to preconceived notions.

Suzuki Alto is a big leap from Suzuki Mehran - a step in the right direction. In the given price range, their are no locally manufactured alternatives in Pakistan, and imported ones are all REFURBISHED.

Chinese alternative for Suzuki Mehran in Pakistan (United Bravo) is FRAUD - very poor built quality.

Yes, you are bullshitting. You suck your own bullshit downwards up and more.

Better yet don't draw silly comparisons. Pakistani auto market conditions are vastly different from Australian auto market conditions.

PTI-led GOP can improve Pakistani auto market conditions if it really want to. However, this is not its priority at present.

It is not just about goverment policies. Ethical responsibilities require these companies to introduce safety features to protect lives.
But unless these companies have a "danda" shoved up their rear end, they dont give a shit about public safety.

 

[LeGenD]

It is not just about goverment policies. Ethical responsibilities require these companies to introduce safety features to protect lives.
But unless these companies have a "danda" shoved up their rear end, they dont give a shit about public safety.

Bro,

Auto policy is the STICK needed to fix these companies. Government can make lot of difference in any area, if sincere.

However, this also come down to the holistic character of a society and customers. Pakistani buyers are not quality-conscious on average. So why would companies in Pakistan feel the need to serve them better?