Pakistan Needs Low Priced Car

Topics: Suzuki, Automotive industry, Tata Motors Pages: 9 (3545 words) Published: October 21, 2010
Pakistan needs low priced cars

India has already launched ‘Nano’ car for $1000, in Pakistan only one Japanese

vendor enjoys monopoly on 800cc cars.

There is no car for the lower middle class in Pakistan.

In Pakistan the local assemblers have remained focused in introducing high priced cars to cater a particular rich segment of the society. Besides, the Japanese makers, who dominate local markets, perhaps have an understanding not to roll out low price engine vehicles simultaneously in a market.  

The dream of Indian people to own the cheapest car is likely to be fulfilled when they will drive away $2,000 or Rs 100,000 Tata’s Nano from July this year on the most congested and chocked streets and roads of their country. Can our local assemblers, or any other private entrepreneur or the government either really ponder or feel ashamed on this milestone achieved by our neighboring country. Will Pakistanis ever be able to have a low priced car in years to come or they will continue to rely upon Pak Suzuki Motor Company (PSMCL) for providing so called low priced 800cc car which in real terms is no longer cheaper after massive increase in prices in the last one year. The main aim of Tata Motors of launching the cheap car for the huge urban middle class population is to create an alternative of two wheelers and a more safer and affordable vehicle. The launch of car was also aimed at shifting those people who can afford to have Rs 100,000 cars despite the fact that bikes in India are very cheaper as compared to Pakistan. Irrespective of some demerits of Nano car like lack of air conditioning, plastic seat covers, no air vents etc in a country where scorching heat takes its toll in summer but one can surely praise the efforts of Tata Motors of rolling out something attractive in terms of price for their countrymen. Currently, petrol producers and the marketing companies in India have also initiated hectic media campaign to save petrol and diesel for the future young generation. In one of the electronic media advertisements, a boy sitting with his father next to driving seat stuck in a huge traffic jam on a main street watching all the car engines in start position, suddenly cautions his dad that he is thinking of opening a cycle repairing shop in future as the boy feels that the way the people are wasting fuel the young generation cannot have enough petrol to run their vehicles. Then his father switches off the engine vehicle. In another media campaign, a petrol dealer while filling fuel in a car suddenly surprises a family by saying that from now on there would be 25 per cent off on sale of petrol. The family in the car asks the dealer to repay the balance amount but the dealer replies in affirmative saying if a car runs at a speed of 45 km per hour and if the engine ignition is switched off on red signal then it can easily save up to 25 per cent of petrol consumption. These are the initiatives being taken by the petrol producers, oil marketing companies, Tata and even the government in India which show that they are concerned how to save fuel for upcoming generation. In Pakistan, there is no such kind of campaigns from any public and private quarters. It may be recalled here that one of a leading car vendor in Pakistan, Feroz Khan, had dared to provide inexpensive car when he launched country’s first indigenous Revo car, rolled out by Adam Motor Company Ltd (AMCL) in April 2005. With the production of Revo in 2005, Pakistan had joined the club of 16 countries which produced their own cars. The engine and transmission were the only sub-assemblies which have been imported from China. The starting deletion level was 67.5 per cent which was projected to increase 90 per cent by December 2007. The project, launched at a cost of Rs 400 million, had faced severe financial crunch. Many workers had been retrenched to cut the production cost. Revo 800cc was introduced at Rs270,000 (petrol version) while 1,050cc car was rolled...
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