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Old January 8th, 2012, 06:09 PM   #1781
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Quote:
Originally Posted by malpensa View Post
PAKISTAN people should rise up against suzuki and protest the garbage death traps that pass as cars

enough of the lobbyists of these japanese motors in pakistan and open the markets to european economy makers
You are sounding as if someone's holding EU makers from Pakistan. NO, they just arent interested in coming.

Fiat came with that hideous UNO, that should qualify as the worst flop ever. So nobody, except themselves and our poor economy, is a hurdle.
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Old January 21st, 2012, 11:55 PM   #1782
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Auto Industry Development Programme: Auto industry seeks government assurance on consistent policies

* AIDP to expire in June 2012 industry believes a new policy is critical for its growth

Auto Industry of the country has demanded from the government that similar to Auto Industry Development Programme (AIDP), which is to expire in June 2012, a new long term consistent policy is critical for the industry’s growth to restore investors’ confidence and save the foreign exchange and earn substantial revenues.

In a presentation, the auto industry has stated that the industry is generating substantial government revenues contributing significantly to the country’s gross domestic product (GDP) and saving a huge foreign exchange by import substitution through localisation of the parts through transfer of technology to vendors. A consistent long term policy for the auto industry will create more investment and job opportunities in the industry which already has an investment of over Rs 92 billion and giving employment to 0.4 million people directly.

More importantly, a better policy is meant for addressing the issues like most liberalised used cars imports policy in the region, proposal on tariff rationalisation, under invoicing, mis-declaration in auto parts imports and limited consultation with Original Equipment Manufacturers (OEMs) on free trade agreements, etc, which are badly hurting the industry.

Localisation is the key factor meant for progress and growth of the national economy, however, tariff reduction and used car imports are two major issues of the local manufacturers that must be considered prior to formulation of any policy.

Any reduction in duty structure will make local nascent industry uncompetitive, which will lead to complete collapse of the industry, therefore, causing more unemployment.

Similarly, the government should monitor the misuse of used car policy. Some changes in the policy is required like registration should remain in importers’ name for at least 2 years, while the policy should be reverted back to 3 years and 1 percent depreciation with maximum depreciation cap of 36 percent to discourage abuse of the policy. According to some facts in this regard, the used cars importer enjoy 60 percent depreciation allowance while in India the basic duty on used cars is 100 percent with some additional duties and taxes of 32 percent.

“Although there is a very short term benefit in the imports of used cars in the country but on the long term basis this policy is against the national interest and we should understand what national interest in the import of used cars is,” said Munir K Bana, Vice Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM).

It is pertinent to mention that the used cars imports are expected to exceed 40,000 in 2011-12 that is 25 percent of the total industry volume for 2010-11.

“The policy of used cars offers very little employment opportunities and there is no possibility of technology transfer. On the other hand, the local auto industry had employed over 400,000 and technology transfer to OEMs, vendors and dealers,” said a vendor, Muhammad Ashraf Shaikh, adding that flight of capital from the country is a serious issue in the import of used cars policy mainly at the time when the local currency is already under pressure and government earns very little revenue.

Shaikh M Aslam, Secretary PAAPAM, while pointing out one very important factor said that frequent shift in policies on the part of the government along with security risks and high input costs have been conducive for incessant decline in the Foreign Direct Investment (FDI) in the country.

“There is only a short term benefit in car imports and trading with very little employment generation, in fact the government will lose millions of rupees of its revenue and foreign exchange in the long term in spare parts also as there are no arrangements for technology transfer to the local industry,” he added.

“This shift in policies related to auto sector is evident from the decisions of ECC that has allowed the import of five-year old used cars, allowed depreciation allowance raise from 50 to 60 percent, and considers allowing new entrants on much relaxed policy,” said Shaikh.

This was also admitted by the Board of Investment (BoI), while giving a briefing to the Economic Co-ordination Committee (ECC) of the cabinet recently that frequent changes in policy are scaring the investors away from Pakistan.
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Old January 29th, 2012, 05:45 PM   #1783
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Auto industry urges changes in liberal used cars policy

* Revised policy would bring more tax on sale of new cars and more job opportunities in auto assembly and allied industries

Pakistan’s auto industry believes that government should discourage import of used cars and other used vehicles by amending the existing liberal used cars policy to safeguard the interest of the local auto industry and vendor industry employing over 400,000 people directly and two million indirectly.

The auto sector estimates that Pakistan’s local auto industry is likely to see increase demand of locally produced cars from 184000 units in 2011-12 to 222000 units in 2013, 259000 units in 2014, 293000 units in 2015, 323000 units in 2016 and 349000 units in 2017. In case the government revises its used cars policy, than there would be more tax collection on sale of increased new cars, there would be more job opportunities in auto assembly as well as vender industry, improved policy would help attract more investors in sector and all this would help reduce the dependence on import by spending precious foreign exchange.

The industry wants reversal of the used cars policy and allowing only 3 years old and used cars instead of existing 5 years old and bringing depreciation to 1 percent per annum from existing 2 percent.

The industry also demands that registration of used car should remain in the name of overseas Pakistanis on whose name used car have been imported. Otherwise, government should collect tax on registration of such car on any other name instead of overseas Pakistani on whose papers such car was imported.

According to industry data, some 13,000 used cars and other vehicles were imported during 2007-08 and when policy was tightened during fiscal year 2008-09 this import dropped to 7,000 and 4000 in 2009-10 and just 7000 units in 2010-11. When the policy was relaxed by the present government by allowing 5 years old used cars and other vehicles from 3 years old and used with increase in depreciation rate from 1 to 2 percent, a sudden jump in imports have been witnessed during ongoing fiscal year 2011-12.

Pakistan’s auto industry has estimated that due to the incentives given by the government on import of used cars and other vehicles some 40,000 vehicles are likely to be imported in to the country during 2011-12. Some 21, 000 used cars and other used vehicles have already imported in to the country during first half July-January period of the ongoing fiscal year 2011-12.

Despite having excess assembly capacity in the country, import of used cars and other vehicles in such a large number would impact the production of the local industry, but would also result in lowering job opportunities in the entire chain of the local industry especially the vender industry.

According to industry, liberal policy of used cars and used vehicles is only benefiting the traders who are importing such vehicles on the name of overseas Pakistanis. Traders who are not actually entitle to import such cars and vehicles simply buy the document and import the used cars and other vehicles for making money for themselves.

The auto industry believes that because of depreciation of Pakistan Rupee against United States Dollar, Japanese Yen and Thai Bath, prices of used cars have increased many folds and import of used cars have not been so profitable. However, traders who are actually making money from this business in the name of overseas Pakistanis is continuously importing used cars for their own benefit.

The auto industry was of the opinion that 5 year old and used cars were allowed for import to benefit the overseas Pakistanis through age limit and reduced duty rate on the basis of depreciation. This was done to over come the issue of own charged by the dealers and delay in delivery of cars for months. The auto sector is of the opinion that delay in delivery of cars was mainly due to the bulk purchases by the investors, who make money on immediate sale of new car to intending buyers, who need delivery of cars without any delay. To eliminate the role of investors who book more than five to ten cars at a time, auto sector has time and again asked the federal government to impose tax on such investors who get delivery of cars on bulk and sell such cars to buyers with own.

To press their demand further, auto sector is planning to approach all four provincial governments to levy equal amount of tax on the basis of own charged by the investors and make it mandatory for the buyers to keep the registration of new car on the name of first purchaser for at least two years.
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Old February 7th, 2012, 07:23 PM   #1784
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Car rates likely to go up as input cost surges by 4.7pc

The unabated surge in input costs of different commodities is mounting pressure on manufacturing sector to push up the prices of their products, auto manufacturers stated.

The automobile makers are going to increase the rates of cars and light commercial vehicles due to rising prices of locally manufactured spare parts, inflated petroleum prices, hike in electricity tariff and soaring expense on imported CKD kits.

As per the figures provided by the manufacturers, a steep hike witnessed in vendors’ cost on producing spare parts by 4.7 percent and more hikes is expected in the cost after fresh increase in petroleum products prices by Rs5-6 per liter on diesel and petrol.

The auto manufacturing sector is worst hit by the inflation as it is under pressure from foreign currency appreciation, utility prices as well as from the vendors’ side who are feeling similar heat.

Experts said that the local automobile makers are likely to pass on the impact of rising cost of production to customers with surge in the prices of cars and light commercial vehicles.

The petrol and diesel prices were recently increased by 15.8 percent and 8.9 percent per liter in the period Jul-Dec 2011.

Similarly, the prices saw increase on various raw materials including plastic, paints and light engineering products. In addition, the transportation costs were inevitable to go up for the supplies of these raw materials to automobile makers.

The imported CKD parts are up by 3 percent in past three month on the disparity of rupee against US Dollar by 2.5 percent and 5 percent on Japanese Yen.

Moreover, industry is forced to use expensive diesel for power generation in the absence of KESC & gas load shedding. Government has already announced a 3 percent increase in electricity tariff in the past couple of months which is adding up to the woes of industry.

Automobile makers claimed that they have already absorbed the increase in aggregated production cost, thanks to localization of automobile sector; otherwise, the cost would have increased more on different brands of cars.

http://www.nation.com.pk/pakistan-ne...urges-by-4-7pc
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Old February 11th, 2012, 11:45 PM   #1785
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Automobile industry: Sales grow 17% with Suzuki in the front seat

Sales stood at 85,011 units in the first seven months of fiscal 2012 against 72,580 units sold in the same period of the preceding year, according to data released by Pakistan Automotive Manufacturers Association.

Car sales rose 17% in the first seven months of fiscal 2012 on the back of higher demand and Punjab’s yellow cab scheme.

Sales stood at 85,011 units in the first seven months of fiscal 2012 against 72,580 units sold in the same period of the preceding year, according to data released by Pakistan Automotive Manufacturers Association.

Honda’s production stood at a standstill for the second straight month in January, however, production is expected to be back on track at the end of February as its Lahore plant will restart operations. Honda Atlas Cars has been facing shortage of parts since October because of floods in Thailand from where the company imports part and then assembles them.

Market leader Pak Suzuki Motor Company witnessed 39% growth in sales during July 2011 to January 2012 with Mehran leading the way with 40% growth to 19,375 units.

Suzuki’s Mehran and Bolan witnessed healthy growth during the period under review due to Punjab’s yellow cab scheme. The provincial government aimed to deliver 7,500 cabs to successful applicants in 2011.

Suzuki Swift sales almost doubled to 3,847 units during against 1,972 units in the same period last year.

Indus Motor Company witnessed 4% growth in sales to 29,462 units during the period under review against 28,293 units in the same period last year.

Toyota’s Hilux, under the pick-up segment, grew a gigantic 195% to 2,162 units against 732 units in the same period last year.

The country’s highest selling car Toyota Corolla grew 5% to 24,885 units against 23,740 units in the same period last year. Cuore was the only segment of the company whose sales experienced a substantial decline of 36% to 2,245 units.

The company announced earlier that manufacturing of Coure would stop before June 30, 2012 on account of its high cost of production.

Overall, Honda Atlas Cars Pakistan Limited posted a decline of 20% to 6,991 during the period under review with both brands Civic and City witnessing a downward trend in sales.

Tractor industry continued to suffer from lower production in January, however, major crop season resulted in a slight improvement in sales as assemblers restricted their production during the period. Similarly, sales have been hit by 74% for Agritech Limited and 61% for Millat Tractors during the period under review.

However, the industry will see better days ahead as general sales tax has been reduced to 5% from 16% in 2012.
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Old March 2nd, 2012, 02:17 PM   #1786
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Ban on CNG kits reduces car sales

Sale of vehicles is dropped to considerable level after imposition of ban on import and installation of CNG kits.

Representatives of Pak Suzuki, Indus Motor Company (IMC), Landi Renzo (LR), Tesla and BRC said OEMs and the CNG kit manufacturers were confronting numerous problems after imposition of ban on Dec 15, 2011 by the government.

During a meeting with Aziz Ahmad Bilour, Federal Secretary Ministry of Industries, Pak Suzuki member informed their company was badly affected by the decision and sales have plummeted.

Similar, sentiments were expressed by IMC regarding substantial drop in sales of Toyota and Daihatsu brands.

It was informed the saving of natural gas due to the imposition of ban was very insignificant, as this would only save 0.26 percent of total gas production annually.

The delegation informed CNG kit manufacturers and OEMs have made a collective investment of Rs 14.5 billion, which was under threat after the imposition of the ban. It was informed another company Inflex entered into joint venture agreement with PoF Wah for manufacturing of CNG cylinders but due the ban it has become difficult for them to progress further with manufacturing in Pakistan.
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Old March 3rd, 2012, 08:56 AM   #1787
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When were CNG kits banned?
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Old March 3rd, 2012, 04:28 PM   #1788
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2-3 months ago when there were few incidents of CNG kits blast...
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Old March 3rd, 2012, 07:18 PM   #1789
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Quote:
Originally Posted by Ahmad Rashid Ahmad View Post
2-3 months ago when there were few incidents of CNG kits blast...
CNG cylinders last 5 years. We should be seeing more and more of these blasts. I don't think anyone gets the cylinders checked.
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Old March 3rd, 2012, 09:53 PM   #1790
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Couple of new car's cylinders (Applied for) also blasts...
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Old March 10th, 2012, 03:42 PM   #1791
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Clear road ahead: Car sales in cruise control mode


The growth primarily resides in the 1,000cc and below segment – which includes Suzuki Mehran and Diahatsu Coure – as its sales grew by at least 30%.

Car sales continued to cruise –rising 17% in the current financial year so far – despite industry players increasing prices on a regular basis.

The growth primarily resides in the 1,000cc and below segment – which includes Suzuki Mehran and Diahatsu Coure – as its sales grew by at least 30%, said Topline Securities analyst Nauman Khan. Sales in the 1,300cc and higher segment – which includes Honda Civic and Toyota Corolla – grew by a meagre 1% in the period under review, added Khan.

Sales stood at 98,252 units in the first eight months of fiscal 2012 against 84,225 units sold in the same period of the preceding year, according to data released by Pakistan Automotive Manufacturers Association on Friday.

The strong growth can be attributed to the rise in remittances and the yellow cab scheme offered by the Punjab government, said analysts.

Industry players have protected profit margins from rising costs or currency depreciation by increasing prices on more than one occasion in the current financial year.

Indus Motors raised its product prices thrice, while Suzuki jacked up prices twice since September 2011, according to a JS Global Capital research note.

Pak Suzuki Motor Company, the major player in the lower segment, posted a strong growth of 35% to 70,162 units during July 2011 to February 2012.

Mehran and Bolan, prime beneficiaries of the yellow cab scheme, grew by 37% and 47%, respectively. The Punjab government allocated Rs4.5 billion in fiscal 2012 budget to provide 20,000 yellow cabs to youth of the province.

Moreover, sales of latest arrival to the Suzuki family Swift reached 4,500 units, up a gigantic 86% compared with 2,420 units sold in the same period last year.

Overall, the company’s market share improved to 63% against 54% in the same period last year.

Indus Motors growth remained subdued with sales growing by a dismal 4% to 34,366 units compared with 32,991 units in same period last year. The company’s flagship product and the country’s highest selling car Corolla posted a growth of only 5% despite the company adding new variants of the car in the 1600cc segment and CNG vehicles.

Sales have been adversely affected by reduced farm income this year on account of higher input cost – fertiliser and other products – and reduced product prices particularly cotton, said Khan.

Cuore sales experienced a substantial decline of 34% to 2,765 units ahead of its complete shut down at the end of the financial year. The company announced earlier that it plans to pull the plug on Coure before June 30, 2012 on account of its high cost of production.

Honda’s production woes continued as it stood at a standstill for the third straight month in February due to unavailability of parts, PAMA data shows. Honda all around the world has been facing shortage of parts since October because of floods in Thailand.

Production is likely to be back on track in March as the company’s Lahore plant was expected to restart operations at the end of February, according to an announcement on its official website. Sales of Honda Civic declined by a massive 37% to 2,781 units and sales of Honda City slumped by 29% to 4,243 units during July 2011 to February 2012.
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Old March 10th, 2012, 04:44 PM   #1792
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Chinese Autos: Van, pickup truck introduced in Pakistani market

KARACHI: Al-Haj FAW Motors Private Limited held a launch ceremony for the introduction of two new automobiles in the Pakistani market at a local hotel.

The company aims to introduce a mini van (the FAW X-PV) and a mini pickup truck (the FAW Carrier) to Pakistani consumers. The FAW X-PV’s price has been kept at Rs699,000, while the FAW Carrier is priced at Rs609,000.

The cars will be assembled in Pakistan from June 2012 onwards. On the occasion, CEO of Al-Haj FAW Motors Hilal Khan Afridi said that the cars have been priced competitively, and profit margins kept low, in order to tap local markets.

“The future of automobiles in Pakistan belongs to Chinese technology; it is effective, and very economical as compared to its Japanese and
American competition,” he said.

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Old March 10th, 2012, 10:09 PM   #1793
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Al-HAJ FAW Motors to assemble Chinese light vehicles
MARCH 10, 2012 RECORDER REPORT 1 COMMENTS
Al-HAJ FAW Motors private Limited has announced that it will start assembling of Chinese light vehicles in Pakistan and initially an investment of one billion has been made in the automobile sector.

Unveiling ceremony of Al-HAJ FAW cars held on Friday at local hotel, where Fauzia Wahab, Advisor to President, unveiled the two light vehicles ie FAW X-PV and FAW Carrier.

On the occasion, Hilal Khan Afridi Chief Executive officer (CEO) of the company informed that Al-HAJ FAW had invested one billion rupees to set up an assembling plant to start production of new vehicles.

"We are launching two light vehicles ie FAW X-PV and FAW Carrier in the Pakistan with latest technology and affordable prices.

For the first time in history Chinese light vehicles will be assembled in Pakistan", he said.
AL-HAJ FAW has recently completed its assembly plant located at main national highway, Zulfiqarabad, Karachi with huge investment of over one billion rupees by its own resources, he informed.

"It is the first Automobile Plant in Pakistan for exclusive production of FAW products and the assembly plant has been equipped with latest machinery and equipment to manufacture FAW trucks, prime mover, light commercial vehicles and passenger cars in Pakistan", Afridi said.
A new production line had been set-up in the Al-HAJ FAW plant to assemble those two new light vehicles, he informed, and said the plant had a capacity of 11,000 units per annum which could be extended according to the requirement.

He said, "FAW X-PV is 1000cc mini van with a seating capacity of seven plus one (7+1), while other one FAW Carrier is also 1000cc mini pickup for loading purpose and with a loading capacity of one ton, which is much higher than most other vehicles of its category."
"As per quality, these new additions have EFI technology and Euro4 emission standards, which are still not available in the Japanese small vehicles being assembled in the Pakistan.

These two small vehicles are a new induction in the Pakistan's automobile industry aimed at providing comfortable and affordable transport to the general masses," CEO said.
Under this project Chinese automobile technologies would also be transferred into Pakistan in the next one and half year, he informed.

CEO said the operations of assembly plant included production of heavy trucks, LCVs and passenger cars which would provide many direct and indirect employment opportunities for the people of Pakistan.
"We plan to further penetrate in the Japanese dominated automobile market through introducing our product line in LCV and passenger car categories", he said and added that FAW Group China is a global leader in the vehicle manufacturing industry with a 50-year history of innovation.

Al-Haj FAW Motors' Marketing Manager Farhan Hafiz said, "Our vision is to introduce and capture significant share of the local automotive market by providing quality Chinese vehicles to the customer with full back up support through nation-wide 3S dealer network."-PR
Copyright Business Recorder, 2012
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Old March 11th, 2012, 01:23 AM   #1794
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THEY are bringing the same ugly "bolan" looking garbage nothing to be excited about
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Old March 12th, 2012, 04:49 PM   #1795
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Suzuki car prices

SWIFT
Swift 1.3 DLX Rs. 1,156,000/-
Swift 1.3 DX Rs. 1,056,000/-

LIANA VURV
Liana 1.3L RXI MT Rs. 1,282,000/-
Liana 1.3L RXI MT CNG Rs. 1,351,000/-

CULTUS
Cultus VXRi Rs. 925,000/-
Cultus VXRi CNG Rs. 990,000/-

ALTO
Alto VXR Rs. 727,000/-
Alto VXR CNG Rs. 796,000/-

MEHRAN
Mehran VX Rs. 510,000/-
Mehran VX CNG Rs. 576,000/-
Mehran VXR Rs. 562,000/-
Mehran VXR CNG Rs. 625,000/-

APV
APV 1.5L Rs. 1,999,000/-
APV 1.5L CNG Rs. 2,074,000/-

JIMNY
Jimny JLSX M/T Rs. 1,974,000/-
Jimny JLDX M/T Rs. 2,123,000/-

BOLAN VAN
Bolan VX Rs. 589,000/-
Bolan VXR Rs. 653,000/-
Bolan VX CNG Rs. 660,000/-
Bolan VXR CNG Rs. 721,000/-

CARGO VAN
Cargo Van Rs. 565,000/-

RAVI PICKUP
Ravi VX Rs. 537,000/-
Ravi VX CNG Rs. 606,000/-
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Old March 12th, 2012, 04:54 PM   #1796
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Honda car prices

ACCORD
Accord 2.4 i-VTEC Rs. 6,600,000

CIVIC
VTi Oriel - Manual Transmission Rs. 1,970,000
VTi Oriel - Prosmatec Transmission Rs. 2,048,000

Value Added Features:
Navigation / Multimedia System Rs. 55,000
Leather Interior Rs. 50,000

CITY
Manual Transmission Rs. 1,409,000
Automatic Transmission Rs. 1,550,000

Value Added Features:
2 DIN Stereo & Rear Speakers Rs. 15,000
Navigation / Multimedia System Rs. 50,000

CR-V
CR-V 2.4 Litre Rs. 7,100,000
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Old March 13th, 2012, 12:56 PM   #1797
KB
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And what exactly does this AL-HAJ currently produce?

Why is it that little known companies are going for all the JVs (and failing) instead of the established ones that have experience, capital, established dealership/suppliers/vendors?
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Old March 17th, 2012, 04:40 PM   #1798
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.

3 car companies functioning in country, NA told

ISLAMABAD: Parliamentary Secretary Pir Haider Ali Shah on Wednesday informed the National Assembly that currently only three car manufacturing companies were working in the country. Replying to a question during the question hour session, he said car manufacturers operate in the private sector and determine car prices and rate of profit on their own. He said that mostly spare parts of the vehicles are being imported from abroad. He said that prices of vehicles are high in the country due to inflation as compared to India. He said that 10 percent more vehicles are being manufactured in India as compared to Pakistan. app

Well done Pakistan's Automobile Vehicle Manufacturers.

Cheers
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Old March 18th, 2012, 01:10 AM   #1799
oogabooga
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Quote:
Originally Posted by Naresh View Post
.

3 car companies functioning in country, NA told

ISLAMABAD: Parliamentary Secretary Pir Haider Ali Shah on Wednesday informed the National Assembly that currently only three car manufacturing companies were working in the country. Replying to a question during the question hour session, he said car manufacturers operate in the private sector and determine car prices and rate of profit on their own. He said that mostly spare parts of the vehicles are being imported from abroad. He said that prices of vehicles are high in the country due to inflation as compared to India. He said that 10 percent more vehicles are being manufactured in India as compared to Pakistan. app

Well done Pakistan's Automobile Vehicle Manufacturers.

Cheers
That's extremely hard to believe. I think this guy pulled this figure out of his ass.

I wouldn't read too much into it Naresh Saaein.
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Old March 18th, 2012, 08:32 AM   #1800
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My wild guess is that he meant the cost of production is 10% more in Pakistan. If I am not wrong, India produces (or sells?) about 15 times more vehicles than Pakistan.
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