Comments on: Automobile Demand Next to Nil https://carspiritpk.com/automobile-demand-next-to-nil/?utm_source=rss&utm_medium=rss&utm_campaign=automobile-demand-next-to-nil Pakistan's Trusted Automobile Blog Fri, 20 Jan 2023 08:24:34 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Ali Khan https://carspiritpk.com/automobile-demand-next-to-nil/#comment-13425 Fri, 20 Jan 2023 08:24:34 +0000 https://carspiritpk.com/?p=64292#comment-13425 ]]> In reply to Not a Robot...

Very True. 😄

]]>
By: Not a Robot.. https://carspiritpk.com/automobile-demand-next-to-nil/#comment-13424 Fri, 20 Jan 2023 07:13:02 +0000 https://carspiritpk.com/?p=64292#comment-13424 In reply to Ali Khan.

asal mai doosra issue ye bhi hay k mehnat karnay se bhagna hai,.. exports parts means they have to work with eyes open and meet strict quality requirements. yahan local market me ulta seedha jo banao bik jata hay, so why bother? now they are suffering due to their lethargic approach

]]>
By: Ali Khan https://carspiritpk.com/automobile-demand-next-to-nil/#comment-13422 Fri, 20 Jan 2023 07:00:16 +0000 https://carspiritpk.com/?p=64292#comment-13422 The issue here is, these people have taken an industry which could have helped in a huge way to boost exports and bring foreign revenue to the country, and have turned it into a non-tradable trade.

In simple terms non-tradable trades/skills/jobs etc., are those goods or services or jobs inside of a country which cannot be traded outside; for example, government jobs, retail jobs, infrastructure/construction jobs, local Education and local health care and local small businesses etc. Trades/Jobs such as these require actual input of funds, local or borrowed from investors or banks etc., to fund them. They will look good for optics politically, but in the long term they will have a cost to them that would need to be repaid. That is what we are suffering from right now. Our leaders, for their own optics, have always introduced a lot of infrastructure programs and “sahulat” programs but no programs or industrywide changes which boost Pakistan’s own earnings enough to pay for all of them.
Enter, our auto industry cartels. They have for the longest time been completely used to the gluttonous habit of least effort to get their way. Even the local parts manufacturers have become completely lethargic and useless. Instead of complaining like over privileged whining gluttons, why didn’t they see that their business model was unsustainable in the long run? However, by expanding into the international trade community of automotive (parts) suppliers, they would be fairing much better now and actually making a lot more money!

Sure, at the moment, they are screaming “raw material import shortages” as a good alibi to hide their woefully bad performance and their own shortcomings. However, here is a fun fact; A lot of countries who have international level manufacturing businesses HAVE TO IMPORT RAW MATERIALS!!!
If these yahoos made the effort to expand into the international parts supply market and actually brought in revenue into the country because of those raw material imports, right now they would be on top priority and still getting maximum support because they would be one of the few constant sources of dollar inflows into to Pakistan.

To hell with the local assemblers. These parts manufacturers are separate entities and are not dependent on them. If the parts manufacturers had the international presence, right now they would be working at full tilt to meet the international demand even thought the useless local assemblers were closed.
Furthermore, these guys are the linchpin in the industry in my opinion. If they had expanded their businesses, right now they would be making a lot more parts. Its a given if they had gone international, right now, they would even be supporting the local assemblers with a lot more parts made to international quality and locally. They would in turn reduce the need for the local assemblers to import, thus have a positive effect to lower auto industry imports. Unfortunately, the reality is they have squandered their businesses and stayed small. All in order to fit into the corrupt and totally useless and burdensome-for-the-country world of the local assemblers.

If they had been pushed to improve or they had themselves made the conscious decision to expand their business on time, all of this could have been easily avoided.
I hope they finally learn the lesson of the value of honest competition and honest business.

]]>
By: Insane illogical reporting throughout https://carspiritpk.com/automobile-demand-next-to-nil/#comment-13421 Thu, 19 Jan 2023 17:24:10 +0000 https://carspiritpk.com/?p=64292#comment-13421 This news has also appeared on PakWheels Blog a few hours before CSPK.Title: Demand For Cars Almost At Zero Right Now- Ex-PAMA ChairmanLink: https://www.pakwheels.com/blog/auto-industry-in-jeopardy/
There are certain inaccuracies in this news practically everywhere it has been covered. First is that PakWheels reports this Mr Mashood Khan to be the ex-chairman of PAMA, but then writes “Auto Parts Manufacturers Association” as the backronym of PAMA. CSPK reports him to be “Mashhood Khan, the former chairman of the Pakistan Auto Parts Manufacturers Association” whereas the spare parts manufacturers’ association is called PAAPAM (acronym) = Pakistan Association of Automotive Parts & Accessories Manufacturers (backronym).

Website of PAMA: https://www.pama.org.pk/
Website of PAAPAM: https://www.paapam.com/

The PAAPAM website is loading very, very slowly. There is a dedicated page for Former Chairmen: https://www.paapam.com/list-of-former-chairmans which shows Mashood Khan sahab as being the chairman of PAAPAM in the 2016-2017 term.

Coming to the main point, the way the news is being reported is against Economics 101. If the supply of a commodity/necessity is reduced, its demand will increase. If the demand had decreased, it would be illogical to put a ban or controls on it since why would the manufacturers produce something for which there is no demand?

The proper narration is that the “demand of spare parts directed towards new car assembly has reduced”, not that the demand of automobiles itself has reduced. Since the PAMA is observing non-production days due to difficulty in sourcing forex approval, they have no demand for PAAPAM’s products. Mind you falling automobile demand is not the reason PAMA is observing NPDs, even though the demand of PAAPAM’s spare parts would’ve be lower too had that been the case.

On a sidenote, PAMA aren’t the victims of dollar shortage, they are the culprits of dollar shortage.

]]>