Comments on: Imported Cars That Are Launched For Nothing https://carspiritpk.com/imported-cars-launched-nothing/?utm_source=rss&utm_medium=rss&utm_campaign=imported-cars-launched-nothing Pakistan's Trusted Automobile Blog Fri, 07 Aug 2020 05:35:36 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: TiredOfThisShit https://carspiritpk.com/imported-cars-launched-nothing/#comment-4707 Sat, 09 May 2020 23:56:50 +0000 https://www.carspiritpk.com/?p=32985#comment-4707 These assemblers only buy non-technological parts like nuts bolts plastics locally. If a car needs 4 screws which are procured locally and one engine which is imported as total parts count, BAMMM! that is 80% localization right there. The incompetent people at EDB and MoI&P which are hand in pocket with these assemblers should give weightage to each item depending on involved technology so that any one aspect cannot cross a certain threshold. E.g. weightage of screws should not cross 1-2% of a car. Similarly, all injection moulding based plastic parts should not cross 3-5% of total part weightage as far as technology goes. Sheet metal work should similarly be bound at 5-15% of weightage. Engine as 20%. Transmission at 20% Suspension at 15%. And so on… That would give a radically different picture from the nonsense currently spouted about localization efforts and their results.

Any item containing even slightest rudimentary tech is imported at the assembling stage and even after for spare parts like oil filters, air filters, etc. Further, these assemblers don’t pay their vendors a fair price and instead maximize their own profit resulting in high local part prices excused as cost of local production. Car Spirit should do an investigative article on this.

Coming to duties, we must not forget that a significant chunk of the cost now is the assembler’s own profit brought about under guise of foreign exchange element. It must be audited in detail and report made public. Taxes, while significant, are just an ever ongoing excuse. CBU taxes should be removed to make imports competitive with local assembled trash.

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By: Hasan https://carspiritpk.com/imported-cars-launched-nothing/#comment-4705 Sat, 09 May 2020 11:27:28 +0000 https://www.carspiritpk.com/?p=32985#comment-4705 In reply to DR. Rizwan.

Driving showroom traffic is really costly, especially with the limited range and often obsolete offerings by OEMs in Pakistan. Therefore these CBU’s have been very effective in doing just that.

No amount of billboards and commercials can drive me to a Suzuki Showroom but both Vitara and Jimny made me go there. Same is the case with Ioniq.

Usually large dealers would stock just one unit. After a year or so prices start to look attractive at their year old level in contrast with the new prices in the market or the car company will push with big discount.

Either ways it’s an effective marketing strategy and not really a case of failed launches.

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By: DR. Rizwan https://carspiritpk.com/imported-cars-launched-nothing/#comment-4704 Fri, 08 May 2020 20:06:18 +0000 https://www.carspiritpk.com/?p=32985#comment-4704 a very good article. I cant understand how these companies dare to launch vehicles with this price tag.

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