Comments on: Indonesia Aims to Produce 1.6 Million Cars in 2023 https://carspiritpk.com/indonesia-aims-to-produce-1-6-million-cars-in-2023/?utm_source=rss&utm_medium=rss&utm_campaign=indonesia-aims-to-produce-1-6-million-cars-in-2023 Pakistan's Trusted Automobile Blog Sat, 25 Feb 2023 18:16:13 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Export will not be possible https://carspiritpk.com/indonesia-aims-to-produce-1-6-million-cars-in-2023/#comment-13582 Sat, 25 Feb 2023 18:16:13 +0000 https://carspiritpk.com/?p=65345#comment-13582 Exporting from Pakistan is mentioned in other comments.

Export is not easy: first of all the companies whose brands are under use (e.g. Toyota, Suzuki, Changan, etc.) are not themselves in Pakistan, but they have a JV with local partner. Muazziz principal gives the technology to local partner, only for selling the product in Pakistan, not for export. This phenomenon has been discussed (for the first time as far as my knowledge) by Fazal Wahab on one of the articles in PakWheels Blog in this article: https://www.pakwheels.com/blog/this-is-why-we-didnt-get-elantra-7th-generation/, this link has been shared in CSP comments a few years ago too.
FW gives the example “Even in India, Hyundai India Motors is a fully owned subsidiary of Hyundai Korea.” which is not the case e.g. with Nishat Motors. Same scenario about Toyota Indus, Honda Atlas, LMC Kia & LMC Peugeot. In case of Suzuki, at the time of incorporation half-owner was Suzuki Japan and other half-owner was Government of Pakistan itself.

Japanese and German companies also did the same to China, because in this regard Chinese & Pakistani markets are similar: that the foreign company is not allowed to operate independently, only together with a local partner can they make cars. This is a double-edged sword which allows more control of the local government and private institutions but then also the foreign benefactor has lower trust level so they’ll prefer to give out the diagrams/moulds of an older model rather than the latest … and also forbid any exporting.

Now for China they have proved themselves to be great at overcoming obstacles, they learnt the tech, developed their own brands and later on they developed their own technologies and became exporters on their own. Indian, Indonesian, USA and Thailand are exporters either because the company itself is sitting there as the owner or because the trust level is high, or because they see some other benefit like cheap labour, low taxes, quality production or geographically near to their target markets, none of these benefits can be offered by Pakistani market so why would the developer of a latest model of vehicle give away all of its IP (Intellectual Property) to a loosely-related company in Pakistan?

]]>
By: Mehdy Hassan https://carspiritpk.com/indonesia-aims-to-produce-1-6-million-cars-in-2023/#comment-13570 Fri, 24 Feb 2023 13:00:28 +0000 https://carspiritpk.com/?p=65345#comment-13570 if monkeys of local auto sector are reading this, listen. don’t cry for low sales, start exporting

]]>
By: Ali Khan https://carspiritpk.com/indonesia-aims-to-produce-1-6-million-cars-in-2023/#comment-13568 Fri, 24 Feb 2023 05:03:00 +0000 https://carspiritpk.com/?p=65345#comment-13568 Exports! This is what we have been screaming for. It is so clear to see. Yet our government geniuses can’t seem to put two and two together. Even if they only made the effort of reading this article, maybe they might learn something on how to handle the auto sector.

From this article we can clearly see how far we have been left behind and are falling behind every single day. This industry is filled with un-ambitious, greedy and short sighted people who can’t seem to realize their own corrupt business practices and isolationist attitude is hurting them. They are inflicting harm on themselves; and, for some reason, they are fine with it. By expanding, they can literally earn magnitudes more than they are earning now. Yet they are unwilling to commit the resources or make the required effort.

New brands from China and Malaysia etc. were brought in making bold claims of local assembly geared for exports. Yet years have passed with nothing to show for them. Those companies cannot and will not wait forever for Pakistan to get its shit together. They will leave. And we will be stuck where we are. Nowhere!!!

Decades ago three companies entered Pakistan. That was not our fortune but our downfall. Protecting these three companies have cost our nation everything.

Pakistan auto industry is a lost cause.

]]>