The recently concluded Pakistan Auto & Parts Show (PAPS) 2024 in Lahore has raised eyebrows, not for its innovative displays or technological advancements, but for what was glaringly missing – affordable cars for the masses. Despite the economic challenges faced by the majority of Pakistan’s population, automakers at the event appeared to have a singular focus: expensive vehicles aimed at the upper echelons of society.
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In previous years, PAPS had generally been a platform where automakers showcased a variety of vehicles, from budget-friendly hatchbacks and sedans to premium SUVs and luxury cars. However, PAPS 2024 painted a different picture. This year’s emphasis was overwhelmingly on high-end, super-expensive cars catering to the elite class. The absence of affordable models suggests that automakers are prioritizing profit margins over the needs of the average Pakistani consumer.
As highlighted earlier, in a market without any govt regulations, it’s much easier & less of a hassle for automakers to sell a handful of expensive products and provide their limited after-sales support rather than selling budget cars in volumes, which requires them to maintain a large number of spare part inventory and operate a bigger after-sales network.
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Pakistan is currently grappling with severe economic challenges, with inflation and fuel prices skyrocketing. The average citizen is struggling to make ends meet, let alone afford a new car. Many might have hoped that PAPS 2024 would be an opportunity for automakers to introduce affordable vehicles to cater to this large segment of the market. Sadly, those expectations were dashed. The only vehicle displayed at the show that could be considered “affordable” was perhaps the recently launched Suzuki Every, though, at PKR 27.99 lac, it’s far from being truly affordable.
The increasing cost of living has shifted consumer demand toward budget-friendly vehicles, yet the show reflected a reality where automakers seem more focused on catering to the luxury market. There were no signs of the small sedans or hatchbacks offering affordable mobility to middle- and lower-income families. Instead, luxury and high-end models dominated the floor, signaling a disconnection from the real needs of most Pakistanis.
Many of the vehicles showcased at PAPS 2024 boasted price tags that the majority of attendees could only dream of affording. Brands focused on SUVs and hybrid or electric vehicles with advanced features, designed for the more affluent segments of society. While these vehicles may offer better technology, safety, and fuel efficiency, they are far beyond the reach of the everyday consumer.
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This has led to growing frustration among potential car buyers who feel increasingly neglected by local and international car manufacturers. The launch of high-end vehicles while ignoring the need for affordable options sends a message that the industry’s priorities lie elsewhere – far from serving the masses.
Gone are the days when the Pakistani market saw an influx of affordable cars particularly in the Pervez Musharraf era when brands like Chevrolet, Proton, Geely, Chery, Adam, Nissan, Kia, Hyundai, and Mitsubishi offered a variety of affordable sedans and hatchbacks primarily in the mass-market segments that gave some sort of competition to the existing offerings.
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Automakers’ reluctance to cater to the budget car market is puzzling, given that the majority of the population in Pakistan falls into the low to middle-income bracket. The launch of an affordable car could have captured a significant market share, providing relief to consumers at a time when public transport is unreliable and two-wheeled vehicles are becoming riskier on congested roads.
Brands that once focused on hatchbacks and compact sedans are now pivoting toward luxury, and the absence of any concrete plans to introduce new affordable models was a notable disappointment.
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Selling a handful of expensive cars surely helps automakers achieve greater profit margins, but the auto industry as a whole remains stagnant & volumes never grow. Given the large population, the auto industry should prioritize achieving high sales volumes to establish a prominent position among auto manufacturing nations. However, this goal is nearly impossible to reach without offering vehicles for the mass market. In order to increase the output of our market, the government needs to incentivize smaller & fuel-efficient vehicles so that Pakistan may finally be able to breach its stagnant sales volumes, which are yet to even reach the 250,000 units per year mark.
If the trend of launching expensive cars for the elite persists, annual sales volumes could decline even further. While this may offer automakers a lucrative opportunity to maximize profits, it will significantly hinder the country’s ambition of boosting overall sales volume.
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As the economic climate continues to worsen, the demand for affordable, reliable transportation will only grow. The hope is that in future events, automakers will reconsider their priorities and recognize the immense market potential that still exists among the everyday Pakistani consumer – if they choose to serve them.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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