The Only True Competitor of Suzuki?

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Pakistan introduced its first-ever Auto Policy in 2016, the aim of which was to break the monopoly of 3 Japanese automakers in the market, generate healthy competition between players, shorten the delivery period, eliminate own/ premium, increase localization, bring down car prices and improve the quality of products offered to the customers.

Related: New Auto Policy 2021-26 Announced

Various automakers stepped into the business as a result of Auto Policy 2016-21, however majority of newcomers remain focused on offering premium priced products targeted towards those with strong purchase power while never trying to compete against the existing players by launching a product for volume buyers.

The Only True Competitor of Suzuki? 1

These automakers don’t find it right to introduce products which target the mass market buyers, perhaps from a business point of view, profit margins on smaller and medium sized hatchbacks & sedans are thin and require more effort to compete. However like they say since rich are becoming richer, most of the products that have been introduced so far as well as those currently in the pipeline are offered for those with deep pockets. In most cases these expensive 4-wheelers actually cost more than a residential property.

The Only True Competitor of Suzuki? 2

The only ‘new’ options among mass-market sedans & hatchbacks include the Kia Picanto which is globally discontinued generation model, the recently introduced Changan Alsvin sedan and perhaps Proton Saga, the deliveries of which are yet to commence. For other smaller cars there are United Bravo and Prince Pearl, both based on 35+ years old 2nd gen Suzuki Alto (Mehran) platform having same engine & transmission but severely suffers from lack of production volume thus are available in extremely limited numbers. Same is the case with 1000cc United Alpha which is a re-badged first-gen Chery QQ from 15 years ago, but lacks production volume hence is of no real threat to any Suzuki or even Kia Picanto for that matter despite bearing a lower price tag.

The Only True Competitor of Suzuki? 3

Although people have started to get flavors in the sedan segment in form of Toyota Yaris which was introduced last year, the Changan Alsvin, Proton Saga as well as the upcoming 6th gen Honda City, however the hatchback segment continues to be dominated by Suzuki with consumers having literally no other mass-produced option. People often blame Chinese automakers for not introducing small hatchbacks but realistically speaking automakers in China have stopped manufacturing small cars with gasoline engines long ago, as they are now purely focused on developing electric vehicles (EVs). So expecting new small Chinese hatchbacks like Chery QQ that we embraced back in 2006/07 is almost impossible today.

Related: Agya Launched as the Cheapest Toyota in South Africa

They say its almost hard for any automaker, be it European, Korean or Chinese, to beat Suzuki in small car segment. However in current circumstances the only automaker which can compete Suzuki in small car segment is none other than Daihatsu, which is a wholly owned subsidiary of Toyota.

toyota and daihatsu logo 850x277

Daihatsu is the oldest Japanese car manufacturer, mostly known for its range of small cars and off-road vehicles. Although founded in 1951, Daihatsu has its roots that trace back as far as 1907. Toyota acquired a controlling interest of 51% in Daihatsu in 1988, bringing the company under its umbrella. But in 2016 it has purchased Daihatsu’s remaining assets, thus making Daihatsu a wholly owned subsidiary of Toyota Motor Corporation. In its home market in Japan, Daihatsu gives a cut-throat competition to Suzuki which is best known for producing small cars. As of 2019 (before the pandemic), Suzuki held a 30% market share in small (kei) car segment in Japan whereas Daihatsu had 32% of the same.

Related: Should IMC Re-Introduce Daihatsu Cuore in Pakistan?

Indus Motor Company (IMC) has previously introduced various Daihatsu cars in Pakistan including the highly successful 800cc Cuore hatchback and the Terios 7-seat SUV. So with an array of quality small cars in Daihatsu’s arsenal, we can always expect these cars to do exceptionally well in our market considering the trusted Japanese standards, the ease of maintenance, success rate among used JDMs and credible brand image of Daihatsu cars in Pakistan since 1980s.

The Only True Competitor of Suzuki? 4

There are a lot of cars which IMC can introduce in Pakistan under’s Daihatsu’s umbrella. Such as  the new Daihatsu Rocky that can also gain tax benefits if introduced in Pakistan thanks to its 1000cc turbo engine. Toyota also has its own version of the Rocky called Raize, which is aesthetically different but technically the same vehicle under the skin.

The Only True Competitor of Suzuki? 5

Then the 660cc Mira can be an ideal alternative to the Suzuk Alto which is currently the highest selling car of Pakistan. However unlike Alto which has rather compromising looks, the Daihatsu Mira is a much aesthetically pleasing vehicle to look at, and considering its performance and fan-base in used car market can be a highly successful vehicle in Pakistan. Plus, IMC can also resurrect the Cuore nameplate to market the new 660cc Mira here, just what Suzuki did with Celerio by naming it as Cultus.

Ayla 2

New daihatsu Sirion 2015 9Then there is the 1000cc Daihatsu Ayla hatchback which is a sister product of Toyota Agya and does well in markets where its available either as Ayla or Agya. Plus the 1.0L Daihatsu Boon which is a sister product of Toyota Passo can give the likes of Suzuki Cultus and Kia Picanto a run for their money. Furthermore, the 1.3L Daihatsu Sirion hatchback can be considered a worthy alternative to the likes of Suzuki Swift and upcoming MG3 hatchback.

Daihatsu Boon Active 1

Daihatsu Atrai WagonIMC sells the rather expensive Toyota Avanza as CBU import, but its sister product- the Daihatsu Xenia if assembled locally can be an ideal alternative to Honda BR-V, the only locally assembled 7-seat MPV in our market. Then there is the Atrai van, which comes in 660cc as well as 1000cc engine options and with a proven reliability among used-imports can be a perfect replacement of Suzuki Bolan or the likes of Changan Karvaan or FAW X-PV in our market.

The Only True Competitor of Suzuki? 6

Daihatsu TAFT, which is a 660cc crossover SUV having an impressive chunkier design language can be preferred by those who loved to own an everyday-cum-recreational vehicle, pretty much the sort of Suzuk Hustler. Things just don’t end here as the 660cc Daihatsu Copen 2-door roadster can be offered as CBU for enthusiasts.

Daihatsu Copen GR Sport Red 3 850x630 1

Bezza regDaihatsu also has a sedan called Bezza, the development of which was led by Perodua, the Malaysian automaker which is 20% owned by Daihatsu. Bezza comes with a choice of 1.0L and 1.3L engine options and was also imported by IMC back in 2018 reportedly for trials & tests. However the launch is yet to become a reality.

Bezza

Daihatsu has a huge portfolio of quality small cars that have all the potential to go successful in our market. Unfortunately the way things go here, the companies prefer cartelization over competition. If the above mentioned Daihatsu cars are introduced in Pakistan, there is a huge chance of them sweeping away the market, however since Suzuki has no presence in sedans (or 1300cc & above segment), Toyota as well as Honda have always remained reluctant to tap the small car segment in Pakistan.

What is your take regarding the introduction of Daihatsu cars in Pakistan? Let us know with your comments.

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