Pakistan decided to take a leap of faith by finally passing the automotive policy, and it is safe to claim that thus far it has been highly beneficial for the country. Many carmakers, investments, jobs and auto industry-related innovations are going to follow in the years ahead after the passage of the auto policy.
Objectively speaking, the new auto-policy hopes to spur action into these key points for the next five years to come:
- Modernization of overall auto industry
- Improvement of locally manufactured car quality and standard
- Enhancing consumers welfare
- Protection of local manufacturers
- Attraction of new entrants of the markets to enhance competition
- Improving inflow of foreign investment
- Getting in line with international quality practices
Perhaps the biggest talking point of the policy is the manner in which new foreign investors have been attracted. According to the policy, any new foreign investor looking to set up a car assembly in Pakistan will be given incentives such as lower taxes for a fixed period of time, and discounts on import and exports of automotive goods, and more.
Here are 10 developments in the Pakistani auto sector that happened this year which shows that our country is all set to usher in change in the lives of consumers and the greater local auto industry alike.
1. Suzuki Wanted Govt to Overturn The Auto Policy
Suzuki offered the Pakistani government a handsome amount of money to overturn the new auto-policy, the realization of which, would eventually succeed in breaking their monopoly in Pakistan. The government, however, decided not to take the investment and carried on with their usual plans.
Days later, the Managing Director of Pak Suzuki Motors said that his company is ready to invest $460 million in Pakistan to set up a second plant.
According to the details provided to the government, the new project will be completed within a period of two years and may start production by the end of 2018.
Read more on the story, click here.
Kia Announces its Arrival in Pakistan
The new auto policy, devised to seek foreign investment, seems to be working fluidly. Kia, ranked as the most reliable car manufacturer in 2016 and is one of the top 20 most valuable car brands, has announced that it will be making an investment in the Pakistani market.
The project is to be set up and established in Pakistan, which shall undertake the manufacturing, assembling, marketing, distribution, import and export of all types of Kia motor vehicles.
Lucky Cement will help in setting up operations of Kia Motors in Pakistan through its investments. The cement producer will make an investment of Rs. 12 billion through 1.2 billion shares worth Rs 10 per share each in the automobile company.
To read more on the story, click here.
Renault To Start Car Assembly in Pakistan from 2018
After Kia, Pakistan were successful in securing another deal with a big name auto company from Europe. The company followed up on Ishaq Dar’s visit where he met with the representatives of the Renault company. Few days later, Renault accepted Pakistan’s invitation and announced to start assembling cars in Pakistan by 2018, which was confirmed by Board of Investment (BoI).
The BoI chief informed that Renault will aim to focus on SUVs and sedan cars. Moreover, Nissan cars will also be revived after the plant is completely set up.
In 2013, Renault was the eleventh biggest automaker in the world by production volume. Arrival of the company in Pakistan is another step towards the right direction.
Read more on the story here.
Existing Giants Will Not Let Go Easily
The increase in competition is healthy in any scenario. With the arrival of new competitors in the market, the existing giants including Suzuki, Honda, Toyota and Audi decided to bring out new car models.
The launch has already got the crowd excited. Here’s a look at some of the cars which were announced in 2016:
- Suzuki Vitara: The Suzuki Vitara is being launched in two variants in Pakistan; GL+ and GLX. Both have a 1.6ltr engine. It is packed with a rather low 86kW at 6000rpm and 156Nm of torque at 44000rpm. Suzuki claim that owners will use between 5.8 litres and 6.3 litres per 100km, which is quite impressive. GL+ version is said to cost around Rs. 3.490 million where as for GLX, Rs. 3.799 million. Click here to read more about Suzuki Vitara.
- Suzuki Celerio: The classic Cultus is being phased out of the market by Suzuki. Replacing Cultus, is Suzuki Celerio. For an economical price of PKR 1.25 million, Celerio offers the same solid features as Cultus. The 1,000cc Celerio is expected to be launched in March 2017 . It features a 1.0 liter 3-cylinder engine which goes by the name of K10B. For more information, click here.
- Honda Accord: Honda Accord 2016 costs PKR 11.25 million. The car possess a a 2.4-liter DOHC i-VTEC engine with 4-cylinder and 16-valve that provides 175 horsepower at 6,200 rpm. The Accord is available in five different colors. Booking for the model commenced from 17th December, 2016. Follow this space for additional information.
- Toyota Hilux Revo: Toyota is launching Hilux Revo in 8 different variants, in which 4×4 drive, 2×4 drive, single cabin, double cabin, automatic and manual are included. All variants carry 3.0L 1KD engine. The Revo has improved 18-inch rims, to give it a more stronger appeal. Price of the imported Revo is around PKR 6 to 6.5 million in the local market. Read more about the car here.
- Audi A3: Announced a few months ago, the Audi A3 packs packs a new petrol range featuring 115bhp three-cylinder 1.0-litre engine, replacing the old 1.2 and the 150bhp 1.4-litre engine. Another addition to the A3 range is a completely new 2.0 TFSI engine, which produces 190PS. The base price for Audi A3 1.2-litre TSFI is PKR 4 million. Here’s more.
- Audi Q3: The Q-series, arguably better and more expensive than the A-series launched Q3 this year. The Q3 Sedan version already existed in Pakistan, Audi decided to launch the SUV version too for PKR 5 million.The Q3 features a 150-horsepower engine along with S tronic transmission, which provides improved road grip and agility on the road. Further information is provided here.
Shell and Other Companies Introduce RON92 Petrol in Pakistan
Research Octane Number (RON) is a general measure of quality for vehicle grade petroleum. The higher the RON of the petrol is, greater the quality of it will be. Spurred into action after we reported on the matter, big players in the petroleum industry such as Shell agreed to sell higher quality petrol in Pakistan, a big win for consumers.
Read more on the story, click here.
Honda Hilux Revo
pls correct its Toyota
“Suzuki Wanted Govt to Overturn The Auto Policy” what a badmashi
Pakistani’s are forced to buy overpriced and low quality cars which are is really really bad because people who are paying less in other countries are getting more benefits and their governments have special departments for consumer protection.
But unfortunately here in Pakistan companies like Suzuki and all want to bribe Pakistani govt and keep on earning big amounts of money.
But there is nothing in it for low income people they still forced to buy mehran
Mehran? That too is luxurious not the the car but the dream to get one.
“Celerio offers the same solid features as Cultus.”
Konse solid features?
SUZUKI, you and with our democratic parties like PPP and PML (N) the only two contractors of Pakistan since inception looted demos money…. You are the king of monopoly the reason behind is that you have to dealt with only bandits seeking money every time. But, there is a dawn after every dusk which is inevitable (in sha ALLAH). JUST WAIT AND WATCH!