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Car Prices and Quality in South Asia

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    Car Prices and Quality in South Asia

    High prices of cars


    When the automakers were coming to Pakistan to set up their plants to assemble, manufacture and then market their wonders, it was thought and also propagated that car prices would come down to a common man's reach.

    This was one of the many false promises made to the innocent people of this country. Car prices never got within the reach of the common man.

    Unlike this country, our neighbour (read India) has almost all the major automakers within its boundaries and most certainly all those that are operating in Pakistan. The prices there are much lower and the quality on offer is also reported to be superior.

    How is it so? Can any one explain?

    LUQMAN REHMAN

    Karachi

    http://www.dawn.com/2002/07/11/letted.htm#5


    A few weeks back, there were a whole lot of deluded patriots here opposing me when I said India has a better auto manufacturing base and industry. Here is a Pakistani exposing the truth.

    #2
    letter to the editor hmmm. yup a quality source of empirical evidence http://www3.pak.org/gupshup/smilies/biggrin.gif

    The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

    Comment


      #3
      But you should agree mr.fraudia that the car prices in Pakistan r out of the reach of Common man or least middle class which is the backbone of every society. And thoes who carry cars most of them have time secret sources of income.Thats pathetic.
      Because in America, where you reside, know well that even a poor can afford the car easily, http://www3.pak.org/gupshup/smilies/smile.gif

      [This message has been edited by mm10 (edited July 11, 2002).]

      Comment


        #4
        mm10 i agree wwith you that purchasing power and car prices have a diff ratio in US than in Pakistan.

        I would want to see some empirical evidence as in average cost of new cars, lowest cost cars and then average pay.

        using some letter to an editor as a "proof" does nothing.
        The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

        Comment


          #5
          I don't necessarily agree to this assertion. A car is a car, and its price will never come down to the level of a bicycle, hence "common man's reach" is a vague concept.

          The first car assembled in Pakistan, the enviable Suzuki 800 was priced at Rs 35,000 which was a very reasonable price at that time, so it was a big hit. Its comparable newer models, now sell for Rs 350,000. Granted inflation has not raised 10 times in the last 15 years, but car pricing is based on many complex factors. Agreed that Rs 350,000 is a high amount, but still quite reasonable compared to imported cars.

          The point about cheaper cars made available in India may be valid, but since I have no information on comparable data, I don't think I should comment. One thing is certain. India is a much bigger market and the Indian government's policies reflect this reality. Pakistan, on the other hand, continues to try and attract foreign investment by offering them incentives, which may include a certain freedom to fix their own pricing. Constantly comparing Pakistan to India on such matters defies apples to apples concept.
          "Let your friends underestimate your virtues. Let your enemies overestimate your faults." - Godfather.

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