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BMW keen on introducing lower end models in Pakistan

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THE EXPRESS TRIBUNE > BUSINESS
BMW keen on introducing lower-end models in Pakistan
By Shahram Haq
Published: November 13, 2016
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LAHORE: The government’s auto policy has started to bear fruit.

In the latest development, German carmaker BMW is making efforts to increase its presence in the country through the launch of intermediate and low-end models.

The company’s move to launch the second generation of BMW X1 in Pakistan is a step in that direction.

BMW Group Middle East Managing Director Johannes Seibert said the X series launch in Pakistan is to attract customers currently using other brands. “We have positioned this model pricewise, and it is very competitive,” Seibert told The Express Tribune.

The idea behind launching the model is to facilitate the access of new customers in our group, and we notice that over 90% are switching from other brands, he added.

BMW has been present in Pakistan since 2004 in partnership with Dewan Motors that has launched 2 PHEV models, the X5 40e and the 330e. These models, according to the company, have received a positive customer feedback and are accounting for around 15% of total BMW sales in Pakistan.

However, high end models continue to be imported by individual customers. The X1, priced at Rs3.99 million, has already attracted brand conscious consumers. According to the company, around 120 pre orders have been received and delivery will start in February 2017.

On an average, the company sells 150 units per annum, but Seibert said that the year 2016 has turned out to be a very successful one. “We are estimating that by the end of this year, over 30% more cars will be sold and delivered to the customers as compared to previous year.”

Dewan Motors Chairman Dewan Mohammad Yousuf, however, said that in 2017, they are expecting to sell 250 units in Pakistan, which shows the rising interest of customers in this brand. “We are very much committed when it comes to the BMW Group and investments we have made with them,” Yousuf said.

“As a lot of developments are taking place in Pakistan, especially after the China-Pakistan Economic Corridor, demand is rising. We are geared up for whatever would be necessary, in this category we are proactive and will go aggressively as per demand and will invest further to expand our operations,” Yousuf added.

The company does not consider any imported Japanese vehicle as a serious threat to its model. “I don’t consider Japanese SUVs (Honda Vezel) as a competitor with the X1 as it is a used car being sold in Pakistan,” Yousuf said.

At this point of time, the company is looking for numbers before deciding to invest in assembling BMW vehicles in Pakistan.

“It depends on demand, each company has its strategy for entering and exploring the potential which can be in the shape of an assembly line or CKD with local content,” Seibert said, adding that it is a complex business case, however, the dynamics of Pakistani market deserves a regular look into the matter. “We are open to anything and willing to discuss anything in this regard,” Seibert added.
 
Only problem is corrupt Pakistani government.
If these corrupt corcs had any soft corner for Pakistanis, they would have brought brands like Dacia to lower the prices & better quality for common man.
 
.. Pakistan badly need good quality cars..... we already got a lot of cheaper models of Suzuki & Chinese ......
Dacia is not Chinese, it's subsidiary of Renault.
Best Suzuki model of Pakistan is no where near to cheapest Dacia model in quality and safety features. Price range of your average auto buyer is 0.7 to 1.5 million PKR. i.e. the middle class.


This is Dacia Sandro, approx 0.7 million PKR with all standard safety features included. What Pakistanis got in this price in Pakistan ? in other words, what government of Pakistan has brought it's citizens in this price ?
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Dacia is not Chinese, it's subsidiary of Renault.
Best Suzuki model of Pakistan is no where near to cheapest Dacia model in quality and safety features. Price range of your average auto buyer is 0.7 to 1.5 million PKR. i.e. the middle class.


This is Dacia Sandro, approx 0.7 million PKR with all standard safety features included. What Pakistanis got in this price in Pakistan ? in other words, what government of Pakistan has brought it's citizens in this price ?
00039801_pearl_black_sahara-650x360.jpg
Renault have already announced its plans for Pakistan, i do agree that Pak Auto Policy is in favour of few, but recent news of diff car makers showing interest in Pak market are encouraging signs....
 
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Its the price that matters. Even the basic models of Japanese sedans such as corolla and civic are outside the reach of a common man forget about BMW and other German giants. I agree that the monopoly of the big 3 in Pakistan should be broken but so is the price segment. In India a good car can be bought under a million. In Pakistan you can only buy a mehran under a million or old JDMs.
 
Anything to break monopoly of Suzuki and the likes. This should promote competition and better prices for consumers. That should be the end goal. The rest will follow by itself.
 
Ohhh wow... So BMW would induce a competition of class in our Elite people...
And they would get their hands off from Toyota and Honda or Suzuki and then we ghareeb log could imagine of having our own small car..

Thank You BMW... Please come soon..!!
Yours sincerely..!!
Ghareeb Awaam of Pakistan...
 
The sale of 150 cars per annum sounds funny if they really mean the total sale of BMW ih Pakistan is that forgettable number

I do see lots of Audi cars around my city so I am sure we would have higher number of cars around my city alone

Bmw should consuder manufacturing plant for its 1 Series and 3 Series cars and I am quite sure many people would buy it. Those who buys Audi A3 and A4 would surely like BMw 3 Series
 
Its the price that matters. Even the basic models of Japanese sedans such as corolla and civic are outside the reach of a common man forget about BMW and other German giants. I agree that the monopoly of the big 3 in Pakistan should be broken but so is the price segment. In India a good car can be bought under a million. In Pakistan you can only buy a mehran under a million or old JDMs.
Vauxhall, VW, etc have great modle cars for low prices. Prices can only remain low if cars are produced locally. To be honest I bet if Toyota LC were produced locally, it would be weird if you didn't see one atleast on every road. Look at the difference It costs around £100K to import a Toyota LC and in a country like Qatar you get it for £20K. Big Difference. If Vauxhall started to produce its modles in Pakistan, such as Corsa and Astra it would be around the same price tag as the small Sazuki these days in Pakistan. (Just better quality).
 
Vauxhall, VW, etc have great modle cars for low prices. Prices can only remain low if cars are produced locally. To be honest I bet if Toyota LC were produced locally, it would be weird if you didn't see one atleast on every road. Look at the difference It costs around £100K to import a Toyota LC and in a country like Qatar you get it for £20K. Big Difference. If Vauxhall started to produce its modles in Pakistan, such as Corsa and Astra it would be around the same price tag as the small Sazuki these days in Pakistan. (Just better quality).
Nobody would buy Corsa unless its a 4 door variant. Yeah the Astra will be popular and compete with Suzuki Swift. It will be a huge success right from the launcu as it fits pocket and budget of most middle class families
 
The sale of 150 cars per annum sounds funny if they really mean the total sale of BMW ih Pakistan is that forgettable number

I do see lots of Audi cars around my city so I am sure we would have higher number of cars around my city alone

Bmw should consuder manufacturing plant for its 1 Series and 3 Series cars and I am quite sure many people would buy it. Those who buys Audi A3 and A4 would surely like BMw 3 Series
When civic turbo variant was launched for 3.2 million on road price, people already started questioning why not buy an Audi A3 for 3.9 German brand and imported quality versus Atlas third class quality in local assemble civic. But the question mark is will the quality remains the same if BMW and Audi start manufacturing in Pakistan? Also how likely is that they will reduce the price and not charge the same amount as for a foreign assemble car?
 
When civic turbo variant was launched for 3.2 million on road price, people already started questioning why not buy an Audi A3 for 3.9 German brand and imported quality versus Atlas third class quality in local assemble civic. But the question mark is will the quality remains the same if BMW and Audi start manufacturing in Pakistan? Also how likely is that they will reduce the price and not charge the same amount as for a foreign assemble car?
the price can only reduce with economies of scale. For that they will have to establish manufacturing plant to cater the needs of local population and surrounding nations. I do envisage Pakistan to be most suitabld region if they want to target Western China, Pakistan, Iran, Parts of Central Asia unless brands like BMW are already established there

imports don't create local jobs so even if the assembly plant offers the same price range, Its creating jobs nad contributing to national economy
 

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