On May 5, 5:21=A0pm, Javed Kaleem ka aslee baap
<javedkaleemkaasleeb...@[EMAIL PROTECTED]
> wrote:
> In article
<dfc06a54-6c8d-47d4-aa05-bc0ffea6b...@[EMAIL PROTECTED]
>,
> Javed Iqbal Kaleem says...
>
>
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> >Today he mailed me =A0a comparison between =A0Pakistan and India's
=A0car=
s
> >per thousand population. =A0He gave the false figures of
>
> >India =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0
=A0=
=A0Pakistan
>
> >=3D=3D=3D=3D=3D=3D =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0
=
=A0 =A0 =A0=3D=3D=3D=3D=3D=3D=3D=3D=3D
>
> > Cars per 1000
> >people
> >25 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0
=
=A0 =A0 =A0 11
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> >I could not believe it because I knew China has 25 cars per thousand
> >people and India was far behind. So I searched on the internet and
> >found following true figures:
>
> > Cars per 1000
> >people
> >7 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0
=A0=
=A0 =A0 11
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> Can you tell from where you got this "true figures" of 7 car per 1000
> people. I guess from the same site which told you that there was no
> genocide of East pakistanis in 1971.
>
> here is the latest issue of Business Week.
>
> http://www.businessweek.com/magazine/content/08_19/b4083048441132.htm...
>
> Both India and China have 25 cars per 1000 people.
>
> Remember I am your aslee baap.- Hide quoted text -
>
Ayeee kalieem paki ghandoo read,this is not daily dung stuff...have
you ever got feed back,for the stupid fowl scratch marks,you scribble
in churudu in daily dung,i have not seen even one....anyways use brain
and read,your reference has no link.it looks like they cut off your
lalli completely,during chidia dekh sunnath time,your daddy if any
hired himself to do the job....you sound so frustrated and write
rubbish.....anyway try reading or take help of chief maulavi in binori
mosque,let us see how much he blabbers....or best bhag yehan sey,that
is true paki trait.
http://www.businessmonitor.com/autos/india.html
Vehicle sales growth in India topped 20% once again in FY2006/07
(ending March 2007), as total sales were 23.6% higher than the
previous financial year. Passenger car sales growth remained strong at
18.3%, although BMI's recently published India Automotives Re****t
shows that there was a surprise result within the passenger market.
Although tax breaks in India for small fuel-efficient vehicles had
been expected to make the segment a run-away winner, results show that
the premium segment was the biggest draw. Classed as the A4 through to
A6 segments, the high-end vehicles registered sales growth of 56%. The
growth of the premium segment in India has attracted related
investment, with DaimlerChrysler (as it was at the time of the
announcement) pledging INR2.75bn (US$67mn) for a plant, which will
produce the Mercedes C, E and S Class models for the domestic market.
German rival BMW, meanwhile, began production at its Chennai-based
plant in March, producing the 3-Series from im****ted parts, with the
5- Series to follow. BMI expects further projects in the premium
segment, as we forecast the consumer expenditure per capita of the
richest 10% of the country's population, the main target for premium
carmakers, to rise by 56% by 2010/11.
As a result of its investment potential and its low levels of vehicle
owner****p, India retains a high position in BMI's Business Environment
Ranking matrix for the automotive industry in Asia Pacific. The market
ranks joint second on a composite score of 39 from a possible 60,
scoring highly for both its CBU output potential and its penetration
potential given the low vehicle owner****p rate. However, India's score
for industry regulation has been lowered in line with BMI's country
risk business environment rating, based on its low level of protection
for investors and high levels of government intervention.
Despite the presence of so many international carmakers, domestic
manufacturer Maruti (albeit with the backing of Suzuki) continues to
dominate the Indian passenger car market, with a market share of just
over 51% in FY2006/07. The company's sales of 493,694 for the year
represented a 22.1% increase on the previous financial period and kept
the company well beyond the reach of the nearest competitors. The best
performance of the fiscal period came from Fiat India, ending Skoda's
two-year run of the segment's highest growth. After the Italian
manufacturer suffered an 81.8% fall in sales in FY2005/06, which
tookits share down to just 0.1%, it rebounded with growth of 105.6% to
double its market share in FY 2006/07.
pakistan
There is a need to produce affordable cars for the domestic market and
earn forex through ex****ts.
By Syed M. Aslam
Auto sales not only reflect the basic human desire for mobility but
also is an indicator of the prosperity of an economy. The car-person
ratio is used as an indicator of the economic prosperity of any
nation.
One in 205 persons owns a car in Pakistan as compared to 40 persons in
Asia, 4 persons in Europe and 3 persons in North America. The ratio of
those who can afford to buy a new car is much lower=97 one person in
2,900. The analysis is based on a population of 131.5 million, car
population of 638,800 and the car production volume of 44,000 units in
1997-98.
One in 205 persons owns a car in Pakistan as compared to 40 persons in
Asia, 4 persons in Europe and 3 persons in North America
The Players
The car industry in Pakistan primarily comprises of three major
assemblers, all of them Japanese=97 Suzuki, Toyota and Honda. Suzuki
produces 13 variants of cars, pick-ups, vans and jeeps with engine
power ranging from 800 cc to 1,300 cc. Toyota=92s product range
comprises of eight Corolla car and five Hilux trucks. Honda production
range includes variants of Civic and City model cars.
Suzuki has an annual production capacity of 50,000 units in two ****fts
followed by Toyota with 20,000 units and Honda with 5,000 units in
single ****ft. In 1997-98 Suzuki produced a total of 31,302 units,
Toyota produced 7,874 units and Honda produced 4,070 units. Suzuki was
able to utilize over 62 per cent of its production capacity, Toyota 39
per cent while Honda was able to utilize only 86 per cent of its total
capacity. Ghandhara Nissan Limited which finished its first full year
of local assembly of Nissan Sunny 1400 cc and 2000 cc cars in 1997-98,
produced 874 units against an installed capacity of 6,000 units.
As individual capacity-utilization of the three major car assemblers
differs, their collective under-utilization stood as high as 42.5 per
cent. Does this imply that new car market in Pakistan has already
reached a saturation point where it could absorb just 58 per cent of
combined production capacity of 43,000 units per year? If it is true
then what could explain the entrance of Rs 750 million Daihatsu
project to produce 850 cc Cuore cars next year. The plant will have a
capacity to produce 10,000 units annually. In addition, the Dewan
Farooque Motors announced earlier this year to assemble Hyundai Santro
1000 cc cars and Shehzore light truck.
Observers say that the car market in Pakistan is a price-oriented
market like markets in other developing countries, and the sharp price
increases during the last five years have discouraged sales of new
cars. This is evident from the activity in the used car market which,
according to the chairman of All Pakistan Motor Dealers=92 Association,
H.M. Shahzad, sells over 60,000 units annually including 20,000 used
cars in Karachi.
Presently, im****ting a new car with engine capacity ranging from 800cc
to 4200cc, is subjected to a duty in between from $5,000 to $175,000.
However, cars over 30 months old enjoy a rebate of 30 per cent. The
measure is aimed at discouraging im****ts of both new and used cars by
making them highly expensive.
In 1994, the then government withdrew the facility, which was offered
to overseas Pakistanis to bring a car under the Personal Baggage and
Gift Schemes. (The facility of bringing a car under Transfer of
Residence Scheme however, remains unchanged.) Since then the prices of
locally assembled cars have increased sharply. For instance prices of
800 cc Suzuki Mehran Standard has gone up from Rs 160,000 in February
1994 to Rs 293,000 at present, showing a 160 per cent increase.
Similarly, the price of 1000 cc Suzuki Khyber air-condition has
increased by 108 per cent from Rs 209,000 to Rs 434,000 during the
same period. Prices of all Honda and Toyota variants also depict a
substantial increase during the same period.
Suzuki commenced commercial operations in January 1984, Toyota in May
1993 and Honda in July 1994. Till September 1992 Suzuki was a public
company when it was privatized and placed under the Japanese
management. Today 79 per cent shares of Suzuki are held by foreign
investors. Foreign investors also hold the majority shares in Honda
and Toyota; 51.85 per cent and 61.23 per cent respectively.
The Market
Sixty-five per cent of the new passenger car market in Pakistan is
dominated by small 800-1300 cc segment, the demand of which is met
solely by Suzuki at present. Suzuki enjoys a virtual monopoly in this
particular comparatively lower-priced car segment at present. Will the
production of a competitive 850 cc Daihatsu Cuore help lower prices in
this car segment? We have to wait and see when Cuore starts rolling
off next year.
The absence of competition in the small car market allows Suzuki to
increase the prices at will at the inconvenience of middle-income
segment which is the primary market of its product. As mentioned
above, the prices have increased drastically making it difficult for
the majority of potential Suzuki buyers to buy a new car. While Suzuki
keeps on improving its financial performance=97 from an operating loss
of Rs 119 million in 1993 to an operating profit of Rs 358 million in
1998=97 even when its sales volume has declined from 34,714 units to
32,601 during the same period as it used only 62 per cent of its
production capacity in 1998. Observers say that drastic price
increases during the last five years is the major reason for the
profits of the company.
Suzuki has increased prices five times since April 1998, Honda six
times since June 1998 and Toyota six times since July 1998.
Since 1994, the price of the standard Honda model Civic EX 1500 cc has
increased from Rs 647,000 to Rs 850,000 depicting a 31 per cent
increase. Similarly, price of Toyota Corolla 1600 cc GLi has increased
by 34 per cent to Rs 999,000 since February 1995.
The increasing price trend in addition to a sluggish economy and a
declining purchasing power are the major factors blamed for the
slowdown of automobile sales in the country. It also had its impact on
the secondary 'used car market' as any increase in new cars also
results in prices of used cars. About five years ago a five-year used
Mehran car could be had for under Rs 100,000. Today with the increase
in car (new) prices the same is available for not less than Rs
150,000.
It is obvious that the used car market is directly related to the
prices of new cars. It does not only hurt the sales of new cars but
also discourages purchase by those who want to replace the older
models with the new ones.
On their part the automobile producers blame the constant devaluation
of local currency, the uncertain Rupee-Yen parity, increasing costs of
production and the absence of economy of scale to benefit from the
purchase of parts and raw materials needed in bulk quantity and at
concessionry rates to reduce the prices. They also cite internal
policies, discouraging the sales, resulting in massive under-
utilization of capacity in the automobile industry.
But the half-yearly accounts of the three major auto producers for the
period ended December 31, 1998 shows an overall strong financial
performance in spite of the economic sanctions imposed on the country
to use its nuclear option in May last year. The results show that
despite 17 per cent decrease in net sales Honda bettered its operating
profit by 28 per cent to Rs 78 million as compared to Rs 61 million in
the corresponding period previous year.
Suzuki=92s net sales improved by 13 per cent from Rs 4.003 billion to Rs
4.53 billion while its operating profit increased by 7 per cent from
Rs 222.4 million to Rs 237.5 million.
Similarly, Toyota=92s net sales increased by 55 per cent from Rs 2.056
billion to Rs 3.199 billion while its operating profit depicted an
increase of 170 per cent from Rs 104 million to Rs 280.8 million for
half year ended December 31, 1998 over the corresponding period.
The low car-person ratio in Pakistan offers a huge potential for
automobile sales in Pakistan. The declining purchasing power and the
increasing auto prices, however, seem to render neutralize this
potential which is evident from the massive capacity under-
utilization. The producers blame it on the inconsistent policy
resulting in more than 25 policy and tariff changes related to the
industry. They say that their request for a long-term policy for a
duration of at least five years to attract the additional investment,
particularly in the auto industry, remains unconsidered by the
government.
They also claim that over one-fourth of the sticker price of any
locally produced car comprises of taxes and revenues to the
government.
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