Auto giant GEELY signs agreement with HRL Engineering for CBU and CKD operations in Pakistan
One of the world’s largest automobile manufacturers is now in partnership with HRL Engineering, Capital Smart Motors for sales and assembly of complete range of GEELY, FARIZON NEVs. Correspondent
Hangzhou, China: GEELY, FARIZON has signed the joint venture agreement with HRL Engineering the pioneer construction group in Pakistan, for business operations in NEV buses and commercial vehicles segment.
The agreement has been signed for sales and manufacturing of commercial vehicles under the licensing contract of completely built units (CBU)and a completely knocked down (CKD) assembly plant in the country — a major breakthrough in the automotive sector of Pakistan.
This venture will prove to be a great addition in the automotive sector of Pakistan and would help fill the gap of vehicle supply in the country.
Both parties were actively engaged for the last six months especially since signing a letter of intent (LOI) to enter into an agreement. GEELY and HRL Capital Smart Motors will being business of sales and assembling complete range from NEV Buses, Light Commercial Vehicles (LCVs) to Heavy Duty Trucks (HDTs) expected in two to three phases.
GEELY has been ranked in Top 10 Most Valuable Auto Portfolio Brands and as of 2024 Fortune Global 500 list, Geely Holding Group ranked 185th with a revenue of US$70.40 billion, and has ranked among the Fortune Global 500 for thirteen consecutive years and became the first Chinese car maker to enter the global top 10 in auto sales in Q12024 and selling over 3.33 million units alone in the same year.
r seven decades, they have been providing high-quality, cost-effective Engineering, Procurement, Construction, and Project Management services across multiple engineering disciplines such as Power & Energy, Oil & Gas, Petroleum, Industrial Plants, Mining, Real Estate Development, Smart Cities, Special Economic Zones, Agriculture, Green Energy, Education, Healthcare, Information &Technology.
Mr. Zahid Rafiq envisions that as we navigate new horizons, their commitment to diversification empowers HRL to thrive across multifarious sectors, forging a resilient and dynamic future. HRL’s vision is about creating a sustainable future for Pakistan by smooth transitioning to cleaner energy.
Mr. Imran Zahid, Executive Director HRL-CSM explained their goal to revolutionize both the automotive and energy sectors to create a sustainable future where electric vehicles and renewable energy solutions are integrated into everyday life, helping to tackle climate change.
Mr. Abid Saeed, Advisor to Board for Automotive Business addressed that this step is aligned with the Government’s initiative and vows to continue making a positive difference by undertaking and executing projects of national importance to Pakistan contributing to infrastructure development of the country by generating direct and in-direct jobs, reduce carbon emissions, disrupt the energy and automotive industry, and make sustainable energy accessible to all.
Another step towards empowering China Pakistan Economic Corridor (CPEC)
This collaboration will benefit the China-Pakistan Economic Corridor (CPEC) in Pakistan by contributing to the country’s economic growth and industrial progress.
Key Benefits:
Economic growth
Assembling plant can contribute to Pakistan’s economic growth by creating jobs and increasing exports.
Reduced Carbon Footprint
NEVs will help reduce carbon pollution and fuel reliance.
Technology transfer
Will help transfer technology to local manufacturers, which can reduce production costs and dependency on imports.
Market expansion
Will help expand Pakistan’s automotive market, which can help the country become a key player in the regional automotive landscape.
Skill development
Will help develop skills in the automotive industry.
Improved infrastructure
CPEC has improved roads, highways and trade routes, which has reduced costs and delays for transporting vehicles and raw materials.
Increased foreign investment
CPEC has attracted international automakers to invest in Pakistan, creating job opportunities and introducing advanced automotive technologies.
Development of Special Economic Zones (SEZs)
SEZs will help industries improve supply chains, collaboration, and innovation capabilities.
Today, EV motorcycles—or more accurately, electric scooters—have powerful marketing tools at their disposal in Pakistan in 2024. Whether targeting youth, urban residents in cities like Islamabad and Lahore, or students aged 20 to 27, digital platforms such as Facebook, Instagram, YouTube, and others can effectively help companies reach their audience.
But why aren’t the results matching the discussions between the EV industry and the government, which is actively trying to promote EVs in Pakistan?
As a common motorcyclist, I believe the issue lies in the lack of focus on ground realities, which are vastly different from those in many other countries.
What I have observed in my area is that EV scooters are mostly used by people who do not travel much on a daily basis. For example, top-of-the-line and mid-range models are mostly seen with girls, while lower-end models are used by senior citizens for short trips, such as going to a nearby market. Very few men use them.
This suggests that EV scooters are primarily purchased by people who have never used traditional motorcycles before, meaning they have captured a niche market rather than converting common motorcyclists. That’s why these scooters are considered successful only in theory—mainly by people who see just one side of the picture.
If an EV scooter is parked in a home that already has two or three standard motorcycles, it simply means it’s an addition for a new user rather than a replacement for an existing motorcycle. True success will come when a standard motorcycle user is fully convinced and replaces their bike with an EV scooter.
Let’s take the example of a standard motorcycle user and consider what he has in mind.
Suppose he rides a Honda Pridor (100cc), priced at Rs. 2,09,000. He lives near Harbanspura and commutes 33 km, from his home to factory. In addition, he travels another 20-30 km for various work-related visits. That makes a total daily distance of approximately 96 km (33 + 33 + 30 = 96 km).
Now, keep in mind that he rides at varying speeds depending on road conditions, typically between 50 to 75 km/h. This estimate doesn’t even account for emergencies—though in reality, they are quite common.
Now, let’s replace his motorcycle with an EV scooters (closest in price at Rs. 2,03,000). This EV has a maximum speed of 60 km/h and a range of 90 km per charge.
This means:
He would need to leave home earlier in the morning.
If his management asks him to visit a customer for after-sales service or a warranty claim, he would require extra travel time.
If he returns home and his family wants to go out, they would need to wait for a recharge.
This scenario highlights a major practical challenge for EV scooters in replacing standard motorcycles.
Lastly, if there is an issue and he needs to replace a part of the scooty, would it be as easy as it would be for the Honda Pridor?
Would he be able to find a dealership in any town of Lahore for the required part, just like he could for the Honda Pridor? Or would he have to visit the company’s outlet since the parts for such machines are not easily available?
People say that EVs have fewer parts compared to standard motorcycles, but what if the disc brake malfunctions? What if the headlight breaks in an accident? What if a car damages the body?
Fuel is expensive, but is recharging a scooty really that convenient? Can it be done anywhere, anytime? What about the battery—how long before it needs replacement? What if an electric shock damages it while charging?
When I searched online, I found the following warranty details:
Motor: 24 months
Battery& Controller: 20 months
Frame: 36 months
Charger: 3 months
The longest warranty is for the frame, which is already the strongest part. However, the most critical components—the motor, battery, and charger—have relatively short warranty periods. Given the unstable electrical system in our country, the battery and charger are particularly at risk.
We all know that if an electrical part is damaged due to an electric shock, the warranty becomes void. Another concern is: what happens if the motor fails after 24 months? Or if the battery stops working after 20 months?
Even more concerning is the charger, which has only a three-month warranty, despite being a daily-use component that is constantly at risk.
After considering all this, I have one more important question: Will the company still be around when my warranty expires and I need to buy replacement parts out of my own pocket?
In the past, companies selling unique products have entered the market, sold a few units, and then disappeared, leaving customers stranded and frustrated. If manufacturers believe that other OEMs will eventually sell similar motors, batteries, and parts, they should keep in mind that while I can buy a bulb for my bike from any shop, I would never risk buying an engine component from just anywhere.
I am the founder of Pakistan Bikers Club, established in 2007. I have shared the views of riders—what they truly think about these machines. Personally, I believe that the EV segment will see real success only when companies take ground realities into account, which are different even from those of our neighboring countries. This is a major change, and for a motorcyclist, a significant shift. It will require extensive efforts from the companies’ side. They need to think differently—in fact, only out-of-the-box thinking can help them succeed.
Let me share an example to illustrate this. You may recall the Honda CD Dream, which was introduced with several aesthetic enhancements, including a plastic front fender similar to their top models. However, it later reverted to the old steel fender design—this time painted in color. Honda is the strongest motorcycle brand in Pakistan, yet even they had to listen to user preferences and adapt accordingly.
An EV scooty will replace a standard motorcycle in a household only when a common motorcyclist is completely satisfied with every aspect mentioned above.
This exclusive article has been published in Automark’s March-2025 printed and digital edition. Written By: Muhammad Zahid Iqbal Malik ([email protected])
Artificial Intelligence (AI) has been brought into the realm of Developing Sophisticated Driver Assistance Systems (ADAS) To power integrated technologies in modern cars while boosting safety, efficiency, and the overall driving experience. From thousands of cameras, LiDAR, radar, ultrasonic sensors, and V2X communication the AI-driven ADAS systems process huge amounts of data that provide instant decisions to avoid various accidents, improve traffic flow, and assist the driver.
As autonomous driving and AI-expert mobile applications gain popularity, ADAS is advancing from basic driver assistance to smart vehicular navigation and collision avoidance. From Object Detection, Adaptive Cruise Control, Collision Prevention, to V2X Communication — Elements of AI in Autonomous Vehicles with case studies, realworld applications and future trends.
AI-Powered Object Detection: It Can Enhance Situational Awareness
“One of the most important AI applications within ADAS turns out to be real-time object detection.” AI-powered systems fuse data from multiple sensors to create a 360-degree perception of the vehicle’s surroundings.
ADAS Sensor Fusion Diagram
📡How AI Integrates Sensor Data for Object Detection & Collision Avoidance
✅ Radar – Speed and depth detection for moving objects
✅ Ultrasonic sensors – obstacle detection in close range
✅ AI Processor – Sensor fusion for real-time decision making
How AI Improves Object Detection:
🔹 AI identifies and classifies objects even in low visibility (night, fog, rain) 🔹 Uses machine learning models to predict pedestrian movement 🔹 Recognizes traffic signs and lane markings for better navigation
🚘Example: Tesla’s AI-Based Computer Vision Tesla Full self-driving (FSD) system incorporates computer vision where neural networks are trained to understand the road, identify obstructions, and control the car. In contrast to conventional ADAS, it is equipped with a feedback loop where it learns from actual driving, which is a much more effective and accurate approach.
Smart Adaptive Cruise Control: AI for Traffic Flow Optimization
🚦 Traditional cruise control requires the operator to set the vehicle to a specific speed, which is more difficult in busy areas. AI powered Adaptive Cruise Control (ACC) maintains safe following distances by adjusting the speed accordingly to the prevailing traffic.
📊How AI-Based ACC Works: ✅ Monitors surrounding vehicles using radar & cameras ✅ Predicts speed variations and adjusts braking accordingly ✅ Enhances fuel efficiency by optimizing acceleration & deceleration
🚘Example: Mercedes-Benz Intelligent Drive DISTRONIC PLUS system from Mercedes-Benz cars, which is based on AI, incorporates radar and cameras that oversee the traffic ahead the car and alters the velocity to avoid hitting other vehicles
Predictive Collision Avoidance: AI’s Role in Accident Prevention
AI powered collision avoidance systems monitor multiple risk indicators for collisions in an ongoing basis, some of which include the following:
🔹 The conduct of the driver during driving (fatigue, distraction, reaction time).
🔹 Variations in traffic density & speed.
🔹 Conditions of the road (wet roads, construction zones, ice).
In the event a potential collision is noticed, the AI undertakes the following measures:
🔹 Notify the user through alerts
🔹 Applies Automatic Emergency Braking (AEB) if there is no response from the user
🔹 Provides steering assistance to prevent collision.
📊AI vs. Human Reaction Time in ADAS Systems
Reaction Source
Average Response Time (ms)
Human Driver
1,500 – 2,500 ms⏳
AI-Based ADAS
100 – 500 ms⚡
LiDAR + AI Fusion
< 100 ms 🚀
✅ AI-powered ADAS reacts 10x faster than human drivers, reducing accident risks significantly.
🚘 Example: Case in Point: Volvo City Safety System
Volvo City Safety AI is able to see pedestrians, cyclists, and big animals, and put the brakes in gear before stopping for an emergency. Vehicle to Everything (V2X) Communication: AI for Smart Mobility
Vehicle-to-Everything (V2X) Communication: AI for Smart Mobility
📡 Exchanges of information is possible due to V2X communication which allows real-time information to be shared between vehicles and communication devices.
✔️Other vehicles (V2V): collision sidestep with speed and movement pacing
✔️Traffic infrastructure (V2I): provides signal control and congestion warnings
✔️ AI does recognize humans without vehicles as other road users (V2P)
✔️ Proposing to receive traffic information and provide navigation aids V2C
V2X Communication Flow Diagram
🚘 Example: The V2X system developed by Toyota with the use of AI technology.
The passionate contribution of Toyota with artificial intelligence helps with their Highway Teammate. It provides traffic predictions, AI-enforced lane switches, and autonomously adjusted speed features.
Case Studies &Real-Life Use Cases
🔹 Tesla’s FSD AI – AI-driven perception for real-time object detection & navigation
🔹 BMW’s Driving Assistant Plus – AI-powered lane centering & adaptive cruise control 🔹 Audi’s AI Traffic Jam Pilot – Automates highway driving at speeds < 60 km/h
📊ADAS Feature Adoption in Leading Automakers (2025 Projection)
Automaker
AI-Based Object Detection
Collision Avoidance
V2X Connectivity
Tesla
✅
✅
✅
Mercedes-Benz
✅
✅
❌
BMW
✅
✅
✅
Volvo
✅
✅
✅
Toyota
✅
✅
✅
By 2025, most premium brands will integrate full AI-ADAS & V2X technology.
The adoption and barriers of ADAS in Pakistan
ADAS systems which are AI driven are taking around globe but it comes with many huddles within the automotive industry of Pakistan.
🚗 ADAS vehicles in Pakistan
🔹MG HS & MG ZS EV- ADAS includes the lane-keeping assist, adaptive cruise control, and emergency braking.
🔹Hyundai Tucson – Include technology that saves you from a car crash, warns you in case you go outside the predetermined lane, and smart cruise controls your driving distance from a car ahead.
🔹 Changan Oshan X7 – AWD-enabled and is one of the first locally assembled SUVs with ADAS features.
⚠ Major Challenges in the ADAS Market in Pakistan
1️⃣Poor Road Infrastructure – Without sufficiently demarcated lanes, failure of traffic signals, and smart road technologies, ADAS will not provide accurate functionality.
2️⃣ Regulatory Delays – Lack of definite government policy about AI-based ADAS implementation and local safety regulations.
3️⃣ High Import Cost – Most of the ADAS-equipped vehicles are imported and hence are highly expensive for the mass market.
4️⃣ Cybersecurity Risks – Growing chances of car hacking as well as data privacy issues are also being caused due to the AI connectivity.
🔮 Future of ADAS in Pakistan
✔ The auto industry in Pakistan is turning towards AI-enabled mobility, through government-backed initiatives such as EV policy & smart traffic systems.
✔ Like other local automakers, in order to make ADAS much more popular, Toyota Indus, Honda Atlas, Pak Suzuki must invest money in this technology’s R&D.
✔ Investment in collaboration with AI start-ups will help develop low-cost ADAS solutions entirely suitable for the traffic conditions in Pakistan.
Challenges & Future Trends
Challenges
⚠Cybersecurity Risks – AI-powered vehicles are vulnerable to hacking ⚠AI Decision-Making Limitations – Needs more training data for accuracy ⚠Data Privacy Concerns – Ensuring personal driving data security
Future Trends
🔹5G-Enabled ADAS – Ultra-fast connectivity for AI-powered decisions 🔹Edge AI Processing – Real-time, onboard computing for instant safety responses 🔹AI & Deep Learning Evolution – AI continuously improving based on real-world data
Conclusion
AI-driven ADAS is revolutionizing automobile safety and intelligent navigation. By leveraging deep learning, real-time analytics, and V2X connectivity, AI enhances collision avoidance, traffic flow, and driver assistance. While cybersecurity and AI limitations exist, ongoing advancements in machine learning, 5G, and automation will shape the future of mobility.
🚀The road to fully autonomous driving is closer than ever!
In the mid-2000s, The Centre for the Promotion of Import for Developing Countries (CBI) under the Netherlands Ministry of Foreign Affairs. This initiative, which supported Pakistani entrepreneurs in the metalworking export sector, ran from 2006 until 2017. I was honored to be one of the 100 metalworking export coaching participants, an experience that profoundly shaped my understanding of international trade and business strategy. Today, I would like to share some insights on developing an export strategy and marketing plan—a roadmap that can guide businesses toward successful international expansion.
The Importance of a Well-Defined Marketing Plan
A robust marketing plan is the foundation of any successful export strategy. It begins with thorough market research and a detailed assessment of available resources. Understanding market trends, customer preferences, and competitive dynamics is crucial when choosing a product to export. In my experience with the CBI project, we emphasized the need for a well-researched approach that combined both qualitative insights and quantitative data.
A comprehensive marketing plan should include the following elements:
Market Research: Evaluate global market trends, identify potential target countries, and understand the competitive landscape.
Resource Assessment: Analyze your production capacity, technology, manpower, and financial resources.
Product Selection: Choose products with a competitive edge that can meet international standards.
Choosing Target Countries and Developing a Distribution Plan
Once you have a clear understanding of your product and market landscape, the next step is to identify target countries. This involves understanding regional demand, regulatory environments, and cultural nuances. During our coaching sessions, we learned that the export distribution plan should be meticulously designed. It is important to determine the most effective channels for distribution, whether through agents, distributors, or direct sales platforms like online marketplaces.
A successful export distribution plan typically includes:
Channel Strategy: Evaluate whether to use agents, distributors, or direct-to-consumer models.
Logistics: Ensure a seamless supply chain with efficient warehousing, transportation, and customs clearance.
Local Partnerships: Build relationships with local businesses and stakeholders who can support your expansion efforts.
Crafting Pricing, Advertising, and Promotion Strategies
Pricing is one of the most critical elements of an export strategy. Your pricing plan must reflect not only the cost of production but also the competitive landscape and customer purchasing power in your target market. I learnt from the CBI project, we crafted pricing models that balanced affordability with profitability.
An effective export strategy should include:
Pricing Plan: Set competitive prices that reflect product quality, technological superiority, and brand positioning.
Advertising and Promotion: Develop a comprehensive plan that leverages both traditional and digital marketing channels. This includes social media, trade shows, and localized advertising campaigns.
After-Sales Support: Establish a system for customer service and after-sales support to build trust and ensure long-term success.
Differentiating Your Product in the Global Market
In a competitive international market, differentiation is key. Your product must stand out through:
High Quality: Consistently superior quality can help build trust and a strong reputation.
Advanced Technology: Utilize high or new technology to add value to your product.
Innovative Designs: Creativity in design can capture the attention of discerning global consumers.
Efficient Service: Quick and efficient service can set you apart from competitors.
Branding and Packaging: Invest in great branding and attractive packaging to make a lasting impression.
These elements are not just marketing tactics—they form the core of your company’s identity and competitive advantage.
Critical Questions for Company Management
Before embarking on an international strategy, company management must answer several key questions:
Commitment to Expansion: Is there a genuine management commitment to expand internationally? This requires budget, personnel, and time commitments.
Understanding End-Users: Who are the end-users, and why do they need your products? Clearly identify the role your products play for each consumer segment.
Competitive Advantages: What sets your company apart—price, features, quality, customer service, brand image, or technology?
Distribution Channels: Which is the most effective distribution channel for your products: agents, distributors, or direct-to-end users via online platforms?
Value Chain Role: What role does your company play in the value chain? Identify the value-added activities that enhance your product offering.
Scaling or Stopping International Expansion: When and how will you know if your international expansion should be scaled back or halted? Determine the level of investment in time and resources (including cash) that you can commit before reassessing your strategy.
Qualities of a Successful Exporter
Based on my experience, successful exporters share certain qualities:
Long-Term Thinking: International expansion is not a quick win; it requires vision and persistence.
Patience and Flexibility: Adapting to new markets takes time and a willingness to adjust strategies as needed.
Cultural Sensitivity: Understanding and respecting cultural differences is essential.
Attention to Detail and Strategic Vision: A successful exporter can manage day-to-day operations while keeping a strategic overview.
Excellent Communication Skills: Building and maintaining relationships is crucial in global trade.
Conclusion
Reflecting on my journey with the CBI and the Netherlands Ministry of Foreign Affairs, I am reminded that successful export strategies require a balanced approach. It is not just about having a great product—it is about building a comprehensive plan that covers market research, product differentiation, pricing, distribution, advertising, and after-sales support. For developing nations, adopting merit-driven processes and investing in manufacturing industries can pave the way for sustainable international growth.
By answering critical questions and nurturing the qualities of successful exporters, businesses can set themselves on a path to global success. The lessons learned from my experience in the metalworking export sector remain relevant today, serving as a blueprint for Pakistani entrepreneurs and companies aiming to thrive in the international market.
Embrace the challenge, invest in quality, and remember that a well-crafted export strategy is the key to unlocking new opportunities on the global stage.
This exclusive article has been published in Automark’s March-2025 printed and digital edition. Written by Mashood Khan Director – Mehran Commercial Enterprises Expert Auto Sector / Former Chairman PAAPAM
Businesses undergoing turnaround and transformation face significant operational, financial, and strategic challenges. The success of such initiatives depends on key vital factors, including leadership effectiveness, financial restructuring, cultural reinvention, operational efficiency, and market reorientation. This article examines these vital components, exploring how businesses can navigate crises, regain stability, and position themselves for long-term success.
Introduction
Business turnaround and transformation are critical processes for organizations facing financial distress, market disruptions, or strategic misalignments. Turnaround refers to short-term corrective actions to restore viability; while Transformation is a long-term restructuring to achieve sustainable competitive advantage. Both require strategic decision-making, financial discipline, cultural shifts, and operational improvements.
Key Vitals in Business Turnaround and Transformation
Leadership and Strategic Vision
Leadership plays a pivotal role in steering a company through turnaround and transformation. Effective leaders must:
Recognize distress signals early and act decisively.
Communicate a clear vision for the company’s future.
Balance short-term financial recovery with long-term strategic goals.
Foster stakeholder confidence, restoring trust and ensuring alignment across employees, investors, and customers.
Case Example:
Howard Schultz’s return to Starbucks in 2008 demonstrated the power of leadership in turnaround. By refocusing on core brand values and operational efficiencies, he revived Starbucks’ growth trajectory (Moon, 2010).
Financial Restructuring and Liquidity Management
Financial stability is crucial in any turnaround. Companies must:
Identify and cut non-essential costs to improve cash flow.
Restructure debt to reduce financial burden.
Optimize working capital by improving cash conversion cycle.
Explore alternative financing sources, such as asset sales or strategic partnerships.
Case Example:
Ford Motor Company’s restructuring in 2006, which included securing a massive credit line before the financial crisis, enabled it to avoid bankruptcy and emerge stronger (Vlasic, 2011).
Cultural and Organizational Renewal
A company’s culture can either accelerate or hinder its turnaround efforts. Key cultural factors include:
Promoting agility and adaptability.
Encouraging a problem-solving mindset among employees.
Aligning incentives with turnaround goals.
Retaining top talent while addressing inefficiencies in the workforce.
Case Example:
Microsoft’s transformation under Satya Nadella involved shifting from an internal competitive culture to one of collaboration, innovation, and cloud-first thinking (McAfee & Brynjolfsson, 2017).
Operational Efficiency and Process Optimization
Revamping operations is essential to achieving cost efficiency and productivity improvements. Businesses should:
Streamline supply chain and production processes.
Adopt lean methodologies to eliminate waste.
Leverage technology to drive automation and efficiency.
Improve quality control to enhance customer satisfaction.
Case Example:
Nissan’s revival under Carlos Ghosn involved aggressive cost-cutting, strategic partnerships, and manufacturing efficiency enhancements, leading to a historic turnaround (Magee, 2007).
Market Repositioning and Customer-Centric Strategy
Businesses must realign their offerings to meet changing market demands. This involves:
Conducting market research to identify new opportunities.
Refining product and service portfolios.
Strengthening brand perception and customer engagement.
Expanding into high-growth segments or geographies.
Case Example:
Apple’s turnaround in the late 1990s under Steve Jobs was driven by a sharp focus on innovation, design, and user experience, leading to iconic products like the iPod and iPhone (Isaacson, 2011).
Framework for Successful Turnaround and Transformation
A structured approach can enhance the likelihood of success:
Crisis Assessment: Identify and quantify the extent of business distress.
Stabilization: Implement immediate measures to restore financial and operational stability.
Strategic Redirection: Define a clear strategic roadmap.
Execution and Monitoring: Implement changes with performance metrics.
Sustainable Growth: Institutionalize long-term operational and cultural improvements.
Conclusion
Turnaround and transformation require a multidimensional approach encompassing leadership, financial prudence, cultural change, operational excellence, and market repositioning. Companies that effectively address these vital factors not only recover from distress but also emerge stronger and more competitive. Organizations must be proactive, adaptable, and resilient to successfully navigate complex business landscapes.
References
Isaacson, W. (2011). “Steve Jobs.” Simon & Schuster.
Magee, D. (2007). Turnaround: How Carlos Ghosn Rescued Nissan. HarperCollins.
McAfee, A., & Brynjolfsson, E. (2017). Machine, Platform, Crowd: Harnessing Our Digital Future. W.W. Norton & Company.
Moon, Y. (2010). Different: Escaping the Competitive Herd. Harvard Business Review Press.
Vlasic, B. (2011). Once Upon a Car: The Fall and Resurrection of America’s Big Three Automakers—GM, Ford, and Chrysler. William Morrow.
Author: Faisal Sharif, MD & COO JW Foton & Forland and Advisor to JW Group Board
Led multiple turnarounds and transformations for some of the world’s most renowned automotive and retail brands, across multiple geographies.
This exclusive article has been published in Automark’s March-2025 printed and digital edition.
Learning from Past – Earning from Present – Growing from Future
Episode: 1
Automotive is an industry that has been mobilizing the entire world for the past century and a half, not only humans but also almost every aspect of human life. The automotive industry first developed America and then the entire Europe economically to such an extent that the economic development of these countries began to touch the limits. It raised the living standards of the residents of these countries above all other countries. Along with eliminating unemployment in these countries, it not only made every difficult task of workers easier but also made them respectable and proud.
My entire active life has been associated with the automotive industry. After serving and learning for eight years at Hyundai and Kia Motors in the Middle East, I shifted to Pakistan and was active in the auto industry for 30 years at Honda Atlas Cars, the production, warranties, field engineering and dealer development taught me so much that I had become a teacher, an instructor and an auto enthusiast.
Thanks to Honda Cars, who considered me an automotive trainer and handed over their state-of-the-art training center to me, providing a wide range of training for all the technical staff of the dealer networking spread across Pakistan, where the process of learning and teaching the automotive industry continued for 20 years.
Meanwhile, Honda Motor Company Japan has invited four times to its first Honda plant in Tokyo, which has now become a training center, and its first Honda plant in Bangkok, Thailand, which has now become a training center, to provide training on every modern automotive technology, register certified automotive trainers, and issue their certifications.
When the automotive industry has transferred and accumulated so much knowledge and experience in a person, then his identity is no longer just his own, but his knowledge and experience become a trust for his society, and it becomes his duty to return the trust to his rightful society as soon as possible.
It has been my long-standing desire to be the first to share my knowledge and experience with the responsible service providers and dynamic thinking and passion of assemblers, manufacturers, vendors, importers, exporters and service providers associated with the automotive industry in Pakistan. Similarly, I can educate and train talented students from technical institutions, colleges and universities as well as workshops and those who have the passion and passion to make their future in the automotive sector.
I thank Allah and the Messenger of Allah (peace be upon him) for providing me passion with the effective platform of the popular monthly magazine AUTOMARK, which has been popular in the Pakistan Automotive Industry for years, to make this goal a reality.
I am deeply grateful to the dynamic team of AUTOMARK and its talented, dear to everyone, handsome and compassionate leader Mr. Hanif Memon, who has connected the Pakistan Automotive Industry with his strategy and the platform of his monthly magazine AUTOMARK and has provided a platform to share the knowledge and experiences with others.
When the automotive industry has transferred and accumulated so much of its knowledge and experience in a person, then his identity is no longer just his own, but his knowledge and experience become a trust of his society, and it becomes his duty to return this trust to the rightful society as soon as possible. It has been my long-standing desire to be the first to share my knowledge and experience with the responsible, service-minded and passionate assemblers, manufacturers, vendors, importers, exporters and service-providing businessmen associated with the automotive industry in Pakistan as soon as possible. Similarly, I can educate and train talented students from technical institutions, colleges and universities as well as workshops and those who have the passion and desire to make their future in the automotive sector.
Let us now come to the main topic. I have planned to study the automotive sector from the past to the future so that the strategies, secrets of success and points of development of each era can be studied and applied in the automotive industry of the present era according to our own needs.By studying the famous inventors, scientists, masters, businessmen, industrialists, companies andbrands of the automotive industry, Pakistan’s automotive industry can benefit from their experience.
Man has always learned from his past to improve his present era, but one should only keep an eye on the past as much as a rear-view mirror while driving a car. We should keep our business economy on the path of survival and development by using our best abilities, attention, hard work and resources while living in the present era. We should keep our eyes on our front screen as much as possible, because that isour future path. So that in the present era, our business economy vehicle becomes fast while driving safely and continuously. By adopting every modern and advanced technology as soon as possible, that is, by meeting the requirements of conquering future destinations, it should grow forward and forward.
For this purpose, it was necessary to make this introduction to explain our point of view. While one article of AUTOMARK is not enough to adequately study the auto industry spread across the world. Therefore, we will try to continue writing it in episodes until every aspirant associated with the automotive industry in Pakistan is able to benefit from something or the other. You are requested to stay connected with Auto Mark. Keep reading our episode articles completely and keep implementing its positive aspects. In addition to providing constructive criticism, which is your right, please continue to provide us with your valuable feedback and guidance.
The word AUTOMOTIVE comes from the Greekautos (self), and Latinmotivus (motion), referring to any form of self-powered vehicle. This term, as first came into use to describe automobiles in 1898.
The automotive industry began in the 1860s with hundreds of manufacturers pioneering the horseless carriage. Early car manufacturing involved manual assembly by a human worker. The process evolved from engineers working on a stationary car to a conveyor belt system where the car passed through multiple stations of more specialized engineers. In the 1960s, robotic equipment was introduced, and most cars are now mainly assembled by automated machinery.
For many decades, the United States led the world in total automobile production, with the U.S. Big ThreeGeneral Motors, Ford Motor Company, and Chrysler being the world’s three largest auto manufacturers for a time, and G.M. and Ford remaining the two largest until the mid-2000s.
In 1929, the world had 32,028,500 automobiles in use, of which the U.S. automobile enterprises produced more than 90%. At that time, the U.S. had one car per 4.87 persons. After 1945, the U.S. produced around three-quarters of the world’s auto production.
In 1980, the U.S. was overtaken by Japan and then became a world leader again in 1994. Japan narrowly passed the U.S. in production during 2006 and 2007.
In 2008 also China, which in 2009 took the top spot (from Japan) with 13.8 million units, although the U.S. surpassed Japan in 2011, to become the second-largest automobile industry.
In 2023, China had more than 30 million produced vehicles a year for the first time in history, after reaching 29 million for the first time in 2017 and 28 million the year before.
From 1970 (140 models) to 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.
Countries Grow by Automotive Industry
The history of the automobile industry, though brief compared with that of many other industries, has exceptional interest because of its effects on history from the 20th century. Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques.
In the second half of the century the situation altered sharply as western European countries and Japan became major producers and exporters then, later on this trend was followed by Korea and finely by China.
Automobiles represent freedom and economic growth.
Automobiles are a liberating technology for people around the world. The personal automobile allows people to live, work and play in ways that were unimaginable a century ago. Automobiles provide access to markets, to doctors,to jobs and businesses. Nearly every car trip ends with either an economic transaction or some other benefit to our quality of life.
Auto industry is the single greatest engine of economic growth in the world.
The global auto industry is a key sector of the economy for every major country in the world. The industry continues to grow, registering a 30 percent increase over the past decade.
Autos create jobs, jobs, jobs.
Building 60 million vehicles requires the employment of about 9 million people directly in making the vehicles and the parts that go into them. This is over 5 percent of the world’s total manufacturing employment.
It is estimated that each direct auto job supports at least another 5 indirect jobs in the community, resulting in more than 50 million jobs owed to the auto industry. Many people are employed in related manufacturing and services.
Autos are built using the goods of many industries, including steel, iron, aluminum, glass, plastics, glass, glass, carpeting, textiles, computer chips, semiconductors, rubber and more.
Automotive Industry of Pakistan
Currently, the auto market is mostly dominated by Honda, Toyota, Hyundai, Kia, Changan, MG, Sazgarand Suzuki.
MG JW Automobile Pakistan has signed a memorandum MoUwith Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, and started sale and assemblingof electric vehicles in Pakistan.
Presently Pakistan has almost attained 95% localization for tractors, 3 wheelers and motorcycles, 50 % for cars, and 20-25% for trucks and buses.
Unfortunately, the economy of scale demands one million productions of cars for more localization, whereas we are resolving around 200k only per annum.
The critical phase for the auto and part sector started in July 2022 when the Government restricted the import of CKDs and parts immediately under the showingdark of default.
Tractors, cars, and Chinese motorcycle producers are the top affectees of this ongoing crisis.
Original Equipment Manufacturers (OEMs) would not have transferred technology to cost down and maximize their production due to so many hurdles and reasons.
The way forward lies with exports and localization, which can be categorized into the short-term and long-term. As a trade-off action, the government should restore the quota regime immediately. At least machinery, equipment for measurement, metrology, calibration equipment, designing equipment, CAD, CAM, and CAE software, Molds, dies and fixtures, 3-D Printing, etc., should be duty-free.
The rationalization of duties on the import of parts and raw materials needs immediate review. Government should have a dialogue with OEMs to bring technology to Pakistan and export products to a certain incremental portion of the production.
The group-based training initiative can reduce the gap. Safety testing equipment and laboratories do not exist in Pakistan and how export can be possible without them? This issue could also be addressed through clustering and government support.
In the next episode, INSHALLAH we will study, Pakistan’s automotive industry, its current challenges and strategies to address them, as well as the opportunities for EV vehicles and related businesses. Until then, with words of determination and conviction…
This exclusive article has been published in Automark’s March-2025 printed and digital edition written by Muhammad Mumtaz Hussain
Let us begin with the fine quotes of the Aftersales service
“What you do has far greater impact than what you say.”
“Service is what life is all about.”
“Great acts are made up of small deeds.”
“Goodness is the only investment that never fails.”
Customer wants more than minimum maintenance and always seek convenience, transparency, and individualized service. Value-added services assist in differentiating companies, so customers return for service instead of looking elsewhere.
Value-added services (VAS) in automotive aftersales are vital for dealerships to survive in the competitive marketplace today. They are a strategic move away from merely repairing cars to developing customer relationships and maximizing profitability. By strategically applying VAS, dealerships can turn their aftersales operations into profit centers, cement customer relationships, and succeed in the long term in the highly competitive automotive business.
With today’s highly competitive motor industry, dealerships are no longer able to depend on core maintenance work such as the change of oil to propel profitability and loyalty among customers. Intellectually savvy dealerships are uncovering the potency of value-added service offerings extending beyond the simple and adding greater value to customers while increasing profitability. These products, from tire rotations and detail work to paint protection and accessories installation, continue to become progressively vital to being successful.
Successful businesses in the contemporary automotive after-sales market have to move above the oil change, incorporating added-value services designed to focus on convenience, technology, and environmentally friendly practices. Those who adopt this change will not only increase customer satisfaction but also gain a solid competitive edge in the constantly changing world of automotive service.
The automotive environment is changing at a fast pace, customers enjoy more options than ever before, and the world of online allows for real-time price comparison, given the present Automotive Customer service challenges and customer expectations, value-added service provides a significant competitive advantage. Customers yearn for convenience, which enables Customers to package services, eliminating time and hassle. Rather than making a series of trips to several stores for a tire rotation, car wash, and paint protection, they can have it all accomplished at the dealership in one trip. This “one-stop shop” is of great benefit to the customer experience.
Also beneficial to have a Personalized Touch with customers: By offering outstanding service and serving a broader spectrum of customer requirements, dealerships can establish stronger relationships and encourage loyalty. Customers will more likely come back for repeat service and even repeat sales when they feel appreciated and well cared for. VAS may be customized to fit specific needs. Providing different service packages or choices allows customers to select what best fits in their budget and priorities, making them feel appreciated and understood, and presenting more revenue sources aside from regular maintenance. Such services also carry relatively high-profit margins and are the largest contributor to the financial health of the dealership.
Establishing Trust & Long-Term Relationships: A dealer that provides an integrated set of quality services makes the dealer look like an authority and gains customer trust. Trust translates into long-term relationships, repeat business, and word-of-mouth referrals. assist dealerships in differentiating themselves. By providing an array of complete services, they are a one-stop shop for all car needs, making the experience more convenient and attractive for customers.
The scope of value-added services in the automotive aftersales market is broad and constantly evolving. It encompasses a wide range of offerings designed to enhance the customer experience, protect vehicle investments, and drive business profitability. By understanding customer needs and embracing technological advancements, dealerships can leverage VAS to build stronger customer relationships, differentiate themselves from competitors, and thrive in the dynamic automotive landscape.
Detailing and Car Care: Detailing and vehicle care services have progressed from an elementary wash and wax to an advanced suite of services that highly complement the aftersales process at auto dealerships. In addition to making a vehicle look better, the services help maintain its lifespan, resale value, and overall satisfaction. Ranging from basic washing to comprehensive interior and exterior detailing, these services appeal to those who prioritize their vehicle’s look. They also provide opportunities to upsell paint protection and other appearance products.
Detailing and car care services are valuable value-added products for automotive dealerships. They give customers a variety of benefits, ranging from improving their vehicle’s appearance and preserving its value to enhancing their driving experience. For dealerships, these services provide additional revenue, improved customer loyalty, and a competitive advantage in the marketplace. By investing in qualified technicians, high-quality products, and effective processes, dealerships can use detailing and car care services to improve the after-sales experience and boost business growth.
Paint Protection and Ceramic Coatings: These services offer long-term protection for the paint of the vehicle, protecting it from environmental elements and keeping it showroom shine. They are a high-margin product offering. Paint protection and ceramic coatings are new-generation car surface protection technologies that are formulated to protect the paint finish of a vehicle and keep it showroom shine for the life of the vehicle. Though both provide a high level of benefits, they are different in terms of their properties and applications. Both PPF and ceramic coatings are worth the investment for car owners who desire to maintain the best condition of their vehicles. If you know the advantages and distinctions between these treatments, you can make the right decision about which one suits you.
Genuine Accessory Installation: From tow hitches and roof racks to upgraded audio systems and custom wheels, accessory installation enables customers to customize their vehicles and delivers dealerships considerable revenue opportunities. The installation of accessories is a worthy and growing service among automotive dealerships that increases considerable value to the customer relationship and increases revenue within the after-sales segment. It’s a perfect example of a value-added service that transcends general maintenance and repair. Installation of accessories is an added value to the services of any automotive dealership. It offers a tremendous opportunity to boost revenue, improve customer satisfaction, strengthen customer loyalty, and achieve a market advantage. By investing in skilled technicians, providing quality products, and good marketing, dealerships can effectively use accessory installation to achieve growth and profitability for their aftersales business.
Tire Rotations and Replacements: A necessity for tire durability and vehicle safety, tire services offer a steady revenue stream and enable dealerships to engage with customers. Tire rotations and replacement are critical maintenance procedures that play a significant role in tire longevity and vehicle safety and performance. Knowing the ins and outs of these services is important to both vehicle owners and automobile service providers. Tire rotations are preventive maintenance that prolongs tire life, enhances handling, and saves fuel. They include rotating tires from one position on the vehicle to another. Tires need replacement when they become worn out, damaged, or aged. Getting the correct replacement tires and installing them correctly is paramount for safety and performance. Both tire replacements and rotations are critical services provided by car service providers, helping to ensure vehicle safety and customer satisfaction.
Extended Warranties and Service Contracts: Providing OEM extended warranties and service contracts is reassuring to the customer and creates a steady stream of recurring revenue for the dealership. Extended warranties and service contracts are an excellent addition to any vehicle dealership’s services, being a considerable value-added service for both the customer and the company. They give auto owners peace of mind while generating a steady stream of recurring revenue for the dealer. Extended warranties and service contracts are high-value VAS that bring manifold benefits to customers as well as dealerships. They give car owners peace of mind while generating a recurring revenue stream and customer loyalty for the dealership. By presenting this value-added service effectively, dealerships can grow their aftersales business, raise profitability, and establish long-term customer relationships.
Insurance Products: Collaborating with insurance companies to provide automobile insurance can be a source of additional revenue and increased customer convenience. Providing insurance products as a VAS at automobile dealerships can be a win-win situation for the business and the customer. This is a close look at this growing trend. Providing insurance products as a VAS can be a worthwhile addition to an automobile dealership’s offerings. It is convenient gives choice to customers and brings extra revenue as well as customer loyalty to the business. Dealerships can use insurance products to strengthen their aftersales department and drive business growth successfully by following the rules, offering the right training, and addressing the needs of the customers.
The secret to success with VAS is knowing the needs and wants of today’s car customers. Being able to adapt to the new customer is the most important thing for success in the automotive aftersales business, particularly when it comes to value-added services. Customers today are better informed and more tech-savvy, and demand a personalized, hassle-free experience. By adopting these approaches, car dealerships can effectively ride the wave of new customers and use VAS to generate revenue, foster loyalty, and succeed in the competitive aftermarket.
The trick lies in zeroing in on delivering a personalized, convenient, and transparent experience that addresses the changing needs of today’s automobile owners. Offer Competitive Pricing: Study market prices and price VAS competitively to win customers, competitive pricing for value-added services is important to win customers and drive top-line sales in the automotive aftersales sector. It is a fine line between profitability and customer value perception. Provide packages of VAS at a reduced price versus buying each service separately. This may encourage customers to try more services and generate more revenue. For instance, a “detailing package” could contain interior cleaning, wash, and wax at a price less than it would cost to purchase each one individually.
Promote VAS Effectively: Leverage online marketing, social media, and in-dealership promotions to promote the value of VAS. Value-added services promotion is an important aspect of maximizing revenue, customer loyalty, and market differentiation for automotive dealerships. The promotion strategy plays a pivotal role in promoting the value of VAS and engaging customer interest. Through the use of an extensive and well-implemented promotional strategy, car dealerships can successfully promote the value of their VAS, acquire new customers, foster customer loyalty, and achieve considerable growth in their aftersales division.
Train Employees Properly: Make sure employees are well-versed in the services provided and can properly explain their value to customers. Proper staff training is critical to the successful implementation and marketing of value-added services in an automotive aftersales division. Without a properly trained staff, even the most superior VAS offerings will fail. Employees need to have a good grasp of each service, its features, benefits, and uses. This is more than just being aware of the name of the service; they must be aware of the process, the materials involved, and the benefits it offers to the customer. Training should concentrate on consultative selling methods, with a focus on identifying customer needs and suggesting appropriate solutions. This means asking open-ended questions, listening, and knowing the priorities of the customer. By investing in comprehensive and continuous training, car dealerships can empower their employees with the necessary skills and knowledge to effectively sell and provide value-added services, ultimately generating revenue, increasing customer satisfaction, and establishing a successful aftersales department.
Provide Exceptional Customer Service: Make the customer experience a seamless and positive one to inspire loyalty and repeat business. Providing excellent customer service is key to success for any business, but particularly important in the automotive aftersales market. A good service experience can convert a one-off customer into a loyal advocate, whereas a bad experience can result in lost sales and harm your reputation. Grant your employees autonomy to make choices that serve the customer. A more empowered customer service team is more likely to take the time to resolve disputes and deliver an excellent experience.
Takeaway from this article:
In the highly competitive world of automobiles, value-added services are now essential and no longer a frill for dealerships aiming to succeed. By providing a complete menu of VAS, dealerships can become unique, generate additional revenue, foster customer retention, and improve the overall customer experience. Adopting VAS is not merely providing ancillary services; it’s about establishing a long-term, profitable business in the new automotive world. Value-added services have been critical for car business firms looking to succeed in the competitive business environment of the present. They are a strategic move away from mere car repair to creating long-term customer relations and optimizing profits. At the end of the day, VAS is not merely about offering additional things; they’re about creating a customer-oriented culture that focuses on value, convenience, and an enhanced ownership experience. In the changing automotive landscape, adopting VAS is critical to surviving, and more importantly, thriving. By incorporating digital convenience, tailored customer interaction, and creative service solutions, dealerships and service shops can foster deeper customer relationships and enhance their service absorption levels.
The increasing popularity of electric vehicles (EVs), connected cars, and sustainability efforts further underscore the imperative for flexible and innovative aftersales strategies. The effects of value-added services go beyond individual companies, they define brand loyalty, drive purchasing decisions, and lead to long-term industry expansion. Firms that focus on convenience, transparency, and customized service solutions will not only keep current customers but also gain new ones through word-of-mouth and online interaction. Ultimately, the future of the car aftersales market is for those that move past the minimum, offering frictionless, customer-focused, and innovative service experiences.
Those who commit to value-added services now will be the ones driving the industry forward tomorrow.
This exclusive article has been published in Automark’s March-2025 printed and digital edition. Written by Mohammad Rafique
The journey of electric vehicles (EVs) has been full of ups and downs. From early innovations to strong opposition, and now a global shift towards EVs, this industry has seen it all. The story of EVs, from GM’s EV1 to China’s leadership in the market today, teaches us important lessons about the future of transportation.
The First Wave of EVs: GM’s Early Efforts
In 1996, General Motors (GM) launched the EV1, the first modern electric car for mass production. With a futuristic design, a range of 70-100 miles (110-140 km with better batteries), and quick acceleration, the EV1 gained popularity among drivers in California and Arizona.
Despite its success, GM discontinued the EV1 in 2003, citing high production costs and low demand. However, many believed that the real reason was resistance from oil companies and traditional carmakers, who were not ready for the shift to electric mobility.
Why Did the EV1 Fail?
Several factors led to its downfall:
Resistance from the Oil Industry & Automakers
The oil and gas industry lobbied against EV policies.
Traditional car manufacturers feared EVs would hurt their sales of gas-powered cars and spare parts (ICE business model and ecosystem).
A lack of charging stations made it hard to use EVs for long trips.
GM’s Lack of Commitment
GM made most of its money from gas-powered vehicles and saw EVs as less profitable.
Customers were only allowed to lease the EV1, not buy it.
Government Policy Changes
Under pressure from automakers and oil companies, California reduced EV requirements.
Without strong regulations, GM had no reason to continue making EVs.
How This Relates to Today
The story of the EV1 is relevant again, as former U.S. President Donald Trump signals a possible rollback of EV policies. His stance includes:
Opposing EV mandates and subsidies.
Arguing that EVs threaten U.S. auto jobs.
Raising concerns about China’s dominance in EV battery production.
Supporting oil and gas industries that compete with EVs.
However, this time, the EV revolution is too strong to be stopped.
China’s Leading Role in EVs
China is now the global leader in EV production and sales, accounting for 60% of all EVs sold worldwide. This success is due to:
Government Support: Billions of dollars in subsidies for manufacturers and buyers.
Battery Production: Companies like CATL and BYD control over 50% of the world’s battery supply.
Affordable & High-Tech EVs: Chinese brands like BYD, NIO, and XPeng are expanding internationally.
Charging Infrastructure: Rapid expansion of charging stations and battery-swapping technology.
The Current EV Boom
In 2024, the EV industry is growing rapidly. Several factors are driving this growth:
Better Technology
Lithium-ion batteries now offer longer ranges, faster charging, and lower costs.
Features like autonomous driving and smart connectivity make EVs more attractive.
Government Support
Many countries offer tax benefits and incentives to encourage EV adoption.
Strict emissions regulations are pushing automakers to invest in EVs.
More Charging Stations
Both governments and private companies are expanding charging networks.
Consumer Awareness
High fuel prices and concerns about climate change are making people switch to EVs.
Auto Industry Commitment
Big names like GM, Ford, and Volkswagen are now investing billions in EVs.
Tesla, Rivian, and BYD are leading the way with innovative models.
Challenges Facing the EV Industry
Despite the progress, some hurdles remain:
Battery Supply Issues
The demand for lithium, nickel, and cobalt is rising, leading to shortages.
Ethical and environmental concerns around mining need solutions.
Electricity Grid Capacity
More EVs will increase the demand for electricity. Countries need to improve power grids and use more renewable energy.
High Upfront Costs
EV prices are falling, but they are still expensive compared to gas cars.
Expanding Charging Networks
More fast-charging stations are needed, especially in developing countries.
The Future of EVs: What’s Next?
The global EV market is expected to keep growing, but challenges must be tackled:
Battery Production: Securing raw materials and improving recycling methods.
Energy Infrastructure: Strengthening electricity grids and increasing renewable energy use.
Affordability: Making EVs cheaper for more people.
Charging Access: Expanding charging networks to make EVs practical everywhere.
Final Thoughts
EVs have come a long way since the GM EV1. While the first attempts faced strong resistance, the situation has changed. With better technology, government backing, and strong market demand, the future of EVs looks bright.
China’s leadership is driving the industry forward, making electric mobility an unstoppable trend. The question is not whether EVs will take over, but how quickly they will replace traditional gas-powered cars.
With continued investment and innovation, we could see a complete shift to EVs within the next two decades. 🚗⚡
This article was written for Automark Magazine by Asif Mehmood. For more updates on the auto industry, subscribe to our magazine.
Dear Readers In the ever-evolving automotive industry, dealerships are constantly seeking innovative strategies to optimize profitability and sustainability. One such approach gaining momentum is the concept of multi-brand automobile dealerships—retail spaces that offer vehicles from multiple manufacturers under one roof. This model presents several financial and operational advantages, enabling dealerships to enhance their revenue streams, improve customer experience, and achieve greater economies of scale. This article delves into the dynamics, benefits, and impact of multi-brand dealerships on overall profitability, supplemented with real-world examples of successful implementation.
The Dynamics of Multi-Brand Automobile Dealerships
A multi-brand automobile dealership operates by securing agreements with multiple Original Equipment Manufacturers (OEMs) to sell a variety of vehicle brands within the same dealership network. The dealership must adhere to each brand’s specific guidelines, from showroom layouts to marketing requirements. These dealerships often categorize their showrooms into distinct sections per brand while leveraging shared services, such as aftersales support, financing, and administration.
Key operational dynamics include:
Brand-Specific Compliance: Ensuring each brand’s identity is maintained while optimizing resource utilization.
Inventory Management: Balancing stock levels across multiple brands to align with demand.
Salesforce Training: Equipping sales and service personnel with expertise across various brands.
Customer Segmentation: Catering to a diverse customer base with varying brand preferences.
Aftermarket Services: Establishing a robust service network that meets the distinct requirements of multiple manufacturers.
Advantages of Multi-Brand Automobile Dealerships
1. Diversification of Revenue Streams
One of the primary advantages of multi-brand dealerships is the ability to diversify revenue sources. Offering multiple brands allows dealers to tap into various customer segments, from budget-conscious buyers to luxury seekers. This model helps mitigate risks associated with market fluctuations affecting a single brand.
2. Increased Footfall and Customer Retention
A broader selection of brands attracts a wider customer base, increasing showroom traffic. Potential buyers exploring different options within a single dealership are more likely to make a purchase. Moreover, customers who trust the dealership’s service center for one brand may be inclined to consider other brands available within the same network.
3. Improved Inventory Turnover
A dealership that stocks multiple brands has greater flexibility in managing inventory. For example, if one brand experiences slower sales, the dealership can offset this with the sales of another brand’s popular models. This balanced approach optimizes inventory turnover and reduces holding costs.
4. Economies of Scale and Cost Efficiency
By sharing operational expenses such as marketing, administration, and aftersales support across multiple brands, multi-brand dealerships benefit from economies of scale. Consolidating overhead costs enables higher profitability without significantly increasing operational expenses.
5. Enhanced Competitive Edge
In an industry where competition is fierce, a multi-brand approach helps dealerships stand out. Customers prefer dealerships where they can compare multiple options before making a decision. This positioning fosters a competitive advantage over single-brand dealerships that might not offer the same variety.
6. Stronger Negotiating Power with OEMs
Multi-brand dealers often possess greater bargaining power when negotiating terms with manufacturers. OEMs recognize the dealership’s ability to push multiple brands and may offer better incentives, promotional support, and inventory financing options.
7. Resilience Against Market Downturns
During economic downturns, demand for vehicles from a single brand may decline. However, with a diversified portfolio, multi-brand dealerships can continue generating revenue by capitalizing on brands that experience steady demand. This diversification ensures business continuity even in challenging market conditions.
Case Studies of Successful Multi-Brand Dealerships
1. Penske Automotive Group (United States and International)
Penske Automotive Group is a prime example of a successful multi-brand dealership model. Operating over 300 dealerships across multiple countries, Penske represents brands such as BMW, Audi, Toyota, and Mercedes-Benz. Their strategy focuses on premium customer service, efficient inventory management, and strong OEM partnerships, contributing to consistent profitability.
2. Inchcape PLC (United Kingdom and International)
Inchcape, a UK-based automotive retailer, represents brands like Jaguar Land Rover, Lexus, and Volkswagen. Their multi-brand strategy allows them to cater to luxury and mass-market segments simultaneously, creating a balanced revenue stream. Inchcape’s robust online presence and customer-centric service model further amplify its success.
3. Al-Futtaim Automotive (Middle East & Asia)
Al-Futtaim Automotive, based in the UAE, manages multiple automotive brands, including Toyota, Honda, and Volvo. Their approach integrates shared service centers and aftersales support, leading to cost efficiencies and enhanced customer satisfaction. By leveraging strategic partnerships with OEMs, Al-Futtaim has maintained strong market positioning.
4. Group 1 Automotive (United States)
Group 1 Automotive operates a network of dealerships with multiple brands, focusing on a mix of luxury and mainstream vehicles. Their success lies in effective customer relationship management (CRM) systems, which help them personalize interactions across different brand segments.
Challenges and Considerations
While the multi-brand model offers substantial benefits, it also presents unique challenges:
Brand Identity Management: Maintaining distinct brand identities within a shared dealership space can be complex.
OEM Relations: Managing relationships with multiple manufacturers requires balancing different contractual obligations and compliance requirements.
Training Complexity: Sales and service teams must be well-versed in various brand specifications and technological advancements.
Initial Capital Investment: Establishing a multi-brand dealership often requires significant upfront investment in infrastructure, personnel, and marketing.
Conclusion:
The multi-brand automobile dealership model is an effective strategy for enhancing profitability and long-term sustainability. By diversifying revenue streams, optimizing operational costs, and enhancing customer experience, dealerships can position themselves for success in a competitive automotive market. However, to fully capitalize on this approach, dealerships must implement strong management practices, invest in workforce training, and foster strong relationships with OEMs.
As demonstrated by successful dealership groups worldwide, a well-executed multi-brand strategy can yield significant financial and operational benefits. With the right balance of inventory management, customer engagement, and cost control, multi-brand dealerships can drive long-term growth and profitability, making them an attractive business model for the future of automotive retail.
This exclusive article has been published in Automark’s March-2025 printed and digital edition. Written by Aqeel Bashir
BYD, the world’s largest manufacturer of New Energy Vehicles (NEVs) in partnership with Mega Motor Company (MMC) has commenced vehicle deliveries in Pakistan marking a major milestone in the country’s transition toward sustainable mobility. Starting today, customers in Karachi, Lahore, and Islamabad will begin to receive their much-anticipated BYD vehicles, signifying the brand’s strong commitment to the local market. BYD & MMC aim to deliver up to 100 vehicles within the first 48 hours of starting operations.
MMC has set up BYD’s Experience & Care centers at key locations in Islamabad, Lahore and Karachi, providing customers with a premium experience to explore and engage with the brand’s cutting-edge New Energy Vehicle technology.
The launch of these centers and the rollout of SEAL & ATTO 3 reflects BYD and MMC’s confidence in Pakistan’s rapidly evolving automotive landscape. As demand for New Energy Vehicles (NEVs) continues to rise, BYD & MMC aim to expand its footprint in the country by opening a total of 15 centers in 2025 further enhancing accessibility to sustainable mobility solutions.
Speaking on the occasion, Lei Jian, Country head of BYD Pakistan, said: “It is an honor to embark on this crucial development chapter in Pakistan. BYD has long been dedicated to fulfilling people’s aspirations for a better life through technological innovation. We firmly believe that BYD’s new energy vehicles and technologies are destined to make even greater contributions to Pakistan’s green development journey.
Danish Khaliq, VP Sales & Strategy of Mega Motor Company, stated: “We are thrilled to begin vehicle deliveries across Pakistan. This marks the beginning of an exciting journey for BYD and our customers, as we introduce world-class NEV technology to drive Pakistan toward a cleaner and more sustainable future.” With this significant step, BYD continues to reinforce its global mission of revolutionizing the automotive industry by providing innovative and eco-friendly transportation solutions.
