The automotive industry of Pakistan is the one of the fastest growing industries of the country. The auto sector as a whole provides employment to 3.5 million people and plays a pivotal role in promoting growth. Over the last two decades, as the use of vehicles has increased significantly with the increasing of population, there has been seen a good improvement from Government in the development of infrastructure (motorways and highways) and this has become possible for the mobility of people from one place to another for jobs, travelling, intercity moments and also it has improved the living standard of people and this has increased the demand for automobiles vehicles. Pakistan automotive market has been partially shifted towards a service-oriented model with new players focusing extensively on customer experience and consumer data, the current situation of the Auto Industry in Pakistan seems to be in down due to as rupees value depreciation, there is increased in taxes, and rising fuel prices, however Industry insiders believe that the future of Pakistan’s auto industry is bright as more international players enter, bringing advanced equipment and technology.
Players of PC in Pakistan
Pakistan’s automobile industry is one of the fastest growing in Asia owing to growing domestic demand. The production and sales have grown by 171% and 172.5% respectively between 2014 and 2018, much of which has been fuelled by the Automotive Development Policy introduced in 2016.
Earlier there were only three Japanese big assemblers HONDA, TOYOTA & SUZAKI. However, with the Government Auto policy in 2016-2021, Pakistan introduced the Automotive Development Policy 2016-21, which offers tax incentives to new automakers to establish assembling plants in Pakistan. In response, various car manufacturers/assemblers have expressed their interest in entering the market including, KIA, Hyundai, MG, DFSK, SAZGAR, CHANGAN, PROTON & CHERY etc…
Since the market dynamic and customer choice has been observed to incline and shifted towards the SUV since last three years and with entrance of new players in market, as this has been seen a good option for people who can afford between PC and high-end SUVs
SUVs: A sports utility vehicle is a kind of a passenger vehicle that combines the loadhauling and passenger-carrying capacities with the utility of a lightweight pickup truck. SUVs are categorized on the basis of their seating capacity but a minimum of five seating capacity is essential in the vehicles for them to be named as SUV. They provide improvised performance, comfort over long routes and four-wheel drive capabilities.
Players of SUVs in Pakistan and brands (CKD and CBU)
Kia Sportage and Tuscon Hyundai got the good volumes in SUV category as Korean Products launched in Pakistan, and the country saw arrival of several Chinese-collaborated SUVs including MG-HS, MG-ZS, MGZS-EV, DFSK Glory 580, DFSK Glory 580 Pro and BAIC BJ-40. Haval Recently, Ghandhara Nissan has also launched Chinese Chery company’s SUVs Tiggo 4 and Tiggo 8. New Chinese entrant Changan Pakistan also launched X7 Oshan SUV. Malysian Product Proton X70 entered in market in the SUV category.
Very recently Honda car introduced HV-R SUV in Pakistan are have very good response from market while local market condition is not much favorable for car assemblers.
Reason for trend shifts from PCs to SUVs
SUVs are categorized on the basis of their seating capacity but a minimum of five seating capacity is essential in the vehicles for them to be named as SUV. They provide improvised performance, comfort over long routes and four-wheel drive capabilities. Sport Utility Vehicle (SUV) is gaining immense popularity among consumers due to the features such as compact size, stylish design, and automatic safety features. The sport utility vehicle is known to possess high-end material and finishes of the car. SUVs are categorized on the basis of their seating capacity but a minimum of five seating capacity is essential in the vehicles for them to be named as SUV. They provide improvised performance, comfort over long routes and four-wheel drive capabilities.
There are many automobile companies in Pakistan like Kia, MG, Toyota, Hyundai, Changhan, Honda, DFSK, Proton, Sazgar and others. They have introduced many extraordinary features according to the market and set higher competition in Pakistan’s Auto industry. Although the Automotive Industry ddevelopment is geared towards localization of vehicle production and the industry enhanced production and increase the battle of vehicle competition, so the increase in local assembled cars gets more interesting features with low price as compared to others.
Sport Utility Vehicle (SUV) is gaining immense popularity among consumers due to the features such as compact size, stylish design, and automatic safety features. The sport utility vehicle is known to possess high-end material and finishes of the car. The consumers are getting more value in terms of safety and luxury features, along with premium ride experience.
It was perhaps true a decade ago that SUVs consumed more fuel than passenger car. But with the technological advancements in engine and transmission, fuel average of SUVs is pretty much equal to sedans of the same class. It’s different with the SUVs; their looks, features and specs still attract them. But recent trend in local auto industry shows a very different picture. Over a dozen different SUVs have been launched during the last couple of years, which are mostly priced above Rs4 million. The SUV segment now has the highest number of cars.
Toyota Land Cruiser and Prado is always a fantasy of Pakistani people, but now there are many options for people to buy in much low prices. Many Auto-Mobile companies launching SUV’s day by day with many good and reliable features. New manufacturers in Pakistan are introducing new shapes and latest models of cars, which show a sign of fast growing. As from the last few years we have seen many SUVs in the market. Another reason as to why SUVs have become popular is because Pakistani auto market doesn’t give one many options in 5 to 6 million price range of cars. People who love to spend on cars and those who can afford 4 million on a car would rather go for a SUVs offer a better height and ground clearance that is ideal for areas with bad roads.
Pakistan’s car industry has seen more preference towards sport utility vehicles (SUVs) rather than low-end cars, which were expected to be rolled out when the new auto policy was unveiled.SUVs are becoming more common among both manufacturers and customers.
Factors Why People Prefer SUVs
Safety: Although some of the older models were criticized for their top-heavy design, newer SUVs are much safer. Due to the vehicle’s size and weight, they often perform better in crash tests, and people feel safer while driving large vehicles.
Comfort: Comfort is a crucial factor when deciding which car to buy. Whether they are commuting to work or dragging kids back and forth to different events, people spend a lot of time in their cars, and when it comes to comfort, SUVs have the upper hand. Their tall design, mixed with their low floors, gives riders both the headspace and legroom they want in a vehicle. Additionally, because they are taller than the typical sedan and shorter than an average truck, they are the perfect height for people to get in and out of without struggling.
Versatility: Another factor SUVs have become so popular among people is their versatility. They can be driven in town, on the highway, and in many off-road environments. Instead of having to own a car for weekday city driving and a truck for weekend adventures, people can get it all from one sporty vehicle. Furthermore, drivers can often choose from a range of drivetrain options, such as FWD, RWD, AWD, and 4WD
Practicality: If we had to choose one word to describe SUVs, it would be practical. They can go almost anywhere and do almost anything, which makes them a great vehicle for people who have a wide variety of interests and hobbies. Furthermore, many SUVs have accessory options that allow them to become even more practical, such as bicycle racks and roof bars.
Performance: Performance is yet another reason people are buying SUVs. Their large engines and lightweight design allow them to perform like a truck while keeping the fuel efficiency of a sedan. Furthermore, SUVs have towing capabilities than your typical sedan does not have.
Technological Advancements: The rise in technological advancements, such as integrating advanced systems with the Internet of Things (IoT) and real-time information solutions, accelerates market growth. The technologies provide real-time data about the vehicle and systems
Globally SUV Market Analysis
The global market of SUVs is projected to grow and there will be more choice for customers. These SUVs to be known for their use of premium materials and sporty looks. The off-road capability of SUVs is driving their demand in the US and European countries. The growing demand for premium cars with comfortable features will create a potential demand for luxury SUVs in the coming years. Likewise, the growing electrification trend across the globe will create demand for electric SUVs and components such as batteries and motors. On the other hand, the high cost of the vehicles, the increase of fuel price, electric vehicles are expected to gain the market growth.
Since Pakistan market is price sensitive and reselling market so whenever it comes to buy and sale a car, resale value is hugely important. A new car that loses its value faster than its rivals can cost you money in lower trade-in value or the possibility of owing more than what it may be worth in a long-term loan. That’s why choosing a vehicle with solid resale value can save you much more money in the long run.
Take away from this article:
This is really a good option for people who can afford between PC and high-end SUVs. SUV category has led to innovation and technology in auto market, with the advanced technology and better safety features in the SUV segment, its acceptability ratio has increased. With a +20% price difference between sedan and SUVs, the consumers had started giving preference to SUVs because of better features and a more luxurious feel.