Pakistan’s auto industry has long been plagued by the threat of a “own money” culture introduced by dealers to unfairly increase profits. For those wondering, “own money” is the amount that the car dealer charges customers for the initial delivery of the car, above the carmaker’s original recommended retail price (MSRP).
One of the youngest newcomers to the Pakistani auto industry, Changan launched the Alsvin sedan, which, as the car manufacturer itself claims, has been well received by the public.
After selling all available units within two days of ordering commencing, Alsvin quickly established himself as a reliable player in the current compact sedan segment in Pakistan. Given this overwhelming response, however, the public is concerned that newcomers too could become part of the “Eigengeld” culture.
In a recent discussion with the media, Daniel Malik, CEO of Changan Master Motors, said the company is doing its part to prevent a culture of making money. He added that the company has closed the Alsvin sedan reservation because the current stock has been sold out. If there are further orders, the delivery time will likely exceed four months, which will damage the company’s reputation.
He also said the company’s policy was to order only one car for one CNIC, which would prevent “investors” from collecting large numbers of cars and selling them at an illegal premium.
At the same time, the CEO added that the entire economy had to be formalized. He said black money was part of a corrupt circulatory system that was used to manipulate the supply and demand of certain traders to take advantage of people’s needs.
Similar to the same concerns, sales manager Shabir-ud-Din noted that the government’s new initiative, according to Rs. Is to impose a withholding tax of 200,000 on the sale of a new car, which will help prevent the issuance of its own funds. .
Daniel Malik looked at parts location problems and said the industry was still not stable enough for companies to initiate aggressive parts locations. He emphasized that currently the need for vehicles in Pakistan is 18 vehicles per 1,000 people.
Making the supply chain more sustainable requires a more sustainable demand for vehicles in the market. Localization in Pakistan would only make sense under such a scenario, said Malik.