Sunday, March 29, 2009

Cars in Pakistan vs. Cars abroad

Local cars in Pakistan are basically neither luxury nor sports. They are basically for daily purposes such as taking students to schools and universities. There is not much passion about cars in Pakistan that is if it is not backed by financial resources. There are only limited families which are elite class because of whom we see few cars that are high in luxury and spectacular in looks in Pakistan. In countries with high GDP per capital such as Saudi Arabia, Kuwait and Japan the luxury is being stretched to its limit. The taxis over there are minimum Toyota Camrey that is being perceived as a luxury car in Pakistan. Cars such as Maybach, Rolls Royce, Phantom and Bentley are considered to be luxury cars in countries which have a high GDP. These cars are engineered to the limit of engineering.
The general perception of luxury in Pakistan is fully implemented in cars like Civic and Corolla. The maximum features a Civic or a Corolla has include individual suspension control, power steering, power windows, abs breaks, air conditioning, motorized seat adjust, automatic transmission, sunroof. Whereas features of luxury car companies such as BMW, Mercedes Benz, Rx 8 are fitted with gadgets that one cant even think of that include Air conditioning with individual climate control and rear outlet, Cruise control, massaging seats, heated seats , automatic parallel parking, traction control, heated steering wheel, trip tonic transmission, GPS controlled driving. There are no limits to the gadgets that are fitted to confirm the comfort ability of the riders. The engine technology of these type of cars are far superior then the technology used in local cars for example: Mazda RX 8 that is 1300 cc produces 232 hp. Whereas Honda city that is also 1300 cc produces 120 hp. This difference is due to the fact that Mazda uses rotary technology for the engine by which Rx 8 is equipped.
There are few reasons due to which luxury cars are not that much successful in Pakistan. Due to high import duties and taxes in Pakistan we get the prices inflated as compared to international market. For example, if we a buy a pure luxury car such as Mercedes Benz S550 in Pakistan, it would cost Rs 20 million. Where as the cost of the same car is $ 87000 which comes out to be around Rs. 7 million. There is a great difference in prices that makes S class affordable in countries abroad however due to high taxes and import duties it is very hard to afford this category of luxury car. Lack of specialized labor available for luxury cars and high maintenance cost also act as a barrier. Since there is only limited luxury and sports car available in Pakistan, there is only few people who deal in these cars hence it is difficult to find specialized labor for maintenance of these cars. The body parts or engine parts of luxury and sports cars are not available in Pakistan hence they have to be imported if some parts are required for the car. This process takes time and it adds up to the cost because the parts are being imported from another country. Bad infrastructure acts as another barrier for importing luxury and sports cars. Most of the sports cars have a low suspension. Roads in Pakistan are very bumpy with lots of high speed breakers which make it difficult for lower suspension cars to be driven over here. Due to these reasons mostly people prefer to have a local car because they are affordable, have a relatively cheap maintenance cost, specialized labor is also available for maintenance and local cars to some extent can support the infrastructure of Pakistan.

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