Profit E-Magazine Issue 165

Page 23

OPINION

Abdullah Niazi

Can Changan do for sedans what KIA did for SUVs?

Fu and maybe Pandas. You don’t think of cars. Cars are supposed to be made in Japan or Germany, not China. And even though China is in fact the biggest automotive market in the world, producing a whopping 30 million units per annum, and Changan is the largest automotive brand there – producing 2.8 million vehicles a year, which is more than ten times Pakistan’s total car production, shedding the China tag is difficult for anyone in Pakistan. China is equivalent to cheap in both price and quality in the mind of the Pakistani manufacturer. It is so much so that car manufacturer MG, which is staunchly a Chinese company, pretends to be British to give itself some credibility. The impression is so strong that the franchise store Miniso, which is headquartered in China, pretends to be a Japanese outlet. f you are going from defense to Gulberg and take the cavalry Yet this Chinese car manufacturer that has never before route, on your way there you will see an advertisement for the been heard of in Pakistan is suddenly not just posing a threat to Changan Alsvin. The odd thing about the large billboard ad? the sedan segment and the Big Three, it has the nerve to stand up It does not have a single picture of the Alsvin, it does not have and call out the Big Three for their exclusionary tactics. Where is the Changan logo on it, and seemingly no other embellishthe confidence and the gusto coming from? It could be because in ments or boasts. recent years things seem to be changing. There has been an influx It is a simple white background on which there is a quote of new cars and categories of cars have been entering Pakistan “Please ignore the Changan Alsvins on the road - Sincerely, The that were previously unheard of. Status Quo.” The tongue-in-cheek ad is a dig at Pakistan’s infamous The KIA Sportage has brought in an affordable option for ‘Big Three’ car manufacturers that have for the past three decades had a crossover-SUV within Rs 5 million, which has been preferred a triopoly on the automobile industry - Toyota, Honda, and Suzuki. by a number of people over the Honda Civic and Toyota Corolla On different occasions on different platforms, the big three have been - sedans that are priced around Rs 4-4.5 million. In the same dissected and criticised for their ridiculous pricing, their lack of safecategory, companies like MG and Hyundai have also introduced ty features, and the hold they have on Pakistani car buyers. their own contenders and smaller cars like the KIA Picanto are It is an audacious move. Changan is a Chinese car manufacturalso challenging Suzuki in the hatchback segment. With more er. When you think of China, you think communism, dragons, Kung than 25000 Sportages sold in two years, other players have also been emboldened and the Alsvin seems to be a product of this revolution that was started by all of these players and led by KIA. Changan’s Alsvin is in the same boat. The advertisement from Changan is not just a less than subtle poke towards the Big Three, it is very much a challenge. In January this year, when the car was first released for booking by Changan, it was overwhelmed by 17,000 pre-booking orders Abdullah Niazi and closed bookings. Back then, there had been an outpour of positive feedback and response for is assistant editor at the Alsvin in just over a month since its debut. Changan has had over 29,000 walk-in customers Profit. He also writes for come to 19 of its 3S dealerships all across Pakistan just to have a close look at the vehicle. He addThe Dependent. He can be ed that the company has received over 17,000 pre-bookings for the Alsvin.Since then, the Alsvin reached at abdullah.niazi@ has been a frequent site on the roads of Lahore and by all accounts its buyers seem happy. pakistantody.com.pk And why wouldn’t they be? The cheapest version of the car is priced at Rs 2.2 million, which means that Toyota and Honda both have competition in this price range, and so does Suzuki. Both Toyota and Suzuki have been reacting to these changing market dynamics. Toyota launched the Toyota Yaris. Essentially, they discontinued the cheaper variants of the Toyota Corolla with 1300cc

The Alsvin is popular, cheap, and a quality buy. Will it be enough?

I

COMMENT

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Profit E-Magazine Issue 165 by Pakistan Today - Issuu