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Chinese assembler to launch 800cc car in September


The auto market will witness the launch of a new entrant in the under 1,000cc category –Prince Pearl 800cc – a Chinese-assembled car in September this year.
Regal Automobile Industries Limited (RAIL) will start local assembly of Prince Pearl 800cc from August at its Lahore plant under a technical collaboration agreement with a Chinese manufacturer.
The vehicle will make inroads following the launch of Suzuki Alto 660cc car in April and a month before KIA Picanto in October.
“We are investing Rs500 million in the next three years for this project,” Chairman RAIL Sohail Usman told Dawn on Wednesday.
The initial starting localisation content is 10 per cent which means the price will be more vulnerable to rupee-dollar parity.
“We have planned to achieve 50pc localisation in the next four years with an aim to roll out 10,000 units per year on double shift basis,” he added.
On price of the vehicle, he said it would be disclosed at the launch in September, adding “definitely the rate would be competitive”. The company aims to provide maximum features of a fully loaded car in the Chinese vehicle, he said.
To solicit consumers’ feedback, RAIL had already imported few models of Pearl for test drive in the market.
With persistent decline in arrival of used car imports, new investors coming up especially in 660-1,000cc cars categories may find a good volume to fill the vacuum. Around 70,000 units of used imported vehicles used to find way into the Pakistan market in which majority of vehicles were 660cc.
“The government has taken a very good step in January 2019 to curb imports of used cars through various rules and regulations which would help new entrants to work smoothly without any threat of used car imports,” he said.
Mr Sohail said the 800cc car will be produced in same Lahore plant where RAIL had already invested over Rs800m for producing light commercial vehicles and vans from April 2018 under a technical collaboration agreement with China’s DFSK Group. RAIL has also been active in assembling Road Prince bikes since 2,005.
Meanwhile, Pak Suzuki Motor Company Limited (PSMCL) had already started booking of 660cc Alto in April at Rs500,000 with delivery period of two months. The company had closed down the production of Suzuki Mehran 800cc which ruled the market for 30 years.
Kia Lucky Motors CEO will start booking of locally assembled Picanto 1,000cc from June and launch it in October.

Barring Mehran VX and Mehran VXR, Pak Suzuki Motor Company Ltd (PSMCL) gave the first shock of new year to the consumers by increasing prices of motorbikes and four wheelers by Rs5,000-8,000 and Rs30,000-40,000, res­pec­­tively, effective from Tuesday.
The Suzuki Car Prices jump in imported vehicles ranges between Rs100,000-322,000.
The new Var prices of WagonR VXR is Rs1.124 million and VXL is Rs1.313m, while Cultus VXR, VXL and AGS are now priced at Rs1.410m, Rs1.531m and Rs1.638m respectively.
Swift DLX NV will now carry a price tag of Rs1.555m and AT NV model of Rs1.691m. While Bolan, Cargo Van and Ravi now sell at Rs854,000, Rs820,000 and Rs776,000, respectively.
APV is now tagged at Rs3.040m, Ciaz MT at Rs2.060m, Ciaz AT at Rs2.200m, Vitara at Rs3.990m and Jimny JLDX MT is available at Rs2.393m.
In two wheelers, the prices of GD-1105 and GS150 have been fixed at Rs155,000 and Rs162,000, while new rates of GS150SE and GR150 are Rs180,000 and Rs243,000, respectively.
The PSMCL has maintained its past practice by not mentioning any reason for price hike.

According DawnNews Car sales edged up to 87,897 units in the first five months of this fiscal year, from 87,273 in same period last year.
On a monthly basis, however, there was a huge decrease in units sold in November, which fell to 15,334, from 21,342 units in October.
In 1,300cc and above models, Honda (Civic and City) sales rose to 19,795 in 5MFY19 from 17,157 units, followed by the increase in Toyota Corolla and Suzuki Swift sales to 23,771 and 2,154 units from 21,518 and 1,760 units, respectively. However, their month-on-month performance remained dismal in November.
In 1,000cc, Suzuki Cultus and WagonR sales climbed to 8,775 and 13,341 units in 5MFY19 from 8,002 and 11,383 units in same period last year. The 800cc and below 1,000cc vehicles suffered the most, as sales of Suzuki Mehran and Bolan during this period plunged to 13,598 and 6,463 versus 18,829 and 8,624 in 5MFY18.
Consumers did not show any reluctance towards buying 1,300cc and above cars despite rising petrol rates coupled with frequent price hike by the assemblers due to exchange rate parity and increase in interest rates.
Toyota Fortuner sales also dropped to 1,100 in 5MFY19 from 1,408, followed by a substantial decline in Honda BR-V sales to 2,116 from 4,410, Suzuki Ravi to 7,094 from 9,176 and Toyota Hilux to 2,436 from 2,632 units in 5MFY18.
Syed Danial Adil at Topline Securities said the volumetric fall in November was much anticipated due to deteriorating economy, law barring non-filers from purchasing cars, multiple price hikes in the past 12 months, high base effect of last month as well as seasonal slowdown.
In two-wheelers, 5MFY19 sales of Honda bikes went up to 463,714 from 454,15 in same period last year, while those of Suzuki and Yamaha rose to 9,814 and 10,425 compared to 8,528 and 8,611 units in 5MFY18.
United Auto Motorcycle sold 177,261 units in 5MFY19 versus 165,481 in same period last year.