BMW to be assembled in Pakistan after 2006

Society Pakistan & World Affairs
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BMW to be assembled in Pakistan after 2006

By Arshad Hussain

KARACHI: Dewan Motors (Pvt) Ltd (DMPL), which began importing various models of BMW cars from Munich, Germany earlier this month and will formally launch in a few days time plans to begin local assembly of BMWs after 2006, a company source has said.

“At present we are importing all the models of BMW cars and are also providing all servicing facilities, including spare parts,” the source said. The launching will take place simultaneously in Karachi, Lahore and Islamabad.

He said that although the cars have not been officially launched yet, a demand for them has been seen in Karachi, Lahore and Islamabad.

“We are taking orders for all the latest models from the customers, and a number of vehicles have already been booked,” said the official. However, he refused to give the exact number of the vehicles booked so far.

He also said that the company is hiring well-experienced staff to look after the BMW vehicles in Pakistan, but refused to give the exact investment figure. An advertisement in the weekend newspapers from the group called for applications for ten positions.

Earlier, Redco group imported BMW cars till 1999, but after that there was no legal importer of BMW in the country.

The Dewan group entered the automobile area in December 1998. “Based on the experienced gained by managing assembling, marketing, selling and after-sales support of automobiles operations, the management of Dewan group set out to capture the luxurious BMW car segments, said the source.

According to unofficial figures, at present 600 to 700 BMW vehicles are plying on the country’s roads, as the vehicle is one of the expensive cars in the world.

“The main objective of the Dewan group is to bring all the latest models of BMW including 5-series, 7-series and others,” said the company official. “The group is also importing whole diagnostic equipments and software to diagnose the on-board problems on computers in the vehicles and other servicing facilities including fixing and others.”

Dewan Motors will open two showrooms for BMW in Karachi and Lahore, while it already has a showroom in Islamabad, the source said. He added that no dealer of any showroom would be involved in the selling of these vehicles in the country, as the country has decided to market the vehicles itself.

According to him, the prices of the different BMW models would range between Rs 4 million and Rs 15 million. “Of course the Pakistani people have the purchasing power to buy such luxury cars, and there is a demand of such vehicles here,” he said.

He said the company’s main focus is on the BMW models, adding that according to the survey done by the company, the demand of MINI is very low. “Some 20 to 30 year old MINI vehicles are plying on the roads of the country, but the people are not interested in importing new models of this vehicle,” he said. However, he added that the company would still import the latest models of MINI to market them here.

According to BMW, electrical and electronic systems are the key driving force behind some 90 percent of all the BMW groups’ innovations, and these technologies represent something of a “digital revolution” within the automotive industry and vehicle development.

http://www.dailytimes.com.pk/default.asp?page=story_22-10-2003_pg5_4

Great news for Pakistan. I hope Dewan group carried out its research before launching this mega project. BMW doesnt like failures!

I also hope that the government concentrates on raising the income level of the people so that more people can afford these magnificent cars.

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the prices of the different BMW models would range between Rs 4 million and Rs 15 million.

Good news :k:

Less than 0.5% of Pakistanis can afford the Bimmer. But we can export it to other countries :slight_smile:

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so is it for local consumption or for export? what models are the planning to build there?

good news though. def a step in the right direction

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Does'nt sound like it is for export at all. Seems like there is domestic demand for Beamers in Pak, so they are basically importing them for sale. I would suspect the reason for assembly in Pakistan is because there may be a law requiring imported cars have some assembly in Pakistan before sale.
But still even an assembly plant would create jobs.

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this is absurd.. 600-700 cars and they need to build a plant now to assmble them here.. for what.. to increase that number to 1500?? … talk about misplaced priorities.. :rolleyes:

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Why do you need BMWs when you don't have roads for them...lots of German and other car-makers know that...first roads or cars?

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[QUOTE]
*Originally posted by Zabardast: *
Why do you need BMWs when you don't have roads for them...lots of German and other car-makers know that...first roads or cars?
[/QUOTE]

One of my uncles in Pakistan drives a BMW 318i for the past few years. He hasn't had any problems finding roads to drive it on :)

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kee yewl :k::k::k::k::k:

:jhanda::jhanda:

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May be they want a plant close to India where they can mfr the parts

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[QUOTE]
*Originally posted by TomSawyer: *
May be they want a plant close to India where they can mfr the parts
[/QUOTE]

parts hi banate rehna..

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Prices are really outrageous.. the lowest end of 4-6 million rupees can buy high end BMW in USA!!! and we r even not importing ! this is highway loot..

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[QUOTE]
*Originally posted by TomSawyer: *
May be they want a plant close to India where they can mfr the parts
[/QUOTE]

Why?? Pakistan is already manufacturing parts for BMW/Mercedes.

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[QUOTE]
*Originally posted by Degas: *
Prices are really outrageous.. the lowest end of 4-6 million rupees can buy high end BMW in USA!!! and we r even not importing ! this is highway loot..
[/QUOTE]

I think that Rs.4 million figure was for imported BMWs. Since the actual production of BMWs is still a good three years away, it would be very silly to give out price ranges right now because a lot can change between now and 2006.

[quote]
Dewan Motors will open two showrooms for BMW in Karachi and Lahore, while it already has a showroom in Islamabad, the source said. He added that no dealer of any showroom would be involved in the selling of these vehicles in the country, as the country has decided to market the vehicles itself.

According to him, the prices of the different BMW models would range between Rs 4 million and Rs 15 million. “Of course the Pakistani people have the purchasing power to buy such luxury cars, and there is a demand of such vehicles here,” he said.
[/quote]

Notice how he is talking about the imported cars, and then goes on to mention the prices of these cars. This leads me to believe that the 4 mn tag is for the imported ones.

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[QUOTE]
*Originally posted by Degas: *
Prices are really outrageous.. the lowest end of 4-6 million rupees can buy high end BMW in USA!!! and we r even not importing ! this is highway loot..
[/QUOTE]

It just reflects the market position that BMW wants to have in Pakistan. By starting prices at 4 million and going up to 15 million, they will ensure that BMW remains exclusive and not common place, even when purchasing a depreciated second hand model. It's pretty clear that they want to be to Pakistan what Rolls-Royce is to Western Europe - a car accessible only to the most wealthy, and desirable because of that.

The fact is that not just in the automotive market, but in many other industries as well, companies set different prices depending on the market position that they want their product to be in.

The best example that I can give is Pizza Hut. In the West, Pizza Hut prices to be an every day experience, easily accessible to all in society. In Pakistan, however, Pizza Hut prices itself such that it becomes a much more exclusive in the kind of people who can afford to go there and is not so much an everyday experience.

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I disagree Madhanee. i thin kthis is good for Pak. THe only thing is that it is a one off deal. Unless there is indegenous development of the automotive sector there cannot be a sustained lead sector of let's say manufacturing and assembly.

If you were to go back to how S Korea started, it took the japanese investment ionto semiconductor, electronic, automotives for captive faciltieis and then leveraging the IP, it truned that into a lead sector of the economy making goods for the domestic as well as international markets.

The challenge I see in Pak is the antiquated legal system, IP will be a huge issue and secondly skilled labor in volumes required to have a sustainable industry.

P,us, with the lack of spending prioritization, Pakistan might end up more like North Korea than South Korea.

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Madhanee did you now that BMW is one of the largest buyers of Indian Auto parts? So if Pakistan has this plant there, there is chance of Indian made products being used by Pakistan assembly plants to make german cars... I love globalization.

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[QUOTE]
*Originally posted by Madhanee: *

But going back to the topic. It is not the kind of investment that Pakistan should be seeking. We should attract investment that will create jobs for the masses, and not just for a few.
[/QUOTE]

What sector exaclty do you have in mind? The government has been trying to jump start the construction industry. I believe it has the largest multiplier effect. Already PS is working near full capacity and cement producers are adding new capacity. There is also talk of heavy investment coming in Oil & gas, and telecom sector. Automobile, as this thread suggests, is also the focus of attention.

Edit: The govt. also plans to build a few dams. that should help with job creation.

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It better If pakistan starts production of its own vehicles its has the technology and and has the brains.

If they can do it militarily they can apply same principles to the industry.

one example that Pakistan can learn from and follow could be a joint project, similar to Malaysia where they joined forces with Mitsubishi of Japan and helped develop the proton car industry in Malaysia!

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After BMW, now Toyota is showing increased interest in investing in Pakistan…

Toyota MD visits Pakistan

Toyota Motor Corporation’s Senior Managing Director Yoshimi Inaba said on Thursday that ‘their Pakistan join venture, Indus Motor Company (IMC) is an excellent success story, manufacturing world-class cars with high local content and quality standards’. Its sales and production has doubled in the last two years, said a press release received here on Thursday. Inaba is visiting Pakistan after 20 years. This visit is part of the tour that the Senior Managing Director is undertaking to visit the Toyota companies in various parts of the world. A graduate of Kyoto University and an MBA from North Westerns’ Kellogg School, Inaba has an illustrious career in sales and marketing, unlike most top management executives of Toyota who have an engineering and manufacturing background. In addition to his rich experience of the Japanese automobile market, he has also worked in Germany and in the US where he was President, Toyota Motor Sales, USA Inc. In 1997, he was named to the Toyota’s Board of Directors and then became Senior Managing Director of Toyota Motor Corporation in June 2003.

“The recent upsurge in the automobile market is a result o stable policies. In order for the Pakistani market to grow further, it is necessary that the policies are clearly spelt out and remain consistent in the future,” said Inaba during his visit to Indus Motor Company on Wednesday. Speaking on this occasion, Mazhar Valjee, CEO IMC said, “It is a matter of honour for Pakistan and Indus Motor Company that Inaba has visited us. This demonstrates the importance Toyota Motor Corporation attaches to the auto market of Pakistan.” Valjee added: “We had an opportunity to discuss with Inaba our progress and plans for the future. Toyota and IMC will continue to provide quality vehicles and quality service to customers in Pakistan through our joint efforts in the years to come.”