KARACHI: 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.
Published in Dawn, May 30th, 2019
