“We have shut down Daihatsu Coure’s assembly plant,” said IMC CEO Parvez Ghias, on the sidelines of a research launched at NED University on Monday. “Coure had lived its life. The product life cycle had come to an end.”
Coure started its journey in 2000 and around 75,000 units made it to the road, according to the country’s second largest assembler’s financial statements.
The 850cc car was always second as Toyota Corolla – the country’s largest selling car – was the primary product for Indus Motor. Corolla contributed almost 83% of total sales in 2011.
Coure was the only Daihatsu brand IMC, the second largest automobile assembler, was assembling in the country. However, it does market Daihatsu’s four-wheel drive Terios Kit imported from Japan.
Daihatsu’s new Coure sold in the European market with a totally redone shape was termed financially not viable for the Pakistani market by Ghais.
The car was available in four variants with the lowest variant Coure CX available for Rs868,200 while the most expensive Ecomatic for Rs938,000. Coure was termed by industry analyst as a dying breed with sales falling 31% in its last stint during July to December 2011.
The exit of Coure and earlier Hyundai Santro makes Suzuki, with Cultus, Alto and Mehran, the only company in the 1000cc and lower segment.
IMC is in negotiations with Daihatsu to see if any other model could be launched in the country, Ghais said. Ghais admitted that Indus Motor should have started planning for a replacement three years back.
It takes years to create the auxiliary industrial base for a car that supplies parts like bumpers and seats, he said.
Indus Motor imported completely knocked down (CKD) parts bumper and seats before assembling it locally.
“The automobile industry was supposed to be making half a million cars by now but we made just 160,000 last year,” said Ghias.
Import of used cars has surged intermittently in the last seven years as the government used the carrot-and-stick policy with the industry.
In fiscal year 2005-06 when duties were reduced, more than 46,425 used cars were imported and proved a huge dent for local assemblers.
Ghias said the government has to stop sending mixed signals to the industry. “We have to plan years in advance for introducing a new model. How can we do that when Planning Commission recommends that duty on imported cars must be reduced? “
The company’s profits almost doubled to Rs1.77 billion during July to December 2011 primarily due to higher sales and prices of its leading brand Toyota Corolla.
WITH ADDITIONAL REPORTING BY FARHAN ZAHEER
Published in The Express Tribune, April 3rd, 2012.
COMMENTS (18)
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Coure i dnt know why people like this small danger safetyless car in this price. If you just visit to market you may find many japanies car which is cheaper then coure and safty point of view is amazing. I seen a car Vitz the price is aound 7 to 8 laks but features amazing I thankyou to IMC for bye bye to coure.
@Glenn Ryall: What duty on local cars? If Chevrolet Spark, which is way better, is available at around 800K after import, how come a local mini with a carby engine cost more than that? Local manufacturers are rip off and that's happening due to lack of a defined automotive policy. Either allow other manufacturers to enter this market or allow imports, for a fair competition!
Car makers in Pakistan give kickbacks to the politicians to keep high duties in place for foreign made cars and to keep a ban in place for older reconditioned cars (>3 years) so as to continue looting Pakistani consumers and continue their monopoly.
They sabotaged a fully locally manufactured Pakistani car in the past. Their monopoly must be stopped.
The web editor needs to proofread this article again, it does not meet the etribune standards.
@papoo piplia: you can't even get a motorcycle for 2000 USD in the US. You can maybe get a very badly used car for 2K.
Its game planned back in 1980s by Govt. by getting hefty amount for their tummies. Since inception, we are unable to set up industry, we had just made CRAP ASSEMBLERS.!
The most useless quality cars are sold in Pakistan with the highest price in the world.
Its looks like Maruti 800...for 9 lakhs in INR you can buy a corolla
LOLxx No Ofense...but this Govt has aimed to vanish every good thing from the public......switching off coure after santro is another proof....
The best car i ever had :(
@papoo piplia: Have you studied business? Costs of production in the US and Pakistan are much different where most, if not all, of the parts are imported and heavy duty/taxes are payable. They are only assembled in Pakistan.
@xyz "Tata is making Nano for 1.5 lakh and Cuore for 9 lakh; this is ripoff." I think one unit is INR and other is PKR. But yes, this car looks overpriced.
The quality and the price of locally produced cars is not acceptable. An imported car is cheaper and more reliable in terms of quality and affordability. I totally blame the local manufacturers to hold their consumer at gunpoint by giving them limited choice and then ask them for an advance and delivery after months. If you want an immediate delivery of a car pay a premium. Well companies do not understand customer service in Pakistan. There are always exceptions but generally speaking companies, shops, retailers, wholesalers, etc do not understand what customer service is but simply an attitude of if you want to buy it buy or get lost.
@papoo piplia: Its not only the car makers but also the Government, it has put a 200% duty tax on all cars. :s
This car would cost 1000-2000 dollars in the US (around 1-2 lakh rupees). Why do car makers in Pakistan loot their customers?
It was a nice car,but overpriced. Toyota pakistan should launch new brands in the 800 to 1000 cc category to beat the craps of Suzuki,like mehran,alto,cultus. However again bad governance here ,energy crises for local industry,textile already moving to Bangladesh. Import policy is also bad,higher duties and middle man's share making it difficult.