Pakistan Auto_Entrants fire the first shots, (AKD Daily, Aug 20, 2020)
AKD Daily
Pakistan Auto: Entrants fire the first shots
- Passing a key milestone for the auto assembling space, major entrants launched CKD variants and expanded product range in the Passenger Car segment, in shifts not scene since late 90’s when imported pickups/4X4’s were first offered as CBUs by OEMs.
- We analyze repercussions of these overtures, drawing lessons for variant segmentation, expected spillovers for consumers trading up from the premium sedan (1.8L+) to Sports Utility/Crossover segment now occupying the middle-ground between more powerful 4x4 offerings.
- Launch of the Yaris variant by INDU places this trim dead center of 1.3L variants on offer from HCAR, PSMC – and the 1.5L City and City Aspire premium trims, placing HCAR in a tough spot, as ~60% of its offtake is for the City, which in turn, is on the tail-end of its life cycle.
- Major aspects to monitor for competitive dynamics going forward are OEM’s approach to price hikes (prominent for new entrants due to scant localization) in the face of cost inflation, and the buildup of sales/after sales infrastructure cementing footprints across the country.
- We await INDU’s quarterly briefing and release of detailed accounts for listed players to update our stance on the sector, which has witnessed strong price performance recently on expectations of renewed demand post COVID-19. On a broad note, new entrants have fired the first shot in a new phase of competition in the space with consumers emerging as clear winners.
AKD Research
Pak Suzuki Motor is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, and 4X4 vehicles. Co.'s product models include Baleno, Margalla, Mehran, Kyber, Ravi Pickup, Bolan Van and Potohar Jeep.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.