Proton Saga Price 30% Higher in Pakistan Than South Africa

Jawad

08 Oct 2023

400 Proton Saga

Proton Saga Price 30% Higher in Pakistan Than South Africa

The automobile markets of Pakistan and South Africa share a striking similarity – they both favor right-hand drive (RHD) vehicles. Beyond this commonality, automakers have introduced nearly identical vehicle models in both markets.

Mirror Offerings by Automakers

Automakers have mirrored their offerings between the two countries. For instance, FAW and Chery introduced the same models, and even the exit of these brands from both markets happened in parallel. This trend continued with BAIC's BJ40, which was introduced as B40 in South Africa. Most notably, Proton launched the Saga sedan in both countries but with significant price disparities.

Proton Saga's Price Discrepancy

Proton introduced the Saga sedan in Pakistan in April 2021 and in South Africa in September 2022. Surprisingly, both markets offer the same trim levels for the Saga, yet the prices vary significantly.

Pricing Breakdown

In South Africa, the Saga comes in three trim levels: Standard MT, Standard AT, and Premium AT (Ace), all equipped with the same 1.3L engine and identical features. However, the pricing differs substantially.

Price Difference

Comparing the Standard AT variant, in South Africa, it's priced at ZAR 199,000 (PKR 28.72 lac), while in Pakistan, it's PKR 39.49 lac. This makes the Pakistani Saga 30% more expensive than its South African counterpart for this variant. The Standard AT is 25% pricier in Pakistan, and the Premium AT (Ace) is 19% costlier.

Tax Comparison

While one might attribute this price gap to taxes, it's worth noting that the Proton X70 prices in Pakistan are much closer to South Africa. The price difference isn't as pronounced as with the Saga.

Profit Margin Question

The substantial price difference raises questions about Proton's profit margin strategy in Pakistan. Despite marketing the Saga as an affordable sedan, the significant price disparity hints at a higher profit margin.

Currency Impact

The price appreciation of the US Dollar in Pakistan, from PKR 153 to PKR 276 (as of October 2023), has contributed to the Saga's price hike of 89% since its launch.

Delivery Delays and Price Hikes

Delays in deliveries and subsequent price hikes have deterred the Saga's success in Pakistan. The car's price nearly doubled in just two years, compared to its launch price.

The Way Forward

Analyzing these factors, there seems to be room for Proton to align Saga prices more closely with the South African variant. However, to succeed, Proton must address delivery delays, as increased demand resulting from lower prices could exacerbate these issues.

Proton Saga Car Prices Automotive Industry Price Comparison Global Car Market Import Tariffs Pakistan Automobiles South African Car Market Economic Disparities International Car Pricing

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