Proton Saga and X70 get CKD pricing in Pakistan – up to RM2.6k cheaper than before thanks to tax breaks

Proton Saga and X70 get CKD pricing in Pakistan – up to RM2.6k cheaper than before thanks to tax breaks

Proton Pakistan has announced revised pricing for the Saga and X70, with both being more affordable than before. The new prices are for locally assembled (CKD) units that will soon come out of Al-Haj Automotive’s (the carmaker’s local partner) plant in Karachi and benefit from the federal government’s recent decision to reduce duties and taxes for cars.

Under the new structure, the federal excise duty (FED) has been abolished for cars with engine capacities from 660 cc to 1,000 cc. For cars with engine capacities from 1,001 cc to 2,000 cc, the FED was decreased to 2.5% from 5%, and from 2,001 cc to 3,000 cc, it’s now 5% instead of 7.5%.

Other revisions include a reduction in the general sales tax (GST) for cars up to 1,000 cc from 17% to 12.5%, while additional customs duty (ACD) on all vehicles is down to 2% from 7%. These initiatives are meant to reduce vehicles prices and make them more affordable to consumers in order to promote sales in the industry, Pakistan’s Dawn reports.

In Pakistan, the Saga is powered by a S4PE engine with a displacement of 1,299 cc that makes 92 PS (91 hp) and 120 Nm of torque. The engine has 33 cc less than the Malaysian model that has a capacity of 1,332 cc, with transmission pairings being a four-speed torque converter automatic and a five-speed manual.

Proton Saga and X70 get CKD pricing in Pakistan – up to RM2.6k cheaper than before thanks to tax breaks

With the new pricing scheme, the entire Saga line-up, which consists of the Standard MT, Standard AT and Ace AT, is now cheaper by 50,000 Pakistani rupees (RM1,320). As such, the Standard MT is now 1.925 million Pakistani rupees (RM50,805) instead of 1.975 million PKR (RM52,125), while the Standard AT retails at 2.075 million PKR (RM54,764) instead of 2.125 million Pakistani rupees (RM56,084).

As for the range-topping Ace AT, it now goes for 2.175 million PKR (RM57,403) instead of 2.225 million PKR (RM58,723). Moving on the X70, the SUV’s two available variants are now 100,000 PKR (RM2,639) less compared to previous prices.

The entry-level Executive AWD now goes for 4.59 million PKR (RM121,140) instead of 4.69 million PKR (RM123,779), while the top Premium 2WD goes for 4.89 million PKR (RM129,057), down from 4.99 million PKR (RM131,698).

Like the Saga, the X70’s engine remains unchanged, with a 1.5 TGDi three-cylinder unit providing 177 PS (175 hp) and 255 Nm, mated to a seven-speed dual-clutch transmission. Both models also see no change to the list of standard equipment.

As reported previously, the Karachi facility, which was set up with an investment of about USD30 million (around RM126.3 million), will have a planned capacity of 25,000 units per year and was originally supposed to have commenced operations before the end of 2020. However, delays due to the pandemic have affected this timeline, with Proton Pakistan revealing on its official Facebook page recently that the facility is in its final stages of completion and is ready to commence trial production very soon.

According to the company, the Saga will be first model to be locally assembled, with the first units set to roll off the line within 45 days of the lockdown being lifted in Malaysia. This is because the CKD kits for the sedan are prepared at the national carmaker’s Shah Alam plant in Selangor, which is currently under the enhanced movement control order (EMCO). As for the X70, local assembly of the SUV is expected to start later in the fourth quarter of 2021.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Dredd on Jul 16, 2021 at 5:59 pm

    Poorer countries can live with 17% GST and yet snowflake voters here would overthrow a stable gomen for measly 6% GST. Now everyone is regrestting but nasi dah jadi bubur. Such shortsightedness.

    Like or Dislike: Thumb up 31 Thumb down 37
  • Proton’s reputation is at stake, they need to catch up instead of remaining contended progressing at turtle speed. Ground breaking ceremony of their plant was held in March 2019 and even after more than 2.4 years their plant is yet to become operational. Blame pandemic but other companies in Pakistan such as Kia was able to complete its plant within 9 months, began rolling off local assembled units prior to launching their cars and is currently enjoying healthy sales in the country. Same goes for Hyundai & Changan which started their operations recently. However Proton launched its cars, the X70 in December 2020 and Saga in Feb 2021 when it wasn’t even ready roll out a single unit. Such an incompetent strategy and lack of planning. Now when Pakistani govt has reduced taxes and other automakers are reaping benefits by selling larger numbers for lower prices, all Proton can do is to announce the price revisions and according to its official Facebook page is not in position to roll out a single unit before October 2021. They are giving 1+ year delivery date which is hilarious, not because they received a warm response, but just because they are incapable to start local production.. Proton went for the wrong partner in past (when they launched in 2006 in Pakistan with Gen2, Wira, Saga and Impian) and now they have chosen another waste of a local partner

    Like or Dislike: Thumb up 22 Thumb down 2
    • Your comparing apples to oranges. Proton is working with a local franchiser (Al-Haj Automotive)for the operation and sales in Pakistan, unlike Hyundai and the likes whom directly go into that market themselves, of course without a middleman things would go much faster but the risk is so much higher if it fails. Proton had been burned by markets it had directly went in before so doing things via a partner would mitigate much of the risk and the onus is on the partner to make it work. Downside of course, is the added delays as contractual & legal framework have to be agreed upon even before an actual deal is signed so a slower progress is fully expected, what is not expected is that Covid would hamper their progress for 1.5 years. On the flip side everything has slowed due to Covid so PP now have ample time to get everything setup and ready when the market rebounds post-Covid.

      Like or Dislike: Thumb up 4 Thumb down 4
      • @Cary all Kia, Hyundai and Changan have their local partners, none of them is directly operating in Pakistan. Kia has team up with Lucky Group, Hyundai with Nishat Group and Changan with Master group, all with batter strategies and launched their products when they were ready rolling out cars. Not like Proton which has nothing to offer, neither CBU nor CKD and still had the guts to launched and damage its image by offering 14 months delivery time on the first day of booking… lol

        Like or Dislike: Thumb up 6 Thumb down 0
    • Karlson on Jul 17, 2021 at 9:54 am

      yes, Proton cars are good but the way of operations is toooo bad

      Like or Dislike: Thumb up 2 Thumb down 1
    • Tun F on Jul 17, 2021 at 8:16 pm

      Beggars can’t be choosers.. be grateful the locals still got a job. Thanks to geely chinas…

      Like or Dislike: Thumb up 5 Thumb down 1
      • beware.. these beggars will soon decide the fate of incompetent Proton in Pakistan, where your own Chinese bros are doing great

        Like or Dislike: Thumb up 6 Thumb down 0
 

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