THE NEW PRODUCT DEVELOPMENT PROCESS

(NPD) – OBTAIN NEW PRODUCTS

In order to stay successful in the face of maturing products, companies have to obtain new ones by
a carefully executed new product development process. But they face a problem: although they must
develop new products, the odds weigh heavily against success. Of thousands of products entering
the process, only a handful reach the market. Therefore, it is of crucial importance to understand
consumers, markets, and competitors in order to develop products that deliver superior value to
customers. In other words, there is no way around a systematic, customer-driven new product
development process for finding and growing new products. We will go into the eight major steps in
the new product development process.
 The 8 steps in the New Product Development Process

1. Idea generation – The New Product Development Process

The new product development process starts with idea generation. Idea generation refers to the
systematic search for new-product ideas. Typically, a company generates hundreds of ideas, maybe
even thousands, to find a handful of good ones in the end. Two sources of new ideas can be
identified:
 Internal idea sources: the company finds new ideas internally. That means R&D, but also
contributions from employees.
 External idea sources: the company finds new ideas externally. This refers to all kinds of external
sources, e.g. distributors and suppliers, but also competitors. The most important external source
are customers, because the new product development process should focus on creating customer
value.

2. Idea screening – The New Product Development Process

The next step in the new product development process is idea screening. Idea screening means
nothing else than filtering the ideas to pick out good ones. In other words, all ideas generated are
screened to spot good ones and drop poor ones as soon as possible. While the purpose of idea
generation was to create a large number of ideas, the purpose of the succeeding stages is to reduce
that number. The reason is that product development costs rise greatly in later stages. Therefore,
the company would like to go ahead only with those product ideas that will turn into profitable
products. Dropping the poor ideas as soon as possible is, consequently, of crucial importance.

3. Concept development and Testing – The New Product

Development Process
To go on in the new product development process, attractive ideas must be developed into a product
concept. A product concept is a detailed version of the new-product idea stated in meaningful
consumer terms. You should distinguish

 A product idea à an idea for a possible product

 A product concept à a detailed version of the idea stated in meaningful consumer terms
 A product image à the way consumers perceive an actual or potential product.

Let’s investigate the two parts of this stage in more detail.

Concept development
Imagine a car manufacturer that has developed an all-electric car. The idea has passed the idea
screening and must now be developed into a concept. The marketer’s task is to develop this new
product into alternative product concepts. Then, the company can find out how attractive each
concept is to customers and choose the best one. Possible product concepts for this electric car
could be:

 Concept 1: an affordably priced mid-size car designed as a second family car to be used around
town for visiting friends and doing shopping.
 Concept 2: a mid-priced sporty compact car appealing to young singles and couples.
 Concept 3: a high-end midsize utility vehicle appealing to those who like the space SUVs provide but
also want an economical car.

As you can see, these concepts need to be quite precise in order to be meaningful. In the next sub-
stage, each concept is tested.

Concept testing
New product concepts, such as those given above, need to be tested with groups of target
consumers. The concepts can be presented to consumers either symbolically or physically. The
question is always: does the particular concept have strong consumer appeal? For some concept
tests, a word or picture description might be sufficient. However, to increase the reliability of the test,
a more concrete and physical presentation of the product concept may be needed. After exposing
the concept to the group of target consumers, they will be asked to answer questions in order to find
out the consumer appeal and customer value of each concept.

4. Marketing strategy development – The New Product

Development Process
The next step in the new product development process is the marketing strategy development.
When a promising concept has been developed and tested, it is time to design an initial marketing
strategy for the new product based on the product concept for introducing this new product to the
market.

The marketing strategy statement consists of three parts and should be formulated carefully:

 A description of the target market, the planned value proposition, and the sales, market share and
profit goals for the first few years
 An outline of the product’s planned price, distribution and marketing budget for the first year
 The planned long-term sales, profit goals and the marketing mix strategy.

5. Business analysis – The New Product Development Process

Once decided upon a product concept and marketing strategy, management can evaluate the
business attractiveness of the proposed new product. The fifth step in the new product development
process involves a review of the sales, costs and profit projections for the new product to find out
whether these factors satisfy the company’s objectives. If they do, the product can be moved on to
the product development stage.
In order to estimate sales, the company could look at the sales history of similar products and
conduct market surveys. Then, it should be able to estimate minimum and maximum sales to assess
the range of risk. When the sales forecast is prepared, the firm can estimate the expected costs and
profits for a product, including marketing, R&D, operations etc. All the sales and costs figures
together can eventually be used to analyse the new product’s financial attractiveness.

6. Product development – The New Product Development

Process
The new product development process goes on with the actual product development. Up to this
point, for many new product concepts, there may exist only a word description, a drawing or perhaps
a rough prototype. But if the product concept passes the business test, it must be developed into a
physical product to ensure that the product idea can be turned into a workable market offering. The
problem is, though, that at this stage, R&D and engineering costs cause a huge jump in investment.

The R&D department will develop and test one or more physical versions of the product concept.
Developing a successful prototype, however, can take days, weeks, months or even years,
depending on the product and prototype methods.

Also, products often undergo tests to make sure they perform safely and effectively. This can be
done by the firm itself or outsourced.

In many cases, marketers involve actual customers in product testing. Consumers can evaluate
prototypes and work with pre-release products. Their experiences may be very useful in the product
development stage.

7. Test marketing – The New Product Development Process

The last stage before commercialisation in the new product development process is test marketing.
In this stage of the new product development process, the product and its proposed marketing
programme are tested in realistic market settings. Therefore, test marketing gives the marketer
experience with marketing the product before going to the great expense of full introduction. In fact,
it allows the company to test the product and its entire marketing programme, including targeting and
positioning strategy, advertising, distributions, packaging etc. before the full investment is made.
 The amount of test marketing necessary varies with each new product. Especially when introducing
a new product requiring a large investment, when the risks are high, or when the firm is not sure of
the product or its marketing programme, a lot of test marketing may be carried out.

8. Commercialisation
Test marketing has given management the information needed to make the final decision: launch or
do not launch the new product. The final stage in the new product development process is
commercialisation. Commercialisation means nothing else than introducing a new product into the
market. At this point, the highest costs are incurred: the company may need to build or rent a
manufacturing facility. Large amounts may be spent on advertising, sales promotion and other
marketing efforts in the first year.

Some factors should be considered before the product is commercialized:

 Introduction timing. For instance, if the economy is down, it might be wise to wait until the following
year to launch the product. However, if competitors are ready to introduce their own products, the
company should push to introduce the new product sooner.
 Introduction place. Where to launch the new product? Should it be launched in a single location, a
region, the national market, or the international market? Normally, companies don’t have the
confidence, capital and capacity to launch new products into full national or international distribution
from the start. Instead, they usually develop a planned market rollout over time.

In all of these steps of the new product development process, the most important focus is on
creating superior customer value. Only then, the product can become a success in the market. Only
very few products actually get the chance to become a success. The risks and costs are simply too
high to allow every product to pass every stage of the new product development process.
Product Life Cycle Stages

As consumers, we buy millions of products every

year. And just like us, these products have a life cycle. Older, long-established products eventually become less
popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are
launched.

Because most companies understand the different product life cycle stages, and that the products they sell all have a
limited lifespan, the majority of them will invest heavily in new product development in order to make sure that their
businesses continue to grow.

Product Life Cycle Stages Explained

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things
for business that are trying to manage the life cycle of their particular products.

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product.
The size of the market for the product is small, which means sales are low, although they will be increasing. On the
other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch
the product can be very high, especially if it’s a competitive sector.

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the
company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount
of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to
maximize the potential of this growth stage.

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to
maintain the market share they have built up. This is probably the most competitive time for most products and
businesses need to invest wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a competitive advantage.

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the decline
stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product
have already purchased it), or because the consumers are switching to a different type of product. While this decline
may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive
production methods and cheaper markets.
Extending the Product Life Cycle

For successful products, a business will want to do all it can to extend the growth and maturity
phases of the life cycle, and to delay the decline phase.

What can businesses do to extend the product life cycle?

To do so, it may decide to implement extension strategies - which are intended to extend the life
of the product before it goes into decline.

Examples of extension strategies are:

1. Advertising – try to gain a new audience or remind the current audience

2. Price reduction – more attractive to customers
3. Adding value – add new features to the current product, e.g. improving the specifications
on a smartphone
4. Explore new markets – selling the product into new geographical areas or creating a
version targeted at different segments
5. New packaging – brightening up old packaging or subtle changes

Evaluating the Product Life Cycle Model

The product life cycle model is by definition simplistic. It is used to predict a likely shape of
sales growth for a typical product.

Whilst there are many products whose sales do indeed follow the classic shape of the life cycle
model, it is not inevitable that this will happen.

For example, some products may enjoy a rapid growth phase, but quickly move into a decline
phase if they are are replaced by superior products from competitors or demand in the market
overall declines quickly.

Other products with particularly long life cycles seem to enjoy a maturity phase that lasts for
many years.
Example of SWOT of New Products

Launching a new product requires addressing the four marketing pillars of price, product, promotion and place
of sale. To analyze each of these areas, examine your Strengths, Weaknesses, Opportunities and Threats to
help minimize your risks and maximize your resources before you run your first ad or hold your first
promotion.

Appraise Your Strengths

Your new product should be built around two concepts: satisfying the need or demand of a specific target
audience and doing so with a unique selling benefit. This requires conducting focus groups and surveys of
potential customers and a thorough examination of your competition. Your strengths might include your price,
perceived value, customer service, unique features, online or retail store availability or a warranty.

Marketing messages should communicate your unique benefit, rather than just your features. Create strength in
your profitability by effectively managing your cost of production and using distribution channels that give
you the biggest sales volumes at the lowest prices.

Understand Your Weaknesses

A weakness related to a new product launch doesn’t necessarily mean you’ve done something wrong – it might
just signal that your competition has an advantage you have to overcome. For example, until you gain market
share, you might need to spend more on marketing and give away more free samples. You might need to sell
your product at break-even or at a loss for a short time to introduce yourself to customers. If your competition
has negotiated exclusive endorsements and distribution agreements, that will further weaken your position.

Even if your product is as good as or better than the competition and competitively priced, customer brand
loyalty is hard to break. Use free sampling and the endorsements of trusted individuals or group to combat this
challenge.

Identify Your Opportunities

Because you’ve got a new product, you have some built-in opportunities. Early adopters and influencers like to
be the first to try the hottest new thing, telling the masses who follow the lead of these groups their experience
with a new product. This allows you to set your prices higher for a short period if competition isn’t an issue. If
you have lower overhead costs than a mature competitor, you might be able to price yourself more
competitively. Take advantage of the media’s interest in new products by mounting an aggressive public
relations campaign that educates news outlets.
Assess the Threats

Once you enter the marketplace, your competitors will likely react. One of the biggest threats you face is your
competition changing the playing field after you launch. Have backup plans for your pricing, promotion and
distribution channels so you can respond to competitor changes. Consider launching in a few test markets to
see how your competitors respond before you roll out your entire marketing and distribution campaigns.

Automotive industry in Pakistan

The Automotive industry is one of Pakistan's growing industries dominated by Japanese-
manufacturer's, most of whom have assembly plant's in the country. Pakistan’s market is considered
among the smallest but the fastest growing in South Asia, with 180,000 cars were sold in the 2014-
15 fiscal year, rising to 206,777 units 2015-16 fiscal year.[1][2][3] The market is dominated by three
Japanese automobile companies, Toyota, and Suzuki, each of the two has assembly plant's
in Karachiand Honda has its plant in Lahore , all co-owned with local partners.[4]
The auto policy passed on March 19, 2016, which offers tax incentives to new entrants to help them
establish manufacturing units.[5] In response, Renault-Nissan and Audi have expressed interest in
entry into Pakistan's automobile industry.[1][6]

History
According to Ministry of Industries, Pakistan produced its first vehicle in 1953, at the National Motors
Limited, established in Karachi to assemble Bedford Trucks. Subsequently buses, light trucks and
cars were assembled in the same plant. The industry was highly regulated until the early 1990s.
After deregulation, major Japanese manufacturers entered in the market thereby creating some
competition in this sector. Assemblers of HINO Trucks, Suzuki Cars (1984), Mazda Trucks, Toyota
(1993) and Honda (1994) in particular, entered once deregulation was introduced. Assembly of
Daihatsu and Hyundai cars (1999) and various brands of LCVs and range of mini-trucks commenced
recently.
From 1953 to 2011, the journey of auto industry has been rough, tough and sometime very smooth.
Car industry saw boom in 2006-2007 when sales touched record peak of 180,834 thanks to rising
car financing up to 70-80 per cent by banks due to low interest rates and rising rural buying. Since
then the industry has been surviving hard to reach the same sales level amid high interest rates and
Yen appreciation against the rupee but high farm income is giving much support to car sales. Good
crops this year will keep the car sales brisk despite increase in prices.
The car industry has invested over Rs 20 billion in the last four to five years to meet growing
demand. The direct employment in car industry hovers between 5,500-6,000 persons.Motorcycle
production hit the country's record level of over 1.5 million units in 2010-2011 by the effort of Pervaiz
Musharraf Government's decision that opened bike market to low cost Chinese bikes. Auto sector
now employs 192,000 people directly and around 1.2 million indirectly and has Rs 98 billion of
investments and contributes Rs 63 billion as indirect tax in the national exchequer.
Auto Sector remains the second largest payer of indirect taxes after the Petroleum Sector. In
Pakistan's context there are 10 cars in 1,000 persons which is one of the lowest in the emerging
economies which itself speaks of high potential of growth in the auto sector and more so in the car
production. Rising per capita income with changing demographic distribution and an anticipated
influx of 30 to 40 million young people in the economically active workforce in the next few years
provides a stimulus to the industry to expand and grow [7]
In 2007, the automotive industry made up 2.8% of Pakistan's GDP which is likely to increase up to
5.6% in the next 5 years. It currently contributes 16% to the manufacturing sector which is predicted
to increase 25% in the next 7 years. Many cars in the country have dual fuel options and run
on CNG which is more affordable and cheaper than petrol in the country.

Cars
Pak Suzuki Motors
Pak Suzuki motors was once the market leader in Pakistan, with over 60% of market share and
complete dominance of the small car sector however this figure has dropped considerably and JDM
vehicles have overtaken Pak Suzuki owing to the fact of selling third rate vehicles with zero safety
and minimal comfort features at very high prices since the past 30+ years.
The firm was founded in September 1982 as a joint venture between the government of Pakistan
and Suzuki motor company Japan, formalising the arrangement by which Awami Auto Ltd. had
produced the Suzuki SS80 from 1982.[8] Suzuki originally owned 25% of the stock, and have
gradually increased their holding; they now own 73.09%.[9] Pak-Suzuki was a joint venture between
the state-owned Pakistan Automobile Corporation (PACO), who had earlier overseen local assembly
from kits.[10] All vehicles produced and sold by Paksuzuki are globally retired models sourced from
Suzuki Japan that do not meet any consumer safety standards or modern emission standards.
Models produced include:

 FX
 Mehran[11]) (very basic version of the globally retired Second generation Suzuki Alto 1984–1988)
 Suzuki Alto (he Suzuki Alto HA12 chassis fitted with a 1982-1984 Suzuki F10A 970 cc engine.
Discontinued in 2012)
 Baleno[8]
 Cultus (basic version of the globally retired Suzuki Cultus Generation 2)
 Liana[8]
 Suzuki Swift (trimmed down version of the international 2004-2010 Suzuki Swift 1.3 without
safety features introduced in Pakistan after it was phased out elsewhere)
 Suzuki Wagon R[12]
 Suzuki Carry (basic version of the Seventh generation (ST30/40/90) 1979–1985 Suzuki Carry)
 Suzuki Kizashi (Imported)
 Suzuki APV (Imported)
Honda Atlas
Honda Atlas Cars is a joint venture between Honda Motor Company Limited, Japan and the Atlas
Group, Pakistan. The company was incorporated on November 4, 1992 and a joint venture
agreement was signed on August 5, 1993. The company is listed
on Karachi, Lahore and Islamabad Stock Exchanges. On July 14, 1994, booking of Honda cars
started at six dealerships in Karachi, Lahore and Islamabad. Since then, the company has
developed twenty one 3S dealers (Sales, Service and Spare Parts) twenty 2S dealers (Service and
Spare Parts) and six 1S dealers (Spare Parts) network in all major cities of Pakistan.[13][14]
Models produced include:

 Honda Accord
 Honda City
 Honda Civic
 Honda CR-V
 Honda CR-Z
 Honda HR-V
Indus Motor
Indus Motor is a joint venture between the House of Habib, Toyota Motor Corporation, Japan (TMC),
and Toyota Tsusho Corporation, Japan (TTC) for assembling,
progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 1, 1990. Indus
Motor Company are Manufacturers, assemblers, distributors and importers of Toyota
and Daihatsu vehicles, spare parts and accessories in Pakistan.
Models produced include:

 Corolla
 Hilux
 Vigo Champ
 Fortuner
Indus Motor also retails the following models imported from Japan:

 Camry
 Land Cruiser
 Prado
 RAV4
 Avanza
 Hiace
 Coaster
 Terios
 Prius
Ghandhara Nissan
The Ghandhara Nissan Limited (GNL), was incorporated in 1981 as a Private Limited Company
having the sale licensee for the distribution of Nissan vehicles in CBU condition in Pakistan, later in
1992 it was converted into a Public Company listed in Karachi Stock Exchange. Ghandhara Nissan
has Technical Assistance Agreement with Nissan, Japan and joint Venture Agreement with Nissan
Diesel Company, Japan for the progressive Assembly of Passenger Cars, Light Commercial
Vehicles and Heavy Duty Vehicles. Ghadhara Nissan's Car and Truck Plants are located at Port
Qasim, Karachi, adjacent to each other. Ghandhara Nissan is a group Company of Bibojee Services
(Private) Limited. On January, 1997, Ghandhara Nissan announced "Nissan passenger cars are now
being assembled at Ghandhara Nissan's plant under the direct supervision of Japanese
engineers."[1]. However, after it was later discontinued and currently no passenger cars are being
assembled at Gandhara.

Commercial vehicles
Hino Pak Motors
Hino Motors Japan and Toyota Tsusho Corporation in collaboration with Al-Futtaim Group of UAE
and PACO Pakistan formed Hinopak Motors Limited in 1986. In 1998, Hino Motors Ltd., and Toyota
Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other
two founding sponsors. This decision to invest in Hinopak at a time when the country's economy was
passing through a depression and the sale of commercial vehicles was at an all-time low reflects the
confidence our Principals have in our company and their commitment to the Pakistani market.
Hinopak is the trusted market leader with over 50% share in the Pakistani Truck and Bus industry.
Al Ghazi Tractors
Al Ghazi Tractors is a commercial vehicle manufacturer in Pakistan. Al-Ghazi Tractors's plant
manufacture New Hollandtractors and generators in collaboration with Fiat New Holland. Since
1991, Al-Futtaim Group of Dubai has been managing the company by acquiring 50% of its shares.
Its corporate Head Office is in Karachi, Pakistan.
Models produced include:

 New Holland 480S

 New Holland 640
 New Holland 640S
 Ghazi
 New Holland NH 55-56
 New Holland NH 60-56
 New Holland NH 70-56(4WD)
Master Motors
Master Motors is a lorry manufacturer based in Port Qasim, Karachi, Pakistan as a part of
the Master Group of Industries. Master Motors signed an agreement with Mitsubishi Fuso Truck
and Bus Corporation (Daimler AG has come to hold 85% of the company[15]) to manufacture and
assemble Mitsubishi Fuso-based trucks and buses in Pakistan. It has developed into the leading
brand in Pakistan in the 3 ton trucks (25% market share) and 3 1⁄2 and 4 1⁄2 ton trucks (50% share).
Models produced include:

 Highland - 1 1⁄2 tonne lorry

 Forland Super - 3 ton truck
 Econo - 3 1⁄2 tonne lorry
 Grande - 4 1⁄2 tonne lorry
 Rocket - 6 1⁄2 tonne lorry
 M-410B Bus - 25-30 passenger bus

Motorcycles
Ghani Automobile Industries
Ghani Automobile Industries is a Pakistani manufacturer of motorcycles based in Lahore.
Ghani Automobile is a collaboration of two industrial groups, Ghani Group of Companies &
Chongqing Yingang Science and Technology Group Company Limited, and is a public limited
company quoted on the stock exchange in Pakistan. Ghani Automobiles is a company of Ghani
Group, and is listed on Stock Exchanges. Established in 2004, the company started its commercial
production of the two wheelers during 2005. The head office is in Model Town, Lahore, Pakistan
while the plant is situated at 49 km Multan Road, Lahore covering an area of approx. 218,000 sq.
feet (5 acres).
Models produced include:

 Ghani Gr-05 CC (Black)

 Ghani Gi-70 CC (Black & Red)
 Ghani Gi-100 CC (Black & Red)
 Ghani GR-100 CC (Hamsaffar Black & Red)
 Ghani Gi-125-18 (Black)
 Ghani Gi-150-9 (Black)
Suzuki
Suzuki motorcycles produced in Pakistan include:

 Suzuki Sprinter ECO

 Suzuki GS 150 cc
 Suzuki GD 110cc
Yamaha
In 1976, under the umbrella of the Dawood Group of companies, Dawood Yamaha Limited (DYL)
was formed in a joint venture with Yamaha Motor Company (YMC), Japan. The joint venture with
YMC ended and DYL introduced a new product the YD-70 Dhoom in the year 2008. The Dhoom is
the economical cousin of the YB-100 Royale which has been produced in Pakistan for the last thirty
years, and most recently the YD-100 Junoon, which was designed and engineered by in Pakistan.
Its sister company Balochistan Engineering Works (BEWL) produces the frame, fuel tank, rear arm,
fenders, gears, hubs, leavers, crank and cover cases. The assembly plant for our motorcycles is
based in Uthal, where the plant manufactures motorcycles in accordance with very high quality
standards laid down by Yamaha Motor Company, Japan. Since 2013 DYL and its sister concern
BEWL facilities have been shut down and currently production is being carried out at Brighter
Engineering (Pvt) Limited at Lahore. The company are in sever financial crises and not able settle
creditors, financial institutions, and employees full and final settlement. SITARA GUANGTA SITARA
AUTO IMPEX, Karachi, Pakistan Assembler of SITARA GUANGTA motorcycles is one of the main
contributor in Changes of Govt. Policy for bike assembling owner of SITARA, Mr. Muhammad Sabir
Shaikh who is the Chairman of Association of Pakistan Motorcycle Assemblers APMA
(www.motorcycleexport.com) did a lot in last 20 years for the betterment of Chinese-based bike
assembling in Pakistan.

United Auto Industries

From Wikipedia, the free encyclopedia

United Auto Industries (Pvt) Ltd.

Type Private
 Industry Automotive

Founded 1999; 20 years ago

Headquarters Lahore, Pakistan

Key people Sana Ullah Chaudhary (CEO)

Products Motorcycles, Vehicles, Auto rickshaws

Website unitedmotorcycle.com.pk(for
motorcycles)unitedcars.com.pk(for cars and trucks)

United Auto Industries (Pvt) Ltd. (United Motors; Urdu: ‫ ) موٹرزیونائیٹڈ‬is

a Pakistani automobile manufacturer based in Lahore, Punjab, Pakistan since 1999. It is Pakistan's
second largest selling motorcycle brand after Atlas Honda, and claims to be the number one bike
assembler of Chinese bikes in Pakistan.[1]

Contents

 1History
 2Products
o 2.1Cars
o 2.2Motorcycles & Rickshaws
 3See also
 4References
 5External links

History[edit]
United Auto Industries (Pvt) Ltd. came into existence in 1999 by introducing economical 4-
stroke motorcycles and Auto rickshaws with the brand name of UNITED.[citation needed]
United Auto is now engaged in manufacturing of loaders, scooters, rickshaws and bikes in Pakistan.
It has plans to launch an 800cc car named "United Bravo" in September 2018 and a 1000cc light
commercial vehicle in fall 2018 or mid 2019. In 2017, the United Auto Industries had applied
for IPO for copyright of vehicles’ design and announced to launch 800cc and 1000cc vehicles in the
country. The company is also looking for interested 3S dealership candidates for their upcoming
vehicles. It has a joint venture with a Chinese automaker to produce these two new vehicles for the
Pakistani market.[2]
Products[edit]
Cars[edit]
United Bravo
Motorcycles & Rickshaws[edit]

 United 70cc
 United 100cc
 United Scooty 100cc
 United Jazba 100cc
 United 125cc
 United 125cc Deluxe
 United 150cc (Ultimate Thrill)
 United Motorcycle for Special Person
 United Motorcycle Rickshaw 100cc
 United Auto Rickshaw 200cc
 United Auto Rickshaw 6 Seater 200cc
 High Roof Rickshaw 200cc
 Motorcycle Loader 100cc
 United Loader 100cc
 United Loader 150cc
 United Loader 200cc

8 new automakers got permit to

enter into Pakistan auto industry

The government of Pakistan has given permission to 8 new automakers to set up their assembly and
manufacturing plants in the country, revealed by Mr. Asim Ayaz Deputy Manager General of
Engineering Development Board (EDB) of Pakistan at the open hearing organized by Competition
Commission of Pakistan in a bid to discuss competition and consumers issues. Moreover, 7
applications are under review, he further added.

With many new entrants coming to Pakistan the gap between demand and supply of cars will not be
an issue in coming years. The companies will not only manufacture commercial vehicles but also
passenger cars as well, he stated at the open hearing.

The general manager didn’t mention all the entrants whose application has been granted for setting
up new manufacturing plant; however, according to our research, below mentioned are the
companies which are setting up new assembly and manufacturing plant in Pakistan.
 Hyundai-Nishat
 Kia-lucky Motors
 United Motors
 Regal Automobile
 Renault
 Khalid Mushtaq Motors
 Sazgar Engineering Works
 Changan in collaboration with Master Motors. The company is building assembly plant from
where it will assemble and sell Changan’s vehicles in Pakistan.

Aside from the companies which are building new plants to introduce their cars, there are also other
companies which are gearing up to launch new vehicles in the country, which are as follow:

Ghandhara Nissan (Datsun, JAC vehicles and Renault trucks)

Dewan-Daehan ( The company has already launched Daehan Shehzore)

SsangYong in collaboration with Dewan-Daehan

While talking at the meeting Mr. Asim also asserted that Ford might also come to Pakistan, which is
indeed a surprising and at the same time a good news for the local industry. Additionally, Haier
Group might also launch their vehicles.

The auto policy 2016-21 indeed seems to be revolutionary for the automobile industry and it seems
that the monopoly of local Japanese automakers will soon end in Pakistan.

This list of the new entrants is based on our findings, if you have more add, please comment below.


INTRODUCTION

Under the able leadership of Mr. Sana Ullah chaudhary UNITED has
established its expertise in segments of utility commuter and sports
motorcycles & intra-city vehicles.

United Auto Industries (Pvt) Ltd key strategies are to build a robust product
portfolio across categories, explore growth opportunities globally, continuously
improve its operational efficiency aggressively expand its reach to customers,
continue to invest in brand building activities and ensure customer delight.

United Auto Industries (PVT) Ltd. came into existence in 1999. It has
introduced durable and economical 4-stroke motorcycles and Rickshaws with
the brand name of UNITED. Our manufacturing / assembling plant is situated
at 1-km off Kot Radha Kishan Road, Multan Road, Bhai Pheru Lahore,
Pakistan. At present our? production capacity is 450000 units per annum in 8
hours shift. By the grace of Almighty Allah, our Vehicles got a very favorable
response in the market. Our Motorcycle factory is accommodated on a land
measuring 720,000 Sq.ft. and cover Area of the factory is about 156,000 Sq.ft.
Land measuring 200,000 Sq.ft with covered area of 150,000 Sq.ft further
added for Car plant.

As Pakistan's No.1 National Brand Durability and Quality with best Price is the
key feature of UNITED products. UNITED products are equally popular in both
rural and urban areas of all over Pakistan. By the Grace of Almighty Allah
United Motorcycle is Got substantial share in the motorcycle industry.

Standardization is also the key feature of UNITED products. All products are
assembled in accordance with the International Standards as approved by
Pakistan Standard and Quality Control Authority (PSQCA).

UNITED also a key partner of dozens of Public Organizations both Federal

Government and Provincial Governments. Defense Ministry of Pakistan is
also our valuable customers. In private sector organizations United have the
very good position all over Pakistan.

We have a team of professionals in all departments such as Marketing &

Sales, Quality Control, Production and Finance & Accounts. We have a
comprehensive network of Sales, Service and Spare Parts in almost all over
the Pakistan which is increasing day-by-day.
 Vision

Our vision is to see the world a wonderful place to live, where Technological wonders may help
mankind to enjoy peaceful life. United Auto Industries (Pvt) Ltd. Must be a partner to the
technological advancement for the delight of mankind.

Mission

Our Mission is to establish Hi-Tech base to develop capability enough to adopt latest technology
for innovation and production of sophisticated products of International Standards at affordable
price to serve local and global markets

New product development

United bravo car
The most-anticipated car of the year United Bravo— an 800cc hatchback, is being launched in the
local market on 8 September 2018, and people are eagerly waiting to test it out on Pakistani roads.
There is no doubt that the upcoming car will diversify the local auto industry while, competing with
Suzuki Mehran and giving an additional option to countrymen to choose from.

Even before the announcement of its official launch date, the car was being searched and kept on
trending in new car section page of PakWheels.com– Pakistan’s no.1 online portal of buying, selling
cars and auto parts.

Industry analysts are hoping that if the car happens to be economical, it can be a serious threat to
Mehran’s monopoly in locally produced 800cc hatchback segment. However, on the other hand,
some are also arguing that being a Chinese product the car might not perform well on Pakistani
roads, as opposed to being portrayed as a potential Mehran killer. Whatever the case may be, whether
it performs well or not, it is indeed a good sign that local manufacturers are making efforts to give
options to local consumers.

As per our credible sources, the car will come equipped with features like Rear Parking Camera,
Seat-belt Warning indicator, Power Windows, Touchscreen Infotainment System, RPM and
Speedometer Dials, Digital Info Cluster, Front fog lamps, Vacuum booster, etc. and with these many
features the car will surely be a great treat for the people. Moreover, the car will house an 800cc 3-
cylinder water-cooled engine that makes 40 BHP and 60 Nm torque same as Suzuki Mehran.
It is also quite possible that Bravo comes in two different variants, one base version with fewer
features and the other one the higher variant with features as mentioned above. In my humble
opinion, if the carmaker launches the car with a price tag between 6.5 to 7 lac, then the chances of
Bravo making a mark and acquiring its share in the local auto industry are very high.

The company is organizing a launch event in this regard, so stay tuned to PakWheels.com for all the
exciting updates regarding United Bravo.

Development process