How to Buy a Budget Car in Pakistan – Words I Wish I Could Say
How One Car Killed All Budget Cars
Heads up
I’m not a car expert. I’m a tech guy who builds and manages software products for a living - and this piece is me looking at Pakistan’s car market through that lens. It’s biased, it’s blunt, and it’s probably going to upset a few Mehran lovers. You’ve been warned.
There’s a myth we keep telling ourselves in Pakistan - that somewhere out there, if you look hard enough, you can find a decent budget car. Something affordable, reliable, and modern enough not to embarrass you at the next family dawat.
But here’s the truth: there is no such thing as a budget car in Pakistan anymore.
And the fact that we still act like there is? That’s part of the problem.
This isn’t just about cars. It’s about how markets evolve-or fail to evolve-when consumers, businesses, and entire industries cling to the past.
As someone who’s worked in product management for years, I’ve seen how segmentation, positioning, and amortization play out in software. Turns out, those same principles apply to cars too. Especially when you zoom in on the disaster zone that is Pakistan’s budget car segment.
Let’s break this down.
What Even Is a Budget Car? (And Why You Can’t Find One)
Globally, a budget car is simple: low upfront cost (say, under $8,000), low running cost, basic features, decent reliability. It’s what you buy when you're a first-time driver, a family with one income, or just someone who needs a car without selling a kidney.
But in Pakistan? Try walking into a showroom with less than 20 lakhs and ask for a brand-new car. You’ll be laughed out. The only thing they’ll offer you is a brochure and a prayer.
So why is that?
Positioning, Differentiation, and Budget Cars
In product management, positioning refers to how a product is presented to consumers relative to competitors.
Differentiation involves the unique features or benefits that set a product apart. For cars, differentiation might include fuel efficiency, engine power, interior space, or technology features.
The value proposition represents the overall promise to customers - what problem the product solves and why customers should choose it over alternatives.
In healthy markets, cars at similar price points compete through varied value propositions, giving consumers meaningful choices based on their priorities.
Every product has a market segment, a target audience, and a position.
Corolla is for the sensible middle-class uncle.
Civic is for the aggressive overtakers.
Crossover SUVs are for everyone pretending they go off-road.
But the budget segment? It was defined -and destroyed - by a single car:
Suzuki Mehran
For three decades, the Mehran wasn’t just a budget car.
It was THE BUDGET CAR.
No real features, no design upgrades, no innovation - just a metal box on four wheels.
And yet, it worked. It dominated. It became an institution.
Amortization - A Concept I Wish More Consumers Understood
I work in tech, and on the product side. I’ve built software, guided founders, and seen how long it takes to build a quality product.
Cars aren’t any different. R&D isn’t cheap. The cost of developing a new car gets amortized over millions of units. That’s how automakers globally keep prices reasonable at scale.
Most cars take around five years to go from concept to production. That’s years of R&D, design, prototyping, testing, and manufacturing setup. Big investment upfront. But once that car hits the road, the company starts making its money back, slowly. That’s amortization: spread the cost over the years of selling the same product.
Suzuki took this to the extreme. The Mehran’s tech was already outdated when it launched in the early 90s. It wasn’t just a car- it was an institution.
Launched in the early 1990s, it was based on technology that was already decades old. It took just a few years to develop, but it was sold, virtually unchanged, FOR 30 YEARS.
The Triple Lockdown: How Mehran Froze the Market
The consequences of this monopoly ran deep. Let’s look at how it affected the three key players:
1. Buyers
If you wanted a new car under 10-15 lakhs? Mehran. That’s it. Forget safety, forget comfort. It ran, and that was enough. Its resale value was great, parts were everywhere, and mechanics loved it. What else did you need?
Answer: everything. But we didn’t care. We were sold on the idea that “affordable” meant “bare minimum.”
2. Mechanics
Mehran wasn’t just the first car people drove - it was the first car mechanics learned to fix. It was their entry-level curriculum. Simple wiring, no sensors, no complicated electronics.
Naturally, when a new car hits the market? Mechanics didn’t want to touch it. Too many unknowns. Too many risks. “Is ke parts mehngay hain” they’d warn customers, without ever opening the hood.
Mehran trained an entire generation of mechanics to resist change.
3. Car Manufacturers
If you’re a new player trying to enter the Pakistani budget segment, Mehran’s legacy is your worst nightmare. You can’t beat its price - your R&D costs alone will kill you. You can’t beat its familiarity - mechanics will sabotage you. And even if you offer more features, buyers will scoff at the price.
“Yaar Mehran 10 lakh ki thi. Is mein AC aur touchscreen ke liye 30 lakh?” That’s the mindset you’re up against.
It’s not just hard. It’s suicidal.
The Cultural Mindset
The result? A whole generation of buyers and mechanics who believed that a car only needed to “run on four wheels.”
Comfort, safety, and modern features became irrelevant. The Mehran became the standard by which all other cars were judged, and none could match its price or simplicity.
So if Mehran Was So Successful, Why Did Suzuki Kill it?
You’d think Suzuki would keep selling Mehran forever. It made money, it dominated the market, and it needed no updates. But eventually, even Suzuki realized they were trapped.
This is what we call Product Cannibalization - when your best-selling product becomes your biggest liability.
Mehran was so successful that it poisoned Suzuki’s brand. They tried launching more premium models - Baleno, Liana, Siaz - but all of them failed.
Why?
Because in the public eye, Suzuki meant cheap. You wanted a better car? You went to Toyota or Honda.
Even their SUV, the Vitara, bombed. Because no one wants to pay 40-50 lakhs for a brand known for metal boxes on wheels.
At the same time, the used market was overflowing with Mehrans. People didn’t even need to buy a new one. They could just get a slightly older one for half the price.
So Suzuki pulled the plug in 2019. But the damage was already done.
But here’s the catch: even after its death, Mehran’s legacy lives on. Every new “budget” car is compared to the Mehran. Buyers remember paying 10 lakhs for a Mehran and balk at paying 30 lakhs for a newer model with more features. The expectation is that a budget car should be as cheap and basic as Mehran - anything else feels like a rip-off.
Why No New Budget Car Can Win (For Now)
Mechanics Won’t Support It
They don’t want to retool. They don’t want to learn diagnostics. They don’t want to stock new parts. You show up with a new model? They’ll talk you out of it.
Carmakers Won’t Build It
It’s just not profitable. You can’t build a safe, modern car for under $8,000 anymore - especially in a low-volume, high-risk market like Pakistan.
Consumers Won’t Buy It
Even if it’s better, even if it’s safer, even if it’s cheaper to run - they’ll still compare it to a Mehran that was 10 lakhs a decade ago. And they'll feel ripped off.
Is There Any Hope for Budget Cars in Pakistan?
Not quickly. But maybe, eventually.
Changing Mindsets
For real change to happen, buyers need to let go of the Mehran standard. That means recognizing the value of modern features, safety, and comfort -even if it costs a bit more. It also means being willing to try new brands and models, and supporting mechanics who invest in learning new skills.
The Role of Policy and Industry
Government policy could help by incentivizing local production, reducing taxes on smaller cars, and encouraging competition. Carmakers could focus on building trust and support networks for new models, making it easier for buyers and mechanics to adapt.
The Long Road Ahead
Realistically, it may take another generation before the ghost of Mehran stops haunting the market. Until then, buyers will have to make tough choices: settle for outdated used cars, pay more for modern CKD imports, or hope that the industry finally delivers a true budget car for the masses.
Mehran Didn’t Just Win - It Stalled the Entire Industry
The Suzuki Mehran was never just a car. It was a business case in how one product can dominate a market so completely that it destroys all competition and stifles all innovation.
And even though it’s dead, we’re still haunted by it.
If you’re looking for a budget car today, you’re not just buying a vehicle.
You’re navigating a legacy of bad decisions, outdated expectations, and market dysfunction.
So what can you do?
Stay informed. Question the “old wisdom.” Support brands trying to do something new. And for the love of all things automotive, stop asking why new cars aren’t as cheap as Mehran.
They shouldn’t be.
And as depressing as it sounds, the budget segment will be dead for a while.
Do you agree?
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