MBR – Mini Project

Fall 2022
Submitted to: Saima Munawar
Group Members:
Muhammad Abdullah Mohsin (20212-29108)
Wajeeh Mohsin (20212-29190)

Effect of Late Deliveries of Cars from Manufacturers in Pakistan

Background:
Since, global supply chain has been disturbed after Covid-19 and it is still in struggling phase while
the new global recession stopping the growth rate that has been emerged after lockdowns
restrictions has been removed in many parts of world. Automobile industry usually belong to Japan
and Japan had so much restrictions regarding Covid-19 in past couple of years and hence the
manufacturers from other countries despite o0f having much orders couldn’t able to fulfill the
orders due to low supply of raw materials.

Pakistan has 3 big car manufacturers including Toyota, Suzuki and Honda which are dependent on
CKD unit from Japan. Since, the supply chain disturbance along with freight issues the lead time that
has been promised with customer are not fulfilling well. The other issue is foreign exchange rate and
devaluation of Pak rupee. Also, government has put restrictions on imported items hence the
timelines will be difficult to meet. Hence, the customer has to bear the late deliveries.

Although, Engineering Development Board has impleme3nted some restrictions on manufacturers

regarding late deliveries and car manufacturer has paid extra amount as compensation for late
deliveries in past. But still the problem remains same, they are waiting for more 1 year for their
booked cars and also there is new problem arises as per government restrictions the import duties
become double for imported cars and hence customer has to rely on local cars too.

This study will find out that since, the late deliveries already making customer stressed so what
would be other choices to compensate in customer mind. Since, this is geniune3 issue so it will be
important to know the customer prospective in terms of getting their car late is acceptable or they
should be repaid with amount and i9f they want to switch other choices so how it will be effected?

Research Questions:
Q1: Do you want to get the price of car back when not delivered to you on said time?

Q2: Do the late Deliveries of car will affect your choice or you buy from same brand? If you switch
then what's your priority price, lead time or features?

Methodology:
Since, this is exploratory research so we wanted to know the opinion of customer through above
mentioned questions, hence it bis based on qualitative research. The respondents has been
contacted via Whatsapp to know about their choices and they replied with answers mentioned in
Appendix 1.

Thematic Analysis:
a) For Q1:
Money Back: Since we have asked if the deliveries get late then 6 out of 10 respondents says they
want money back.

Wait for car: 3 out of 10 says they will wait for car to be delivered.

Inflated Money Back: 3 respondents of cash back wanted to get the money with additional amount
either the interest amount or the late surcharge.
Table 1 Thematic Analysis Q-1

Money Wait for Inflated Money

Respondent Back: car: Back:
1 x
2 x
3 x
4 x
5 x
6 x x
7 x x
8 x
9 x x
10      

b) For Q2:
Lead Time: 4 respondents mentioned the lead time is important for them since, the car if not
delivered in time then the choice may vary with brand.

Car Price: 5 respondents mentioned that price of car will be similar or around less than the booked
car then it will be feasible.

Features: 4 respondents mentioned if more featured are available then it will be the factor of
switching the brand of car.

Brand Promise: 2 respondents have shown their brand commitment due to the brand value.

Devalued Money: 2 respondents focused that they don’t for other choice as money already
devalued and they need extra finance for new brand.
Table 2 Thematic Analysis Q-2

Lead Car Brand Devalued

Respondent Time: Price: Features: Promise: Money
1 x x      
2 x
3 x
4 x
5 x x
6 x x
7 x x x
8 x
9 x x
10   x      

Conclusion:
As per the themati8c analysis and the answers mentioned in appendix 1, it is found that people are
so affected by late deliveries and hence it is very common issue faced by all. People facing late
deliveries are showing the moving trend of shifting to other brand and want the money back from
the manufacturer with the interest amount since it has been long time since the deadline exceeded.
The manufacturer should focus on their delivery timelines as well as providing some other benefits
to their loyal customer to maintain brand loyalty.
Appendix 1
Respondent 1 (Waleed Asher):

Ans 1. Yes, I will demand back my money.

Ans 2. Yes, it can affect my choice. My choice would be the same. The lead time maximum should be
one month at affordable prices.

Respondent 2 (Shehroz Butt):

Ans 1. No, I'll wait for the car until its delivered.

Ans 2. No if my mind is set on one Car I'll wait for it as it would be difficult to manage/adjust funds
for other brands/Car options.

Respondent 3 (Abid Ali):

Ans 1. No, because keeping current economic conditions in mind the prices are increasing abruptly
and taking car price back to due to not meeting delivery timeline

Ans 2. considering some other brand will mean that money is already devalued and you will have to
pay a higher price for some model and any other.

Respondent 4 (Saad):

Ans 1. Yes obviously if my car is getting delayed again and again i will be demanding a full cash back
payment from the automotive.

Ans 2. It will not effect my buying behavior untill and unless there are malfunction in the Car, but my
decision for that car will remain the same if not now then maybe later but i will stick to that
particular choice.

Respondent 5 (Junaid Haqani):

Ans 1. Getting the price back would prove more cumbersome as registration will have to be initiated
from scratch and it is not guaranteed that this newly booked car will be delivered on time

Ans 2. A brief delay of few weeks is worth it when the car is being provided at a competitive price

Respondent 6 (Daniyal Hasan):

Ans 1. Yes, if the manufacturer didn't deliver my vehicle on said time than I want a full refund of my
car with interest on the booking amount with respect to time. As if I invest this amount somewhere
else for investment purpose so I can easily make money from it.

Ans 2. The main concern while buying a car is its price and delivery time if the manufacturer lacks in
these core areas than the customer can easily switch from one brand to another (for e.g Honda City
vs Toyota Yaris)
Respondent 7 (Farooq Iqbal):

Ans 1. Yes, I want my money back but with inflated rate prevailing in the market. As one can observe
turmoil economic condition of the country, and prices of the cars going up exponentially, so nobody
wants to get it price back as same as he paid for the car at time of booking.

Ans 2. Yes definitely, as I can see, many new entrants of car manufacturers in the country with
offering of great features cars in best competitive prices with less than 2 months delivery time.
Secondly, in price range of PKR 30 lacs to 38 lacs, new entrants are offered great features in cars like
parking sensors, brake sensors, lane assistance, push start , climate control etc.

Respondent 8 (Waleed Raza):

Ans1. No, if I have paid for the car then I must be excited for on time delivery of the car rather than
refund

Ans2. For me the brand matters the most, I may accept delays, but I may not change my buying
preference, once set. Like for example I would switch from Toyota to Suzuki for the sake of delivery
time, but would prefer either to wait or buy it on own price.

Respondent 9 (Farhan):

Ans1. I will take cash back but with the surcharge as per devaluation of money or the interest rate.

Ans2. Definitely I will go with other car options which are easy with delivery options and features as
well, also the investment should be done accordingly and high price may acceptable

Respondent 10 (Anas Khalid):

Ans1: Since these days this is very common issue of late deliveries, so I will not waste my money
waiting for new car.

Ans2. Yes definitely the other options available, specially used cars so I will take the other options
which are readily available and the prices are moderate.