Al Haj Haw Motors Case Study

Al-Haj FAW Motors (PVT) Limited is the sole distributor and manufacturer / assembler of FAW’s diverse set of products (commercial heavy vehicles, commercial light vehicles and cars). Al-Haj FAW Motors launched its first product line in 2006 and started off its local production in year 2011 at Zulfiqarabad, Main National Highway, Karachi. It desires to gain maximum customer satisfaction by providing high quality, durable and fuel efficient vehicles along with after sale support to its customers to provide best value to their money. It even desires to change consumer’s mindset over Chinese products.

In 2010, Al-Haj FAW motors had an opportunity to stand second largest heavy automobile seller They capture 30% market share in heavy commercial

FAW uses a combination of following in order to develop its pricing strategies.
1. Market oriented pricing strategy to determine prices based on market conditions and the prices of competitors.
2. Value based pricing based on the actual and perceived value of the product.
One of the key critical issue faces by FAW motors is lack of consumer awareness about brand’s products; this is due to its low promotional activities. According to their sales department they don’t have enough resources for promotion so they carry their primary promotional activities through

Our focus is to change people’s mindset about Chinese automobile in Pakistani Market by providing them quality, durability, after sales support, hence giving them the best value against their money.
Mission Statement

Al-Haj FAW Motors desires to gain maximum customer satisfaction by marketing high quality, durable and fuel efficient automobiles and to provide excellent after sales service in the increasingly competitive market.
Situation Analysis

After the inauguration of FAW heavy vehicles in 2006, their untiring efforts and strong support from FAW China and Pakistan Government they become a second largest heavy automobile seller in 2010 after HINO in Pakistan. They capture a share of 30% in heavy vehicles and aimed to gain 32% - 35% share in near future.
Light vehicles market share is although not as good as heavy vehicles but they have a market share of 7% in just 3 years of its operations. They have made a target to achieve 10% market share in near future.
Market