REVO - PAKISTAN'S NATIONAL CAR PRODUCED BY ADAM MOTOR COMPANY

By SHAHID PRACHA
Apr 10 - 16, 2006

Adam Motor Company (AMC) is a manufacturer/assembler of auto mobiles established in 2001 by Mr Feroz Khan, its founder and current CEO. Until recently, AMC's product portfolio included CKD assembly of two truck models and one jeep. It has now launched its own entry level car called 'REVO' in the main stream passenger vehicle market in Pakistan.

The car was launched by the Prime Minister of Pakistan in April 2005 who had this to say about the REVO:

It is a Red Letter Day for Pakistan

With the introduction of REVO, Pakistan has joined the elite club of 16 countries of the World who are Original Manufacturers of cars.

Adam Motor Company and Mr. Feroz Khan are a shining example of self reliance and innovation for Pakistani entrepreneurs.

The introduction of REVO has wrought a revolution in the Engineering Industry of Pakistan.

The REVO car project was conceptualised some 5 years ago. It has passed through the various stages of idea, to preliminary assessment, to concept, to its development, testing, trial, production and launch. Regular deliveries are now being made into the market and customer feed back is extremely encouraging.

Unlike other automotive development undertaken in Pakistan like the Yasoob truck, the REVO had to fulfill a commercial motive and therefore its development had to be achieved at a market acceptable cost. This has been successfully achieved and is the main reason AMC is able to present this vehicle at a very competitive price. In comparison to similar development initiatives in the auto industry abroad, the project, including the provision of production facilities was achieved very cost effectively and with no requirement for royalty or licencing payments to external principals.

In its journey to the present, the REVO project has surmounted the following challenges concurrently:

Acquired technical capabilities and know how for design and development e.g. CAD/CAM, prototyping, reverse engineering

Created a resource, often from scratch to implement different stages of the project e.g. technical libraries, equipment, design software, training for key personnel

Developed a detailed engineering design package for the car

Developed the requisite infrastructure and tooling for production e.g. assembly plant and press shop and associated dies and molds

Developed and negotiated for supply of auto parts with vendors within cost constraints

Developed key relationships with external suppliers of engine and other critical parts

Raised financing to keep the project funded

The REVO is uniquely suited for Pakistani conditions since its specification and features were developed after thoroughly researching the needs of its target market, as well as Pakistan's road and climatic conditions. No other car can claim this since other available models have been designed in other countries for their own markets. REVO has excellent volume growth potential as it competes in the largest market segment for passenger cars and is the least cost option for customers in the 800cc and 1000cc segments.

The REVO has now to become a commercially successful product in order for the country to sustain this technology gain in the future. For this to become a reality, a stable policy environment is a necessity since neither the auto industry nor its vendors can afford to make investments unless they continue to see good growth prospects for indigenously manufactured automobiles. Whereas premiums on cars are neither good for the industry nor its customers, the Government must recognize this as a short term phenomenon and deal with it at the tactical level. Premiums are attributable to the time lag for local production to catch up with the explosive growth witnessed in the demand for cars in the last three years. Premiums are now trending downwards directly as a consequence of increased production and faster deliveries by the local OEMs and less as a consequence of the free import of reconditioned cars as is popularly believed. AMC is now targeting deliveries within 2 months of booking and hopes to further improve delivery as production is streamlined to meet demand.