Pak Suzuki Wants Special Treatment To Introduce New Cars In Pakistan

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Suzuki Motor Corporation sent a letter to Ministry of Industries and Production stating their intentions to bring two new models to Pakistan, along with the replacements of Suzuki Mehran and Cultus. But it all depends on the nature of incentives provided to the current three Japanese carmakers working in Pakistan. Suzuki Motor Corporation is looking for the same incentives, for themselves as well as their two compatriots, Government of Pakistan has promised to potential new entrants.

Suzuki plans to bring out new cars and replacement in the next five years with the investment of $110 million. Pak Suzuki Motor Company has already acquired 77 acres of land for their proposed plan. Suzuki is also looking for stricter regulations for the imports of used cars and major cuts in import duties.

Also Read: Fiat Is Interested In Making Pakistan Its Next Destination

Suzuki has suggested 10% import duty on auto components (including Amax parts) and 25% import duty on the parts for cars of over 1000cc engine. Currently its 32.5% import duty on normal parts and 50% on Amax parts. Suzuki wants the government to control the imports of the used cars of all categories in a bid to promote the sales of locally assembled cars strictly.

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Managing Officer of Suzuki Motor Corporation and chairman of PSMC, Kinji Saito, wrote in the letter addressed to Ghulam Murtaza Khan Jatoi, the Minister of Industries and Production,

“Unnecessarily higher import duties result in a rise in cost and prices of locally produced cars; it also results in the lower sale of cars in the country. Also, it is difficult to localize Amax parts as new technology is required which is not available in Pakistan.”

Saito further said,

“In relation to the human resource, we will continue training courses for employees of Pak Suzuki in Japan and development of mechanics for the dealership tied up with the Aman Institute of Vocational Training.”

“We are also going to cooperate with the Small and Medium Enterprises Development Authority in enhancing the level of vending industry in Pakistan through a four-year technical transfer project.”

Suzuki is looking for special treatment for small car manufacturers claiming smaller cars can play an important part in Pakistan’s energy crisis. Smaller cars are more fuel efficient hence reducing the burden of exchequer with regards to the petroleum products. Small cars like Suzuki 660cc can help Pak Suzuki penetrate the current import-centric market.

It is yet to be seen how the Pakistan government will counter Suzuki’s suggestions. But for now, it can be said with a certainty that Pakistani auto sector is in the eyes of many international players as a next potential destination. Fiat is one of the latest interested party after Renault and Russians.

 

  • Uzair

    I think the government should work out this with the local car manufactures on condition like if they bring at least two cars by 2017 or something like that. At least that will compel them to bring something new, otherwise we are stuck with the same old cars that lack a lot of key features.

  • IMO,
    Government should make it clear to these 3 that either they introduce new car designs and models along with all the safety features affordable for the common people or they can loose their well established market to the imported and the European car makers.

  • Umer Fayyaz

    its easier to bribe government than introducing these safety features and we all know pak suzuki will get all these benefits too, our government’s policies are ridiculous which themselves hampers foreign investment.

  • Asif Ali Zardari

    Government Should impose a BAN on Importing Used Cars in Pakistan.. Only New Cars should be allowed to come here, like Faw is impoting their V2

  • Oh SERIOUSLY? So I’d either have to import an Audi/BMW or I’ll have to be contented with corolla? LOL. That was really funny.

  • Faheem Sarwar

    Gentlemen,
    Let the new entrance introduce their vehicles. the “three” are making Pakistanis fool since a long time. i dont trust them when they say they will introduce cars with international features. do you ?
    if they were assembling KIzashi in pakistan it would have 3 models,
    1- Kizashi without AC & Power suit
    2- Kizashi with AC & CNG without power suit
    3 – A fully loaded Kizashi.
    of course they want their monopoly without competition. just wait for the good stuff to get introduced in Pakistan. otherwise we all will end up in the crap Suzuki will introduce in 2020 (if they are very eager).
    Happy “Mehraning” till then ..

  • Guest

    What is the obsession with “new” vehicles? What is new now will be old tomorrow.

    Progress cannot be measured in terms of subjective words like “new model”. It is high time we came out of superficial thinking related to external looks and visual appeal.

    Government has better methods and have used them before. Use regulation, not negotiation. Government adopted Euro-II standard and as a result car manufacturers had to revise the fuel metering system of their offerings. In other countries, government never “negotiates”. They just issue an improved crash safety standard and a stricter fuel economy standard, a new car lighting standard. Car manufacturers spend a lot of money on modelling new cars for crash requirements and to reduce air drag. The shape automatically gets changed.

    In Pakistan also government can adopt crash safety standard. At least they can standardize items like collapsible steering column and ABS. Car manufacturers would automatically be forced to stop manufacture of those vehicles which cannot be easily upgraded.

    By chance, Pakistani market got rid of that pathetic Alto. Pakistan has a trade embargo on things coming from India. Suzuki Japan changed the source of parts to India, Paksuzuki was forced to discontinue that pathetic model. In came Wagon-R which is much better than Alto. Similar improvements can be had with other regulationary measures.

  • shaf

    Govt shouldn’t listen to any such request and should let rather invite other automobile companies come to Pakistan in addition to have a strong auto policy.
    $110m is peanuts for Pak Suzuki and i am sure, if other auto makers also comes to motherland, we can see flood of investment to Pakistan.

    + Pak Suzuki, we have tried you for 45+ years and in case other auto makers comes to Pakistan, i can assure you that you will be left with only two options 1) Invest and take this market seriously 2) quit. We don’t need your friendship lollipop anymore rather we need some quality & safer rides for our roads and people. thanks

  • Waleed Ahmed

    Very Very Well Said Mr.Shaf

  • Waleed Ahmed

    I would strongly agree on the Car Crash Security features you discussed, Literally these Money Makers don’t care about the Life of the People who are driving their SO-CALLED HIGH SHATANDURD :/ Vehicles!! We’re sick and tired of Lies & False marketing by them & now we want some real Reforms & advancements, Not Lollipops or Cotton Candies!

  • Waleed Ahmed

    Bhai Gee! Apkay Naam ki tu kya he Baat hai, Or Ap ki Soch kay tu Kya Kehnay!! 😀

    Lagay Raho Bhai! Apko kis nay Serious Laina! Lollzzz!!

  • Waleed Ahmed

    Sir Jee! They don’t bother about the Lives of their Customer, then how can we expect any other features, when the Customer care is Dead at the first step!

  • Muhammad Yasir

    go screw yourself , shitzuki !
    WE HAVE HAD ENOUGH OF YOUR SUBSTANDARD SERVICES !

    honestly , go to hell for all we care !

    we need newer and better car manufacturers ,WHO CAN ACTUALLY CATER TO THE BUDGET LEVEL CATEGORY OF CAR CUSTOMERS (im talking starting prices of 0.175-0.225 million Pkr for the cheapest car) !

    your failed and spent Mehran which costs a STAGGERING 0.65 million is the WORST car EVER to be priced at a MID-Range category ! shame on you ! WOE UNTO YOU ! please leave if you want , because we have MUCH MUCH better car makers from China , Europe and ever Central Asia waiting to offer us MUCH better cars for MUCH Cheaper prices and A MUCH BETTER QUALITY !

    If the decision makers have even a sliver of dignity left in them , THEY SHOULD NOT succumb to suzuki’s demand and instead replace this LOSER AND PATHETIC brand with around 3-5 brands from Europe, CAS and China instead !

    NUFF SAID !

  • Muhammad Yasir

    i agree …. my biggest grievance is the fact that their crappy mehran costs the price of a lower mid-range sedan !
    where they should be taking care of low-budget , entry level car customers , they have priced their WORST EVER car in the mid-range category !

    i hope the crash and burn for what its worth ! and other car makers start listening to our demands of offering small cars at entry level prices !

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