Pak Suzuki has raised a red flag over proposed tariff reforms and relaxed rules on used car imports, calling the policy “unsustainable” and “potentially catastrophic” for Pakistan’s local auto sector.
Media reports revealed that at a press briefing in Lahore, Suzuki’s Managing Director Hiroshi Kawamura, alongside senior officials, laid out the company’s concerns. Executives said imported used cars already make up 25% of market share while local manufacturing facilities are running at just 40% of their capacity.
No serious car-producing nation allows this kind of import flood, further policy shifts in this direction could wreck local production and lead to widespread job losses. “We’ve built this from the ground up over four decades. Tearing it down now would be a major mistake,” the company warned.
Accordingn to the media repirts, while Suzuki welcomed the National Tariff Policy 2025–30’s focus on reducing raw material costs, it made clear that tariff cuts on finished vehicles were a different matter.
Suzuki highlighted its supply chain, saying it works with over 100 local vendors and buys more than Rs. 50 billion worth of local parts each year. These vendors also supply other automakers, creating a broader industrial base.
The recent launch of the Suzuki Every as an example of successful localization. They also confirmed that the Suzuki Ravi will be relaunched following the redesign of the Bolan. The company said the current tax burden accounts for 40% of a vehicle’s retail price, making it difficult to reduce costs or add new features without pricing out buyers.
Reports disclosed that Pak Suzuki’s focus has always been affordability. That means cutting excess, using local parts, and sticking to what the customer needs.
Kawamura acknowledged the global shift toward electric vehicles but said Suzuki Pakistan is not yet in a position to make that leap. “EVs require infrastructure, and this is a long-term play. We’re watching the space but not moving just yet,” he said. Instead, the company is developing a hybrid vehicle that fits the local market, with launch plans to be announced soon.
Note: To verify these updates from local media, we reached out to the company’s officials, who neither confirmed nor denied the information.
What are your thoughts on the recent briefing, particularly about the SUV, expected hybrid vehicle, and the retirement of the Cultus and Wagon R? Share your views in the comments section.