Why Pak Suzuki had to close down Alto’s production

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Auto assemblers of Pakistan had taken steps to hide their incompetence in the shade of ‘auto imports are hurting the local auto industry’, and recently, we uncovered how Indus Motors’ incompetence led to their factories closure while today, the case of Suzuki Alto has come to light and it is also another case of local auto assembler’s incompetence, and complete lack of regard to government’s policies.

Pak Suzuki used to import Alto’s parts from Japan, but India has been growing fast and has localized a lot of vehicles which it now builds independently without any reliance over foriegn products.

Since Indian market is massive, Suzuki Japan has decided that any country which assembles Alto will now have to source parts from India instead of Japan as it has winded up producing Alto’s parts in Japan.

Even though, the freight costs could be reduced largely and impact the price of Alto positively for the consumers, there is one single but a big problem.

Owing to current legal restrictions on trade between India and Pakistan, Pak Suzuki was forced to discontinue Alto, and Pak Suzuki considered to start assembling Wagon R instead but we believe that it didn’t work out well as Pak Suzuki has now decided to leave the opposition to trade liberalization with India and pursue the government for free trade with our neighbors which previously, all local assemblers were against but now, Pak Suzuki has decided to reconsider its opposition to free trade as under the current legal framework, Pak Suzuki cannot import parts for Alto from India.

However, if the trade liberalization process goes according to schedule between Pakistan and India than Pak Suzuki might be able to import parts by the end of the year, assuming Islamabad goes ahead with liberalization as scheduled.

Suzuki Alto, which has been the best selling 1,000 cc in Pakistan till June 2012, whose production had to be closed down as parts became unavailable from Japan and all of it happened during automakers worst fears, when the auto imports were rising.

Although none of the auto assemblers in Pakistan paid any attention to or followed the ‘Deletion Policy’ which had outlined that gradually, auto assemblers had to end their reliance on imports and made the country entirely self-sufficient to be able to build the cars on its own.

But that didn’t happen as auto assemblers didn’t localize the car parts and Pakistan still have to import most of them despite agreeing to the deletion policy.

It is embarrassing to see that Pakistan isn’t even able to build Suzuki Mehran on its own entirely.

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39 Comments
  1. Waqas Javed says

    Talha Baig (Pak-Suz) Lies 🙂

  2. Arsalan Siddiqui says

    sad news for alto lovers.

  3. ذاڪر حسيݧے says

    its all due to pathetic govt. sucks govt.

  4. Jawad Kiyani says

    alto ko band hi ho jana chaiye.bohot expensive hay quality k moamlay may.itni qeemat may 2009 liana mil jati hay.

  5. Arslan Riaz says

    yes no doubt Alto has been the top selling brand. but still I don't know why people are ready to pay so high price for these suzuki pathetic cars?

  6. Atemlos Schiller says

    suzuki alto mahran bolan cultus liana its very unsafe car no airbags the doors and body is very low quality please don't buy this car. only buy japans and koran cars like nissan march nissan micco hyundai sentro toyota vitz toyota passo etc.

  7. Umair Khalid says

    So the Suzuki lost it's best seller in 1000cc category because of there own incompetence. No surprises.

  8. Ahmad Shahan says

    And i guess they arn't replacing it with anyother…ryt?

  9. Umair Khalid says

    As of yet, no word on that so I guess it's bye-bye Alto 😛

  10. Shehla Qazi says

    I am so hocked why they did this? I bought suzuki Alto years back http://goo.gl/BuHDP and was planning to buy new model:(

  11. Usman Azam says

    I am against any trade liberalisation with India pehle hi incompetent nation hain ham baki industry yeh liberal policy tabah kar deingi Pak Suzuki should be boycotted if they import from india Hamara Paisa Hamarey Mulk ki nation ki bajaye India jayega just becoz of suzuki's incompetence.

  12. Muhammad Akmal says

    The Difference Between The Imported & Pakistani made Alto.
    Japanese made
    CC 557.
    ABS Brakes
    Air Bag single.
    Defogger in Back screen.
    Engine Type ( EFI) Electronic Fuel Injection System.
    Automatic Transmission
    Fully Loaded.

    Pakistani Made.
    CC 996.
    with no EFI Engine No ABS Brakes No Defogger No Air Bag No Automatic Transmission Not Fully Loaded.& price is double than Imported with no human safety system.
    I think the Government should stop the manufacturing or assembling of any Suzuki vehicles due to bad quality control & worst workmanship & start importing of these vehicles this will benefit purchaser.

  13. Rahim Amir says

    You genius, did you even read the whole thing? We would simply send money to India as opposed to Japan for a relatively cheaper price than the Japanese parts. How does that damage our economy when all we are doing is switching between the countries we pay…

  14. Shahid Mohammedi Gagai says

    I think Toyota passo and Toyota Vitz are much better then alto

  15. Usman Azam says

    Its a Matter of Dignity this way We will encourage Other companies to Promote India and shift their plants to India rather than devloping and tranfering Technology to Pakistan from whom they benfitted whole 3 decades.

  16. Rahim Amir says

    It is not. We benefit and India benefits. Anybody thinking that Suzuki would have even had the slightest inclination to move one of it's more profitable automobile manufacturing plants to Pakistan should just look at our country's track record over the last few years. It would be a risky, if not devastating step for Suzuki.

  17. Usman Azam says

    it seems you have lost this war even before the first bullet is fired. If i had power would have banned Suzuki from using our soil if they Cannot share our risk they are not eligible to Profit from us. And Thats the Basic of Business Worldwide.

  18. Rahim Amir says

    Hello! Check the basic facts first. The parts were never produced in PK in the first case. Now that manufacturing skips from one country to another, you moan about the fact that we have money flowing out of the country, which was ALWAYS the case. Read what the article states. Don't just be anti-Indian for the sake of it. Bring some valid argument to the table.

  19. Usman Azam says

    It seems that you Have Decided That You are Right and everything else is wrong. Why the hell Pakistanis spend money to strengthen India. And about me being Anti Indian, YES I AM.

  20. Rahim Amir says

    On the contrary, that is exactly what you have done. Make a valid point and I will accept it. You are determined to hate India and Suzuki. So be it. I'm not the poster boy for neither the country nor the company. I would prefer Pakistan benefit in any case. If India benefits alongside, so be it.

  21. Usman Azam says

    HAHAHAHAHAHA LOL 🙂 Stay Happy and Positive this way you will benefit Pakistan alot.

  22. Deepak DS says

    It is a myth that sourcing parts from India will be cheaper, our country is already facing the heat of slow down in auto sales particularly petrol driven 4 wheelers because of unrealistic petrol pricing by Indian government, Maruti is also having its own labour problems, I believe Suzuki has been in Pakistan for 2 decades now and it should develop local vendors for it parts to prove their committment to Pakistan. Same as in Pakistan, Suzuki has not done any wonders in India except Swift all other cars are obsolete models from Japan only.

  23. Mujtaba Hassan Saddozai says

    If this story is true then why production of suzuki mehran is not closing? their efi version has started..

  24. Abid Raza says

    Generally speaking : No Sentimental or biased thinking in economy. We are all are at the same level and state of affairs. Only Pak= Suzuki, IMC or Honda is not incapable actually we all are. All Companies are making profits in billiions and their employees are not living a good life. Is there any audit by any authority who can check the standards of Rules to be followed by the corporate sector. It is adviseable if we can make a business deal with a enemy and can improve our economy.
    Any way a good discussion.

  25. Javaid Khan says

    We have seen the profits made by the local assemblers, except for a few press work body parts, seats etc ther has been NO advance in making parts locally as it is not attractive for the Assemblers. Even with currency devaluation compare the prices of similar cars in India and Pakistan and we can see why the executives of the local Assemblers can afford the huge cars and perks at the cost of the local car buyer.

    Javaid Khan – Port Qasim, Khi.

  26. Sheikh Masharib says

    Rahim Amir : bhai log you are only looking at the scenario with a very short future in mind! look at the longer period, india will be able handle suzuki's prices (even maybe a very short ratio from it) and it will negatively impact on our country some day! waise he suzuki ki prices mailay tareekay se upar hain, naa gardi achi hay na kuch bas price zaada hay, kyunke competition he nahi hay! and then we go on to kick our butts by our own hands 😛 LOL 😀

  27. Sheikh Masharib says

    but at least they have got a LONG range of vehicles to choose from! (unlike pakistan suzuki company)

  28. Usman Azam says

    You Have Got my Point.

  29. Baber Kaleem Khan says

    With due respect, General Tyres has as well done nothing to improve our economy infact it is protected by the government's policy towards tyre manufacturers (there can be no competition locally in tyre manufacturing in car segment here thanks to GT) otherwise, General Tyre would've gone bust a lot of time ago since GT lacks the marketing insight and the PR although their quality is fine, based on a few people we've known who traveled on their Generals fitted to their Corolla throughout Pakistan.
    Once you start to build your presence here, you can also do a lot of good but you lack vision.

    I concur with the point you make here on this post however, the few people I know in these companies told me that increment were low this year and employees seeked out revenge by damaging parts of the cars inflicting cost but the companies didn't bother to seek the wrongful out.
    Regards,

  30. Abid Raza says

    Regards to your commet and view point. production

  31. Abid Raza says

    Production of Steel Belted, tube less radial passenger tyre is a high tech job. GT has not provided any concessions, Smuggled tyres of low price is always a threat. Secondly GT competetors in other categories of tyres is increasing day by day.

  32. Manzoor Ahmad says

    No country manufactures all components and parts. We tried to develop our consumer durables like fridges and air-conditioners by forcing them to use local compressors and other parts but this did not work. Eventually when we got rid of deletion programmes, we got them going. It is highly irresponsible for our government to build tariff walls and ask our consumers to pay high prices for low quality cars. We should allow Suzuki or anyone else to import parts from wherever they prefer. This would make our cars cheaper and would also enable them to enter export markets.

  33. Ali Asad says

    why people goes towards imports of cars bcz which have more features as the consumer pay against the car the big revolution comes when they demand for own for 50,000 for mehran cars and 200,000 for 13000 cc cars what hells the polices.

    if they allows other manufacture tu open assembly line which bring economic growth , job opportunities , and market demand increase due to competition and consumer get cheap cars according to features.

    but they don't allow bcz of govt polices and indus moters don't want also bcz there profit will decrease.
    they limit the people to pay high prices as what they are doing in every thing of the country.

  34. Syed Masoom Mumeen says

    Yeah. Take a stupid anti India stand and boycott everything Indian. Even if it means Pakistanis are suffering. Where is your pride when medium income Pakistani families are being forced to buy 30 year old technology cars and used imported cars at an inflated price. Heck! Where is your pride when Pakistanis are being killed everyday, people bein driven to poverty, polio workers being shot, international.cricket not happening there, and massive corruption. Those.are the REAL ISSUES facing Pakistan. You continue to involve in silly hatred towards India, that's no good to anybody. Wake up, and work towards making Pakistan.a healthy nation, not a country of ignorance, hatred, misery and violence.

  35. Syed Masoom Mumeen says

    Considering the requirements of a majority of Indian people, maruti Suzuki vehicles are perfect for us. Do bear in mind that Indian requirements are not the same as Japanese requirements, maruti has done.an excellent job in localizing components, developing vehicles indigenously and giving us consumers a wide range of vehicles to choose from. Credit also goes to long term economic policies enabling us Indians to buyccars

  36. Abdur Rehman Qureshi says

    there should be no trade with india. car manufacturers cost us so much,why dont they start producing their own parts and this will create more job oppertunities also

  37. Abdur Rehman Qureshi says

    we can import parts from europe,south africa,egypt turkey and from where not.never india or israel

  38. Sameer Ul Haq says

    they cant do this (but they did)

  39. Shamayla Shahzadi says

    If business with India is not good, they then why Mr. Nawaz Sharif or may be his brother is doing his business of sugar with India(Exporting sugar). Why our people are willing to follow them? Work there and Last but not least why govt allowed Indian movies in cinemas? Don’t all this come in business matters?

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