Some 660cc JDM vehicles already produce higher output than Mehran. 660cc cars are meant to be city cars and yes they have been designed that way to meet requirements for less taxation and emmisions, etc in Japan. The Current Gen Alto may look unappealing but includes necessary features like airbags, abs, pretensioners, defogger, etc and is okay as a city car (not suitable for motorways or highlands though)
I do not believe this news. PakSuzuki only launches Globally obsolete Cars in Pakistan - their most outdated product lineup is in Pakistan, far inferior than even African countries. They have easily influenced the government to withdraw the proposal to replace and upgrade vehicle models every 10 years in the upcoming Auto Industry Development Policy 2010-15. They have no intention of replacing the early to mid 1980s era Mehran or Bolan/Ravi based on the outdated late 1970s Suzuki Carry Platform.
Nothing good can be expected from Paksuzuki unless they are forced by government regulations or by new competition in the market. Right now they are enjoying a complete monopoly in the small car segment in Pakistan.