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.
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.
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.