Pakistan Suzuki Motor Company holds about 73% of market share in Pakistan. The Mehran, Bolan, Ravi and Cultus are few globally obsolete models that are still sourced from Suzuki Japan and sold in Pakistan.
Suzuki is the market leader not only in the Indian 4-wheeler market but also in our neighbouring country. Suzuki in Pakistan is holding a formidable position but is currently facing backlash from the local government. Earlier this year, the Pakistan government announced a new auto policy that offers lower duties to new vehicles over existing ones. The government wants more foreign manufacturers to establish base in their country. Currently, the market is dominated only by the Japanese giants Suzuki, Toyota and Honda.
Renault and Nissan are considering entering Pakistan where they can import machinery and parts by paying lower duty. If established, they would be paying a duty of 10% for imported parts whereas the existing manufacturers would be paying 30% for the same. This has taken a bite into the flesh of the existing manufacturers as they will be put onto the back-foot. The local entity of Suzuki, the Pakistan Suzuki Motor Company has clearly opposed the move as they feel that such a policy would freeze fresh investments from their parent company.
Suzuki is willing to invest $460 million (Rs. 3087 crores) if the government provides proper incentives. The automaker has promised that if insured against the new auto policy, they would setup a state-of-the-art plant on high priority which would roll out four new models by 2021. Two of these new models would hit the roads by 2018 itself. It is firmly believed that the move is a check-mate to the highly dominated Japanese automakers. Pakistan also has some locally produced vehicles but they are known for their lack of quality and poor performance.
Suzuki’s Expansion In Pakistan Market Put On Hold
– As per the new auto policy in Pakisan, new manufacturers will pay lesser duty than existing ones
– Renault and Nissan are considering entering the Pakistan car market
– Suzuki is willing to invest $460 million if insured against the new auto policy