Suzuki may invest $460m into Pakistan if new auto policy revised

Pakistan in March announced a new auto policy that favours potential new entrants over existing manufacturers


Reuters May 06, 2016
Pakistan in March announced a new auto policy that favours potential new entrants over existing manufacturers. PHOTO: PAK SUZUKI

Suzuki plans to invest $460 million into Pakistan if the government provides the right incentives and amends its new auto policy, the company said on Friday.

Pakistan in March announced a new auto policy that favours potential new entrants over existing manufacturers by offering them lower duties, part of a strategy to attract foreign car makers and loosen the dominance of Suzuki, Toyota and Honda.

Pak Suzuki irked by new auto policy, calls it ‘disaster’ for existing players

The Pakistan Suzuki Motor Company, which assembles Suzuki cars for the local market, said it had concerns that the new auto policy may "damage the tremendous investment potential in the Pakistan automobile sector by existing players such as Pak Suzuki Motor Co".

In an emailed statement to Reuters, Karachi-listed Pakistan Suzuki said: "If the incentives and benefits should be given then we are ready for $460 million investment in Pakistan."

The investment would include creation of a state-of-the-art new plant on an "urgent basis" and from this plant Suzuki would introduce four new models within five years, including two new models by 2018.

Plans to introduce new models would go some way towards soothing government anger about lack of competition and choice in Pakistan's car market.

Pak Suzuki announces 207% increase in profit

Officials say they want foreign car makers to shake up the Japanese-dominated market because locally assembled cars are sold at relatively high prices but lag behind imported vehicles in terms of quality and specifications.

The existing Japanese manufacturers feel let down by the government's new auto policy because it prefers outside investment to their own, and removes many incentives for them to invest in the country, said two industry participants familiar with the matter.

COMMENTS (14)

Ali Akbar Ijaz | 5 years ago | Reply strong textGovernment should not listen to SUZUKI, TOYOTA, HONDA because they are combined in back ground and they are running monopoly in auto market from decades....look at the prices of cars and huge amount of advance for on hand delivery...booking etc..!! they have enjoyed enough now they should face competition...!
Azid | 5 years ago | Reply Instead of the Pakistan govt overriding the Japanese through their new policy, they should try to override suzuki domination in Pakistan. Japan is the leading country in terms of motors and automobiles. They should try importing world class cars from Japan such as Infiniti, Acura, Lexus, Honda etc.
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