Pak Suzuki Motor backs liberalised trade with India

[Quibbler]

Pak Suzuki Motor backs liberalised trade with India
By Farhan ZaheerPublished: May 26, 2013

KARACHI: The biggest car producer of Pakistan – the Pak Suzuki Motor Company, an affiliate of Suzuki Motor Corporation, Japan – has put its weight behind opening up trade between Pakistan and India in the automobile sector, stressing that the domestic industry will flourish if Islamabad allows import of car parts from Delhi.
“Not just Pak Suzuki, but the entire auto industry of Pakistan will benefit if the country opens up trade with India,” Managing Director of Pak Suzuki Motor Company Hirofumi Nagao told The Express Tribune early last week.

Nagao is very optimistic that the new government, led by Nawaz Sharif, will take swift steps to increase the growth of the auto industry.
“Indian auto part makers are not only willing to trade with Pakistan, but are also ready to transfer the latest technology to their counterparts here. This will be a win-win situation for both auto parts makers and carmakers in Pakistan,” he said, when told that some Pakistani auto part makers are apprehensive of trade with India.

Pak Suzuki wants to import Suzuki Alto engines, from India because their cost of import will be much less than what it costs to import them from Japan. Indian auto components, especially engines, are of international quality and are compliant with global emission standards like Euro III and Euro IV, he said.

“Many a time we put forward this particular requirement to the previous government in Pakistan, but we failed to convince it. Now that the new government is taking over, we are confident that we will be able to move ahead and import engines from India,” he added.
Pak Suzuki discontinued production of the Suzuki Alto from July 1, 2012 after the government made compliance with Euro II emission standards compulsory for all car producers in the country. The company says the discontinuation of the Alto has badly affected businesses of its regular vendors, who have reported a decline of over 50% in annual sales.
“We will be able to replace the Suzuki Mehran with newer models if we import engines and other components from India. But this is only possible if the two countries move forward and liberalise trade,” said Nagao.

The cost of production in Pakistan is higher if compared to India primarily because of the smaller market size. With a vast market and big economies of scale, India has an edge over Pakistan. Therefore, Pakistan’s auto industry needs to increase its volumes and achieve economies of scale to reduce car prices, he explained.
“We think Indian auto experts can be very helpful, because they understand Pakistani workers and society much better than experts from other countries,” he said.
Pak Suzuki is the biggest player in Pakistan’s four-wheeler market, with over 60% market share.
With a rise in sales and other positive developments, profits of the local auto industry are on a continuous surge.

The auto-assembly sector is now on a recovery path, as net sales grew 52% quarter-on-quarter from January to March 2013, taking revenues to Rs42.8 billion.
The growth in revenue emanated from a massive 44% QoQ growth in sales volume of the assemblers, InvestCap Research reported last Wednesday.
One of the biggest boosts to the auto industry was the government’s decision in December 2012 to reduce the age limit for import of used cars from five to three years. Other major reason is continuous depreciation of Japanese yen against Pak rupee, making import of car parts cheaper for the assemblers.


Published in The Express Tribune, May 27th, 2013.

 

[Edevelop]

Trade should be welcomed, only when its decided its going to be fair.

 

[Leader]

This pak suzuki motors should also not bribe to kick out competitors and increase custom on imported cars !!


SM produces a third class tin car and sell it for 0.7 million... bloody suckers

 

[uzair ramay]

suzuki shud b banned in pakistan ...because it is not safe .....

 

[Sugarcane]

LOL!!! It looks like they are putting their weight for Auto-Parts only, so that they can buy cheaper parts and maximize their profits.

Indian companies should setup manufacturing plant for Cars & Bikes in Pakistan to cater Pakistan, Afghanistan & CAR

 

[Pakistanisage]

I keep harping on this, the only kind of Trade with India should be Barter Trade. Period. There is nothing we need from India that we cannot buy from China which makes better and cheaper Products than India. Chinese govt is already working on reducing trade deficit with Pakistan. Stop trading with India because India will always take advantage of Pakistan.

LOL!!! It looks like they are putting their weight for Auto-Parts only, so that they can buy cheaper parts and maximize their profits.

Indian companies should setup manufacturing plant for Cars & Bikes in Pakistan to cater Pakistan, Afghanistan & CAR

Why Indian companies ?

Why not work with Chinese companies to set up shops in Pakistan, as Chinese labor is getting more expensive.

 

[Luftwaffe]

SM produces a third class tin car and sell it for 0.7 million... bloody suckers

Tin car so true just sit in one of those and your whole body goes through physiotherapy on the road on the way to the destination. All those chee chuu sounds even in a new out of show room car.

 

[Sugarcane]

Why Indian companies ?

Why not work with Chinese companies to set up shops in Pakistan, as Chinese labor is getting more expensive.

Well Chinese are always welcome and there was no restriction on them to setup manufacturing in Pak, I don't know why they are still out, maybe their auto products can't satisfy requirement of domestic market.

 

[Umair Nawaz]

LOL the great Japanese business gamble on play here.
They want to import car parts from india so that they can make more money in profits but dont want to actually allow the indian car makers to sell their cars here as it will give the headache. As indians will make cheap cars n people may buy the cheap stuff hence the monoply of japan will get thrashing.

If they really r so sincere with Pak then why cant they make those car parts in Pak herself??
If they can make in india then why not in Pak?
That will be even more cheaper n they will get maximum profit n locals will get jobs n engineers who flee from country because of lack of jobs will settle here n will benefit the economy.

 

[Ayush]

do it guys..we are waiting..

 

[agamdilawari]

LOL the great Japanese business gamble on play here.
They want to import car parts from india so that they can make more money in profits but dont want to actually allow the indian car makers to sell their cars here as it will give the headache. As indians will make cheap cars n people may buy the cheap stuff hence the monoply of japan will get thrashing.

If they really r so sincere with Pak then why cant they make those car parts in Pak herself??
If they can make in india then why not in Pak?
That will be even more cheaper n they will get maximum profit n locals will get jobs n engineers who flee from country because of lack of jobs will settle here n will benefit the economy.

Auto manufacturing plant is setup by companies when there is enough demand in domestic market and such a big investment is feasible both in regards of economic & security departments. A company doesn't set a plant in every country they do business in. They find a big country which has all necessary infrastructure in place and corporate friendly policies. That's why each auto company in India has many plants all over the country where some cater to domestic demands and rest are used for exports to places like African continent, South American countries, Bangladesh, Nepal, Sri Lanka n many other places where setting up new plants is not feasible for them.

 

[humanfirst]

I keep harping on this, the only kind of Trade with India should be Barter Trade. Period. There is nothing we need from India that we cannot buy from China which makes better and cheaper Products than India. Chinese govt is already working on reducing trade deficit with Pakistan. Stop trading with India because India will always take advantage of Pakistan

As of now There is no restriction for chinese companies for entering pakistani market but they are more or less unwilling,And Indian companies,as per pak suzuki boss, are ready to invest and transfer needed technology,but are restricted by law..

 

[agamdilawari]

SM produces a third class tin car and sell it for 0.7 million... bloody suckers

You get a car like Mehran for 7 lakhs PKR in Pakistan ? Thats close to 4 lakhs INR. You can get these these 3 cars for tht much money in India.

Hyundai I10

Maruti Suzuki Wagon R

Chevrolet Beat


Looks like car/two wheeler companies in Pakistan do milk u guys unnecessarily.

 

[DESERT FIGHTER]

These bastards and their monopoly ......

 

[Umair Nawaz]

Auto manufacturing plant is setup by companies when there is enough demand in domestic market and such a big investment is feasible both in regards of economic & security departments. A company doesn't set a plant in every country they do business in. They find a big country which as all necessary infrastructure in place and corporate friendly policies. That's why each auto company in India has many plants all over the country where some cater to domestic demands and rest are used for the export to places like Africa continent, South American countries, Bangladesh, Nepal, Sri Lanka n many other places where setting up new plants is not feasible for them.

Kid dont give me lectures i know better. Its yr policy that a company that operates in yr country has to open plants n transfer tech completely so that it depends on local labor costs get lower.
Going by yr logic China is the biggest consumer in the world or at lest in asia so the plants that operate in china should be send to india for manufacturing cars or just import Chinese made japanese cars. But they dont do it.

Anyway im post was the answer to Managing Director of Pak Suzuki Motor Company Mr. Hirofumi Nagao. That they should be allowed to import car parts made in a third country for their better profit margins but they will never allow that country to sell their own domestic company's car here as that will make competition in market n may unsettle their monoply.

The best way to make more profit for them is by manufacturing Cars n their parts domestically in Pakistan. This way locals will get jobs n engineers who flee from country because of lack of jobs will settle here n will benefit the economy.