Pak Suzuki Trade Problems
|   Tuesday, September 04, 2012
Pak Suzuki's cash cow vehicle, Suzuki Alto has been the country's highest selling car for nearly over a decade. It has been the country's most affordable car in the 1000cc range and has been a real profit generator for Pak Suzuki. No change has come in model for the past decade and still managed to break record sales against all competitors including Indus Motors's Coure.

2012 however was perhaps the worst year for Pak Suzuki and it has no one to blame but itself.
The company had to seize production of the country's highest selling car after the Japanese mother company decided to stop production of the parts for Alto in Japan. The company acknowledged the success of the brand in India that had managed to successfully establish a completely self reliant production system for many Suzuki vehicles without the need of importing parts from Japan.

Pakistan however was a bit behind in the game and failed to realize what would happen to their system if The Japanese Auto Maker decided to stop producing parts in their own region. Later this year Suzuki Japan confirmed that it had seized production for all Suzuki Alto parts in Japan and had allowed India to produce sufficient amount parts to support the entire region making it much more affordable for all importers in the Eastern region.

Pakistan However, was not very happy to hear the news as it is unable to import the parts from India due to the free trade barrier. It had no choice but to seize production of Alto in Pakistan, they however decided to replace the Suzuki Alto with the Wagon R but the idea was not as feasible as it sounded on paper.

In August 2012, Pak Suzuki had to reconsider it's opposition to trade liberalisation with India. Not only that, but Pak Suzuki may have to convince other Japanese car makers within Pakistan to get behind the idea of allowing free trade with India, as many other Japanese Auto Makers have also decided to move production to India. One Such company is Toyota itself that moved all parts production of Daihatsu Coure to India.

The problem only began when the country decided to implement the new Euro II car standards in Pakistan. The idea seemed feasible at the time so no car maker in Pakistan seemed to oppose the implantation of these standards. Now that Suzuki has moved the manufacturing of Euro II standard parts to India, the companies are forcing the government to allow free trade with their neighbors in order to fill the market gap. Currently the only vehicle coming close to replacing the SuzukI Alto is the Suzuki Mehran which as it is, is overpriced.

Pak Suzuki had opposed the country's current negotiation of allowing free trade with India as it was threatened how it would effect the Auto Industry at Home. Now that their hands are tied and the company's biggest profit generating product is at danger, they have no choice but to reconsider their position in opposing the trade liberalisation. The company is already encouraging the government to proceed with the policy as soon as possible as due to current policies, it cannot continue to revive the Alto Production line until the end of year. Meanwhile the public is looking towards other car dealers that are importing 1000cc cars in the same price range, heavy sales loss for Pak Suzuki in the long run.
PHOTO GALLERY
Comments:
Name required * Email required Email not valid *
Comment required *

Latest news
Sunday, August 19, 2018 10:30:31 Nissan is present at the Detroit Auto Show with a compact concept SUV called...
Saturday, August 18, 2018 10:25:17 Another Hyundai premiere at the Detroit Auto Show is the new Veloster N,...
Friday, August 17, 2018 10:20:24 The South Koreans from Kia presented at the Auto Show in Detroit the new...
Thursday, August 16, 2018 10:15:59 After a massive promotion campaign, the US subdivision of Hyundai has officially...
Wednesday, August 15, 2018 10:05:55 Acura boasted that the new RDX is 100% made in the United States and is...
Tuesday, August 14, 2018 09:54:10 At the core of the new VW Jetta is the MQB platform, which is already used...
Tuesday, August 14, 2018 09:50:38 General Motors held the world premiere for the new generation Chevrolet...
Monday, August 13, 2018 09:45:39 The Ram Trucks brand, currently belonging to Fiat Chrysler Automobiles,...
Sunday, August 12, 2018 09:39:52 Ford brought the new generation mid-size Ranger pick-up at the Detroit Auto...
Saturday, August 11, 2018 09:34:13 At the Auto Show in Detroit, American car manufacturer Ford celebrates the...