KARACHI, Aug 31: Pak-Suzuki Motor Company Limited (PSMCL) would introduce Alto 800cc, Swift Sedan and other new versions in case trade with India normalises.
The company had terminated production of Alto 1,000cc in Pakistan from June 2012 due to non-availability of CKD kits in Japan which had hit its overall sales.
Shafiq Ahmed Shaikh, Head of Public Relations and PSMCL spokesman said, “Even if trade is not allowed with India, the company has requested the government to allow Pak-Suzuki to import CKD kits from India under special case for lower price vehicles.”
He said Suzuki Motor Corporation Japan has many overseas production facilities in various parts of the world. However, Maruti Suzuki India is becoming the largest production facility outside Japan as it designs vehicles considering local market preferences and roads, thus catering to the needs of the local market.
The vehicles designed and produced in India are most suitable for Pakistani market.
He said India-Pakistan collaboration would help in introduction of new model as CKD imports from India have a two-fold advantage. One being lower price of components due to lower raw material, utilities and labour costs and secondly reduction in cost of freight and transportation time due to import from land route of Wagah and also short sea route from Mumbai to Port Qasim.
This would also result in overall reduction in cost of components.
He said Pakistan can benefit from import of automotive components from India at a lower price and cost and consumers would certainly benefit from this.
“The PSMCL will import only those components which are not available or are not in production in our country,” Shafiq said, adding that the company is trying to fill the vacuum caused by suspension in production of Alto 1,000cc.
He said change in sourcing of CKD from Japan to India would result in foreign exchange savings and eventually in reduction in cost of vehicles.
India is fast becoming hub for automobile manufacturing with Japanese and other foreign car manufacturers shifting their manufacturing base to India due to cheaper cost of production, large domestic market, availability of raw material and trained human resource and long term government policies for foreign investment.
Recently, there has been a trend of relocation of parts sourcing from costlier developed countries to developing countries, including India.
Currently, PSMCL said India has an advantage of availability/presence of latest and state of art technologies, while PSMCL has the advantage in transfer of modern technology to Pakistani vendors from Indian vendors, which has been absorbed from vendors in developed countries.
Shafiq said transfer of technology directly from vendors in developed countries, such as Japan, EU and US is very difficult due to various reasons, including higher cost, unwillingness, small market, law and order situation etc. Technology transfer from Indian vendors to Pakistani vendors would be most appropriate at lower cost due to geographical location of the two countries, no communication barrier etc.
“Due to Pak Suzuki’s strong request through Maruti Suzuki India, the Indian Auto vendors are ready for technology transfer, even some are ready for investment/joint venture,” he claimed.
Pakistan has a vibrant local parts manufacturing Industry. With technical collaboration between Pakistani and Indian vendors, the facilities, know-how (training of work force), the local vendors would be upgraded, he added.
Through PSMCL’s proposal, investment worth billions would come and it would open job opportunities and enable Pak- Suzuki to also export the above said vehicles to the rest of the world and if possible to India, through which our country would get good revenue.
He said the company has requested the government to consider its proposal for trade with India, through which Pakistan would gain a lot.