KARACHI: Pakistan Suzuki Motors Ltd (PSML) has urged the government to limit the import of used cars to boost local production, as these imported second-hand vehicles make up a quarter of the automobile market.

During a briefing for journalists on Saturday, PSML Chief Executive Officer and Managing Director Hiroshi Kawa­mura discussed the government’s plan to enhance production of the Large-Scale Manufa­c­turing (LSM) sector, suggesting it would be better to incentivise exports rather imposing mandatory targets.

“Approximately 25 per cent of the market is occupied by imported used cars. Curbing this could lead to a significant increase in local industry output,” Mr Kawamura added.

Mr Kawamura emphasised the need for government policy support to drive industry growth.

He urged the government to eliminate duty concessions for 1300cc, as 75pc of used car imports fall within this segment due to low fixed taxes, and recommended reducing the age limit of vans to three years from the current allowable limit of five years.

Mr Kawamura said that PSML had always remained committed to its mission of providing affordable mobility to enrich the lives of people of Pakistan,”.

“For Suzuki, Pakistan holds a special place—it was the first country outside Japan where Suzuki began automobile production in 1975, even before the formation of Pak Suzuki in 1983.”

Sharing an optimistic outlook for the domestic market, he said that the automobile completely knocked down market was projected to grow by 20pc this year.

Published in Dawn, April 20th, 2025