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

Suzuki

06/05/2016 11:23

By Drazen Jorgic 
    ISLAMABAD, May 6 (Reuters) - 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.  
    The Pakistan Suzuki Motor Company  PKSU.KA , which assembles 
Suzuki  6785.T  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.  urn:newsml:reuters.com:*:nL5N17W0FT 
    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. 
 
 (Reporting by Drazen Jorgic; Editing by Christian Schmollinger) 
 ((drazen.jorgic@thomsonreuters.com; +92 307 8888 153; Reuters 
Messaging: drazen.jorgic.thomsonreuters.com@reuters.net)) 
 
Keywords: PAKISTAN SUZUKI/