Pak Suzuki warns used car policy could cripple local industry

LAHORE: Pak Suzuki Motor Company Limited (PSMCL) CEO Hiroshi Kawamura has warned that Pakistan’s tariff rationalisation plan and liberalisation of used vehicle imports could devastate the country’s auto and engineering sectors, causing job losses and long-term damage to domestic manufacturing.

In a rare media briefing, Kawamura said raising the age limit for used car imports from three to five years and cutting duties on completely built-up (CBU) vehicles would flood the market with cheap imports. “No country with a functioning domestic auto industry allows this. Such policies could erase the entire value chain,” he said.

He pointed out that Pakistan’s auto industry is running at just 40 per cent capacity and lacks economies of scale. Reducing duties on finished vehicles while the industry is still developing would derail decades of progress, similar to Australia’s experience.

Welcoming tariff cuts on raw materials, Kawamura opposed duty reductions on finished goods. “With production at just 300,000 units annually, Pakistan’s industry needs support -- not competition from used imports,” he said.

Pak Suzuki, which holds a 45 per cent market share and operates a network of 175 dealerships across 100 cities, has invested heavily in localisation and vendor development. The company procures around Rs50 billion worth of local parts each year.

Kawamura also noted past exports to Bangladesh, Nepal and parts of Asia, reaffirming the company’s support for Pakistan’s export goals.He further highlighted Pak Suzuki’s biogas project, which aims to convert organic waste into fuel, calling it a potential breakthrough for rural employment and sustainability.