Pak Suzuki to launch Celerio in 2017 Cultus to exit

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Karachi, Pak Suzuki Motor Company is the largest gari manufacturing company of the country and it has over 50% market share. The company has decided to launch the standard model of Suzuki Celerio during March 2017.

The company has made the formal announcement, which is circulating on the social media and the official facebook page of Pakistan Suzuki, which is made by the company on Wednesday.

The official of the company said that they are confident that government will provide the incentives to them under the new auto policy and the company has decided to launch their standard model of Celerio during the month of March 2017. The new model, Suzuki Celerio is the 1000 cc engine car and Pak Suzuki was making plan to replace their Suzuki Cultus with this new model. The model, Suzuki Cultus was introduced in 2000, which was introduced after replacing it by Suzuki Khyber.

The company has stated its auto policy earlier and it will complete the shift and it is said that new investment plans are made on the new offerings of the government with the same incentives, which are offered to the new entrants in the Automotive Development Policy 2016-21. There are different variants of Celerio and the car models will be introduced in the market from the new plant of the company to establish it, provided that the government allows them the same incentives including the new entrants. The company denied the launching of the new model in the auto market in the next two years based on the earlier policy and the top management of the company met with the finance minister, Ishaq Dar and the people close to the matter say that it is said by the close people that he has given them some kind of hope to the three car manufacturing companies in the country.

Pak Suzuki made the request to the government to provide the similar incentives to the company for their new entrants to establish their new Greenfield plant with the investment of over $430 million. The media announced the intention of the company to launch the new variants in the local market the previous year and Suzuki Global Head made the new announcement during the meeting with the Minister of Industries.

The company exposed the details in 2015 that two new models of the vehicles would take around $110 million of the total investment of about $430 million, which is planned by the company and the rest of the amount would be spent to set up the manufacturing plant for spare parts. The company stated that the investment was made on the conditions on the incentives.

Pak Suzuki is listed on Pakistan Stock Exchange as PSMC and it was trading at Rs.390.97 per share at the start of July and now the share of the company is raised to Rs.586.99 per share, which is massively over 50% and it has outperformed the KSE-100 index and it was increased by 24.3% during this time.

The Global Head of the Suzuki Motor Company, Kinji Saito met with the Federal Minister for Industries and Production, Ghulam Murtaza Jatoi in December last year and the top officials of the Suzuki Company urged the government to offer the similar incentives, which were offered to the new entrants. The government did not offer the big incentives to current top three car manufacturers because it was hoped that they would attract new automobile manufacturers.

After the period of two and half year, the new policy was approved and it also offered the tax incentives to the new entrants in the market, which can help to establish the manufacturing units and also compete with the three well entrenched assemblers.

 

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