PSMCL projects 20pc growth in automobile CKD market this year: Hiroshi

KARACHI: Hiroshi Kawamura, CEO and Managing Director of Pak Suzuki Motor Company Limited (PSMCL), has projected over 20 percent growths in the country’s automobile CKD market this year.

Speaking to media representatives, Kawamura said that the automobile CKD market is projected to grow by more than 20% this year, and Pak Suzuki is poised to maintain its commanding 45% market share.

He called for greater government policy support to accelerate industry growth, particularly advocating for export incentives rather than mandatory targets.

He highlighted Pak Suzuki’s existing export achievements, saying that over 3,000 Ravi pickups were shipped to Bangladesh and Nepal, along with spare parts and accessories exported to Europe, Japan, Vietnam, and Indonesian markets.

Kawamura expressed concern about the significant market share currently held by imported used vehicles. “Although the government intends to enhance the LSM growth sector, approximately 25% of the market is occupied by imported used cars, which needs to be curbed for a significant increase in local industry output,” he stated.

The CEO urged policy changes, specifically recommending the elimination of duty concessions for used car imports under 1300cc, noting that 75% of used car imports fall within this segment due to very low fixed taxes. He also suggested reducing the permitted age limit for imported vans from five to three years.

Highlighting Pak Suzuki’s contributions to local manufacturing, Kawamura emphasized the company’s four-decade commitment to developing Pakistan’s vendor ecosystem. “Pak Suzuki has nurtured more than 100 local parts suppliers and supported several local suppliers through technical assistance and joint ventures, paving the way for localization of high-tech parts,” he said, adding that these vendors now supply components to all automotive manufacturers in the country.

The company currently procures approximately Rs50 billion worth of locally manufactured parts annually and has invested Rs17.4 billion specifically in the development and localization of its new model, the ‘Suzuki Every’.

Kawamura also discussed Pak Suzuki’s innovative Biogas Project, which aims to convert bio-waste into renewable fuel. “Using biogas as automobile fuel could be a breakthrough solution for Pakistan,” he stated. “It has the potential to improve the trade balance, protect the environment, and create employment in the rural areas of Pakistan.”

Copyright Business Recorder, 2025