In the wake of the Auto Policy 2016-21 that is aimed at attracting new entrants to the auto sector by guaranteeing incentives and benefits for five years, Suzuki Motor Corporation’s (SMC) Managing Officer and Executive General Manager Global Automobile Operations Kinji Saito in a letter to the Finance Minister Ishaq Dar has asked to extend the concessions of the auto policy to existing players for two years from the start of the mass production of new models.
“If the same two years (of) incentives and benefits are given, then Suzuki is committed to investment in setting up a state-of-the-art new green field plant and it would introduce new and advance models,” the letter said.
Total expected investment by the company is expected to stand at $460m, which includes foreign investment of $250m, inclusive of an 80-acre plot already purchased by Pakistan Suzuki Motor Corporation (PSMC). Local investment primarily comprises of company’s reserves and bank borrowings of $210m.
Vendor investment is expected to be $200m while the annual volume of local parts purchase is expected at Rs18.72 billion.
The company informed the government about PSMC’s investment is likely to create approximately 3,000 direct jobs while its vendors will add 24,000 jobs as a result of this investment. After adding 324,000 indirect jobs, the total number of jobs will cross 350,000.
The company said the plant will have the capacity of producing 100,000 vehicles per year. It will start producing new models within three months of the plant’s completion.
PSMC will unfold its investment plans in a meeting at the Ministry of Water and Power in the first week of March. Two other assemblers will unfold their business plans in the meeting.
