Latest news with #HiroshiKawamura
Business Recorder
16-07-2025
- Automotive
- Business Recorder
Automobile CKD market projected to grow over 20pc
LAHORE: Automobile CKD market is projected to grow by more than 20 percent this year and Pak Suzuki is well positions to retain its 45 percent market share, Hiroshi Kawamura, CEO & Managing Director of Pak Suzuki Motor Company Limited (PSMCL) said, while reaffirming its longstanding commitment to Pakistan's automobile industry. On the exports front, Kawamura noted that in the past Pak Suzuki had exported over 3,000 Ravi pickups to Bangladesh & Nepal and spare parts and accessories to Europe, Japan, Vietnam, and Indonesia. During a media briefing here Tuesday, he reaffirmed the company's commitment to supporting government export initiatives, stating, 'We are actively exploring new markets and test marketing our products in multiple countries.' Reflecting on Suzuki's pioneering journey and over four decades of presence in the country, Kawamura stated 'Pak Suzuki has always remained committed to its mission of providing affordable mobility to enrich the lives of people of Pakistan. For Suzuki, Pakistan holds a special place—it was the first country outside Japan where Suzuki began automobile production in 1975, even before the formation of Pak Suzuki in 1983. Over the years, Suzuki has earned the trust of over 2.5 million customers, becoming a household name synonymous with reliability and value.' Kawamura highlighted Pak Suzuki's efforts in building up the largest nationwide network of 175 dealerships outlets across more than 100 cities—three times larger network than any other OEM in the country. CEO PSMCL highlighted Pak Suzuki's pioneering role in developing the local vendor base in Pakistan. He said that over last four decades, 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. Now these local vendors a supplying auto parts to all other OEMs. He stated that 'Pak Suzuki procure approximately PKR 50 billion worth of local parts annually.' While emphasizing the Pak Suzuki commitmen to local market he stated, 'We invested billions of rupees in the development and localization of our new model Suzuki Every alone, we remain steadfast in driving the economic growth and job creation in Pakistan.' Addressing recent policy proposals, Kawamura expressed serious concern regarding the potential liberalization of used vehicle imports and increasing the permissible age limit to five years. 'The domestic auto industry is operating at just 40 percent of its capacity, with the entire supply chain—from vendors to dealers—under significant pressure. Imported used vehicles have already captured 25percent of the market. Any further relaxation in import policy could prove disastrous for the local industry, leading to widespread job losses and collapse of the entire value chain,' he cautioned. 'No country in the world; with an established domestic auto industry allows such an influx of used vehicles.' He also commented on the National Tariff Policy 2025–2030, which proposes across the #board tariff reductions to promote export-led growth. While welcoming reductions in raw material tariffs to enhance local competitiveness, he cautioned that reducing import duties on finished goods—such as lowering CBU vehicle duties to 15percent—would severely undermine local manufacturing viability. 'With a total annual production of around 300,000 units, Pakistan's auto sector is still in a developmental phase and does not yet benefit from economies of scale. Premature tariff reductions and used vehicle liberalization would derail decades of industry progress,' he added. 'Australia's local auto industry collapsed due to similar liberalization—a fate we must avoid in Pakistan.' With an annual production volume of approximately 300,000 units, Pakistan's auto industry is still in a developing phase and lacks the economies of scale enjoyed by countries producing over a million units per year. According to him, implementing steep tariff reductions on finished vehicles and liberalization of used vehicle imports at this stage would place local industry at a severe disadvantage, risking a shift toward import dependence and undoing decades of progress in building domestic capacity, supply chains, and employment. In fact, Australia's entire car industry disappeared due to import liberalization. This will be irreversible situation for Pakistan. Kawamura said the key focus of Pak Suzuki's strategy for sustainable development is to rely on locally available resources. Pak Suzuki's Biogas Project aims to convert bio waste into a clean and renewable fuel. 'Using biogas as automobile fuel could be a breakthrough solution for Pakistan,' Kawamura stated, adding: '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
Express Tribune
17-06-2025
- Automotive
- Express Tribune
GST hike feared to hit auto sales
Listen to article Pak Suzuki Motor Company has cautioned the government that the proposed increase in general sales tax (GST) in the budget for fiscal year 2025-26 may result in a significant decline in sales of the auto industry, which will negatively impact original equipment manufacturers (OEMs) as well as vendors. Discussing the negative impact of 18% GST, Pak Suzuki Managing Director Hiroshi Kawamura said that it would also affect employment across the automotive value chain, according to sources. He mentioned that economic growth was sustainable with 12% sales tax and any further increase would impact the entire auto industry. At present, around 2.5 million direct and indirect jobs are being provided by the automobile industry. "This number may further increase if 12.5% GST continues in this category," he said. Hiroshi Kawamura held a meeting with Special Assistant to Prime Minister on Industries Haroon Akhtar Khan on Tuesday to review the impact of the budget and the proposed new tariff policy. "The impact of higher sales tax is always borne by customers," Kawamura remarked. He voiced concern over the proposed increase in sales tax on vehicles below 850cc engine capacity from 12.5% to 18%, warning that such measures could adversely affect the sector. He stated that the tax hike could lead to higher vehicle prices, reducing affordability and dampening market demand. The price increase may also hinder industry growth and increase pressure on production. In response, the PM aide reiterated the government's resolve to support the auto industry as Prime Minister Shehbaz Sharif was committed to the sector's growth and was aware of the challenges. "Progress demands unity and collaboration. The auto industry is a vital source of employment and local manufacturing strength," he remarked. Haroon Akhtar assured the MD that the PM would not allow the sector to falter and pledged continued engagement with industry stakeholders to help navigate challenges and seize growth opportunities. Separately, the PM special assistant held a meeting with Master Changan Motors CEO Danial Malik to discuss the strategic challenges faced by the auto industry and potential implications of the budget. They deliberated on the importance of transitioning to New Energy Vehicles (NEVs), especially electric vehicles, as a national priority. Malik stressed the need for sustained policy support and industry-friendly measures to ensure a stable and growth-oriented environment. Haroon Akhtar reaffirmed the government's commitment to implementing a sustainable and modern auto policy aligned with global trends. He announced that the EV policy would be unveiled soon. "The prime minister envisions a globally competitive auto industry," he said. "Our EV policy will provide a comprehensive framework for infrastructure development, investment incentives and policy facilitation." He added that special incentives would be offered to promote the adoption of EVs, which would support long-term industrial growth and environmental sustainability.
