Pak Suzuki will Launch Celerio in March 2017
Pak Suzuki Motors (PSMC) – the country’s largest automaker with 50 percent of market share has finalized to launch its standard model of Suzuki Celerio in March 2017, confirmed by company’s official on Tuesday. A formal announcement will be made by Pak Suzuki on Wednesday.
The company has taken an initiative to launch its standard Celerio model in March 2017 under the observation to take incentive under the new auto policy made by the government, according to the company official.
Suzuki Celerio is 1,000 cc Engine Car that will replace with Suzuki Cultus, a model launched back in the year 2000 that replaced Suzuki Khyber. This brings a complete change in company’s earlier policy which started about relying on investment plans, according to government offerings with respect to new entrants’ policy in the Automotive Development 2016-21.
Pak Suzuki requested the government earlier to provide similar leverages likewise to the new entrants so that the company can establish its new Greenfield plant with US$ 430 million investment. Although the government seems to be unimpressed up till now. The company also announced the details about launching two latest models will cost up to US$ 110 million out of total US$ 430 million. The rest of the investment would be spent on launching a manufacturing plant for Suzuki spare parts. However, the company has stated that the investment would be made on the terms of new incentives.
Pak Suzuki motors listed on Pakistan Stock Exchange (PSX) earlier traded at PKR 390.97 per share in the month of July 2016 has seen a huge upward trend to PKR 586.99, up by over 50 percent, outperforming KSE-100 index that has a net increase of 24.3 percent in its volume at the same time.
The government up till now had not offered any major subsidies to the existing top three automakers as the government aims to attract new automobile makers and manufacturers. The top three automakers Honda, Toyota and Suzuki has driven monopoly in the Pakistani auto market and the government seems to provide tax incentives and leverages to establish new rivals in the markets to compete against them.