The Crux of Automobile Indusrty In Pakistan

In our suggestion the in current circumstances Pak-Suzuki should close its operation because in coming years the technology on which global industry is competing will definitely through them out of the business, for example how can you compete with the cars having 1/4^rth of local car’s price and built on better technology
Another issue is that there is no obligation of having local car on government level like India has.

The only thing which is in SUZUKI motor’s favor is the non-implementation of WTO and as soon as WTO get implemented government of Pakistan as a member of WTO must have to make Pakistan a tax free zone on export and import and at that time who is going to purchase local cars as compare to China’s Dongfeng Motor Corporation and Indian’s Tata.motor, which are more cheaper more fuel efficient.

But if Pak Suzuki wants to remain in business then they should have to take following steps not to survive but to earn profits.

1. Pakistan government should provide subsidies so that they will be able to bring their prices down.

2. To minimize the production cost instead of waiting for political stability they must make their own plan on how to overcome the minimizing cost issue because with the implementation of effective supply chain plan they will be able to bring down their operating cost atleast to the level where they can compete on Maruti Suzuki.

3. They must think seriously replacing fuel technology other than Patrol and Diesel

4. They should make in agreement with Pakistani government that the cars which will be used on government level should be made in Pakistan (i.e. –Pak-SUZUKI) so that it will increase their share an will help in gaining the trust of the citizens of Pakistan.

5. To minimizing its operating cost up to 50 % Pak -Suzuki can built electricity producing plant i.e. by using garbage for producing methane gas which can be further used to make electricity in order to rely lesser on national resources like BMW is now having in plant in Germany and US.

6. Market expansion measures should be taken which will definitely benefit the industry, government and general public in terms of employment and price.

7. Volume of production should be increased in order to achieve the economies of scale. Localization should be increased and investments should be made to increase localization.

8. The government should also keep a close watch on new entrants so as to prevent reign Firms from dumping there vehicles to the Pakistan market.

9. The Vendor industry in Pakistan also plays a critical role in the growth of auto industry as all the component parts are not manufactured under one roof. Development of vendor industry in Pakistan would be able to expand the employment opportunities and reduce cost of production.