Automotive sector of Pakistan: Suzuki Kizashi’s failure exposes high taxes and loopholes.

This here is the Suzuki Kizashi, which left the American market in 2012 due to lack of substitute engines and unable to compete with others. Well, that was one.

But in Pakistan where motor vehicle duties are at a whopping 350 percent, and the lease is hardly recovered. Tell me one thing, how can a man with an average salary of 15K running a house on rent unable to fulfill utilities with a housewife and 3 kids buy this? when the elite class are running their unlawful money on imported Audi’s and BMW’s does this car have a chance among them? how can the common Pakistani man buy this car when it costs PKR 5 million? (For that, a 2 bedroom squat hut/apartment can come).

Answer is, no one in Pakistan can buy this car.

The Government of Pakistan did NOT decrease duties on automobiles, both local and imported. Motorcycles, buses, tractors and trucks have also faced the brunt of high taxes. Imports put a country in miserable deficits, the incumbent government of Mr. Nawaz Sharif has made it even worse, sadly :(.

“50 lakh ki Suzuki ki gaari? Bakwaas!” is the cry whenever someone hears the price of Suzuki Kizashi in Pakistan (PKR 5 million). Suzuki’s 800CC car Mehran, once touted as the relief for the common man now costs PKR 900,000 and the condition, worse than scrap metal! The sky high taxes and duties makes the materials for cars expensive (Body frames, headlights, taillights, tires, bumpers, seats, electricals etc.). I don’t know where to get reliable information because the ones that can easy buy automobiles here are either the filthy rich elite whose income is solely on black money because Honest hard working people can only buy decent hatchbacks and/or second hand models.

Secondly, Pak Suzuki Motor Company Ltd. was fined around 250 Million Yen in 2001 when its model Baleno had hazardous and at times deadly handling issues. Once the car goes above 80 Kms/Hr (Kilometers per hour) on either a road or highway, the braking system was so awful that even a light press causes the brake cables to burst, hence either overturning the sedan or causing it to go off track and possibly even crash. Also, following the ouster of Pervez Musharraf in 2008 several manufacturing flaws were detected in Suzuki Liana.

IMG-20130620-00072

Radiator pipe 1

Images above are not in order. the second image exposed a rusted pipe installed in Suzuki Liana while it was manufactured and the first image shows it getting fixed at a local mechanic’s shop. Also, there have been incidents where in Suzuki Mehran there have been manufacturing faults. THe intake pipe of CNG system was in the external socket while internal socket had the external pipe. Despite shifting the cars to Euro II engines ( a stupid compliance standard I must say), the sales have not been promising (except for the Suzuki Swift due to its attractive design and good systems), Mehran and Liana have become questionable cars and the quality of Suzuki Mehran has become worth less than scrap metal.

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