Pak Suzuki is going to establish a second vehicle assembly plant in Karachi to counter the expected growth of the auto industry in the country. The company is targeting to surpass the figure of 100,000 vehicles a year.
According to the local media reports, Pak Suzuki has decided to invest $460 million for the state of the art assembly line while the company already acquired the land in a close proximity to its existing plant.
Pak Suzuki conveyed their future endeavors in the country in a meeting with Abdul Razak Dawood, Prime Minister’s Advisor on Commerce, Textile, Industries Production, and Investment. Reportedly, the company also asked for the special incentives for their second plant especially the status of GreenField A.
It is worth noting here that GreenField status is the part of the new auto policy which gives certain inducements and tax rebates to the new entrants in the auto industry. Although Pak Suzuki doesn’t qualify for a greenfield or brownfield status, the company is keen to acquire such statures to cut down the expenses.
Osamu Suzuki, Global Chairman, Suzuki Motors might also visit Pakistan after 11 years to attend the inauguration of the new plant.
Pakistan is soon to witness the revamped auto industry as the new entrants are around the corner. Companies like Hyundai, Renault, and Volkswagen are all set to produce vehicles in Pakistan somewhere next year. The recent move by Pak Suzuki to expand its production capabilities is to counter the expected growth in the auto industry.