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New Auto Makers Shun Suzuki’s Demand for Tax Relief

Pak Suzuki’s demand for tax benefits, under the Automotive Development Policy 2016-21, has faced stiff resistance from international automakers.

Chinese, Korean and French automotive companies have opposed Pak Suzuki’s demand for Greenfield status in return for a $450 million investment in a new assembly plant in the country.

Suzuki had demanded the government to grant it Greenfield status under the ADP 2016-21 which only new investors can avail.

According to reports, Pak Suzuki’s move was widely criticized during the Auto Industry Development Committee (AIDC) meeting held in Islamabad on Wednesday.


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A heated debate started during the meeting when all the new and existing players of the auto industry received a copy of PSMCL letter, that was also sent to the Prime Minister Imran Khan a day earlier.

In the letter, Pak Suzuki maintained that ‘if greenfield investment and incentives are given to Pak Suzuki for three years, then the company will invest in setting up a state-of-the-art Greenfield plant and introduce new and advanced models’.

The government had asked for feedback from the participants on Pak Suzuki’s demand.


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While the existing auto companies like Honda and Toyota demanded the same favor for themselves if it was given to Suzuki, the new automakers opposed the idea and urged the government to continue with the same policy.

Ministry of Industries’ Secretary Azhar Chaudhary has said that the government was not considering any revisions in the ADP 2016-2021 at the moment, and even it did, it will take all the stakeholders into confidence including new entrants and it won’t be a party specific decision.

The policy also lets new investors import non-localized parts at a reduced duty rate for five years. Similarly, the companies can import localized parts at 25 percent duty.

  • For the love of God, DO NOT GRANT SUZUKI ANY BENEFITS !
    they looted this country for THREE DECADES. Just go look at what Maruti
    Suzuki offers in India compared to what Pak Suzuki offers in Pakistan.
    you will realise that there’s DISCRIMINATION galore.

    What the hel is the government even doing with Suzuki, they should be kicking them
    OUT of the country ! not listening to their concerns.

    Rest assured, the newcomers look more determined to make a mark here. They
    will do better than suzuki if they are properly handled. Their demand to exclude suzuki from tax relief is rational and quite fair. They only want a fair playing field and the government has to do everything make sure that it stays that way !

    I hope the Government makes the right choice.

    • Totally agreed. Yasir you have correctly given the right discourse. Suzuki has always introduced older generation models and technology all these years for Pakistani consumers. Despite of numerous incentives highly titlted in their favour, Suzuki never upgraded it’s facilities. Enough is enough. Suzuki should compete through upgrading it’s facilities instead of availing benfits being offered to new entrants.

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