Research Analyst
Mar 02 - 08, 2009

Pak Suzuki Motor Company Ltd (PSMCL) is a Pakistan based automobile manufacturing company. It is a joint venture between Suzuki Motor Corporation of Japan and Pakistan Automobile Corporation. The Company's products include Mehran, Alto, Cultus, Liana, Bolan Van, Ravi Pickup, JIMNY MT, APV, and Potohar.

Suzuki Liana Prod. 149 14 3 -
Sale 114 35 158 21
Suzuki Cultus Prod. 1,496 616 521 403
Suzuki Alto Prod. 1,030 306 396 7
Sale 1,231 200 100 733
Suzuki Mehran Prod. 1,759 517 598 494
Sale 1,898 558 208 1,078
Suzuki Bolan Prod. 1,219 1,132 894 709
Sale 1,280 1,257 468 473
Suzuki Potohar Prod. - - - -
Sale - - - -
Suzuki Ravi Prod. 1,866 1,787 1,420 701
Sale 1,939 2,011 1,061 435
Source: PAMA

There are about 154 active vendors of Pak Suzuki across Karachi to Lahore and Rawalpindi. The dealers of Pak Suzuki perform hallmarked three services of the company: automobile marketing, sales service, and spare parts. The Suzuki plant located in Bin Qasim has a production capacity of 150,000 vehicles per year. The company has facilities like press shop, welding shop, paint shop, engine and transmission assembly shop, final assembly and hi-tech inspection shop.

On 1st Jan 2007, Suzuki Motorcycles Pakistan Ltd has merged with Pak Suzuki motors.


Pak Suzuki produces a wide range of vehicles that serve the widest spectrum of customer needs in the country. Each of the Pak Suzuki products enjoys a unique position of its own and the exceptional success of these vehicles underscores their progressive performance abilities. The difference between Pak Suzuki Motor Company from other automobile assemblers is its PRESS SHOP; PSMC is the only automobile manufacturer which owns this facility. It is the major source of delivering low cost vehicles to the customer.

Before a product rolls out from the Pak Suzuki plant, it goes through state of the art manufacturing processes under strict quality control measures. The press shop consists of the most modern stamping facilities equipped with a Tandem Press Line with more than 1,000 stamping dies. The facility of Tandem Press Line available in Pak Suzuki Motor Company renders it the status of the only car manufacturing company in Pakistan.


Net sales 50,844 43,768 25,310
Cost of sales 46,084 42,574 24,468
Gross profit 4,760 1,193 842
EBIT 3,360 110 284
Other Income 921 1,023 1,175
Profit before tax 4,281 1,133 1,459
Net Profit 2,775 736 948
Total assets 21,201 22,430 19,954
Shareholders equity 13,977 14,590 15,414
EPS (PkR) 33.72 8.94 11.52
Various sources

Pak Suzuki has reported earnings results for the first quarter of the fiscal year 2009. The company declared PKR 206 million profits after tax or EPS of PKR 2.51 in first quarter of the fiscal year 2009 as compared to PKR 734 million or EPS of PKR 8.94 in the corresponding period of the last fiscal, depicting a significant decline of 71.9%. During the current year, Pakistan Suzuki business environment is likely to become more difficult in view of the worsening macro economic situation in the country and fears of global economic recession emanating from major financial crises abroad. Despite the economic slowdown in the country, PSMC has been able to do better than other automobile assemblers. It is expected that the sales volumes will remain low substantially in entire CY09 on the back of higher car financing costs, lower availability of financing and economic and political instability.



PRICE INCLUDING SED + ST & FED w.e.f 15/01/2009
Mehran VX 447,000
Mehran VXR CNG 539,000
Alto VX 606,000
Alto VXR CNG 705,000
Cultus VXR 837,000
Cultus VXL CNG 954,000
Ravi Pickup STD 448,000
Ravi Pickup STD CNG 496,000
Bolan Van VTR 511,000
Bolan Van VTR GL CNG 620,000
Liana 1.3L LXI CNG 1,135,000
Liana 1.6L Eminent AT 1,140,000
APV 1.5L GLX MT 1,470,000
APV 1.5L GLX CNG 1,525,000
JIMNY JLX MT 1,750,000
JIMNY JL DX MT 1,620,000
Source: PSMCL


Currently, in Pakistan the automobile sector is facing many challenges and has been experiencing slump. The locally assembled automobiles registered the highest decline. Total production of vehicles declined by 33.8% during the period from April 2008 to December 2008 over the same period last year. The industry has been facing multiple challenges such as higher exchange rate, rising inflation and material prices and particularly, slow down in demand.

To meet the rising cost of production, prices had been increased a couple of times, which has further affected the sales of the industry. The total automobile production during the period under review of ninth month was 88,482 units against 128,492 units last year, down by 31.1%. The sale was 86,376 units against 126,732 units down by 31.8%.


No doubt, Pak Suzuki with heavy presence enjoys market hegemony in the small car segment. PSMC is expected to do comparatively better than its peers in the current economic scenario due to advantage in product line and pricing power. However, the industry needs to be more competitive.