Pak-Suzuki had discontinued the production of the Alto in July This was done after it converted all models to Euro-II standards, except Alto as its "complete knock down" ( CKD) kits that meet Euro-II standards are only available in India. India is the only country in the region producing Euro-II compliant parts.
The company had discontinued various cars that need to have Euro-II compliant engines from June. A spokesman for Pak-Suzuki, Shafiq Ahmed Shaikh, told 'Dawn' that 159 parts of the Alto, which are Euro-II compliant, are only made in India.
The company has requested the government to allow import of these parts from India but so far nothing has been done, he said. The parts sought from India were included in negative list and this caused the discontinuation of Alto production in Pakistan, he said.
However, this negative list would be eliminated by December, Shaikh noted. The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) too has urged the government to remove these 159 parts from the negative list so that the vacuum in 1,000cc car segment can be filled, he said.
PAAPAM had informed the Commerce Ministry that closing down the production of the Alto production had hit 76 small and medium sized auto parts makers with an estimated annual loss of Rs 7 billion.
The association said these organisations employed over 12,000 people and had made investments of Rs 2 billion for the Alto.
The vendors pointed out that India is the only country where Euro-II Alto parts are available and SuzukiBSE -1.89 % Japan has made India an investment centre for research and development and engine manufacturing.
Shaikh said the company had already informed the Commerce Ministry that India would provide a large market for exports and would be an alternative source of imports, resulting in cost benefit and reduced freight charges.
He said Pak-Suzuki is in a crisis because of falling production and sales, especially due to influx of imported used vehicles coupled with no permission for importing Alto parts from India.