Table of Contents

Organization Pak Suzuki Motor

Histroy

Top Management

Owners Profit

Initial Business

Marketing Strategies

a)Promotion

b)Advertisment

Production

Employees

Government Involvness

Over The Year Growth

a)Products

b)Sales

c)Finance

d)Diversification

Past Management StructureCurrent Management StructureFuture Planning

Problems

Solution

Limitation

References

Histroy :

Pak Suzuki Motor Company Limited was formed as a joint venture betweenPakistan Automobile Corporation and Suzuki Motor Corporation (SMC) - Japan. The Company was incorporated as a public limited company in August 1983 and started commercial operations in January 1984. The initial share holding of SMC was 12.5% which was gradually increased to 73.09%.

Pak Suzuki is pioneer in Automobile Business having the most modern and the largest manufacturing facilities in Pakistan with an Annual production capacity of 150,000 vehicles. The vehicles produced includecars, small vans, Pickups, Cargo vans and Motorcycle. Pak Suzuki holdsmore than 50% Market Share.

Following the aggressive policy of Indigenization, Suzuki vehicles have a healthy local content upto 72%. This was made possible by strong support of our vendors.

Pak Suzuki has the largest Dealers network offering 3S (Sales, Serviceand Spare Parts) facilities across Pakistan.

Caring for the Environment Pak Suzuki was pioneer in introduction of Factory fitted CNG vehicles.

Pak Suzuki always endeavors to go aggressively for the sound development of the society by increasing motorization, industrialization and creating job opportunities thus improving the people’s living standards with the combined efforts of all the dealers, vendors and Pak Suzuki employees.

Pak Suzuki is also exporting Suzuki Ravi pickup, Liana and components to Bangladesh and Europe thus earning precious foreign exchange for the country.

Products to be refers:

Suzuki Mehran:

1988 to date, renamed Mehran in 1992. A very basic version of the Suzuki Alto CA71 (Maruti 800 in India and Nepal), with a 796 ccengine, manufactured by Pak Suzuki Motors under the chassis code SB308. The Mehran was sold as bi-fuel petrol/CNG since 2006 to early2012. (The option of CNG was dropped from the entire Suzuki line-up due to government ban on CNG kits and cylinders.).

It received minor facelifts in 1998 and again in 2004. The Mehran receiveda standard EFi Engine in July 2012 to comply with government regulation adopting the Euro-II emissions standard. It was the same F8B engine with single point fuel injection developed in-house by Pak Suzuki Motors. The fuel ignition system was also upgraded to CDI, reducing the cost and downtime associated with the replacement of breaker points as routine maintenance. As per user reviews, the upgraded engine provided improved power delivery, throttle response, acceleration and fuel economy, though company specifications were never changed to reflect this. Users who installed aftermarket CNG kits also availed increased CNG fuel economy dueto the CDI distributor. (The same engine upgrade was also implemented on the Suzuki Ravi and Suzuki Bolan who share the same engine. This made Pakistan the last car producing country to shift entirely from carburettedengines to EFi). Mehran is currently available in VX or VXR equipment levels. It had again received a mild facelift with an asymmetric grille atthe same time with the introduction of the EFi engine. It has 29.4 kW (40 PS).

Suzuki Alto:

2000 to 2012. The Suzuki Alto HA12 chassis fitted with a 1982-1984 Suzuki F10A 970 cc engine, manufactured by Pak Suzuki Motors under the chassis code RA410. The engine was same as the locally manufactured Suzuki Potohar, though the fuel ignition system was a more modern, electronic distributor. Pak Suzuki Alto RA410 maintained a carburetor based engine throughout its manufacturing phase (2000-2012). Although the Pakistani assembly of the Alto has stopped as of June 16, 2012, if retailers wish to

sell it they could purchase it from Suzuki's other affiliates such as Indian automobile maker Maruti through Maruti Exports, or they could import from Suzuki in Japan, though it would be more expensive.

Suzuki Margalla:The sedan shape of Suzuki Cultus second generation was initially (1990) imported from Japan to test the market and sold under the name Suzuki Sedan (possibly because it was the first sedan body style offering by Pak Suzuki Motors). It bore a chassis code SF310 and came with a carburetted 3-cylinder 993 cc G10 engine. The market reception was good though the audience complained of low power. The same car was considered for local manufacture as an entry level executive car. Manufacture started 1992 under the name Suzuki Margalla, chassis code SF413 using an 8-valve SOHC 4-cylinder G13 carburetted engine. It came with power steering as an option. Tachometer was not available in any of the variants. The car was offered in variants such GL and GLX, with an upgrade variant called Margalla Plus launched later on. Production was ceased in 1998 to give wayto the replacement Suzuki Baleno. Todate in the used car market Suzuki Sedan means 1000 cc import model, whereas Suzuki Margalla means local assembly 1300 cc, two names of the same car.

Suzuki Baleno:The SY413 Baleno (also known as the Cultus Esteem and Esteem in other countries) was assembled in Pakistan starting 1998 as a replacement of Suzuki Margalla, till 2006 when it was replaced by the Liana. When introduced, it featured a number of improvements over Margalla, such standard power steering, wider tyres (175/70R13 vs 155/80R13), tachometer as standard, 4-spoke steering wheel vs. 2-spoke steering wheel of Margalla, black interior vs grey interior, EFi vs carburettor and 16-valvevs 8-valve. It featured the G13BB engine, though on the chassis plate throughout the entire run it was stamped as G13B. Initial trim levels included GL, GXi, Gli and GliP (also known as Gli Plus). Baleno featured highly advanced technology at its time, as it was the first one to offer distributorless EFi. Despite this, the car has difficult sales period till2002 when a facelift was launched featuring crystal headlamps and revised grille. CNG version was also offered soon. Trim levels in the facelift model included JXR and JXL. Baleno Sport also saw a limited run. In the very initial days before local assembly, a few specimen were imported from

Japan by Pak Suzuki Motors to test the market. These featured a SOHC G16B engine with electronic fuel injection but fuel ignition by camshaft drivenelectronic distributor. This car remains a rare item in the used car market normally known as Baleno 1.6 or Baleno Gti. Although the car ran without problem using petrol, the CNG versions faced various problems suchas backfire and burning of coils. Replacing the engine with an EFi 1.5L G15A is a popular swap (G15A does not use distributorless ignition, coil-on-plug or waste-spark-discharge). Reasons being simpler to maintain, higher power output and greater fuel economy.

Suzuki Cultus:2000 to date. Suzuki Cultus was launched in 2000 as a successor to the popular Suzuki Khyber. It was a basic version of Suzuki Cultus Generation 2 as produced in Hungary from 1992 to 2003, with a carburetted 993 cc G10 three-cylinder engine. It featured numerous improvements over Suzuki Khyber such as a more streamlined shape, increased rear leg room, independent rear suspension, 13" wheels as standard and power steering option in the VXL trim. Although it used the same engine as the Khyber, the cylinder head was different, and utilized hydraulic lifters for the valves. This was another improvement over Khyber as it saved cost and downtime for the routine maintenance of valve adjustment. Initial models were sold with a 2-spoke steering wheel but 3-spoke steering and tachometer were made standard after a few years. Fuel pump also shifted from being cam-driven to in-tank electrically operated fuel pump. From 2003 up to 2010 CNG kit was offered as a factory-fitted option. In August 2008, the engine was upgraded to a 4-cylinder 993 cc G10B EFi engine. The EFi was not distributorless and a camshaft-driven electronic distributor was utilized for spark generation. The new engine provided better fuel economy, power delivery and acceleration. The car has received numerous facelifts throughout, mostly in the form of new body colour options, new bumper design, front grill, headlight design, taillight design and seat upholstery fabric.

Suzuki Liana:The Suzuki Liana sedan, originally with 1.6-litre engines, replaced the Baleno Since 2007, Pakistan is the only place left where the Liana is still being assembled and sold. It is also exported to Bangladesh. Currently sold as the Liana VURV it has the 1.3 litre Suzuki M13A engine.

Suzuki PotoharThe Suzuki as produced by Spain's Santana Motors from 1985 to 2003 with an international 1982-1984 Suzuki F10A 970 cc carburetor engine. Pak Suzuki Motors manufactured it under the name Suzuki Potohar using the chassis code SJ410. The fuel ignition system was legacy distributor with breaker points. A common after-market upgrade was to replace the stock distributor with the one that came with the locally manufactured Suzuki Alto. Only SWB versions were offered. Initial models came with 4-wheel drum brakes though later it was upgraded with front-wheel disc brakes as standard. Factory-fitted CNG was offered in some years as well. Potohar was popular due to high ground clearance, low-end torque, capable 4x4, lowfuel consumption and easy maintenance. In 2006, Potohar was discontinued with no locally manufactured replacement. Rather Suzuki Jimny with M13A engine was offered as an import model at nearly twice the cost.

Suzuki Swift:2010 to date. The third generation swift has been launched by Pak Suzuki in 2010 Using the same M13A engine which liana has. The Pak Suzuki Motors version of the swift is a variant of the international 2004-2010 Suzuki Swift 1.3. The Swift is available in three trims: the DX (no alloy rims, different grill, no fog lamps, and no matching color side view mirrors), the DLX (with alloy rims, different grill, fog lamps, matching side view mirrors, and two options for navigation systems), and the Automatic (with all the features and options of the DLX, however with an automatic gearbox).

Suzuki Wagon R:Pak Suzuki launch new Wagon R on 18-April-2014 using the chassis code A1J310. It comes with three variants of Wagon R – VX, VXR and VXL – in 9 body colours. The Wagon R gets the 998 cc K10B three-cylinder Euro 2

compliant engine that develops 67 hp @ 6,200 rpm and 90 Nm @ 3,500 rpm. Itis paired to a 5-speed manual

Top Management

Profile of Directors :

1. Hirofumi Nagao

2. Tetsuya Fujioka

3. Toshihiro Suzuki

4. Takashi lwatsuki

5. Kinji Saito

6. Takanori

7. Wazir Ali Khoja

Initials BusinessINDUSTRY OVERVIEW

 According to official PAMA figures, total car, July LCV and pickup sales remained almost flat posting a growth of nearly 1 percent year on year to 10,534 units as compared to 10,435 units in the same period of last year, but down 23 percent month on month. 

Sales, moreover, remain generally weak going into FY14 as the glut of used cars still weighs on car demand for locally manufactured automobiles. In the meantime, a breakdown of automobile sales segment-wise shows that a major upturn was observed, as sales increased by 3.2 percent year on year to 9,288units as compared to 8,996 units in July 2012. 

However, LCV and Pickup segment sales have gone down by significant 13.2 percent year on year. The main factors behind increasing car sale specifically has been the reduction in used imported cars age limited to 3 years from 5 years previously and a low base effect. 

Meanwhile, the 800cc segment-which accounts for nearly 31 percentof overall sales-grew by 8.2 percent year on year as the escalating fuel prices have made owning a higher cc engine variant somewhat of a luxury. Pak Suzuki remained the leader as sales of Bolan and Mehran variant remained skewed up by 30 percent year on year to 989 units and 3.7 percent year on year to2,299 units, respectively. 

Unit sales for the 1,000cc engine capacity segment also continuedits upward trend registering an increase of 7.9 percent year on year; PSMC again remained the strongest force in the segment as the Company's Suzuki's Cultus was the only variant existing in this price sensitive segment. 

The 1,300cc segment remained the only one where customers could choose cars according to their choice as both 800cc and 1,000cc segment are predominantly considered PSMC's forte at the moment. During July, 1,300cc and above segment's sales were down by 1 percent year on year to 4,775 units, where INDUS's leading sellerCorolla recorded a surprising decline of 3.9 percent. 

Likewise, PSMC's Suzuki Liana and Swift witnessed a decline in sales of 80 percent to 5 units and 36 percent year on year to 440units. However, Honda City and Civic supported the sales of 1,300cc and above segment as their sales grew by 58 and 1.6 percent year on year, respectively. 

OUTLOOK: DEMAND FOR FUEL-EFFICIENT CARS:

 Barring the fat growth in the firm's top line due to the record sales in lieu of the infamous Taxi scheme of last year, Suzuki's growth has remained generally smooth over the last one year. 

The most recent quarter has, in effect, seen car sales for the firm manage to recuperate from the shock of the discontinuation of Alto, which Suzuki had been forced to phase out on account of the firm's Japanese parent's decision to move the assembly line for Alto's Euro-II compliant parts from Japan to India. 

But, currently the market for under 1,000cc cars remains an open ended question. With the absence of both Coure and Alto from the market, consumers could previously go for the Japanese assembled Alto and Passo, Nissan's March and Daihatsu's Mira, all of which

were available in the market at a price challenging Suzuki's remaining alternatives Mehran and Cultus. But, the reversal of age import decision has created a substantial price difference between Suzuki's offerings and the imported CBU's which are becoming too expensive. Going forward, this gap in the market will remain Suzuki's salvation.

INTEGRATED MANAGEMENT POLICY:Pak Suzuki is built on the idea of a responsible corporate citizenship thereby managing quality, environmental, safety & occupational health matters as an integral part of our business. In fulfilling this responsibility Pak Suzuki adheres to the following fundamental principles:

1. We are committed to provide top quality products at competitive price to the satisfaction and requirement of our customers.

2. We conduct our operations in compliance with applicable environmental, occupational health & safety laws and regulations.Even where existing laws & regulations are not adequate we undertake to operate in a responsible manner by assuring the HS&Eintegrity of our processes and facilities.

3. We recognize the interrelationship between energy and the environment, and we promote the efficient use of energy throughout our system.

4. We ensure safe disposal of waste generated from our facilityand will minimize the discharge of waste materials into the environment by utilizing responsible pollution control practices.

5. We will continuously seek opportunities to improve our adherence to these principles.