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Suzuki may halt Liana production

By Aamir Shafaat Khan 2014-02-11
KARACHI: As Maruti Suzuki in India has discontinued production of 800cc car, market is abuzz with reports that Pak Suzuki Motor Company Limited (PSMCL) may also end production of Liana 1,300cc in the coming months due to persistent steep fall in sales.

Vendors close to the assemblers said on condition of anonymity that PSMCL had already cautioned its vendors in November 2013 about the car`s discontinuation from January 2014 due to which the company had already suspended parts` procurement from vendors from November 2013 onwards.

They said that there are also zero schedules for parts supply of Liana to Pak Suzuki during the current month. The company is providing tooling and mould compensation to the vendors of Liana which means the brand will not exist in future, they added.

Vendors said that how long the company would carry on with abysmal production when consumers continue to show no enthusiasm for the vehicle. They added that the company might have stocks of imported CKDs and some locally made parts which the company has been trying to clear from July 2013 onwards depending on the low orders from buyers.

Last month`s production and sales figures compiled by Pakistan Automotive Manufacturers Association (PAMA) will arrive in a day or two, but sources said there was zero production of Liana in January 2014, with sales of only 22 units.

Production in July to September 2013, and in November 2013 also remained nil while only 72 units each were produced in October and December 2013 respectively.

Only five units were sold in July 2013, rising to eight units in August; 17 in September; 31 in October; nil in November; and 26 in December.

When contacted, head of public relations and official spokesperson for PSMCL, Shafiq Ahmed Shaikh, told Dawn on Monday, `The company has neither closed down Liana production so far, nor it has any such plans.

In fact the company is working to revive Liana in the next few months, he said. Used car import had really given serious jerk to the auto assemblers and Liana was also hit hard by this, he added..Asked about launch-ing of any new vehicle, he said: `I have no knowledge about this.

Liana came in the production line of Pak Suzuki in 2005-2006.

Total production and sales from 2005-2006 till July-December 2013-2014 was below 17,000 units.

Prior to Liana, the company launched Suzuki Baleno to replace most popular Suzuki Margalla, but the car failed to lure buyers in presence of strong competitors like Toyota Corolla, Honda Civic and Honda City.

Sources said the PSMCL is now planning to unveil Wagon-R in Pakistan in the current year as it has started taking its parts from some selected vendors.

However, the company has already urged the government to allow parts imports from India so that it could introduce new vehicles in Pakistan.

According to auto dealers, Suzuki Baleno and Liana had never been most sought-after vehicles due to their poor resale value.