PAK SUZUKI MOTORS

COMPANY LTD
P R E S E N T E D B Y:
ABDUL BASIT
ZULFIQAR ALI
SHAHZAD
ASIF
Introduction
Company assembling and distributing Suzuki Japan's cars in Pakistan.
Currently they are one of the most successful motor companies in
Pakistan. The firm was founded in 1983 as a joint venture between
PAK and Suzuki, formalizing the arrangement by which Awami Auto
Ltd. had produced the SuzukiSS80 from 1982. Suzuki originally owned
25% of the stock, and has gradually increased their holding; they now
own 73.09%. The company now assembles a wide range of Suzuki
vehicles.
Financial Statement
 Industry Analysis
In Pakistan the market structure of Automobile industry is Concentrated, simply say Oligopoly(imperfect
competition)
Barriers are high in entry of new suppliers.
the market can also be categorized as price-oriented.
The car 3,220.00units registered In Pakistan
The competitive environment has been explained in terms of the different segments of the market. It
could be observed that in the upper segment, Toyota is the market leader whereas Suzuki leads in the
lower segment.
In year 2016, sales volume of auto industry remained stable. During the year 203,492 units were sold
compared to 224,247units last year, registering a decline of 9.3%. (Apna Rozgar Scheme)
The organized market (PAMA member companies) for motorcycles and three wheelers increased by 19.7%
from1,250,553 units to 1,497,036 units.
Industry Data
Government Support
Automotive Development Policy (ADP) rationalized the tariff
structure for existing Original Equipment Manufacturers (OEMs) by
reducing the customs duty on Complete Knock Down(CKD) non-
localized from 32.5% to 30% and CKD localized from 50% to 45%.
tariff structure for new entrants and non-operational units is
significantly lower than tariff structure for existing OEMs. ADP
offered concessional rate of custom duty @ 10% on non-localized
parts and @ 25% on localized parts for a period of five years to new
entrants and three years for non-operational units.
MAJOR PLAYERS IN THE MARKET
There are 12 automobile companies listed on the Karachi Stock
Exchange under the sector of Auto & Allied. The car industry in
Pakistan primarily comprises of four players, all of which are
Japanese. These are Pak Suzuki Motor Company Ltd., Indus Motor
Company Ltd., Honda Atlas Cars Ltd. And Ghandhara Nissan Ltd.
Amongst these, the first players comprise the major position in the
market. Naya daur Motors are the manufacturers of Kia. The market
for Buses and trucks include Hino-Pak Motor, National Motor,
Ghandhara Nissan Diesal etc. The tractors market comprises of Al-
Ghazi Tractors, Millat Tractors.
PAK SUZUKI MOTOR COMPANY LIMITED
This company was the first passenger car manufacturer in the industry. It
was formed in August 1983 as a joint venture between Pakistan Automobile
Corporation Limited (PACO) and Suzuki Motor Corporation (SMC)-Japan. The
company started commercial production in 1984.
The company was privatized in September 1992 and SMC progressively
increased its equity to 72.8% by acquiring the stake of PACO.
The company today is the largest player in the industry wit over 50% market
share and a virtual monopoly in the fastest growing small car market.
The company launch the CIAZ and VITARA to compete with Toyota and
Honda in the upper segment.
INDUS MOTOR COMPANY LIMITED
Indus motors is a joint venture amongst the house of Habib (50%
equity), Toyota Motor company (12.5%) and Toyota Tsusho
Corporation (12.5%) initiated in December 1989 for the assembling,
progressive manufacturing and marketing of Toyota vehicles in
Pakistan. IMC is also the sole distributor of Toyota vehicles in
Pakistan. The company started commercial production in May 1993.
HONDA ATLAS CARS LIMITED
Honda Atlas stepped into the Pakistani market in November 1992 as
a joint venture between Honda Motor Company, Japan, and Atlas
Group of Companies, Pakistan. Commercial production started from
July 1994
BUSINESS ANALYSIS
Location: Downstream Industrial Estate of Pakistan Steel, Karachi
Total Area: 259,200 m2 (64 acres)
Facilities: Press Shop, Welding Shop, Paint Shop, Plastic Shop, Engine and Transmission Assembly
Shop, Final Assembly & Hi-Tech Inspection Shop. The Company has also established a modern
Waste Water Treatment Plant as its contribution to the preservation of environment.
Cost: Rs. 16.395 billion
Production Capacity
(double shift)
Car & LCV’s Plant: 150,000 units per annum
Motorcycles Plant: 44,000 units per annum
PRODUCTS
PRODUCT AND SERVICE OFFERED BY PAK SUZUKI:
AUTO MOBILES:
CIAZ JIMNY
VITARA MEGA CARRY
WAGON R BOLAN
SWIFT CARGO VAN
RAVI PICKUP
CULTUS
MEHRAN
APV
MOTOR CYCLE: HEAVY BIKES: OUTBOARD MOTORS:
GR 150 GSX-R600 2-STROKES
GS 150SE & GS 150 INAZUMA 4-STROKES
GD 110S & GD 110 INAZUMA AEGIS
SPLINTER ECO BANDIT
SERVICE OFFERED BY PAK SUZUKI:
CUSTOMER CARE
FREE MAINTENANCE
CSR (CORPORATE SOCIAL RESPONSIBILITY)
Pak Suzuki is built on philosophy of CORPORATE CITIZENSHIP and has committed itself to improve
Environment.
Pak Suzuki is PIONEER in introduction of environment friendly FACTORY FITTED CNG VEHICLES.
The Company continuously monitors the waste generated from its activities and wherever
required has ENVIRONMENTAL CONTROL EQUIPMENT and facilities in place.
The company has also installed state of the art Waste Water Treatment Plants to ensure SAFE
DISPOSAL OF WATER IN TO THE ENVIRONMENT.
PRODUCT DEMAND
EARNING CYCLE OF THE BUSINESS
STAGE IN DEVELOPMENT OF THE BUSINESS
MEHRAN:
MEHRAN has the highest growth rate in automobile sector in Pakistan. Pak Suzuki always changes the different
parts of MEHRAN either exterior or interior whenever it comes to its maturity level. MEHRAN is attractive the
people who have salaries within 20,000 to 30,000 per month. The youngsters also prefer the MEHRAN because of
its size and economical price. Small business people also prefer MEHRAN because of its low maintenance cost.
MEHRAN also attracts people who move from bike to the cars.

LIANA:
Liana is a luxurious and highest price car of Pak Suzuki. It was built to compete with Pak Suzuki’s biggest
competitors like Toyota and Honda. Liana has the same features which are available in Corolla and Civic but still it
couldn’t make its market as compare to both these cars. Liana has replaced the Pak Suzuki’s BALENO in 2005-06,
since Pak Suzuki tried several ways to establish its position but failed to do so. It was made for a people of high
income group but due to high prices in which the market was already giving names like corolla and civic who has
their strong brand name and customer loyalty, liana was failed to capture the market.
SWIFT:
Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan 2009. Swift has all the
latest features like power steering, central locking, Auto Transmission and the ABS. All the
1300cc cars in Pakistan have price range of 1300000 to 1400000, while Swift was introduced
at 999000 and recently it was increased at 1049000. It has still advantage of price
competition as compare to other 1300cc cars in Pakistan.

RAVI:
Ravi is for the people doing small business especially cargo services like homedelivery
services, TCS and market delivery. All people doing business of these types are loyal
customers to Ravi. Although the SHEHZORE has captured some of its market share but still
Ravi is much famous and market leader in its type.
 LIQUIDITY OF THE BUSINESS

INDUS
2012 2013 2014 2015 2016 MOTORS

CURRENT RATIO 3.08 2.98 2.53 2.55 2.62 1.58

QUICK RATIO 1.13 1.16 0.83 1.50 1.20 1.28

CASH RATIO 0.31 0.37 0.24 1.20 1.40 1.22

LIQUIDITY RATIO :
Current ratio :
Formula: current asset/current liability
Intra Company Analysis:
The current ratio of company is decreasing from 2012 to 2016 that is from 3.08 to 2.62.
This is not the good sign for company because it shows that company is losing its ability to
pay current liability as compared to 2012.

Intercompany Analysis:
As compared to Peer Company as Indus motor, Suzuki is doing well as the current ratio. It
means Peer Company is less able to meet its short term obligations.
Quick ratio :
Formula: quick asset/current liability
Intra Company Analysis:
The quick ratio of company is increasing from 2012 to 2016 except it is decreased in 2014 that
is from 1.13 to 1.20. This is the good sign for company because it shows that company is
ability to meet short term debts.

Intercompany Analysis:
As compared to Peer Company as Indus motor, Suzuki is not doing good as the current ratio of
Suzuki is lower than the Indus motor It means Indus motor is more able to meet its short term
obligations. Our company is not doing good as quick ratio.
Cash ratio :
Formula: cash + marketable securities/current liability
Intra Company Analysis:
The cash ratio of company is increasing from 2012 to 2016 that is from 0.31 to 1.40 this is
the good sign for company because it shows that company have ability to pay its debt either
in crises situation.

Intercompany Analysis:
Company is doing good in comparison with the Indus motor our company is more able to
meet its obligations as the cash ratio of Indus motor is1.22 which is high than 1.40 of our
company, our company is doing good as cash ratio .
THANKYOU