An agreement has been made between the Pak Suzuki Motor Company Limited (PSMCL) and the Bank of Punjab for the production of 50,000 units of Suzuki Ravi and Suzuki Bolan Van under ‘Apna Rozgar Scheme’ of Punjab Government. This will be a positive aspect for the Japanese local car assembler for the current fiscal year. The cars will be supplied from October 2014 to October 2015, stated Suzuki.
PSMCL enjoys about 50% of the market share and this agreement will further boost up its shares. About a budget of Rs 25 billion has been given by the Punjab government for the taxi scheme in the 2014-15 budget. The Punjab Government will provide these taxis to the rural areas. Auto analysts hope that the Rozgar Scheme will boost up the earnings by 13 to 20pc.
PSMCL has the ability to produce 30,000 units per month each of Ravi and Bolan in three shifts. In the year 2013, PSMCL was able to sell 14,000 units of Bolan and 11,700 units of Ravi. The company also produces 150,000 units (on double shift basis) and sold 76,000 cars/LCVs during CY13 compared to 96,000 cars/LCVs during 2012. The Punjab government has apparently given up the entire contract to PSMCL, although AL-Haj FAW was also expecting to get a share.