INTERNSHIP REPORT

TAHIRA MUHAMMAD ASHRAF

SALES DEPARTMENT

PAK SUZUKI
(PSMCL)
DSU 13 PAK STEEL
INDUSTRIAL, BIN
QASIM, KARACHI
6/26/2019
INTERNSHIP
ACKNOWLEDGEMENT/DEDICATION

Alhamdulillah Thanks to Almighty Allah that I manage to put an end to my internship

session successfully.

I wish to express my heartiest gratitude and honorable submission to my supervisor Mr.

Talha Siddiqui for sharing their wonderful experience encouragement and inspiration

throughout the internship period and completing this report. I also express my heartiest

gratitude and cordial thanks to all personal who I worked with for and throughout their

precious cooperation without it wouldn’t be possible for me to complete my internship I

would be honored the name of especially Mr. Waqas,Mr. Mumtaz, Mr. Shahgill, Mr. Adnan,

Miss Maleeha who helped me throughout this learning period. I am thankful to all the staff

and everyone especially the team sales and marketing who treat with organizational respect

and provides me the valuable guidance about the industry and departments that were needed

in the process.
 CONTENTS
acknowledgement/Dedication ...............................................................1
Mission ..................................................................................................4
Vission ...................................................................................................4
History ...................................................................................................4
Operational And Financial Performance Over The Years: ................5
Industry ...............................................................................................6
Automobile Market:............................................................................6
Motorcycle Market: ............................................................................6
Market Share .......................................................................................6
Milestones: ..........................................................................................7
Competitors Profile: ............................................................................10
Honda ................................................................................................10
Honda Vehicles ..............................................................................10
Toyota ...............................................................................................10
Toyota Vehicles .............................................................................11
Swot Analysis: .....................................................................................11
Bcg Matrix ...........................................................................................12
Alto Product Development: .................................................................13
First Generation (1979–1984) ..........................................................14
Second Generation (1984–1988) ......................................................14
Third Generation (1988–1994) .........................................................14
Fourth Generation (1994–1998) .......................................................14
Fifth Generation (1998–2004) ..........................................................14
 Sixth Generation (2004–2009) .........................................................15
Seventh Generation (2009–2014) .....................................................15
Eighth Generation (2014–Present) ...................................................15
Customers Feedback: ..........................................................................15
What I’ve Learned In Dealer’s Visit And Agency: ............................15
Dealership: ........................................................................................15
List Of Agencies On Board Suzuki - ................................................16
Synite Digital Visit: .......................................................................16
 MISSION
To be recognized as a leading organization that values customers’ needs and provides
motoring solutions with strong customer care.

VISSION
 Develop products of superior value by focusing on the customer
 Establish a refreshing and innovative company through teamwork
 Strive for individual excellence through continuous improvement.

HISTORY
The firm was founded in September 1982 as a joint venture between the Government of
Pakistan and Suzuki Motor Japan, formalizing the arrangement by which Awami Auto Ltd.
had produced the Suzuki SS80 from 1982. Suzuki originally owned 25% of the stock, and
have gradually increased their holding; they now own 73.09%. Pak-Suzuki was a joint
venture between the semi-governmental Pakistan Automobile Corporation (PACO), who had
earlier overseen local assembly from kits. Pak Suzuki is the market leader in Pakistan
Automobile Market by having more than 60% (as of December 2011) of market share.
Lacking serious competition, Pak Suzuki has had a market share of more than 50% since its
inception and has complete monopoly in the small car segment. Apart from giving
automobile related services like Suzuki Finance and Suzuki Insurance, Pak Suzuki also deals
in Pak Suzuki Certified Used Cars.

Having assembled both the Carry and Jimny locally since 1976, Suzuki's first locally built
product was the 800 cc ST90 Carry van and truck. 25,000 per year was the beginning
production. By 1984 the 1000 cc Jimny (SJ410) and 800 cc Alto/Fronte (called "FX") had
been added to the lineup, and a second plant was planned for 1985.[5] Cars built by Suzuki
Pakistan often lack essential features which are standard in other cars, such as airbags, rear
windshield defogger and rear seat belts. In 2006, Pak Suzuki offered factory-fitted CNG two
years after rival Dewan Motors started offering the facility in their locally assembled
Hyundai Santros.

By 2012, the Pakistani-assembled Suzuki Mehran remained possibly the last car in the world
which still used a carburetted engine, but from the end of 2012 Suzuki Mehrans have been
equipped with EFI engines to meet the old Euro-II emission standards. As of 2017, the car
still remains in production. As a joint venture, Pak Suzuki is also investing in an automobile
glass manufacturing company

OPERATIONAL AND FINANCIAL PERFORMANCE OVER THE

YEARS:

Pakistan Suzuki has maintained a healthy share in the auto industry and is the only one of
the three that enjoys the least competition. Its share in the market has remained between
60 and 70 percent and the company is the only player with smaller engine cars in its fleet
that have over the year’s maintained popularity. Perhaps lack of competition is also the
reason why Suzuki has continuously raised prices for its cars. On the other hand, it has
such an established dealership network and spare parts market that consumers find it
easier and cheaper to maintain a Suzuki car than perhaps those they import.
More recently, the influx of used cars imports such as Toyota Vitz, Passo, Daihatsu Mira
and other Daihatsu cars has given Suzuki a run for its money. Suzuki for its part
introduced Suzuki Wagon R that has fast gained popularity among small family car
seekers. The company also introduced a 1400cc sedan Suzuki Ciaz and Vitara (currently
imported in CBU form) to the market in competition with the Corollas and Hondas in
Pakistan. New products and models are always welcome.

Despite higher sales revenue, Pak Suzuki Motor Company’s earnings plummeted 66%
to Rs1.3 billion in calendar year 2018 as a weaker rupee eroded margins of the
automaker, according to a company notice sent to the Pakistan Stock Exchange (PSX)
on Monday. The company had reported a profit of Rs3.8 billion in the previous year.
Earnings per share (EPS) stood at Rs15.77 in 2018 compared with Rs46.49 in 2017.The
company also announced a cash dividend of Rs3.16 per share for the year ended
December 31, 2018.

Suzuki's new investments and auto policy: Until the previous week, PSMC was the only
automakers of the three that had expressed interest in making heavy investments into
the auto industry. (Toyota has announced its own investment plans just yesterday). The
amount touted by PSMC is $660 million and the administration said it would make
these investments to bring new cars and models into the market if the government gave
similar benefits under the auto policy as given to new investors. The famed Alto in a
660cc engine is one of the cars that the company bring to the market.
INDUSTRY
Pakistan auto sales clocked in highest ever sales in calendar year 2018. In year 2018, sales
volume of automotive industry was recorded at 254,936 units compared to 239,724 units of
last year, registering a steady growth of 6%. Steady growth in automotive industry was driven
by steady economic growth, low inflation & interest rates, higher consumer lending and well
acceptance of new models. However, volume slowdown was witnessed in later half of 2018
primarily due to restrictions imposed on non-filers for purchase of vehicles. Input costs of
automobile industry are directly impacted due to variations in exchange parity of Pak Rupee.
During the year Pak Rupee depreciated by 26% resulting in price increase of vehicles. The
organized market (PAMA member companies) for motorcycles and three wheelers increased
by 7% from 1,771,618 units to 1,899,662 units.

AUTOMOBILE MARKET:
Pak Suzuki remains the market leader in locally manufactured cars and light commercial
vehicles by retaining 55% market share of the total domestic market. This is attributed to our
focus on 1000 cc segment where our new models registered 21% growth in 2018. We
remained committed to our strengths of providing quality products with diversified product
range supported by 3S Dealerships’ network, spread all over Pakistan. Strong dealership
network ensured efficient services to customers including reliable after sales service and
availability of spare parts.

MOTORCYCLE MARKET:
Motorcycle market in Pakistan is dominated by motorcycle with engine capacity of 70cc.
Pak Suzuki markets motorcycles with engine capacities of 110cc and above. The Company
expects that motorcycle demand in Pakistan will gradually shift towards higher engine
capacity like other countries in the region and market for Suzuki motorcycles will improve.
Company sales operations ensures efficient services to customers through smooth workshop
operations. Company is trying to expand its business in this segment.

MARKET SHARE
Pak Suzuki remains the market leader in locally manufactured cars and light commercial
vehicles by retaining 55% market share of the total domestic market. Strengths of Pak Suzuki
are quality products, diversified product range and wellorganized dealers’ network, spread all
over Pakistan ensuring availability of spare parts at economical prices and reliable after-sales
service.
MILESTONES:
1982: Joint Venture Agreement was signed between Suzuki Motor Corporation-Japan and
Pakistan Automobile Corporation to set up Pak Suzuki Motor Co. Ltd. Locally assembled
Suzuki SS-80 (FX) car launched.

1983: Pak Suzuki as a Public Limited Company incorporated. Industrial Collaboration

Agreement executed with SMC - Japan.

1984: The Company started commercial operations.

1985: Mr. Osamu Suzuki, Chairman & CEO of Suzuki Motor Corporation was awarded
“Sitara-e-Pakistan” by Government of Pakistan.

1988: 1000 cc passenger car SWIFT SA-310, later on called KHYBER introduced
through local manufacturing.

1989: Foundation stone of the new plant at Bin Qasim was laid by the then Prime
Minister of Pakistan, Mohtarma Benazir Bhutto.

1990: Operation of the first phase of the new plant at Bin Qasim started with engine and
transmission assembly

1992: New plant commissioned with the production of three box Sedan passenger car
initially SF410 later on SF-413, known as MARGALLA. The Company was privatized
with SMC acquiring additional 15% shares from PACO thus enhancing its shareholding
to 40% and taking over the management.

1993: The paid-up capital was doubled with issuance of 100% right shares which
increased the capital to Rs. 250 million.

1994: Shifting of Head Office and production of all models to new plant completed.

1995: The paid-up capital was increased again with the issuance of 100% right shares,
raising the capital to Rs. 490 million.

1996: Taking initiative to control environmental pollution, the Company set-up waste
water treatment plant at a cost of Rs. 40 million. The Joint Venture Agreement ended,
PACO divested its entire shareholding to SMC, raising SMC’s equity to 72.8%.

1997: The 100,000th vehicle rolled out from the Bin Qasim Plant. 1300 cc BALENO was
introduced replacing MARGALLA.
1999: Exports of RAVI pickups to Bangladesh commenced.

2000: 1000 cc passenger car SF-310 CULTUS replacing KHYBER was introduced. 1000
cc passenger car ALTO was introduced.

2001: Reborn MEHRAN was introduced. CNG version of MEHRAN, BOLAN and
RAVI were launched.

2002: New BALENO was introduced. CNG version of BALENO, ALTO and CULTUS
launched. The milestone of 250,000th vehicle from the new plant crossed.

2003: The Company received ISO 9001: 2000 certification from AIB-VINCOTTE
International Limited Brussels, Belgium, 20th Anniversary Celebrations. Commencement
of Component export to Hungary, Sub-leasing of land to Vendors Industry of Pak Suzuki
adjacent to its assembly plant.

2004: New Plastic Injection Molding Shop commenced production of Bumpers,

Instrument Panels, Radiator Grills and Wheel Caps.

2005: Inauguration of first phase of capacity expansion (80,000 vehicles) by the Federal
Minister for Production, Industries and Special Initiatives. Achieved milestone of 100,000
online factory fitted CNG Vehicles.

2006: Second phase of capacity expansion (120,000 Vehicles) completed. Production of

locally manufactured LIANA Car. Production of 100,000 vehicles crossed in a calendar
year.

2007: Suzuki Motorcycles Pakistan Ltd. merged with Pak Suzuki Motor Company. Plant
Capacity Expanded upto 150,000 Vehicles per year.

2009: The 1,000,000th vehicle rolled out from the Pak Suzuki Plant. Cargo Van was
introduced.

2010: 1300 cc locally manufactured car Swift was introduced.

2011: Inauguration of new motorcycle plant at Bin Qasim.

2012: Automatic version of Suzuki Swift 1300cc was introduced. New Suzuki
Motorcycle “Raider 110cc” was launched replacing “Shogun”. Complete range of Suzuki
products was upgraded to Euro II technology
2013: Suzuki Gear Oil marketing started. Suzuki motorcycle, GD 110 launched. Suzuki
heavy bikes introduced

2014: Suzuki WagonR introduced Suzuki Motorcycle GD 110S launched Suzuki

Outboard Motors introduced.

2015: 2400cc Suzuki KIZASHI car introduced. Heavy Bike Suzuki Inazuma Aegis
Launched. Pak Suzuki awarded by Ozone Award from Govt. of Pakistan. Inauguration of
Vendor Development Program II by Federal Minister. Inauguration of Expansion of Parts
Manufacturing Facilities by Federal Minister. Inauguration of Resumption of CNG Fitted
Vehicle (Mehran & Cultus) by Federal Minister.

2016: Introduction of Suzuki GS 150 SE. Inauguration of Suzuki Booking Office &
Facilitation Centre. Achieving Highest Award from SMC-Japan on completion of 50,000
units to Government of Punjab under “Apna Rozgar Scheme”. Introduced Suzuki Cultus
Limited Edition. Launched Suzuki Vitara.

2017: Joint Venture Agreement was signed between Pak Suzuki Motor Company Limited
and Tecno Pack Telecom (Private) Limited to set up Tecno Auto Glass Limited.
Introduction of Suzuki Ciaz, Suzuki Mega Carry and Heavy Bike Suzuki GSX-R600
Launching of New Suzuki Cultus and Suzuki GR150 Inauguration of New Delivery Yard
at Port Qasim, Karachi.

2018: Landmark achievement of 2 million vehicles line - off achieved by Pak Suzuki,
Chairman Suzuki and Advisor to PM graced the ceremony. Pak Suzuki Launched Suzuki
Finance Arrangement Program (SFAP).
COMPETITORS PROFILE:

HONDA
Atlas Honda came into being by a joint collaboration between Japan’s popular motorcycle
brand Honda Motor Company Limited Japan and Pakistan’s known business
conglomerate Atlas Group in 1992. Honda Atlas Cars Pakistan Limited (HACPL) is
undoubtedly the most popular automobile company in Pakistan. In 2017, the company
achieved record-breaking sales. Since its establishment, it was the first time that Honda
sold 47,424 units in a year. It was 49% increase from 2016 sales which were of 31,780
units.

Honda Vehicles

 Honda Accord
 Honda City
 Honda Civic
 Honda CR-V
 Honda HR-V
 Honda BR-V

TOYOTA
In 1989 Toyota Indus launched in Pakistan in collaboration with some firms of House of
Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of
Japan.From then on there is no looking back for Toyota. In last 27 years, Toyota has sold
above 750,000 CBU/CKD vehicles. Today in the first six months of the fiscal year 2017-
18, Toyota sold 25,325 units, and in January 2018 Toyota sold 4,243 sedan cars thus
 becoming the top-selling sedan company in Pakistan. These statistics are as per Pakistan
Automotive Manufacturers Association (PAMA) data.

Toyota Vehicles

 Toyota Camry Hybrid

 Toyota Corolla Altis 1.6
 Toyota Corolla Gli 1.3
 Toyota Prius
 Toyota Corolla Altis 1.8
 Toyota Avanza
 Toyota Revo
 Toyota Fortuner
 Toyota Hilux E
 Toyota Hilux
 Toyota Land Cruiser Prado
 Toyota Land Cruiser 200

The other direct and indirect competitors include:

 Nissan
 Ford
 Yamaha
 Volkswagen's
 Kea

SWOT ANALYSIS:
 STRENGTH: WEAKNESS:
Highest Market Share Less focus on looks and design of cars
Monopoly over market in small cars Large market size to operate
Low Price Vehicles Tough competitors
Resale of Local Assembled Certified Used Very little Suzuki cars offer airbags
Cars Not many transmission auto vehicles
Auto Insurance and Auto Finance Program Mehran cultus and bolan are locally obsolete
Functioning operations and providing cars
services under one roof
Large Distribution Channels
Deep and Vast product line
SWOT
OPPORTUNITIES: THREATS:
Increasing Demand for Cars Tough competitors like Toyota and Honda
Efficient EFI engines Arrival of new auto players in existing market
Large Market size to operate Appreciation of Japanese yen in Pakistani
Global spare part market rupees
Diversifying and expanding the product line Sharp rise of international prices of raw
Auto Security and Tracking Services material
Exporting locally assembled vehicles Lack of skilled labor and technology

BCG MATRIX:
The BCG matrix helped me to study the important products of the company; I did identify in
which stage the products are and tried to do the SBU analysis for each product.
ALTO PRODUCT DEVELOPMENT:
Pak Suzuki has unveiled the much awaited Alto 660cc at the 2019 Pakistan Auto Parts Show
(PAPS). The new Alto will replace Mehran as the entry level hatchback in Pak Suzuki’s
lineup and will officially go on sale by mid of June 2019. The Suzuki Alto 2019 will have
three variants. Two variants will be manual, and one will be automatic. The high spec manual
variant and the auto variant will have a power steering. According to our information, the car
will have a similar transmission as that available in Suzuki Wagon R. Let’s look at the
different Alto generations that have been produced since 1979, most of which were available
in Pakistan under different names.
First Generation (1979–1984)
The first generation Alto (SS30V/40V) was introduced in May 1979. It was available in 3-
door, 5-door and 3-door van body styles. The engine deployed for the export markets was
796cc F8B unit.

Second Generation (1984–1988)

The second generation Alto was produced between 1984 and 1988. With a 796 cc F8B
engine, the stripped down version of this car with a very basic leaf spring suspension setup
was launched in Pakistan

Third Generation (1988–1994)

The third generation Alto (CL11) came with a 657 cc F6A engine and was more angular in
styling. It appeared in our market via the Yellow Cab scheme in early 90s. It was vastly
known as the Mini Alto in Pakistan.

Fourth Generation (1994–1998)

This generation was the first to come equipped with an optional airbag. The 4th generation
Alto was not available in Pakistan.

Fifth Generation (1998–2004)

The fifth generation Alto was launched globally in 1998 and within a couple of years was
launched in Pakistan too.
Sixth generation (2004–2009)

The 6th generation (HA24) Alto can be seen on our roads in decent numbers, and different
names, thanks to the used JDM imports.

Seventh Generation (2009–2014)

The 7th generation (HA25) Alto is also available in the market as a JDM import. It comes
with 658 cc K6A, 658 cc R06A, and 998 cc K10B engine.

Eighth Generation (2014–Present)

The 8th generation JDM Alto can also be seen on Pakistan roads in good numbers. It was
designed to have very low fuel consumption; this was achieved using “Suzuki Green
Technology” for the body and the engine

CUSTOMERS FEEDBACK:
“The new generation alto vxl the car is really a superb car the exterior designs are
awsome it is very much spacious 4 adults can sit very comfortably .leg room is too good
head room as well is awsome, idrove it about 800km and the average is very outstanding
it gives me about 18-20km within city with ac”

“A nice interior, looks modern you won't find any exposed metal parts inside the car
everything is covered with plastic housing like Hondas and Toyotas. Dashboard has
multiple spaces for all your stuff including two cup holders”

These are some customer reviews which show the positive feedback about the product.

WHAT I’VE LEARNED IN DEALER’S VISIT AND AGENCY:

DEALERSHIP:
Business Scorecard (BSC) is the parameter to ensure performance of each dealership, which
is evaluated on half yearly basis. It is designed in a way to meet company’s overall Sales
Target and for dealer, it is linked with financial incentives in return, if completed.

Categories of BSC standings as follows:

 PLATINUM
 GOLD
  SILVER

Carachi Motors Dealership Visit:

 Follow up of Sales
 Alto Dealer feedback of Price and Variants
 General Market Insight and Trends
 Alto Market Insight
 Test Drive Activity Follow up

LIST OF AGENCIES ON BOARD SUZUKI -

 Orient Mccann
 Synergy
 Synite Digital
 Jwt
 Oktopus
 Connect Marketing

Suzuki currently operates with the above mentioned Agencies with project to project basis,
whereas the mother Agency of Suzuki of Creative is Orient McCann and for digital is Synite
Digital.

Synite Digital Visit:

 Campaign idea was drafted for the upcoming Campaign of SGO (Suzuki Genuine
Oil), intended to go live from JULY onwards
 Overall review was carried out for SNS platforms of Suzuki
 Alto Digital Media plans were discussed