The dismal state of Pakistani is economy is getting worst day by day. Pakistan Suzuki Motor Company Limited (PSMCL) has once again increased prices, following Toyota.
On Tuesday, The Pak Suzuki Motor Company Limited (PSMCL) announced the second price increase in two types of Alto660cc by Rs70,000-85,000 from Oct 1 followed by a price jump of Rs2,000-6,000 in two-wheelers.
Two-time price increase in Alto proposes the Pak Suzuki Motor Company Limited (PSMCL) is now completely obtaining cash in on its rapid demand after falling sales on hot selling WagonR and other models of PSMCL.
Suzuki launched Alto production in June announcing VXR and Alto AGS models at Rs1.101 million and Rs1.295m each. The company on August 1 proposed a price jump of Rs137,000 and Rs138,000. VXR and AGS models now put on sale at Rs1.308m and Rs1.518m.
The company, in advertisement letters to its approved dealers, did not ascribe any cause for the price hike. Nevertheless, it is announced the price increase would not be for the old unfinished orders, which have been reserved with limited advance payment, and for those purchasing orders in which clients failed to transfer their balance payments within the proper asked time.
Alto has emerged as the savior of the Pak Suzuki Motor Company Limited (PSMCL) at a point when all the vehicle making companies have been witnessing non-production days (NPDs). Suzuki had so far not witnessed any NPDs during July-September despite extensive sales drop in the WagonR model along with flat sales in Bolan, Ravi, Cultus, and Swift.
The hike in Alto prices had caught the markets by astonishment amid balance in the rupee-dollar parity during August-September. Vehicle makers had been increasing prices, quoting the rupee’s devaluation against the dollar.
The parity between Dollar and Rupee is forcing not only the automotive industry but other industries as well to enhance the prices of their products. Despite the IMF deal, Pakistan is going through the gloomy economic era.
In the two-wheeler section, prices of GD110S, GS150, GS150SE and GR150 models have been increased to Rs168,000, Rs178,000, Rs194,000 and Rs265,000 from Rs166,000, Rs175,000, Rs191,000 and Rs259,000 each despite decreasing sales during July-August.
Suzuki bike sales during 2MFY20 jumped to 3,162 units from 3,738 units at the same time last financial year. The company’s two-wheeler businesses, however, increased to 23,352 units in the fiscal year 2019 from 21,724 units in the fiscal year 2018.
Looking at the bleak sales, local car assemblers have reduced down the import of semi and totally halted kits (CKD/SKD) for cars by 15.5pc during July-August to $123m. The entire import of CKD/SKD for bike making came down by 25pc to $13m.
The Suzuki price hike is shocking for many as in these adverse times buying a bike is difficult for a Pakistani let alone an expensive car and that to a mediocre car like Alto. However, the company has to maintain itself so what’s the better way than increasing prices!