Pak Suzuki Increases Prices of its Cars Amidst Falling Profit Margins

Pak Suzuki Increases Prices of its Cars Amidst Falling Profit Margins

Pak Suzuki saw some incredible sales during the Punjab government’s taxi scheme. Both Ravi and Bolan were sold in thousands of thanks to the Green Taxi Scheme. But sooner or later, the scheme would have ended, decreasing the production of new cars as well. And that is what has happened. The overall profits of the company have fallen by astonishing 41% in the last year. The dropping profits are being directly attributed to drastic low sales.

Also Read: Car Sales in Pakistan up by 17.6pc in FY2015-16 and Pakistan Spent Rs75bn on Imported Cars

And the shareholders are aware of this turns of events as well. Suzuki’s share value fell by Rs21.78 and closed at Rs413.99 at the Pakistan Stock Exchange. During the first half of the year, appreciating Japanese caused the gross margins of Pak Suzuki dropped by over 2.5pc. Company’s profit dropped from Rs1.47bn in April-JuneFY2014-15 to Rs487.84mn in April-JuneFY2015-16. Percentage wise that is a drop of almost 67pc. According to a report published in a local newspaper, the financial cost is up from Rs23.85 million to Rs84.42 million. Whereas the operating income has increased from Rs427.36 million to Rs589.93 million.

Punjab-Taxi-SchemeAnd now the latest news, Pak Suzuki has revised the price list of its cars and has increased the prices across the board. The cheapest Suzuki Mehran was priced at Rs630,000 now costs Rs650,000. Similarly, the top of the line Suzuki Swift AT NV now costs staggering Rs1,511,000.

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Pak Suzuki is already sent the new tariff to its dealerships across the country, and the new prices will be effective from today (1st August 2016). But the company has yet to update prices on its website. The price of Suzuki Cultus Petrol and Suzuki Cultus CNG still show Rs1,094,000 and Rs1,169,000 respectively. But the updated prices of both cars are Rs1,124,000 and Rs1,199,000 respectively. Similarly, Suzuki Swift AT NV is still showing Rs1,481,000 however the new price, as mentioned above, for this model is Rs1,511,000.

For models like Suzuki WagonR, Suzuki Cultus, and Suzuki Swift, the price is increased by Rs30,000 whereas for smaller and non-premium products, like Suzuki Mehran, Ravi, and Bolan, the price is increased by Rs20,000 to Rs25,000. Here is the updated price sheet.

Pak Suzuki latest price like 1st August 2016

It is not clear whether the new price hike has something to do with falling profits or increasing production costs. But one thing is for sure; it is definitely not good for a common Pakistani auto consumer.

  • Ibbad Ashraf

    Sale is dropped therefore profit decreased, but what is the reason behind increase in operating cost?

  • Umair

    Suzuki should be banned in Pakistan The dirtiest company in the world.

  • Kashif Akbar

    Suzuki must be ready for doom’s day. fuck off with the crinckle called mehran. stupid people of Pak Suzuki keep selling 1985 model of car to the people. let’s wait the day other brands come in. if mehran is 3.0 lac price offer by them, no one will bother to stop and think about it. just enjoy the last days to suck blood off the vains.

  • Shazam

    Abay to dekhta kidhra hai , tera hero idhar ha… There comes a Master Blaster ,The all new FAW V2 … for the price tag of just 10 LACS , 49 Thousands, with no ADVANCE INCOME TAX like stuff, already paid by company… This is called sincerity by a CHINESE AUTOMAKER GIANT…..

  • khan sb.

    So this is an option left …. Buy a 1298cc durable and rough and tuff FAW V2.. Available in SouthAfrica, Chile, Nambia, Aljazaair, China, SaudiArabia and Russia

  • Ehs

    all cars except wagon R are obsolete vehicles only being sold in pk. This company should be ashamed, it has no interest in modernizing and is offering 1980s decade cars even now.

  • Azeem Waqar

    Don’t waste money on this Shit Buy recondition japanees car

  • Haris Ahmed

    Strange thing is that why on earth cultus is more expensive than WagonR? It doesn’t even make sense? This explains Pak Suzuki is unstable.

  • Fawad

    You are buying their cars like nuts. Why would they upgrade?

  • FAW is BEST

    YOU are Welcome

  • Zulfiqar Ali Soomro

    15 lakh ki Swift. Lanat :p

  • Guest

    In weight of steel, Cultus may be heavier.

    Another possible reason: they want to reduce sales of Cultus and increase sales of Wagon-R. Cultus has recovered the cost of R&D and tools and plant, any new piece sold is bonus for them, but for Wagon-R, it is a recent model of Indonesian origin (the Wagon-R which we get), the cost of R&D (Indonesian LCGC initiative) and the cost of tools & plant (assembly plant installed by PakSuzuki in Pakistan) still needs to be recovered.

  • caryaar@gmail.com

    Buy a FAW V2 , Japanese cars are SHIT

  • Zuhaib Khan

    Can`t Suzuki or the rest of the lot be taken to a court?! a consumer court even!? What reason can they gave now that prices of all commodities world over have fallen by almost half?! They were blaming inflation for the price rise till last few years, what reason do they have now? The other two can make the point of upgrades but what has this no good company brought to the people?! Dash bleep dash!!

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