After consecutive price hike series and import curbs inflicted by the State Bank of Pakistan, the Japanese carmaker in Pak Suzuki is staring into abyss of financial ruin for the last three months.
Pak Suzuki Motor Company Limited (PSMC) has reported that it suffered a loss after tax of Rs. 2.48 billion for the third quarter that ended on September 30, 2022. The company further informed that it faced a loss of Rs. 2.50 billion in the last nine months this year. Pak Suzuki earned a profit of Rs. 993 million in the corresponding period of last year. And primarily, the reason behind the fuss is back-breaking car prices and finance costs.
Low volume of sales and relentless car prices led slumping demand paddled the sales some way back. The company’s sales witnessed a drop of 41 percent – clocked in at Rs. 29.80 against 50.26 billion. Following the trend, the gross profit of the company declined from Rs. 2.66 billion recorded in last year to Rs. 1.56 billion this year – decreased by 41%.
The company’s financial for 3QCY22 charts exhibited a drop of Rs. 30.25 per share compared to earning per share of Rs. 12.07 per share last year. Moreover, other income saw a reasonable jump – increased from Rs. 423 million to Rs. 1.065 in the face of higher cash equivalents and interest income.
Suzuki Pakistan Revised Booking Orders Policy
Suzuki Pakistan has revised its booking and price hold policy. According to a notification, the company stated that the following amendments have been made to the booking and price hold policy.
New Suzuki Booking Policy
- Suzuki will now accept booking orders only with a tentative delivery period of 60 days.
- The company will accept booking orders through its dealerships as per their specific quota on a monthly basis.
- Suzuki has asked its regional offices to stick to the allocated quote because the head office will not accept over-quota bookings.
New Price Hold Policy
These are the new conditions and requirements of the new price hold policy.
- The company will only offer a price hold to orders delivered within 60 days of the booking.
- And if the car is not delivered within 60 days due to circumstances beyond Suzuki Pakistan’s control, those orders and customers will not be eligible for the price hold. The company will give those consumers two options:
a) Pay the difference of price increase, including all taxes, and get the car delivered and invoiced.
b) Submit a request to cancel the order and refund their advance payment along with interest from the booking date at a 1-month KIBOR rate, effective at the time of the booking.
The new policies are ineffective from October 24, 2022.
