Amidst dropping profits, Pak-Suzuki increased its cars’ prices in August last year. At that time, the company changed Suzuki Mehran’s price to PKR 650,000 – an increase of PKR 20,000- and Suzuki Swifts’ ex-factory price to PKR 1,511,000. Furthermore, for Suzuki Cultus, the price saw an increase of PKR 30,000; whereas, for smaller and non-premium products, like Suzuki Ravi and Bolan, the price was increased by PKR 20,000 to PKR 25,000.
So ,why is that company might increase the Suzuki Mehran’s prices? As it turns out, there are few logical reasons for that and I took the liberty of listing down, for your convenience.
Also Check out: Suzuki Mehran 2018
1: Compliance with the new auto policy:
Pak-Suzuki’s singular presence in the sub 1000cc car category in Pakistan is quite obvious. On top of that, Suzuki Mehran is the only (locally produced) 800cc car in Pakistan and thus remains the only choice for an entry level automotive consumer. To meet the safety compliance standardized in the new auto-policy 2016-2021, the company has to install new features like ‘Immobilizer’ in the car. Here I would like to add that company has tried to delay this inevitable situation for as long as possible, but logic dictates that one way or another, Pak-Suzuki would have to swallow this pill. This action will eventually lead to an extra expense on the company’s part and thus an expected increase in the (ex-factory) price of Suzuki Mehran.
2: Statement off G.M Marketing Pak-Suzuki
Rumors have been circulating on the demise of Suzuki Mehran, when asked on this particular subject; the Pak-Suzuki’s G.M Mraketing remarked:
The urban consumers’ behaviour changes more frequently than their rural counterparts, which justifies the immense popularity of this car in rural areas. Thus, people’s association of comfort with this car in rural areas is much more noticeable. Additionally, the Pakistani consumers prefer resale value over other features and thus it is a huge question for the company to continue or discontinue Suzuki Mehran.
To say the least, the G.M’s statement is pretty vague in terms of the demise of this car, which means Mehran is here to stay for a quite a while. Add to the fact, the recommendations mentioned in the new auto policy, the company will eventually have to revise Mehran’s price to cater the inclusion of an immobilizer. Thus the end consumers will likely face an increase in Mehran’s price. The only question remains now is, “When is this bomb going to be dropped on Pakistani consumers?”