For Pakistan’s auto industry, there couldn’t be more challenging times than the present ones when one of the biggest car giants 'Pak Suzuki' starts selling used cars for its survival. The uncertainties during the prevalent deepening economic fuss mean that the incumbent government has no plan to liven the half-beating pulse of the country’s industry.   Among the other market players, Pakistan Suzuki Motor Company (PSMC) faced the worst. Following a letter written to PM Shahbaz Sharif, the company came up with a brilliant offer for its customers. As per the details, Pak Suzuki has offered an installment plan for used cars for Meezan Bank and Bank Al-Falah card holders. Moreover, the Plan is available at all authorized Suzuki dealerships. The installment comes with: Discounted Insurance Rates    Up to 50% Discount on Processing Fee Discounted Markup Rate Residual Value (RV) Financing of Up to Three Years 8-Year Financing Period PSMC Facing 'The Worst' Pakistan Suzuki Motor Company (PSMC) has found itself in the midst of a tumultuous period within Pakistan’s automobile sector. Recognizing the need for measures to ensure its minimal survival, Pak Suzuki has also requested PM Shahbaz Sharif to reduce duties and taxes on vehicles with engine capacities up to 1,000cc.  The company primarily operates in the low vehicle engine capacity segment, making it the largest manufacturer of passenger cars and light commercial vehicles in Pakistan. With an extensive dealership network and local vendor base, Pak Suzuki has long been a significant player in the country’s automotive landscape. As Pak Suzuki continues its fight for survival, it earnestly implores the government to refrain from imposing additional duties and taxes in the upcoming federal budget, particularly on vehicles with engine capacities up to 1,000cc. What do you think about the ongoing situation of the local car sector? Drop your thoughts in the comments section.

Pak Suzuki Motor Company (PSMC) has found itself in the midst of a tumultuous period within Pakistan's automobile sector. As the company strives to overcome the challenges it faces, it has reached out to Prime Minister Shahbaz Sharif, urging him to refrain from imposing new taxes or increasing existing levies in the upcoming 2023-24 budget, which is set to be presented on June 9, 2023. Challenges Faced by Pak Suzuki Motor Company Recognizing the need for measures to ensure its minimal survival, Pak Suzuki has also requested the premier to reduce duties and taxes on vehicles with engine capacities up to 1,000cc. The company primarily operates in the low vehicle engine capacity segment, making it the largest manufacturer of passenger cars and light commercial vehicles in Pakistan. With an extensive dealership network and local vendor base, Pak Suzuki has long been a significant player in the country's automotive landscape. In a letter addressed to the prime minister, the company expressed the dire circumstances it currently faces. Having already incurred substantial losses of Rs12.9 billion in the first quarter of the current year, Pak Suzuki attributed these setbacks to the prevailing economic uncertainties. The company highlighted its struggle by referring to the implementation of "no production days" on a monthly basis. Furthermore, Pak Suzuki shed light on the repercussions faced by its dealers and vendors, with some forced to close down and many others teetering on the edge of closure. The Need for Support in the Federal Budget As Pak Suzuki continues its fight for survival, it earnestly implores the government to refrain from imposing additional duties and taxes in the upcoming federal budget, particularly on vehicles with engine capacities up to 1,000cc. These vehicles cater to the masses and are an essential part of the company's product lineup. The economic crisis has taken a toll on Pak Suzuki, which primarily operates in a price-sensitive segment of the market. However, amidst these appeals, there are reports suggesting that the government may increase taxes on the auto sector. This uncertainty has prompted the Pakistan Automotive Manufacturers Association (PAMA) to write a letter to the Federal Board of Revenue (FBR), expressing concerns about potential changes in the basis of levying withholding and other taxes and duties on locally assembled cars. Speculations indicate that the government may shift from engine size to invoice price as the basis for charging withholding tax. The auto industry in Pakistan is grappling with challenges parallel to those faced by the overall economy. The rapid depreciation of the national currency and issues surrounding letter of credit (LC) due to dwindling foreign exchange reserves have significantly impacted the sector. Combined with inflation, high interest rates, and supply chain disruptions, these factors have resulted in a substantial decline in car sales. Recent data released by PAMA paints a stark picture of the situation, with car sales plummeting from 18,626 units in April 2022 to a mere 2,844 units in April 2023. Pak Suzuki's plea to the prime minister sheds light on the prevailing hardships faced by the company and the broader auto industry in Pakistan. The call for tax relief and support is crucial to mitigate the challenges and revive the sector. As the government prepares to present the budget, it is essential to consider the long-term sustainability and growth of the automotive industry, ensuring a favorable environment for companies like Pak Suzuki to thrive and contribute to the nation's economy.

It’s been a year; the local auto industry is bearing the brunt of the prevailing economic crisis in the face of import restrictions imposed in May’22. Following the carmakers, bike manufacturers in the country are also reporting an extraordinary low in sales. The same is the situation of production and revenue. Reports have informed that bike sales plunged last month. Yamaha and Suzuki bike sales fell flat, whilst Honda observed a slight jump in sales. Suzuki observed a month-over-month (MoM) decrease of 40%, selling 1,156 bikes in April 2023. Meanwhile, Yamaha reported an MoM slump of 50.4% and sold 841 bikes last month. Honda Atlas witnessed a Month-on-Month (MoM) jump of 2.4%. Chinese bikes have a similar story to the present – witnessed a down of 34% in sales. The motorcycle makers haven’t mentioned any reason behind this fuss. While analysts hold import curbs and weeks-long production cuts responsible for the effects. Additionally, back-to-back increase in bikes price, and burgeoning inflation has also shattered the customer’s purchasing power. Pak Suzuki Halted Bike Production for 19 Days Amid ongoing economic meltdown and prevailing uncertainty in the local auto industry, Pak Suzuki, one of the affectees, faced the worst came with another production cut. Citing a shortage of inventory, the company has announced to halt the production of bikes for almost three weeks or 19 days. In an official notification, Pakistan Suzuki Motor Company (PSM announced that the bike assembly plant would remain closed from May 23 to June 10. Conclusion Rupee depreciation, depleting foreign exchange reserved following the not-well-thought financial policies of the incumbent government, steep rise in inflation, and above all, the infamous ‘Import Embargo’ inflicted by the State Bank of Pakistan has not only ruined the country’s car industry but has also urged the bike to face sale shocks.

Amid ongoing economic meltdown and prevailing uncertainty in the local auto industry, Pak Suzuki, one of the affectees faced the worst, came with another production cut. Citing a shortage of inventory, the company has announced to halt the production of bikes for almost three weeks or 19 days. In an official notification, Pakistan Suzuki Motor Company (PSM announced that the bike assembly plant would remain closed from May 23 to June 10. Auto Industry Marking a Historical Low Rupee depreciation, depleting foreign exchange reserved following the not-well-thought financial policies of the incumbent government, steep rise in inflation, and above all, the infamous ‘Import Embargo’ inflicted by the State Bank of Pakistan has not only ruined the country’s car industry but has also urged the car makers to lay off thousands of workers. Dwindling Car sales, persistent production cuts, and 10th consecutive drop in car financing in the face of burgeoning interest are episodes narrating the whole series of this historical low. Data released by the State Bank of Pakistan (SBP) revealed that auto loans dropped by 16% last month to Rs. 308 billion compared to Rs. 368 billion in June 2022. Highlighting month-over-month charts, car financing decreased by 2.83%. Car leasing by private banks has observed a slump in the face of the rising SBP policy rate, which is currently 21% against 7% in March 2020. Even the auto parts industry is not getting a positive response. While talking to Arab News Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) chairman Munir Karim Bana addressed the reservation stating, “We were profitable and paying taxes to the state as all our sales are documented and tax paid. But we are bankrupt now, and there is hardly any chance of revival of our industry in the coming years.” What do you think, when this series of production shutdown will conclude? Drop your thoughts in the comments section.