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.

The ongoing economic crisis has shattered all the local car makers but the Japanese car giants Pakistan Suzuki Motor Company (PSMC) and Honda Atlas carries a different story to present. As per Pakistan Automotive Manufacturers Association (PAMA) Toyota managed to sale more cars than its peer Suzuki and Honda last month - a strange sight to behold. What Report Revealed? PAMA report says that Suzuki and Honda Sold 1,681 cars combined, fewer than 1,948 vehicles that Toyota Indus Motors sold last month. Furthermore, Honda Atlas car sales posted a staggering low of 75%, selling 207 units last month against 835 units in March’23. Meanwhile, Suzuki witnessed a new low of 74% in April, selling 1,474 cars. The company sold 5,628 cars in March. (MoM decline: 74%) PSMC sold 820 units of Alto, 177 units of Suzuki Cultus, 99 units of Suzuki Wagon R, 145 units of Suzuki Swift, 163 units of Suzuki Bolan, and 70 units of Suzuki Ravi. Whilst Honda sold 159 unit of City and Civic and 48 units of BR-V and HR-V. On the Contrary, Toyota reported a slight jump of 2% in its sales. The company sold 1,948 units in April against 1,912 units in March. The company sold 1,007 units of Corolla and Yaris and 941 units of Fortuner and Hilux. Sales Decreased by 85% As per Pakistan Automotive Manufacturers Association (PAMA), car sales are plunged by 85% year-on-year (YoY), selling 2,844 units in April’23 compared to 18,626 vehicles sold in the corresponding period of last year. Similarly, month-on-month sales witnessed the similar trend – decreased by 52% sold 4,463 last month vehicles against 9,351 cars in March. The reason behind this nosedive is the poor sales of Pakistan Suzuki and Honda Atlas last month. What do you think about a decline observed in sales of Honda and Suzuki? Drop your thoughts in the comments section.

As we told you last week, Suzuki bike prices will be increased in the next few days, and our report proved to be accurate as Suzuki Pakistan has increased the rates up to Rs. 20,000. According to a notification, the new rates will be applicable from May 9, 2023. Importantly, this is the second price jump by Suzuki in a month, as the last price hike was on April 7, 2023.  New Suzuki Bike Prices  Suzuki GD 110S used to cost Rs.322,000, but after a price hike of Rs. 13,000, the bike now costs Rs. 335,000.  Similarly, Suzuki GS 150 was available at Rs. 350,000 previously, but after a hike of Rs. 14,000, its new price is Rs. 364,000.  Suzuki GSX 125 used to be priced at Rs.469,000. But after an increase of Rs. 19,000, the bike now costs Rs. 488,000.  Lastly, Suzuki GR150 had an old price of Rs. 501,000. After a price increase of Rs. 20,000, GR 150 now costs Rs. 521,000.  Terms and Conditions  The retail prices include (a) ex-factory product price and (b) freight charges. The above prices can change without any prior notice.  Price at the time of delivery shall be applicable.  Any government tax applicable will be charged to the customer.  Not surprisingly, the company has not shared the reason for this price hike, although it has issued a proper notification of the price hike. The primary reasons could be import difficulties, expensive raw materials, and unstable PKR against the USD, which directly impacts the forex rate. And as we have mentioned in multiple blogs earlier, despite the claim of total localization, the bike companies, especially Yamaha and Suzuki, import the major components of their bikes, meaning more the dollar rate, more the bikes rates, and in this case-sadly-more is not the merrier.  This endless loop of price hikes seems to continue in the foreseeable future because of economic and political instability. The automotive industry will take a couple of months to come out of this misery. Till then, keep your fingers crossed and enjoy the bumpy ride of uncertainty.  What is your take on the fresh hike in Suzuki bike prices? Is it justified? Please share your thoughts in the comments section.   

In the last couple of weeks, Atlas Honda, Yamaha Pakistan, and United Automotive have increased their bike prices. The new wave was led by Honda, followed by Yamaha and United. And now it seems that Suzuki Pakistan is also set to hike their bike prices. The sources claimed the prices will be hiked in the next few days.  According to the sources, the dealers of Suzuki bikes have revealed that the prices will go up in the next few days. Hence, they have asked the consumers to book the bikes at old prices and buy them. So, if you plan to buy a Suzuki bike, visit the nearby dealership before the prices see another jump.  Last Price Hike  On April 7, Suzuki once again increased the rates of its bikes, and GR150 started costing over five lacs, which is quite astonishing for a motorcycle. As per the company, new prices were implemented on April 7, 2023. This was the company’s third bike price hike. Suzuki GD 110S used to cost Rs.290,000, but after a price hike of Rs. 32,000, the bike now costs Rs. 322,000. Similarly, Suzuki GS 150 was available at Rs. 315,000 previously, but after a hike of Rs. 35,000, its new price is Rs. 350,000. Suzuki GSX 125 used to be priced at Rs. 422,000. But after an increase of Rs. 47,000, the bike now costs Rs. 469,000. Lastly, Suzuki GR150 had an old price of Rs.. 451,000. After a price increase of Rs. 50,000, GR 150 now costs Rs. 501,000.  Meanwhile, the company announced on April 27 that it would shut down its car and bike assembly plants in May 2023. The reason cited for the plant shutdown was the shortage of inventory. The shutdown lasts from May 2 to May 9, 2023. Unfortunately, this was not the first time the company had to close its plants, as they have been facing intermittent production shutdowns since last year. What do you think is how much Suzuki will increase the prices of its bikes in this episode? Please tell us in the comments section.