Suzuki is a well-liked car company in Pakistan for its highest-selling cars Mehran and Cultus. Pakistani market is dominated by middle-class people and as conveyance is a necessity for all, Suzuki provides the best for least prices. Suzuki Mehran and Suzuki Cultus had the highest rate of sales in Pakistan. Unfortunately, there is a Suzuki sales fall for the Month of July following the economic crisis in Pakistan.
As the prices of everything have grown due to inflation, it has led to challenges in production processes for the companies. Many vehicle companies have decided to cut down their output due to economic instability.
Report On Suzuki Sales Fall
According to the reports Suzuki sales fall by 60 per cent selling only 6,800 units in July. The sales of Suzuki Alto in this number was 4,600 units. However, the rest of the cars could not make a significant number in sales in comparison to Suzuki Alto. It manifests the lowest sales this year.
Suzuki has made changes to its prices and opted for non-production days for some of its cars. The significant Suzuki Swift 2022 price hike is one o the reasons why the customers have decreased buying the cars.
An Overall Problem In The Industry
The problem is not only with PSMC because all motor companies are experiencing the same. CEO of Toyota Indus Motors gave an insight into the reasons why it has experienced financial instability in the company. According to him, an increase in freight costs, inflation rate, increase in the price of raw materials, and other factors have led to a 25 per cent fall in sales.
Honda Atlas Car Limited also revealed the same issues in its financial briefing. It is also experiencing production pauses. Honda disclosed that the production pauses are due to the non-approval of letters of credit from the government. As a result of this non-approval, there are delays in the production and delivery of vehicles in Pakistan.
The rest of the companies are showing the same concerns in form of price hikes and non-production days. This economic instability and loss of sales are not going to recover as a miracle. The situation is going to take a while to get back on the success path.