Suzuki announces plant closure and price reduction

Pak Suzuki Motor Company announces a plant shutdown and downward price revision across entire portfolio on account of import situation 

LAHORE: Pak-Suzuki Motor Company (PSMC) has announced both a temporary shutdown of its car plant and a downward revision of its prices across its entire completely-knocked-down (CKD) portfolio.

PSMC has notified the Pakistan Stock Exchange (PSX) that it will be suspending its automobile production from 18th-19th August 2022 on account of its depleted inventory levels. It cites the State Bank of Pakistan’s (SBP) import restrictions on CKD units as the main reason for the inventory shortfall. Its motorcycle plant will, however, remain operational during the aforementioned duration.

Within a matter of hours after notifying the PSX, PSMC also announced a downward revision of its prices across its CKD portfolio. 

The new prices for the company’s Alto lineup are as follows: 

The new prices for its Cultus lineup are as follows: 

The new prices for its Wagon-R lineup are as follows: 

The new prices for its Swift lineup are as follows: 

The new prices for its Bolan and Ravi lineups are as follows: 

The revised retail prices are inclusive of FED and Sales Tax and exclusive of Advance Income Tax. 

PSMC’s circular states that the aforementioned prices are subject to change without any prior notice and prices at the time of delivery shall apply. Any government taxes and levies applicable at the time of delivery shall be borne by the customers. They will come into effect on August 16. 

PSMC’s decision to revise its prices downwards comes a day after Toyota Indus Motor Company (IMC) announced theirs. 

The motor company has neither cited a reason for the price reduction nor commented upon the matter. However, one can surmise that this decision is on the back of the PKR appreciating against the USD. 

Speculation would be incorrect but given that Pakistani automotive manufacturers operate on a Just in Time (JIT) production process, this is the likely case. 

PSMC’s circular highlighting inventory shortfalls elucidates upon the fact that some, if not many, of the automobiles may not have yet been produced. Furthermore, it cites the SBP’s increased import restrictions as the rationale for the inventory shortfall. 

If you are short on inventory that has to be imported to produce a final vehicle, and the cost of those imports has fallen, then the price of the final product can only be reduced if it has not been made yet. 

However, PSMC did not need to do this. It could have sacrificed PR costs in the face of IMCs decision for retaining higher margins. PSMCs decision is likely because, like IMC, it recorded poor performance in the month of July with an overall sales decline of 47%. 

PSMC may have also been prompted to do so soon after IMC fearing the potential backlash it may receive, alongside the backlash it may have already received following IMCs decision, if another manufacturer after IMC announced a downward revision before they could. 

The motor company’s decision is indicative of other automotive manufacturers potentially following suit. However, its abstinence from announcing a downward revision in its motorcycle business leaves customers in the  two-wheeler segment in the dark about whether or not, they too will benefit from the PKR’s strides against the USD. 

Daniyal Ahmad
Daniyal Ahmad
The author is a member of the staff, and covers the automobile, energy and advertising insdusties as a sector analyst. He can be reached at [email protected]

62 COMMENTS

  1. Suzuki must close permanently in pakisran ☠🤲🙏
    Ku k mafia ha koi puchny wala ne jb chaye jb dil kiya Ashrafia ko khush kr k apna mal bunya

  2. EVEN AFTER 30 YEARS THEY ARE IMPORTING CKD KITS FROM JAPAN,IT’S BETTER TO SHUT THEM DOWN,LET ALLOW FREE IMPORT OF THESE VEHECLES.FROM JAPAN,!!!!!

    • Asslamo alaikum kasa ho bhai ap theek ho good sahih kha hai is Suzuki chour motor vehicle company ny 2 3 hafte pehly 3/4 lakh rupay tak brha diye or hazaro mein pase kam kiye hain aesy chour kabhi traqi nahi kar sakty dollar rupon mein mehnga hua inho ny garion ki qeemat lakhon mein biman chour dako isko completely band kro. Beghairat insan

    • Uff god alto and cultus are too expensive alto is like a box , it’s price is 23 lac which is not acceptable and about cultus we know it’s a good car also little bit luxury but cultus prices not suitable on this cars

  3. Intahei third class guilty Suzuki cars ki na koi. Safety na comfort or prices aisy increase keyay ja rahy hain mafia sb baithy hoy

  4. Suzuki Wants to create scarcity in PSx & Pakistan nation for demand and supply problem,Allah Pak se dua govt black mail na ho .

  5. Suzuki company is one of the third class manufacturing unit. It never think to improve its product as it’s production units in other countries instead always try to cheat Pakistani customers.

  6. Prices increase by 20% amid rupee devaluation against US dollar and now reduction of mere 5% when rupees is appropriating. What a way to make stupid people more stupid.

  7. Shamefull act by Suzuki
    This price reduction is not acceptable
    Bycott Suzuki because they are trying to fool the whole nation..

  8. Very good decision for shutdown the plant,
    شکر ہے جان چھوٹ جائے گی وگرنہ تو ہم لوگوں میں اتنی غیرت نہیں کہ ہم ان ٹین ڈبوں سے جان جھڑواتے
    Very good

  9. میں نفل ادا کروں گا جب پتا چلے گا کہ پلانٹ بند ہو گیا۔
    مگر ان لوگوں میں اتنی غیرت کہاں کہ پلانٹ بند کریں، بے غیرت ہیں یہ

  10. If one needs to ruin something it should be handed over to pakistanis, a good brand being wasted in pakistan.

    • In tmam companies ko shut up call deni chahye k bohat harsa ho gya CKD CKD. Ab apna plant yahan bnaain warna sab ko bhaga dain. Har mafia mu utha k Pakistan ko looty ja raha hy koe poxny wala hi nhe in ki bike 110 234000 ki begherti hy 110cc itny pesu ki Alto Car jo k teen daba hy 23 lakh ki. Aj sy 4 saal phly har brand ki gariyaan 15 sy 20 main thi 15 wali utha k 35 ki kr di

  11. Suzuki Price Hike 20% and price reduction only 5%. Its Totally unecceptable.
    Suzuki Better Shutdown your plant Permanently or benefit of 20% USD decline against PKR Must be forwarded to Pakistani Public.
    Beside, suzuki should start manufacturing of CKD in Pakistan like Suzuki is doing in neighboring country.

  12. Intahei third class guilty Suzuki cars ki na koi. Safety na comfort or prices aisy increase keyay ja rahy hain mafia sb baithy hoy

  13. Suzuki and others Companies Sirf Loot Maar krhe Han. Or Awam b Pagal ha Jo Itny costly cars Purchase krne k Liye ITNA own Pay krti han.Hum sub ko in companies ki cars ka bycott krna chahye… India is better wahan cars Itny sasti han Yahan tou Mafiya ha Jo 2no hand Sy loot Raha ha. Sham for Suzuki Toyota Honda Kia all of you…

  14. لعنت ھے سوزوکی موٹر پر حرام خور ھیں سب مل کر لوٹ رہے ہیں مُلک کی عوام کو انڈیا میں دیکھیں زرا سوزوکی موٹر بُہت بہتر ہے اور اتنی مہنگی بھی نہیں یہ گاڑی سوزوکی موٹر فضول گاڑی ہے پتہ نہیں پاکستانی اس کے علاوہ کوئی اور کس لیے نہیں لیتے 3 ماہ ھر اِنسان یہ سوچ لیں نہیں لینی کوئی بھی گاڑی یہ لوگ اپنی اوقاتِ میں آ جائیں گے اور حکومت تو پہلے دِن سے مری ہوئی ہے اس مافیا کا مو توڑنا چاہیے شرم کرو کُچھ جب قیمت اوپر کرنی ہوتی ھے تو تب 6 لاکھ روپے اور نیچے کرنی ہو تو ایک لاکھ کوئی شرم کرو مرنا نہیں تُم لوگوں نے کیا

  15. سوزوکی ٹویوٹا اور ہونڈا والوں کو تو اپنی قیمتیں کم کرنی چاہیے ہیں کیونکہ ان کی وہ کوالٹی نہیں ہے جتنی سوزوکی ٹیوٹا اور ہونڈا والے گاڑیوں کی قیمتیں مانگ رہے ہیں رہے

  16. Suzuki should need to reduce minimum 0.5-0.8 million prices of their cars if they want to survive in Pakistan otherwise majority of users choose Toyota or Hunda.

  17. Suzuki company is the worst company and they are Looting Pakistani’s.
    Why not they can set up all parts manufacturing in Pakistan ?
    Actually our govt officials are corrupt and they are getting kick backs from them .
    They should reduce the the price at least 20% to 25%
    If you compare Last year’s prices with the 2022
    There is huge rise isle prices
    and no authorities asking them why too much increase ????
    Its really astonishing that govt is not controlling the Quality and prices of the auto industry .
    It’s really a worry

  18. Pakistani government is sleeping, no any check and balance with useless education system.
    Total shame!!!!

  19. Oh Suzuki Motors please don’t shutdown temporary shutdown permanently. Because you are looters. We have’t more need of your teen daba. So get out from Pakistan.

  20. Oh Suzuki Motors please don’t shutdown temporary shutdown permanently. Because you are looters. We have’t more need of your teen daba. So get out from Pakistan.

  21. I suggest everyone not to buy Suzuki Bolan vx, it’s better to purchase Karvan plus 1000cc comfortable ride With A/C plus 7 seater.

  22. We are really happy to listen, that you looters are going from Pakistan,. But I think happiness is not more than , as shortly again and perfectly comeback after month or two to looot again Pakistanis.

  23. ویسے تو بہت بہتر ہے کہ بند ہی ہوجائے ۔قیمتیں بڑھانا مذاق بنایا ہوا ہے۔ موٹر سائیکل دیکھیں کوئی ڈائمنڈ جڑ دیئے ہیں اس کے ساتھ اور قیمت دیکھیں اور یہی کچھ گاڑی کے ساتھ ہے۔ فیصلہ سازوں کو حرام کھلاو اور قیمتیں بڑھاو

  24. Tou bhai pakistani kon se acche hain ye tou tika kr le rhy hain in ki garian kyunke wo kehte hain k tern dabba hai lkn resale acchi hai iss gari ki..plz bycott suzuki evev cheap and ghatia suzuki

  25. Tou bhai pakistani kon se acche hain ye tou tika kr le rhy hain in ki garian kyunke wo kehte hain k tern dabba hai lkn resale acchi hai iss gari ki..plz bycott suzuki evev cheap and ghatia suzuki

  26. Yar ap planat hemsha k lie he band kar do 40 year old cars bolan jo dunya ke sub say wrost gari ha 1500000 main day rhy ho 1982 ke darfayt bus karo or neklo kise or jaga jahan log inday or bahry hon or alto jase gari 2700000 main khareedy

  27. Very good decision for shutdown the plant,
    شکر ہے جان چھوٹ جائے گی وگرنہ تو ہم لوگوں میں اتنی غیرت نہیں کہ ہم ان ٹین ڈبوں سے جان جھڑواتے
    Very good

  28. قیمتیں بڑھ گئیں قیمتیں بڑھ گئیں سوزوکی پک اپ80 ماڈل
    سے 2022 تک بدلہ کیا ہے آج تک وہ ہی سب کچھ

  29. Mei takreeban all comments read keay hain sary log Suzuki company ko galian or blame kr rahay, blame or bura bhala une logo ko b kahay jo is Suzuki jaise ghalazat ko apne galay ka haar banatay hain agar log bicott kr dy or used japanese car buy kr ly to is ghatia Suzuki se jaan chot jaey gi, awam ne is mafia ko khud apnne siron py bethaya hoa hai, logo se request hai k bicott kary jb tak ak Alto vxr ki price 12 lack tak ni ho jati or zaror ho gi jb log buy ni kary gay, lakin hamary haan ulta nezam hai jo ghatia cheaz costly hoti hai wo awam phealy se zada buy krne lag jati hai

  30. 01.Very high prices in 2019
    02.Extra ordinary increased prices in 2020
    03.Ultra increase in prices 2021
    04. Now we consider as TEEN DABBA car Extremely Higher prices, the Research department of PSMC did not valuate that these TEEN DABBA car have no long lasting durability,
    After 5 to 7 years it will be scrapped and sell in per KG,

  31. If Auto Manufacturers operate on just in time basis, why they are allowed to gather advance payments well before the delivery days. And why they are not paying KIBOR +3% as per Auto policy 2021-26 from the day of receiving advance. This is pure exploitation of consumers.
    HYUNDAI NISHAT PAKISTAN INVOLVED IN MALPRACTICES
    #HyundaiMotorGroup #MongKooChung #AutoIndustry #HyundaiMotorGroup #Autohalloffame
    • Issued notice by EDB/ Government of Pakistan for incorrect calculation/ short payment for delayed deliveries;
    • Receive full payments for bookings despite being prohibited by Pakistan Auto Policy to do so
    • Retrospectively increased prices of vehicles against which full payment has been received

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