This year was unenviable for all businesses. Same was the case with the auto industry. Not only did car manufacturers faced loss in sales, but they were also forced to increase the prices of their models multiple times. Such decisions had to be taken due to the COVID-19 effect and the high dollar rate.
The price hikes didn’t make the consumer community happy. However, that was expected. As this years nears its end, we can see a drop in the dollar rate due to the recent US elections. Surprisingly, Pak Suzuki still went on to increase the price of its bikes, again. This is the fourth hike in bike prices by this auto manufacturer.
Pak Suzuki issued a notice that notified the price of four models would be increased by PKR 3,000 w.e.f 1st November 2020. Interestingly, Pak Suzuki has not mentioned any reason behind this sudden increase in prices. The notification stated, “The above prices are subject to change without any notice”.
The new prices are mentioned below.
|Variant||Previous Price||New Price|
These prices are inclusive of ex-factory and freight charges.
Recent losses Pak Suzuki suffered
In the last month, Pak Suzuki recorded its 8th consecutive quarter in a loss. In the third quarter of 2020, this Pakistani manufacturer posted a 12% decline in revenue. Last year, the revenue was Rs. 25.63 billion in the same period whereas in that period this year, the revenue is said to be Rs. 22.60 billion.
Other than COVID-19, the reason behind this decrease in sales is because Alto and Mehran are not being sold as much as before.
However, we hope that the auto manufacturer sort out their finances and do not rely on increasing prices of the vehicles as that will only make consumers walk away.