High demand pushes car sales up to 9,195 units
Pak Suzuki has recorded the highest ever monthly car of its Suzuki Alto. As many as 9,195 units were sold in December 2021, according to the data shared by Pakistan Automotive Manufacturers Association (PAMA).
The data shows that around 2,420 units were sold in November and December registered a 280% growth.
The sales have gone up despite an increase in the price of the car.
A Suzuki car dealer said that the company manufactured many units in November but they could sell only 2,420 units as they held car deliveries in mid-November due to fuel line issues. “The company resumed car deliveries in December and registered the highest ever sales,” he added.
Other experts believe that the price hike did not affect the demand due to increasing demand as the price of Alto is still reasonable for middleclass consumers.
“The demand for Alto is going up day by day and the company can sell 25,000 units monthly but there are not enough factories in Pakistan,” says Association of Pakistan Motorcycle Assemblers (APMA) Chairperson Muhammad Sabir Shaikh, who monitors the entire automotive sector.
He said that the Suzuki Alto is always known for its lower price and fuel economy, as it gives a mileage of 17 Kilometers per liter.
Apart from that, the company manufactures 40% of the parts locally and if the car gets damaged, the owner can easily buy the parts at reasonable price. “The headlights, bumpers, car seats, backlights, and batteries are manufactured in Pakistan,” he added.
On November 11, 2021, Pak Suzuki increased the price of its best-selling 660cc Alto by as much as Rs183,000.
The price of Suzuki VX went up by Rs161,000. It now costs Rs1.27 million.
Alto VXR and Alto AGS rose by Rs173,000 and Rs183,000 to Rs1.5 million and Rs1.7 million, respectively.
Research analyst Raza Jafri at the time said that due to customer preference and high demand, the price increases might not hit sales targets in the long run. However, it could temporarily impact car sales in the next few months.
According to a dealer, the on-money on Alto VX and VXR is Rs100,000. Whereas, the on-money on Alto VXL increased to Rs200,000. “It may further increase if the demand continuously goes up,” he expected.
The on-money is a price an investor charges from a customer who wants to buy a vehicle immediately. It is higher than the actual price of the vehicle.