Pak Suzuki jacks up car prices by up to Rs42,000
Pak Suzuki has jacked up the price of three of its cars–the Alto, WagonR and Swift–by up to Rs42,000.
After a Rs35,000 price hike, the Alto VXR, the cheapest car offered by a well-known brand in Pakistan with an air conditioner and airbags, will now cost Rs1.433 million. Suzuki’s cheapest car is the Alto’s basic version VX that is priced at Rs1.2 million and doesn’t have an AC or airbags. Its price is unchanged.
Alto’s top variant AGS is now priced at Rs1,633,000 after a price hike of Rs35,000. The WagonR VXR, after a price hike of Rs42,000, is now priced at Rs1,640,000 while its VXL version will be selling at Rs1,730,000 after a Rs35,000 price increase.
The Swift MT and AT will now be selling at Rs2,030,000 and Rs2,175,000 after an increase of Rs35,000.
“The Alto is an entry-level car,” Taha Madani, research analyst at BMA Capital, said. “For instance, when a banker is entitled to a car after promotion for the first time, the bank gives them an Alto because it is technically the cheapest car in the country.
“According to my assessment, Suzuki volumes [number of cars sold] are not improving so they want to increase their revenues and profit by increasing car prices,” he said. “Suzuki knows there will always be buyers for its cars,” he added.
“There are others like Prince Pearl or United Bravo selling low-cost cars. They don’t share their data but I think they wouldn’t even be selling 5% of the Alto,” Madani said.
“People buy Suzuki cars because it has resale value and the parts are also easily available at cheap prices,” he said. “Meanwhile, there are no other acceptable brand operating in this price category.
“But since cars are getting more expensive, I think people are now moving towards buying motorcycles as the two-wheel vehicle volumes have been increasing,” Madani said.
Pak Suzuki is known to offer the lowest priced cars among well-known brands in Pakistan. Pak Suzuki discontinued Pakistan’s top selling brand for many years the Mehran in 2019 after 30 years and in its place reintroduced the Alto with a smaller 660cc engine.
“In fact, the Mehran was actually the second-generation Alto introduced in Pakistan in 1989,” said Shakaib Khan, a car enthusiast who runs SKMS, a car repair firm. “Pakistan may be the only country where same model of different generations sold at the same time.”
Pak Suzuki launched the fifth generation Alto 1000cc in 2000 while selling the 800cc Mehran (second generation Alto) side by side before the former was discontinued in 2012.