Pak Suzuki has increased the prices of 1.0L Cultus VXL Manual & AGS and that of 1.3L Swift Automatic with effect from the 1st of December 2020.
With an increase of Rs 70,000 the Cultus VXL now cost PKR 19.7 lac whereas after an increase of Rs 100,000 the top-spec VXL is available for PKR 21.3 lac. The Swift automatic after an increase of Rs 35,000 now retails for PKR 22.10 lac. The company hasn’t mentioned any reason behind the increase in prices.
Despite poor sales, Pak Suzuki has being increasing prices of its various models in quick successions despite Rupee on a recovery track against the US Dollar since August 2020. The company had increased the prices of Bolan & Ravi in August, that of Cultus and imported Jimny & Vitara in September, followed by another price increase in October for Alto, WagonR and Swift.
Pak Suzuki reported a 13% decline in sales during October 2020 with 6,054 vehicles sold compared to 6,973 sold in the corresponding month of previous year. On month-on-month basis Pak Suzuki suffered from a 7% decline. The company having posted 8 consecutive quarterly losses, the company was able to sell 50% less cars in FY19-20 compared to preceding year.
In total, Pak Suzuki had sold 130,002 cars in FY2018-19 (including Mehran) whereas it sold only 65,815 cars in FY2019-20 registering a -49.3% decline which means the sales were literally cut into half. One can’t really blame COVID-19 for this result as the pandemic only occurred towards the last quarter of the fiscal year, however the sales performance has been on a nosedive well before that & is needed to be seriously addressed by the company. The recent trend of constant price hikes by Pak Suzuki, despite relatively stronger PKR against the US Dollar is seen as a move to dampen the declining profits.