Pak Suzuki In Dire Straits

Pak Suzuki, the largest auto assembler in Pakistan is currently in severe trouble due to the ongoing economic downturn.

The company which announced its worst financial performance in the recently concluded financial quarter is battling through depleting inventory levels due to the import restrictions imposed by the government and is suffering from a massive decline in sales.

In April 2023, Pak Suzuki only managed to sell 1,474 units which is 74% less than the 5,628 units it sold in March 2023. In the first 4 months of this calendar year, the company was able to sell just 10,915 units (comprising of 6 locally assembled products- Swift, Cultus, Wagon R, Alto, Bolan, and Ravi) whereas it sold 44,341 units in the same period of the previous calendar year, which renders a deplorable 75.38% decline in sales.

In addition to the low production amid plant closures due to a lack of CKD parts in hand, the other main causes of the ongoing decline in sales were ridiculously high prices, a reduction in auto finance as a result of high and rising interest rates, high petrol prices, and massive delays in the delivery of vehicles to the customers.

The auto industry will continue to be plagued by black skies, though, as there is no sign of a turnaround and the economic problems aren’t going away anytime soon. Being in such dire straits, Pak Suzuki, Pakistan’s largest auto assembler, is undoubtedly not encouraging for the country’s auto industry.