Pak Suzuki Sales Hit Hard by Recent Economic Downturn
Image: Suzuki

Pak Suzuki Motor Company (PSMC) is in trouble yet again, having to declare another round of non-production days (NPDs) in February 2023 due to operational challenges. The company recently announced a halt in production and assembly operations from February 20 to February 21, citing an inventory shortage caused by import restrictions imposed by the State Bank of Pakistan (SBP). This is the second time in less than a month that PSMC has announced NPDs.

Pak Suzuki’s motorcycle production unit will remain operational during these NPDs, but any further changes will be communicated accordingly. The company has already announced five NPDs earlier this month, followed by 10 NPDs a month before that.

Decline in Market Share Pak Suzuki has been the primary victim of the recent struggles in the auto industry, and as a result, car sales have plummeted. According to the Pakistan Automotive Manufacturers Association (PAMA) monthly sales data, the company sold only 44 Alto units last month, making it one of the worst sellers of the month. This is in contrast to the 3,864 Alto units sold in December 2022. For the past year and a half, the company has been selling about 5,000 Altos each month.

The multiple NPDs in the last few months have significantly impacted the sales of all PSMC’s vehicles. In January, the Wagon R was the company’s best-selling vehicle, with only 671 units sold. PSMC sold only 2,946 units last month, experiencing a 74% decrease month over month (MoM) from December. Given the current state of increased car and fuel prices, as well as production cuts, the downward trend is likely to continue.