Suzuki face massive drop in sales in July 2022

• Pak Suzuki saw a sharp fall as a result of recent production-related difficulties.
• The company sold less than 6,800 units, seeing an MoM decline of more than 60%.
• According to experts, sales will drop for all automakers.

In July 2022, Pak Suzuki Motor Company (PSMC) saw a sharp fall as a result of recent production-related difficulties.

According to industry reports, the company sold less than 6,800 units, seeing a month-over-month (MoM) decline of more than 60%.

With almost 4,600 units sold, the Suzuki Alto continued to account for the majority of sales. According to an unofficial claim, PSMC was unable to sell any of the remaining lineup cars in quantities of more than 500. This represents the year’s lowest sales for PSMC.

A Significant Issue

Sales decreases and production bottlenecks were already anticipated by the auto industry.

The CEO of Toyota Indus Motors, Ali Asghar Jamali, stated during its financial briefing earlier this year that the rise in freight prices, raw material costs, inflation, and other operational issues will cause a sales decline of up to 25%.

With the addition of production pauses, Honda Atlas Cars Limited (HACL) expressed the same worries in its most recent financial briefing.

The government’s refusal to accept letters of credit was also cited as the cause of the manufacturing and delivery delays.

It claimed that 40% of its sales come from consumer financing, but that due to high-interest rates, that percentage will fall to 30%.

In addition, a number of significant manufacturers are observing production-free days as a result of CKD procurement delays.

According to experts, sales will drop for all automakers, and it will take some time for the sector to recover from the current economic uncertainty.

Also Read

Price comparison of Suzuki Alto and rivals in 2021-22

The Suzuki Alto and its rivals now cost close to or more...