Pakistan's Iconic Alto Faces an Impending Sales Disaster

28 Mar 2023

510 Suzuki Alto

Pakistan's Iconic Alto Faces an Impending Sales Disaster

Pakistan's local auto industry is facing significant challenges due to import curbs imposed by the State Bank of Pakistan. The result has been a significant decline in sales, non-production days, and dwindling profits for local car manufacturers. This article will examine the impact of these import curbs on Pakistan's auto industry, with a specific focus on the Pak Suzuki Company and the declining sales of their bestselling car, the Alto.

Impact of Import Curbs on Pakistan's Auto Industry

The import curbs imposed by the State Bank of Pakistan have caused significant disruptions in Pakistan's auto industry. Non-production days, a slump in sales, and zero inventory have all had a detrimental impact on local car manufacturers. The local auto industry, which is heavily dependent on imported CKD kits, has been hit hard by the import curbs, resulting in a shortage of supplies and a decline in production.

Suzuki and Declining Sales of the Alto

The Pakistan Suzuki Motor Company (PSMC) has been one of the hardest-hit automakers in Pakistan due to the import curbs. The company, which has a market share of over 50%, has seen a significant downtrend in sales since the beginning of 2023. Of particular concern is the decline in sales of the Alto, the company's bestselling car. In the first two months of 2023, the company sold only 588 units of the Alto, compared to 11,039 vehicles in the same period last year, a decline of 95%.

Record Sales of the Alto in 2022

Despite the current decline in sales, Alto had a successful year in 2022, with PSMC selling 66,427 units of the car, considered a record figure for the company. Overall, the company sold 125,947 units in 2022, with 53% being Altos. The car sales stood high for seven months in 2022, surpassing the previous highest monthly sales of the Suzuki Mehran.