Pak Suzuki Motor Company (PSMC) has decided to temporarily shut down its bike assembly plant due to operational difficulties caused by import restrictions. The company has officially notified the Pakistan Stock Exchange (PSX) that the shutdown will last from March 20 to March 31. The main reason for the closure is the shortage of inventory.
The recent import restrictions have caused significant operational difficulties for PSMC. These difficulties have led to a decrease in the production and sales of bikes.
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According to a report by the Pakistan Automotive Manufacturers’ Association (PAMA), Suzuki sold less than 2,000 bikes in February 2023. This amount represents a 10% monthly decrease in sales compared to January.
The current state of the two-wheeler industry in Pakistan is not favorable. One of the reasons for the low sales figures is the steep increase in prices that have occurred recently. These prices have made the bikes less affordable for customers. For instance, Suzuki’s cheapest commuter bike, GD110 S, costs Rs. 293,000. The second most affordable option is GS150, which costs Rs. 318,000. GSX125 is the third option, with a price tag of Rs. 422,000. Lastly, the most expensive bike in Suzuki’s lineup is GR150, which costs an eye-watering Rs. 455,000.
The rise in prices has contributed significantly to the decrease in demand for bikes in Pakistan. This trend is affecting not only Suzuki but also other manufacturers in the country. In addition, the production and sales of bikes have been intermittently affected by import restrictions.
In conclusion, PSMC’s decision to temporarily shut down its bike assembly plant is due to operational difficulties caused by import restrictions. The low sales figures in the two-wheeler industry can be attributed to the astronomical rise in prices that have occurred recently. This rise in prices has taken a toll on the demand for bikes in Pakistan.