Suzuki Raises Price Of Alto And Bikes – AGAIN
The double price increase in Alto shows that PSMCL is determined to cash in on its growing demand, after losing sales on WagonR and other models.
On Tuesday, PSMCL (Pak Suzuki Motor Company Limited) announced the second price increase in the two variants of Alto660cc. The increase is of Rs. 70,000-85,000. A price increase of Rs. 2,000-6,000 was seen in two-wheelers.
The double price increase in Alto shows that PSMCL is determined to cash in on its growing demand, after losing sales on WagonR and other models that were in hot demand previously.
Alto’s production began in June by Suzuki, it announced the VXR and Alto AGS models at a price of Rs. 1.101 million and Rs. 1.295 million respectively. However, after the price increase on August 1st, the car VXR now stands at Rs. 1.308 million and AGS at Rs. 1.518 million. The price hike was of Rs. 137,000 and Rs. 138,000.
The authorized dealers weren’t told anything regarding the reason behind the price hike. The circular given to them said that the hike wouldn’t be for old pending orders, which were booked with advance payment, or for those orders in which the customers couldn’t pay their balance payments in the given time.
Alto – a lifeline for Suzuki:
Alto has played a big part in saving Suzuki during its time of non-production days. Suzuki hadn’t observed any NPDs (Non-Production Days) during the months between July and September, despite the drop in sales of WagonR, Bolan, Cultus, Swift, and Ravi.
The increase in Alto’s prices has taken the market by a storm, despite stability in rupee-dollar parity during August-September. Many automobile production companies increased their price, due to rupee devaluation.
In motorcycles or two-wheelers, the prices of GD110S, GS150, GS150SE and GR150 have been raised to Rs. 168,000, Rs. 178,000, Rs. 194,000 and Rs265,000. These prices previously stood at Rs. 166,000, Rs. 175,000, Rs.191,000 and Rs259,000 respectively.
During the 2MFY20 (2 Month Fiscal Year 20), the sales of Suzuki bikes jumped to 3,162 units from 3,738 at the same time last fiscal year. Sales of two-wheelers improved to 23,352 units.
Taking into account the dull sales outlook, local car assemblers have slowed the import of semi and completely knocked down kits (CKD/SKD) for cars by 15.5pc during July-August to $123m. The overall import of CKD/SKD for bike assembling decreased by 25pc to $13 million.
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