Karachi: Suzuki faces a massive loss of rupees 1.16 billion in the quarter that ended on September 2019, which primarily is the result of a massive reduction in sales of their vehicles.
As reported to the Pakistan Stock Exchange, the company had also seen some good times as they recorded a massive profit of Rs 94.8 million in the same period of last year. Surprisingly loss per share recorded in July-Sep 2019 quarter was at Rs 14.11 compared to earnings per share of Rs1.15 in the same period of the previous year. These results are to be expected owing to the slow state of the auto sector.
Suzuki also recorded an alarming gross loss of Rs232.1 million in the period in question compared to gross profit of Rs1.69 billion in the previous year.
The income of Pak Suzuki also dropped by 44.6% to Rs49.8 million from Rs89.9 million as compared to last year. Moreover, Pak Suzuki’s share price plunged by Rs2.54 in the period in question. Note here that the overall auto sales recorded a massive downfall of 67% year-on-year in Jul-Sept 2019. The company received a significant blow from the sharp decline in sales of Wagon R that went down by 72% in the first quarter of the ongoing fiscal year.
Suzuki Wagon R has continuously struggled with its sales ever since the introduction of the all-new 660cc Alto in the local sector. It also suggests that the customers have shifted towards the new entrant in the last few months. All the models of Pak Suzuki went into a plunge whereas Alto recorded the highest number of sales in a single month since its launch. The company sold 4924 units of Alto in September 2019, while a total of 12,943 units have so far been recorded in this first quarter of FY 2019-20. Apart from Alto, the company sold just 10,204 units among all its models, which show the strong response of the new hatchback in the local sector.
The auto sector is going through tough times for the last six months or so. It all started with the sharp depreciation of Pakistani Rupee against the US dollar, which forced the auto manufacturers to revise their prices multiple times.
After a year of the devaluation of the local currency, the car prices now stand at nearly 30% more than they were 12 months ago. This particular condition of the domestic auto sector is also contributed by the additional taxes and duties imposed by the government.
That’s it from our side, drop your thoughts in the comments section below.
I believe the current situation of BIg 3 Suzuki,Honda & Toyota is due to their own created circumstances not rupee devaluation and Govt imposed taxes and duties. Suzuki increase WagonR and Cultus prices 4 times in 2018 but no one asked them the reason. Even CCP is sleeping. Still demanding for greenfield status.
Suzuki maiking money from pakistani people no qualaityor safety feature at all and making money must be bannrd suzuki companny on making bolan last 35 year and and ravi 38 year shame on them such a nasticious product vehicle shame on suzuku
Agreed
Well said ali bhai https://media3.giphy.com/media/l41lUjUgLLwWrz20w/giphy.gif
The present incompetent government rules are ruining this country in every sector. Automobile industry is just one example, all the prices are going up with the implementation of taxes and in turn taking the items beyond the buying power of the common man. If the previous government politicians have looted the country’s money they should be made accountable and not the common people. The general public is being targeted for voting this government and now they are paying the price. Not to worry after 5 years once this government will go all these factories and many more will also close down and we will go back to stone age well done PTI.
I think that instead of blaming the government, we should blame ourselves. People in government come from among us, how can you expect them to act rationally when we think ourselves cut above the usual rules.
Further, tell me? Do you ever get the feeling that we are fast losing patience, look at the stupid drivers of bike and rickshaws can you tell the difference between them and a pig, they do know how to walk and talk but not think.
I think Companies should tell us the Pricing Formula. Which parts are made locally and which parts are imported , in simple words they should publish/declare the percentage of locally made parts and imported Ones. But they will not because it will expose their real face.
MY ASSESSMENT IS THAT THEY ARE CHARGING US AT INTERNATIONAL PRICE OF THE CAR.
For Example;
HONDA CITY IS AND WAS 15000 $ so you can calculate the price today and 2 years ago
Lets have a calculations on approx. values
15000 * 100 (say 2 years ago) = 1500000 (approx.)
15000 * 160 (say today) = 2400000 (approx.)
I might be wrong in my assessment but they are befooling us since long that’s for sure and making their profit much more than what they were supposed to.
Now lets come to the other aspect where govt should intervene or invest in developing Metallurgy in Pakistan. Every Car Making company is importing their Engines , transmission etc etc. The import cost can be saved by promoting local entrepreneurs by helping them or having a joint venture with them but they will not nor our present Govt or earlier Govt have the vision of promoting locals.
Regards
Ali Waqar
Are you working for these companies or the opposition of the government?
I don’t not see any sensible analysis. Where were you when this company was selling us the crap called mehran and bolan for the last 4 decades? Where were you when they were Playing with the lives of innocent pakistanis without providing a single safety feature and making billions by milking people on new model announcements and selling the same models over and over again. I think they deserve to be out of the competition, as they are not providing the true value for money. They were filling the pockets of corrupt politicians and government agencies and all of them were making fools out of us. Once such playes are out of the market, only then our local auto industry can flourish and new competitive entrants can make a difference. What hapened to adam motors years back. The 3 big giant pythons swallowed it up. Lets be patient and wait. Its time for our local motor industry to evolve!
The three companies toyota, honda and suzuki have mercilessly looted the poor consumers by cooperating with dealers and black marketing cars. Its time for these companies to leave the country. China has more than 1800 car companies and are making good quality vehicles.the government should give 10 year tax holiday to these companies amd close the plants of these companies once and for all
I wish Suzuki would close its business from Pakistan or taken over by another company who starts thinking of safety and quality to be provided to common middle class buyers. They already have earned enough from Pakistan that will be good for them for years. Their manpower will easily be adjusted to other companies. Atleast we will get rid of these leeches and betrayals.
“The auto sector is going through tough times for the last six months or
so. It all started with the sharp depreciation of Pakistani Rupee
against the US dollar, which forced the auto manufacturers to revise
their prices multiple times”
The writer needs to get some more information that why a PORTION of auto industry is bearing hardship compared to the rest of the portion. Altogether a nice information but a wrong verdict.
I`m Pakistani born living in UK since early 1970. All Japanese Auto manufacturers sell their vehicles in UK and Europe and produce better vehicles and at less price than their European competitors. Whereas, in Pakistan All Japanese Auto manufacturers use lowest of the lowest quality material to produce cars for the Pakistani market. How come? The cause of this bitter fact is our illiterate politicians and the top civil servants who intervene for huge kickbacks. Japanese are good to pay them into their foreign bank accounts. It is going on for decades. They are all enemy of the public……….in India such Auto car producers are making vehicles to export even to UK and all over the world…………in comparison we in Pakistan are foolish and messed around by the Japanese on daily basis. Further, this sitting Ruling Party ( one-man band ) Imran Nyazi is not keen on this issue as he is fighting with opposition to keep in power. In such situation Japanese are in feel comfortable life. Who is the sufferers? The Pakistani public. Imran Nyazi is incompetent and as a cricket player only. He fooled the nation to gain power no matter what happens too poor public an the state. In order to teach best peaceful lesson , allow UK Pakistani ex-pats to import used vehicles under personal baggage and there should no restriction of the age of the vehicle. UK Pakistan Nationals are not foolish and better in knowledge than labourers working in the middle East. UK DVLA rules are tougher than any other country in the world. No vehicles is allowed to be used on public roads unless that fulfils the safety and strength. ……………….. In Pakistan we need public transport such as 16 to 25 Mini Buses. 10 year old Ford Transit-Mercedes Sprinter vans are cheap and strong to be imported into Pakistan…….Forget the Toyota Coasters etc. All Japanese cars in UK are sold with highest quality material and engines used. …………………. Only ensue that Motor Car Traders in Pakistan do not misuse the import policy as they are MAFIA. Ensure that they do not make fake documentations or use UK Pakistani Nationals as proxy to import in quantity…………….that will be a smack on the face of Japan Auto makers in Pakistan who are selling under quality cars and shifting hard earn currency out of Pakistan……..The problem will be solved sooner than faster. Make a system that only cars imported under personal baggage that no abuse is employed. Pakistani BR rues should be as such that customs duty is only assessed as a standard duty and be paid in any Bank in UK….their should be no hassle for the importer in Pakistan at any sea port………further also allow the 25% service parts to be shipped with same car.
Because, Imran Nyazi is incompetent to administer Pakistan and its economy. Further, his team is opportunist to enjoy power and o make money for their future generations. In short he led to nations tat he is the saviours of the people of Pakistan. It is all political. Beast answer allow UK Pakistani Nationals to import used RHD cars into Pakistan only up to 15 years old….That is the best answer to Japanese who are selling shit cars In Pakistan and shifting US dollar out to japan.
Pakistani consumers don’t just have the right to, but an obligation to reject 20-30 years old models. Pak-Suzuki has 2 contemporary models, Alto and Cultus and their sales are quite good. The rest is just scrap.
Agar Dollar 50% upar jata ha to inhey b chahye k ye price 50% increase na k 100%.
Suzuki Wagon R is around 16 Lacs. Piddi se gadi or price Pajero jese.
Suzuki, Toyota etc they are doing business more than 40 years in Pakistan, Jis Koom ne inhey double profit diaa ab inka b haq banta ha k ye customers ko relief dey…
My dear Pakistanis you have to Understand that Car is not a life is a part of life.
Well done Prime Minister. We Love you!
That what you get for producing the same car for 40 years without improving it.
Hopefully this sleeping nation wakes up now.
There is a major drop in volume of sales, which shows that Pak Suzuki must look into their marketing policies instead of blaming it on PKR getting weaker against USD. Their line of product is too broad to effectively maintain their market share.
Suzuki is producing same model in Pakistan designed 40 long years ago and charging prices same as it is 2019/20 shape and model yet…Suzuki fits older technology in the cars produced in Pakistan…………………who gave them licence to rop the people of Pakistan? And to take our nations hard earn foreign exchange to Japan…………………of Japs stop looting the illiterate and poor helpless People of Pakistan.