The Suzuki Alto, one of Pakistan’s most popular compact cars, witnessed a sharp decline in sales last month. Data from the Pakistan Automotive Manufacturers Association (PAMA) shows sales dropped by 75%, plunging from 9,497 units in June to just 2,327 in July.
This steep fall came after the government increased the General Sales Tax (GST) on cars up to 850cc from 12.5% to 18% and introduced a new NEV levy, which imposed 1% tax on vehicles up to 1300cc, 2% on 1301–1800cc, and 3% on above 1800cc. Despite being under 850cc, the Alto was still affected by the new tax measures.
In response, Pakistan Suzuki Motor Company (PSMC) raised the Alto’s price to Rs. 3,326,450, putting it beyond the reach of many budget-conscious and first-time car buyers—its main consumer segment.
To offset the impact, PSMC had adopted an early invoicing strategy in June, processing advance orders for July and August. While this temporarily boosted sales in June, it resulted in a major decline in the following month.
In changes to prices of cars, Suzuki Raises Prices For Alto, Cultus, Swift In Pakistan
