Pak Suzuki Alto production rebounds despite tax hike

KARACHI: Pakistan Suzuki Motor Company (PSMC) has ramped up production of its Alto model, recording 6,238 units in August 2025 – the highest monthly output in 32 weeks.

The surge comes at a time when the auto sector is grappling with higher costs and subdued demand following the implementation of fresh taxes from July 1, 2025. A report by Topline Securities showed this performance data, despite the fact that analysts had expected the fiscal measures to dent consumer appetite.

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These latest figures suggest a surprising resilience in the country’s most popular small car segment. Data compiled by the Pakistan Automotive Manufacturers Association (PAMA) and Topline Research shows that Alto’s production trend has been volatile over the past year, with extended periods of slowdown. However, the August rebound marks a sharp recovery from earlier months when production often hovered well below 4,000 units.

Industry watchers say the Alto’s affordability relative to other passenger cars continues to drive demand, even amid economic headwinds. Still, they caution that sustainability of the uptick will depend on how rising taxes and import restrictions shape consumer purchasing power in the months ahead.

PRODUCTION TRENDS

The production trend highlights how PSMC has struggled to maintain consistent output over the past two years. After touching a peak of over 6,500 units in December 2022, volumes fell sharply in early 2023, with some months recording less than 1,000 units as the industry battled import curbs and supply chain shortages.

By mid-2023, production showed gradual recovery, climbing above 3,000 units in several months. The momentum carried into late 2023, with December output nearing 4,500 units. However, the first half of 2024 saw renewed volatility, with production slipping back below 3,000 units in June 2024 amid continued economic pressures.

A more stable trend re-emerged towards the end of 2024, with monthly output hovering around 4,000 units. From early 2025, the Alto steadily gained ground, crossing the 5,000-unit mark by mid-year. The August 2025 figure not only marks the strongest rebound in months but also signals renewed confidence from the automaker in consumer demand.

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Industry analysts note that Alto remains the backbone of PSMC’s portfolio, accounting for the majority of its passenger car sales. The sustained upward trajectory since the start of 2025 could indicate that the company is positioning itself to consolidate market share in the entry-level segment, even as broader auto sales remain under pressure.