Suzuki Alto Sales Drop by 75% in One Month After Tax Hikes

By DigitalPakistani | August 23, 2025

The Suzuki Alto, one of Pakistan’s most popular compact cars, has witnessed a sharp 75% decline in sales within a single month. According to the Pakistan Automotive Manufacturers Association (PAMA), sales fell dramatically from 9,497 units in June to just 2,327 units in July 2025.

Why Sales Dropped So Sharply?

The sudden fall is mainly linked to the government’s new taxation policies:

• The General Sales Tax (GST) on cars up to 850cc increased from 12.5% to 18%.

• A new NEV levy was also introduced:

  • 1% tax on vehicles up to 1300cc

  • 2% tax on vehicles between 1301cc–1800cc

  • 3% tax on vehicles above 1800cc

Even though the Alto is under 850cc, the revised GST and levies pushed its price higher.

Alto Price Hike After Taxation

In response, Pakistan Suzuki Motors Company (PSMC) raised the price of the Suzuki Alto to Rs. 3,326,450. This increase has made the vehicle less affordable for its core market — first-time car buyers and budget-conscious families.

Early Invoicing Strategy Backfired

To counter the impact of new taxes, PSMC used an early invoicing strategy in June, processing July and August orders in advance. While this boosted June’s sales, it resulted in a steep decline in July as demand slowed significantly.

Market Impact

The Suzuki Alto has long been regarded as a go-to vehicle for affordable urban commuting in Pakistan. However, with rising prices and new taxes, many buyers are now reconsidering their options, which could reshape the compact car market in the coming months.

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