Pak Suzuki Profits Down By 55 Percent

Pak Suzuki Motors Company, the producer of Pakistan’s top selling cars, has witnessed a sharp decline in its profitability by 55 percent by the end of third quarter of 2016. This is mainly due to declining sales of its different car models in the local markets in tandem with gradual slowdown in demand.

According to the financial results declared by the board of directors, the automobile company could only make a profit of Rs 1.873 billion in the nine months of 2016 — down from Rs 4.24 billion profit that it made during the same period last year.

Sales drop of cars were chiefly because of the culmination of Taxi Scheme which boosted the profit of Pak Suzuki Motors to an unprecedented all-time high level in terms of sales of cars and Hi-Roof units, and the amount of revenues and profit in the history of the company.

As the Punjab Rozgar Scheme is over, not only sales of Ravi and Bolan models related to this scheme dropped but overall sales of Suzuki are gradually on the decline which caused downfall in its earning.

According to balance sheet, the quarter from July to September of 2016 saw a worse season in which profit of Pak Suzuki plunged by 76 percent compared with the corresponding period of 2015.

In this period, the profit of Pak Suzuki merely stood at Rs 438 million as compared to Rs 1.817 billion profit recorded in the similar period of last year.

Surprisingly, the decline in profit was seen despite of the fact that automobile company raised the prices of its different models at the start of the quarter in August.

Pak Suzuki sales volume in the outgoing quarter decreased by 34 percent to 25,201 units when compared with similar period last year.

The company recorded a significant increase in its expenses and administrative cost which also eroded its profit growth.

Its gross profit fell massively by 63 percent YoY to Rs1.25 billion in the outgoing quarter while gross margins contracted by 9ppts to 7 percent. This can be attributed to the 1.5 percent appreciation of Japanese Yen (JPY) against the local currency in the outgoing quarter. Further, higher input cost due to higher steel prices kept gross profit margin of the company under pressure.


  • Its not good to be happy on the loss of others but this is a really good news. At least it show that this nation is waking up and saying good by to 30 years old teen dabba mehran :D

  • “only make a profit of Rs 1.873 billion in the nine months of 2016”

    thats a lot of profit considering the total crap death traps they make

  • The company should have been vanished years ago but unfortunately our nation supported them by purchasing their 3rd class quality cars and models that have been declared obsolete over a decade back in other countries. For example, they started producing Cultus in Pakistan on the obsolete plant of “Suzuki Amenity”, after it had completed its life in developed countries around in 1999 and the same story goes for Mehran. I don’t think there is any other car in the world that has been produced in the without any major change for as long as 27 years (1989-2016) and the amazing part is that people are still buying it for over 600k rupees.

      • Dear Imran, if you know little bit about cars, there are lots of better options in terms of used cars, which are thousand times better than these scraps.

    • We dont have an option, govt has introduced heavy import duties and forced people on low incomes to go for these crap cars from Suzuki and may I add toyota and honda are not too far off, their japenese models are much better. Until 2015 Toyota releasing GLis with no air bags

  • and I still wonder how they are earning profits, when don’t make any reliable cars which are safe to drive.

  • Selling the same design of Mehran for over 3 decades. They took the things for granted by selling an expensive crap to this nation for more than 3 decades. 0 innovation, barely a design and performance enhancements and despite of local production huge prices….People are more aware now. I would prefer a Japanese car over Mehran because of its comfort and quality.

  • The news is not out of this world. yes it should be, because they Got an order of 50,000 vehicles from Govt. of Pakistan which was one time order and production and profit moves up with that. definitely this wouldn’t gonna happen every time.

    if you see Pak Suzuki production and profit moves up ( on normal production, putting behind one big order ).

  • Maybe this will be a wake up call for them, and they will decide to bring up Quality or their cars, if not to International Standards (Fuel Efficiency, Air Bags etc.), at least to the ones they produce in our neighbor India (price, parts, latest engines).

    Or they can just wait few months, since there is no other option available in Pakistan for new cars, people will at the end, have to buy them anyway.

  • Wishful thinking aside, PakSuzuki is here to stay. Think about it. Even if their profits decline, where do they get the competition from? Imported cars? Only the entry of a couple of other automakers in the low-cost bracket can put in a nail in their coffin if they fail to change the sh!t they are selling.

  • Wishful thinking aside, PakSuzuki is here to stay. Think about it. Even if their profits decline, where do they get the competition from? Imported cars? Only the entry of a couple of other automakers in the low-cost bracket can put the final nail in their coffin. That too, if they fail to change the shoddy stuff they are selling.

  • I wait to see barriers to entry being removed and local car companies operating. Suzuki really has delivered a POOR quality car in Pakistan and made a killing all these years. Cars that Suzuki will never launch in Japan but launched in PK due to heavily bribing Pakistani government over the years

  • Pak Suzuki did not lose its profit but reduced a some of its ratio of profit as compare to its targets. An ordinary Suzuki was sold of Rs.86000 now sold ate Rs.700000.The ration of profit can easily be examined but the ration of looting the people on the same Suzuki is just in waiting.It is a tricky game of the money making that we pose that we are loosing the profit. The Suzuki that has lees value in the open market because of its no life safety is still sold in 700000 with no check or guarantee by the government.

  • MEHRAN IS NOT WORTH VALUE OF MONEY, I HAD A NEW MEHRAN (SO-CALLED NEW) IN 2001 FULL OF SURPRISES. FX WAS FAR BETTER. IT WAS WITHOUT SEAT BELTS WHICH COMPANY WAS FORCED TO INSTALL BY MOTORWAY POLICE. HOWEVER AFTER THAN I ALWAYS ADVISE PEOPLE NOT TO GO SUZUKI CARS MADE BY PAKISTAN. THESE CARS ARE FREE OF QUALITY. NOW STUDIED WAGON-R & IF YOU COMPARE JAPANESE OR EVEN INDIAN WITH PAKISTAN MADE – YOU WILL SEE THE DIFFERENCES. ONE WORD NEED TO DISCOURAGE PAK-SUZUKI FOR BAD QUALITY PRODUCT, IF THEY CANNOT THAN CUSTOMERS MUST STAY AWAY FROM PAK-SUZUKI.

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