The Suzuki Alto, one of Pakistan’s most popular small cars, has seen a huge drop in sales. According to data from the Pakistan Automotive Manufacturers Association (PAMA), sales went down by 75% in just one month, from 9,497 units in June to only 2,327 in July.

This sharp decline came after the government increased taxes on cars. The General Sales Tax (GST) on vehicles up to 850cc went up from 12.5% to 18%. On top of that, a new NEV levy was introduced, adding more costs depending on the car’s engine size. Even though the Alto falls under 850cc, it still felt the impact of these changes.

Following the new taxes, Pakistan Suzuki Motors Company (PSMC) increased the Alto’s price to Rs. 3,326,450. The hike made the car less affordable, especially for first-time buyers who usually make up a big part of Alto’s customers.

To soften the blow, PSMC used an early invoicing strategy in June, clearing orders for July and August in advance. This temporarily boosted June’s sales but left the following months with much lower numbers.

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