Pak Suzuki interrupts Swift and stops Cultus bookings, dealers say – business & finance
Pak Suzuki Motor Company (PSMC) will drop its second-generation Swift variant in Pakistan nearly 12 years after its launch, while reservations for the Cultus have also been temporarily suspended, several dealers have said. Business recorder.
The company announced through a notification in August last year that Swift, the second-generation sedan, would be phased out after August 2021.
Although there has been no official word from the company so far, several authorized dealers have confirmed that they have been made aware of the current model’s discontinuation.
On the other hand, PSMC has also temporarily halted reservations for Cultus, with reports suggesting that new orders have not been received for at least a few weeks. Several Suzuki dealers in several cities have confirmed that they have been ordered to stop new bookings until further notice.
“The shortage of chips is one reason,” said one dealer. “We haven’t made a new Cultus reservation for about a month.”
The shutdown is also seen in India, where the country’s leading automaker Maruti Suzuki said the global chip shortage will hurt production at its factories in Haryana and Gujarat states in September. .
Leading Indian automaker Maruti Suzuki warns of chip shortage in production
The total production volume at the two sites could represent around 40% of normal production, he said in a regulatory filing.
Pakistan was also hit by disruptions in the semiconductor supply chain during the pandemic, which increased demand for chips used in electronics like computers while people were working from home, and has affected the production of many car manufacturers.
Bolan, Ravi news
Separately, there was also ample information last month that Pak Suzuki had also decided to arrest Bolan and Ravi. The officials said Business recorder that the company is considering replacing Bolan with a minivan.
Meanwhile, one of the main reasons for shutting down the current Swift could be its declining popularity or possible Cultus cannibalization. The company hasn’t made any significant changes or upgrades to its second-generation hatchback in years, which has resulted in a drop in sales.
According to the Pakistan Automotive Manufacturers Association (PAMA), Swift sales increased from 5,509 units in 2018-19 to 2,316 in 2020-21. 2019-2020 sales (1,828) were marred by the pandemic and therefore cannot be taken as a benchmark.
Discussions in the market suggest Pakistan may see the introduction of the fourth generation of Swift, which debuted globally in 2018.
Suzuki: race preparation
As the competition intensifies with the arrival of new players, many believe that the three old automakers – Toyota, Honda and Suzuki – have had to introduce new models / upgrades to keep pace.
The pandemic has hit car sales as well, with production first disrupted by the shutdown of the industry, followed by a shortage of chips. An earlier contraction in the economy and high interest rates also hurt car sales even before the pandemic began.
Pak Suzuki posted a profit in the first half of this year after suffering losses for eight consecutive quarters.