Suzuki Pakistan raised the prices of all its vehicles from July 1. The action comes after Pakistan’s GST was hiked from 12.5% to 18% and the imposition of the new NEV levy in the 2025โ26 federal budget. The firm charged customers the entire tax hike, not internal expenses.
Reason Behind the Hike
The government increased the sales tax on small vehicles to increase revenues. Suzuki had cautioned that this would impact sales and employment. The new NEV charge added 1โฏ%โ3โฏ%, based on engine size.
Highest Hikes for Small Vehicles
Base variants experienced the highest increments:
Alto VXR leaptโRsโฏ167,861 to Rsโฏ2,994,861
Alto VXR AGS increasedโRsโฏ177,480 to Rsโฏ3,166,480
Alto VXL AGS roseโRsโฏ186,446 to Rsโฏ3,326,446
All VX models increasedโRsโฏ163,230 to Rsโฏ2,912,230
All VXR models addedโRsโฏ166,200 to Rsโฏ2,965,200
Mid-range and higher variants also became costlier:
VXR/VXL/AGS versions of Cultus all increased by Rsโฏ40kโ45k.
Swift GL MT, Swift CVT, GLX CVT experienced increases of Rsโฏ44kโ47k.
Large Cars and Hybrids
Large variants such as the Swift incurred more than Rsโฏ260,000 in increased costs from increased GST along with a new green tax. Hybrid and plug-in cars recovered the 12.5โฏ% tax level following early plans to increase them to 18โฏ%.
Pakistan is also confronting economic issues: Increasing inflation, currency stress, and IMF restrictions. The budget also aims to target climate change.
The carbon levy rate: 1โฏ% for engines up to 1,300cc, 2โฏ% for engines up to 1,800cc, and 3โฏ% for bigger engines.
Effect on Buyers
The price increases could disproportionately affect first-time and budget buyers. Huge numbers of buyers made advance bookings before July 1 to escape increased costs. Suzuki dealers recorded higher bookings during late June.
Suzuki reported only the tax hikes through. It did not increase margins or manufacturing costs. The company encouraged purchasers to secure prices ahead of time. It also implied promotions or financing in the future to cushion the blow.
What You Should Do
Move quickly: If you intend to purchase prior to July, make sure that dealers still provide earlier rates.
Compare vehicles: Look at somewhat larger cars, as they are now less expensive than before.
Look at hybrids: Still get good tax breaks. But review long-term expenses.
Ask for promos: Incentives like financing or accessory deals can make a dealership competitive.
The Bigger Picture
Budget 2025โ26 transformed the auto industry. It increased revenue and targets climate objectives. But it also pinched affordability. Suzuki’s full-pass-through implies consumers now bear the cost. Observe other carmakers’ reactions. Expect more loans, discounts, or fresh model launches to drive sales.
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