Pakistan’s most popular compact car, the Suzuki Alto, has seen a major decline in sales last month. According to the Pakistan Automotive Manufacturers Association (PAMA), sales of the Alto fell by 75% in July 2025.
In June, 9,497 units of the Alto were sold, but in July, the number dropped drastically to only 2,327 units. Industry experts say the sharp decline is linked to recent changes in the government’s tax policies.
The government raised the General Sales Tax (GST) on cars up to 850cc from 12.5% to 18%. At the same time, a new NEV Levy was introduced: 1% tax on vehicles up to 1300cc, 2% on cars between 1301–1800cc, and 3% on larger cars. While the Alto falls in the under-850cc category, the overall impact of these measures has affected its market as well.
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Following these tax increases, Pak Suzuki Motor Company (PSMC) raised the price of the Alto to PKR 3,326,450. This significant price hike has made the car unaffordable for budget buyers, particularly first-time car buyers, who form the largest customer base for the Alto.
Analysts believe that unless tax relief is provided or prices are reduced, demand for the Alto may continue to decline in the coming months.
FAQs on Suzuki Alto Sales Decline
1. Why did Suzuki Alto sales drop in Pakistan?
The main reason is the increase in government taxes, which raised both GST and additional levies on vehicles.
2. How much did sales fall?
Sales fell from 9,497 units in June to 2,327 units in July 2025, a 75% decline.
3. What is the new price of the Suzuki Alto?
The Alto now costs PKR 3,326,450 after the price hike.
4. Who is most affected by this price increase?
Budget-conscious buyers and first-time car owners are most affected, as Alto was considered the most affordable option.
5. Can sales recover in the future?
Experts say recovery depends on tax adjustments, economic stability, and possible company discounts to make the car affordable again.
