Business Desk 
Aug 25, 2025
Sales of the Suzuki Alto, one of Pakistan’s most popular small cars, have dropped sharply.
The Alto's sales fell 75% in July, from 9,497 units in June to 2,327 units, according to data made public by the Pakistan Automotive Manufacturers Association (PAMA).
Recent tax reforms by the government are to blame for the drop in sales. Notably, there is now a new NEV levy that ranges from 1% to 3%, depending on the engine size of the vehicle, and the General Sales Tax (GST) on cars up to 850 cc has been raised from 12.5% to 18%.
Despite having an engine smaller than 850cc, the Alto's sales have been significantly impacted by the tax changes.
Suzuki Alto new price in Pakistan
As a result of the tax adjustments, Pakistan Suzuki Motors Company (PSMC) raised the Alto's price to Rs3,326,450.
Many consumers now find the car more expensive, especially those who are first-time car owners, who make up a sizable percentage of the Alto's clientele.
PSMC began processing orders for July and August ahead of time in June in an effort to lessen the impact of the tax changes.
Although this approach increased sales in June, it has been a major factor in the subsequent months' sharp drop in sales.
Many manufacturers will likely struggle to maintain sales volumes in the upcoming months as a result of the tax changes.
