Another bad news for Suzuki bike lovers. Suzuki has announced the suspension of motorcycle bookings for an indefinite period. Earlier, the company had stopped taking bookings for its newly launched GSX 125.
The reasons behind the recent development are issues Suzuki is facing in the supply chain. The issues of the import restrictions and new mechanism introduced by the State Bank of Pakistan are making it harder for companies to get raw materials for production on time. As a result, we have already seen Suzuki and Toyota halting the production of their cars’ production in Pakistan.
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Suzuki has mentioned the same reasons (mentioned above) behind this booking suspension decision. In a letter to their dealers, the company has highlighted the “uncertain production possibilities” due to import-based constraints. As a result, Suzuki has stopped taking bookings for motorcycles from 20-Jan-2023 for an indefinite time. But the company has also said that it will reopen the bookings after the situation becomes favorable.
As per the recent PAMA report on motorcycles, bikes’ sales have declined significantly compared to the same month last year. Suzuki’s annual sales have increased a bit though (due to the GSX 125 launch), but its month-on-month sales have still declined. Even the sales of Chinese bike manufacturers have decreased which shows that even low-priced bikes are out of the range of the common people.
The situation is alarming for the automobile industry as frequent price hikes have made it difficult for people to get a new bike. It is the reason why many are preferring to buy a used bike.
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Well! These are tough times we are living in. The economic situation in the country has worsened. Due to the shortage of Dollars, the State Bank is delaying the issuance of LCs (as reported by many media outlets). As a result, many companies have to stop their production due to a shortage of raw materials. After Suzuki stopped bookings of motorcycles, other bike brands may also do the same if they don’t have enough raw materials.
It is important to mention that these companies have been operating in Pakistan for decades. Yet, they have failed to manufacture most of the raw materials locally. If their production was mostly localized, this issue couldn’t hurt them this much.
So, do you think that the companies are worthy of our sympathy due to the import restrictions or should they be blamed for not localizing their production even after generating huge revenues for decades in the country? Feel free to share your thoughts in the comment section below.