The local bike sector in Pakistan has been facing significant challenges in recent times, following the deteriorating car industry and the prevailing economic crisis. Escalating prices have made two-wheelers increasingly unaffordable for the general public, resulting in low sales for motorcycle manufacturers.
In an effort to combat this downward trend, the Pakistan Suzuki Motor Company (PSMC) has taken a bold step by introducing a 0% markup installment plan for its bikes. the move aims to attract customers and revitalize the struggling local bike sector.
The 0% Markup Installment Plan by PSMC
PSMC's 0% markup installment plan comes as a welcome relief for aspiring bike owners. Unlike its competitors, Honda and Yamaha, who offer a 9-month 0% markup plan, Suzuki extends its plan up to 18 months.
This extended duration provides customers with greater flexibility in managing their finances and acquiring their desired motorcycles. Notably, the plan is exclusively available for Bank Alfalah cardholders, ensuring a seamless and convenient process for eligible buyers.
Installment Plans by Bank Alfalah QR Credit Card
To facilitate a better understanding of the financing options available through Bank Alfalah, here are the installment details for Suzuki models:
- GD 110 S
- Price: 335,000 PKR
- Advance: 167,500 PKR
- Remaining: 167,500 PKR
- Installments/EMI:
- 9 months: 18,612 PKR
- 12 months: 13,960 PKR
- 18 months: 9,306 PKR
- GS 150
- Price: 364,000 PKR
- Advance: 182,000 PKR
- Remaining: 182,000 PKR
- Installments/EMI:
- 9 months: 20,223 PKR
- 12 months: 15,167 PKR
- 18 months: 10,112 PKR
- GR 150
- Price: 521,000 PKR
- Advance: 260,500 PKR
- Remaining: 260,500 PKR
- Installments/EMI:
- 9 months: 28,945 PKR
- 12 months: 21,709 PKR
- 18 months: 14,473 PKR
Advantages Over Competitors
By offering a longer installment plan, Suzuki has effectively outshined its competitors in the local bike market. The company's superior scheme provides customers with an extended period to pay off their bikes without incurring any additional charges.
Moreover, Suzuki goes the extra mile by offering an in-house installment plan that is accessible to all, irrespective of their bank affiliation. This inclusive approach further strengthens Suzuki's position as a customer-oriented brand.
Uncertainty Amidst Production Challenges
While Suzuki's 0% markup installment plan appears promising, its effectiveness may be hindered by ongoing interruptions in production. Recent data from the Pakistan Automotive Manufacturer's Association (PAMA) reveals a significant decline of 29.1% in motorcycle sales for Pak Suzuki last month, with only 820 units sold.
This downward trend in sales has compelled the company to implement non-production days (NPDs) at its motorcycle manufacturing facility. From June 22 to July 8, 2023, Suzuki's car and bike assembly plant will remain temporarily closed due to insufficient inventory levels.
The challenging environment faced by the entire auto industry, including price hikes, tax rate increases, and import restrictions, exacerbates Suzuki's woes.
To illustrate the gravity of the situation, Suzuki recently had to suspend motorcycle assembly for five days due to inventory shortages. Acknowledging these difficulties, the company reached out directly to the interim Prime Minister, Shahbaz Sharif, in an effort to shed light on the dire state of the car industry.
Impact on the Local Bike Sector
Suzuki's 0% markup installment plan, despite the production challenges it faces, has the potential to bring about positive changes in the local bike sector. By introducing a longer repayment period and catering to customers from various banks, Suzuki demonstrates its commitment to making motorcycles more accessible to the public.
This customer-centric approach aligns with the government's initiatives to boost the economy and improve the standard of living for citizens.
The installment plan acts as a catalyst for increased footfall at Suzuki's dealerships, fostering a sense of optimism within the local bike industry. As more customers avail themselves of this favorable financing option, the overall demand for motorcycles is expected to rise.
This upturn in sales could lead to the creation of new job opportunities and stimulate economic growth in the sector.
Pakistan Suzuki Motor Company's introduction of a 0% markup installment plan provides a ray of hope for the struggling local bike sector. By offering extended repayment periods and inclusive financing options, Suzuki aims to revitalize the market and make motorcycles more affordable for the public.
While production challenges pose uncertainties, the positive impact of this initiative on the local bike sector cannot be undermined. As Suzuki continues to adapt and navigate through the current economic landscape, the future holds the promise of a vibrant and thriving bike industry in Pakistan
