News Desk |
Pak Suzuki Motor Company Limited (PSMCL) has come to the overdue decision to discontinue Mehran VX model from end of November due to its thin demand as compared to the popular VXR model.
According to reports, the company has informed its vendors that it would produce 6,734 units from June to end November. Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Senior Vice Chairman Mohammad Ashraf Sheikh foresees “no big loss to the vending industry due to production closure of Mehran VX.”
The new Alto variant will have a 796cc engine instead of a 660cc engine. Moreover, the new Alto might have a 5-speed manual. The possibilities for an Automatic transmission are slim.
Mehran had replaced Suzuki FX model in 1988 and since then there had been no changes in the body shape, aerodynamics or exterior apart from minor changes in headlights and tail lights. The three decade old VX is pretty much similar to the surprisingly popular VXR, which has an air conditioner installed and a Euro-2 engine. In 2012, Pak Suzuki upgraded all vehicles including Mehran to Euro II technology.
According to PAMA, the overall production of Mehran in 1995-1996 stood at 8,966 units which in 2016-2017 reached 38,311 units. In July-May 2017-2018, production hit 43,896 units. Only Mehran had achieved 72 percent localization in its 30 years journey as compared to other locally assembled cars making it competitive in terms of price with other locally assembled cars, Ashraf claimed, speaking to a local publication.
Read more: Farewell, Suzuki Mehran! Enter: United bravo!
Pak Suzuki Motor Company raised car prices in the range of Rs 20,000 to Rs 30,000, for the third time this fiscal year last month, GVS earlier reported. The reason given by the Suzuki official for the third price increase in 2018 was the same as the other two of the Big three; the weakening Pakistani rupee. Previously, Suzuki had increased prices in January and March this year following rupee’s depreciation, GVS earlier reported.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Senior Vice Chairman Mohammad Ashraf Sheikh foresees “no big loss to the vending industry due to production closure of Mehran VX.”
In March this year, Pak Suzuki Motor Company (PSMC) had jacked up the already raised prices of its variants by up to Rs 50,000, effective from March 1st, 2018, which marked the second time the automaker had revised rates in an upward trajectory this year alone, before even hitting the second quarter. Hardly two months prior, had the company raised prices in the range of Rs 10,000-Rs 20,000 in a balancing act against the depreciating rupee.
The latest price for the VXR Model Euro 2 is Rs. 795,000 and for its CNG variant is Rs. 805,000, which amounts to almost 0.9 Million PKR including registration.
Read more: Wagon R discontinued as rumors of Mehran ‘revamp’ surface
PSMCL has requested its vendors to carry out effective material and production management for smooth production of remaining vehicles and to avoid any surplus inventory at either end at the time of model discontinuation. At the same time, the company has asked vendors to continue supplying parts to meet spare parts requirement.
The reason given by the Suzuki official for the third price increase in 2018 was the same as the other two of the Big three; the weakening Pakistani rupee. Previously, Suzuki had increased prices in January and March this year following rupee’s depreciation, GVS earlier reported.
The company in its letter on discontinuation of Mehran VX to the vendors had, however, not mentioned about the fate of existing Mehran VXR model but market is already filled with rumors that it will be replaced with the Suzuki Alto. According to a local auto industry-specific publication, Pak Suzuki Mehran’s engine will be fitted into the new Alto, Global Village Space earlier reported. The new Alto variant will have a 796cc engine instead of a 660cc engine. Moreover, the new Alto might have a 5-speed manual. The possibilities for an Automatic transmission are slim.
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According to unofficial sources Pak Suzuki has assembled a few units of this new car; reportedly 50 units. The units have been sent to be subjected to various types of testing. Once the testing is complete, Pak Suzuki will hopefully unveil this new car to the Pakistani market. Pak Suzuki has not made any official announcement about the new variant yet, its engine, its design and its release date.