Auto Companies to Cut Production of Cars in 2019

Leading automobile companies in the country are going to revise their monthly output schedule, expecting a downward trend in sales in the second half of the fiscal year 2019.

Officials of Pakistan Automotive Manufacturers Association (PAMA) said that the move has come due to restrictions placed on them in 2018’s budget, that stops companies from selling vehicles to non-filers.

Vice Chairman of PAMA and the CEO of Indus Motor Company Ali Asghar Jamali said he believes the country’s car market was going to shrink by 10 percent due to this ban (automobile sell) on non-filers.

“The industry growth we experienced in the start of 2018 has just vanished, and now it is facing a downward trend in sales,” Jamali grieved.

The CEO of Indus Motor Company further revealed that starting from this month, the company has revised its production plan for the second half of the current fiscal year and that it will produce around 1,000 fewer cars during January against the planned production for the month.


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He mentioned that the company’s annual production target, which was 72000/74000, has now been revised to 62000/64000 equal to the previous year.

When approached for comment, Suzuki’s spokesperson said his company has already suffered a loss of 32 percent in production and sales.

Slowdown in Sales

As per stats provided by PAMA, the three leading automakers Indus Motor, Suzuki and Honda produced 113,494 vehicles of different engine capacities in the first six months of the present financial year, out of which 104,038 units were sold.

While the production of vehicles during the last fiscal year was 107,787 units and 103,432 units were sold during the same period in the previous fiscal.

Suzuki got the short end of the stick, seeing a 25 percent decline in sales especially for its famous ‘middle-class’ small cars it produces.


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The slump in the production and sales has also affected the auto part vendors.

Syed Nabeel Hashmi, former chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), argued that the actual impact of the slowdown would start to reflect in industry’s sales from January.

He feared that if the government fails to address the worsening situation, the automotive market might shrink by 30 percent by the end of the quarter this quarter in March.

Via: Dawn


  • “Officials of Pakistan Automotive Manufacturers Association (PAMA) said that the move has come due to restrictions placed on them in 2018’s budget, that stops companies from selling vehicles to non-filers.”

    Jhoot…. they are doing because of fear of new entrants. Because they now new entrants will eat some portion of their existing shares.

  • Instead of increasing the production units of cars to bring down the prices, these blood suckers have instead resorted to reduce the number of units to sell at increased prices. What a stupid policy by these.


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