The downward trend of car sales continues, with Pak Suzuki Motor Company’s (PSMC) sales reaching a two-year low.
An update from Autojournal.pk suggests that the company sold just under 4,000 units in August 2022. This is the company’s worst monthly sales figure since May 2020 (the peak of COVID-19).
As a result, PSMC recorded a 75% Month-Over-Month (MOM) decline in sales. The fall is mostly due to the restrictions on auto-sector imports and the non-approval of the letter of credit (LC) for the clearance of CKD kits.
This issue has forced carmakers to cut production to cope with the ongoing inflation. The recent price hikes have also contributed to the decline in demand.
A Grim Foresight
Due to a continuous drop in the local currency value, automakers foresee a massive drop in sales this year.
Recently, Honda Atlas Cars Limited (HACL) held an analyst briefing, where it predicted a decline of up to 35 percent in sales. Like its rivals, HACL also observed non-production days in July, which hampered its production.
Following another decline in the local currency value, automakers fear another price hike wave as well. The long-standing delivery delay issue, coupled with production halts and price hikes, may result in a terrible year for Pakistan’s auto industry.
