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Auto Sales May Drop Again Next Month Due to Production Issues

The inflationary pressures and import hurdles continue to pound the local auto industry. Carmakers have witnessed a decline in production, which may cause sales to plummet further in the coming months.

According to details from a reliable source, the production figures are as follows:

Carmakers Production in July Production in August Percentage Change
Toyota Indus 3,582 3,089 -14%
Honda Atlas 2,506 2,020 -19%
Pak Suzuki 9,881 5,757 -42%

The sales are already on a downward trajectory for the past few months due to rising prices and falling demand. The import restrictions, delivery delays, and production cuts have aggravated the issue.

The automakers blame the new mechanism introduced by the State Bank of Pakistan (SBP) which requires approval for CKD import clearance. Toyota Indus Motor Company (IMC) and Pak Suzuki Motor Company (PSMC) issued notifications of production halts in September as well.

Analysts reckon that the situation will worsen due to continued local currency depreciation, logistics challenges, and production delays. The recent floods have also ravaged the economy, which may play a factor in a sales decline. Arslaan Asif Soomro of Pak Arab Refinery told ProPakistani:

The impact of floods in Pakistan may not be as material on supply side as on the demand. The assembling plants are not inundated due to floods or facing a shut downs yet. On demand, yes we can see a hit due to rural economics get severely affected. Suzuki is a prime victim of the changing rural dynamics.

Considering these factors, the Pakistani car industry has trying times ahead of it.



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