Recent months have been challenging for the Pakistani car industry due to import restrictions. The non-approval of the letters of credit (LC) forced multiple automakers including Pak Suzuki Motor Company (PSMC) to observe production cuts to cope with the rising inflation.
However, PSMC is seemingly trying to pick up the pace by resuming the bookings for all cars. The previous resumption was for corporate customers only and was confined to a limited number of models and units.
The current resumption is for all customers, although each model will be sold as per a specific quota. According to a Suzuki dealership, the delivery time on all models is currently two months. With this development, PSMC stands a strong chance of increasing its sales in the coming months.
Despite a month-on-month growth in October, car sales decreased 47% from 74,952 to 39,700 units between July-October 2022 due to inflation, auto finance restrictions, and high-interest rates. Interestingly, car sales jumped from 9,213 in September to 11,129 in October, which is still well below October 2021’s 17,413.
The increase in sales and production in October shows signs of improvement following SBP’s relaxation in the import quota. All carmakers except Hyundai Nishat Motors Private Limited (HNMPL) observed a slight rise in sales, showing signs of recovery.
PSMC in particular witnessed a 33% rise in month-over-month (MOM) sales figures by selling 8003 units in October, compared to 6006 units in September.
All car companies are now observing fewer non-production days (NPDs) which indicates an impending rise in sales in the coming days.