The auto industry of Pakistan is in dire straits due to economic volatility and import restrictions. Resultantly, car companies have been observing intermittent closures of their production facilities.
According to a recent report from Dawn, the carmakers have laid off 250,000 to 300,000 employees due to production downsizing. It further noted that the parts suppliers are also among the prime casualties of this crisis.
Pak Suzuki Motor Company (PSMC) — the biggest carmaker by production and sales volume — has kept its production on hold for 40 days in the last seven months. Other automakers are also operating in single shifts and are observing periodic production halts.
The report adds that Pakistan has faced a 40% decline in sales in the first seven months of the current fiscal year (7M FY2023). The carmakers foresee an even worse situation in the next five to six months.
CEO of Indus Motor Company (IMC), Ali Asghar Jamali stated that:
It is hard to predict future sales scenario as things are not visible regarding the opening of fresh LCs for parts and accessories. We do not know what is going on.
IMC’s plant was closed for 53 days between August 2022 and February 2023. In 7MFY23, IMC’s sales dropped by 51% to 21,877 units. “I think overall auto sales in FY23 will fall by at least 50%, keeping in view the current situation,” Jamali said.
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Car companies import almost 99% parts in most cases. So most parts are imported and not produced here. So how come they have fired 250,000 Employees when all car companies are actually giving jobs to less than 15,000 Employees directly?. Top 5 companies actually only employees less than 10,000 Employees.
May werk Oman masaqat. Atoalctsn salaf danmo reperang car AC Makank Atoalctsn
Soup for the thought.
Exactly….I don’t think that more then 2 lac people work for the automobile industry, Even PSMC has just under 5000 employees
Where did you get the number 99% from?
Not all parts are imported. Engines are imported. My friend used to work for a Honda supplier and they manufacture parts for Honda motorcycles locally. Why do people speculate so much?
The topic under discussion is manufacturing of cars. The mare fact they are increasing price with every fluctuation in US$ is a proof that most of parts are imported except tyres and batteries. The local parts used under deletion programme are also fakly imported and supplied as local parts. We are a great nation of cheats. Yes motorcycle parts except engine are made here. I wish we were making car parts and cars wouldn’t be that expenssive. Best would be to open imported of 5 years old cars with customs duty paid in US$.
Actually they are not manufacturer they are only assemblers, 99% essential parts and overall 70% parts of the cost are imported, actually they spend approx. $ 4 billion on imports, and not agreeing on even 2% exports of their assembled vehicle ( they know their vehicles are not export standards)
They are enjoying benefits by every Government against what so ever reasons and means.
May name is Usman Ali foram Multan pakstan may worwak Atoalctsn car AC Makank Atoalctsn salaf danmo reperang
Atoalctsn salaf danmo reperang may worwak Atoalctsn car AC Makank
I don’t believe that automobile manufacturers in Pakistan could have employed this big workforce. They barely have 5000 to 8000 employees, each including ad-hoc/ contractual employees. Secondly, more than 75% parts and CKDs are imported and rest are outsourced to local vendors/ suppliers. There business are disgusting due to dollar’s unavailability and scarcity and exchange rate fluctuate only. Labour cost is fixed and cheaper than other countries, then why they would lay off their staff? Let’s assume, they have played off 250,000 employees, it would have been a great disaster indeed and the crises would have been even verse the economy.
Thanks to establishment and PDM
No Fitna Khan is responsible of all this crap! He took record loans where no significant development project has been made in his tenure and all went in expenses!
Your mother is responsible for giving birth to such a useless, blind n dumb waste of a human being who cannot separate fact from fiction due to his internal biases. We were at record exports and remittances in the history of Pakistan with GDP moving towards 6% before your incapable and corrupt lot came to power, have some shame before you defend them. No you won’t as it’s not in your genes, enjoy 300 petrol and dollar you brainless genius.
Put numbers where your mouth is … Besides income doesn’t come from development projects…they are an expense themselves!! Oh ya and a source of all corruptions in the past
Khan sy pehlay to Pakistan America ko Loan dy rha tha since 1948.
Khota gaddi te wich suffering kar lay gai 😂😂
propk has no standards
First of all the car manufacturers are car assembler, the are putting part’s together, all of them are dependent on their import consignment, On first stage they remit dollars to get the CKD kit’s and after assembly they load all the profit’s and sales the vehicle.
On second stage they send dollar’s to the mother company again….I wish they shut down business permanently and go home because they already made enough damage to Pakistan economy.
Dear all if the number of employees is correct then it is indeed a shoking news, however there is a solution that if the internal investor keep hand on their head and utilise their capabilities and expertise then a short time we will have our own car production companies.
Time to manufacture 99% parts in Pakistan otherwise they better stop production.they are of no benefit to common men.
Haan ji because the car manufacturing company have 700 vendors that make different parts of various vehicle and each vendor facilitate a minimum of 250 to 400 workers thats why 250000 workers and officers are a direct impact also car manufacturer can only have 40 percent import for each product according to E.D.P Govt of pakistan
I think that !
If the car manufacturing industries are given a lot’s of money to buying automobiles spare parts from other countries . Then this is not possible to get solution of this . Because a lot’s of money is going to the gevernment including TEX and TRANSPORTS . If we make our own spare parts and we Investe the money for our manufacturing purpose . And Increase the salary of worker inside them .
Important thing is the happiness of workers that doing work inside .
It is high time for promote local manufacturing and we need to not rely on imported products.
Yes many of the parts are imported and due to government restrictions on import.
No doubt many people have been fired I personally know few of them and myself the part of Auto industry.
99% import is not real because if you think that such import figures are ok then UpTo now 99% should have been fired.
Why the IMC is not going for export. If the economy of pakistan is down and sale decreases by 50% then u should go for export. Export ur car,s. But it means that ur car,s are not capable of export..
ھماری گاڑیاں ہونڈا نہ خریدے
****یوگینڈا
Sale man shop experience iron steel marcant experience garment company experience hilal food company experience company
So the past govts were blackmailed for this reason that millions(in actual 1000) people will be unemployed. It has happened. High time now to not get bullied by this mafia and implement harsh safety and standard laws
Whatever we say but the fact is that industry has been hit hard by bad economic situation I side the country since last 11 months.Auto industry vendors have been developed locally since last 3 decades and are doing a good job by supplying parts to assemblers.Govt policy governs them but with high raw materials n energy costs they are in difficult position too like others
Sustainable policy is answer to get away from closures and govt should encourage them to export parts to assemblers outside Pakistan.This sector if helped can do wonders in fetching $€£¥₩.