The ongoing economic turmoil has claimed another victim as, after Pak Suzuki and Toyota Indus Motor Company (IMC), Honda Atlas Cars Limited (HACL) recorded one of the worst single-month sales in over two years.
According to the latest update from Autojounal.pk, the company only sold 1,636 cars last month, witnessing a 39% Month Over Month (MOM) decline in sales. The likely culprit for the decline is the unavailability of assembly kits and intermittent production shutdowns.
The Curse Continues
Honda announced last week that it will shut down vehicle production for over 20 days.
The official notification cites disturbance in the supply chain due to the economic crisis and sanctions on raw materials and CKD imports as the reasons for the lengthy shutdown.
Due to its heavy dependence on imports, the local auto industry is also feeling the heat from the Rupee devaluation and import restrictions. The State Bank of Pakistan’s (SBP) decision to curtail the issuance of Letters of Credit (LC) is causing import delays and inventory rate hikes. As a result, the local industry is in peril.
Nice
Though, their sales is declined but they have managed to make substantial profits by selling one car in the price of two. Now, they are only selling in the niche market of rich only.