Sunday, November 27, 2022

Car Manufacturers/Assemblers May Exit Pakistan - TechJuice

Last updated Thursday, November 10, 2022 06:05 ET , Source: TopWireNews

Some car manufacturers/assemblers are planning to leave Pakistan. The decision has been made after considering the immense difficulties automotive industry is experiencing.
Due to the economic uncertainties and political conditions automotive industry is facing various challenges in terms of revenue and growth. In management briefing, Indus motors stated that the automotive industry is facing unexpected external issues. The issues include the unprecedented rupee devaluation and import restrictions by SBP. Additionally he said, some players may exit from the market, reported by Topline Securities.
In a Corporate Briefing Session, Indus motors review the fisrt quarter financial results and company forecast fro the current fiscal year. Due to the limits imposed by SBP, INDU is now operating at 40-50% of its maximum capacity. Whereas, the management does not expect this to change very soon.
At current production level, INDU’s order book is full for the next three months. If the SBP give ease in restriction then purchases will be easily delivered within 4-5 weeks.
Furthermore,greater inflation and low consumer purchasing power have impacted so badly on overall auto sector. Due to the rising interest rates and shorter loan terms, auto finance has dropped from 35% to 10%. According to the management, the localization rate in terms of value for Yaris and Corolla is 656% after excluding 39% taxes and duties.
In response to the recently announced refund policy, management reported...

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