New Delhi/Islamabad: Days after India surpassed Japan to become the third largest auto market, neighbouring Pakistan recorded a steep decline in auto sales with manufacturers forced to shut down production owing to reduced demand and ‘cash flow constraints’.
The Shehbaz Sharif-led country, currently going through a severe economic crisis, so much so, that people have been forced to fight it out for flour on the streets, saw a decline in sales ranging from 28.4-56.5 per cent in the auto sector during the first half of 2022-23, according to local media reports.
The total car sales across Pakistan stood at 68,900 units in the July-December period compared to 114,774 units sold during the same time frame last year.
Pauper Pakistan
According to a media report, buyers showed reluctance due to high inflation coupled with sky-rocketing interest rates making leasing more expensive.
Moreover, curbs on auto financing and non-opening of letters of credit has resulted in shortage of parts leading to production halts by various assemblers and late delivery in models, the report added.
Big manufacturers almost call it quits
Earlier this months, Suzuki Pakistan announced the extension of closure of its plant till January 13, blaming inventory shortages. “Due to the continued shortage of inventory level, the management of the company has decided to extend the shutdown of the automobile plant from January 9, 2023, to January 13, 2023,” PSMC said.
Looking at the current economic condition...
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