Honda Atlas faces the worst economic blow in Pakistan

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Honda Atlas faces the worst economic blow in Pakistan

ISLAMABAD - The auto industry in the country posted dismal sales for November 2019 as compared to the same period last year confirmed the data published by Pakistan Automobile Manufacturers Association (PAMA).

The data indicated that car sales for locally made cars fell by 44% in the first 5 months of the current fiscal year as compared to the first five months of the previous fiscal year.

These numbers have forced multiple companies to observe Non-Production Days (NPDs) as the stock keeps piling up with sales in decline. Recently, Millat Tractors announced that they would cease production for the rest of December and would restart in January 2020.

Honda Atlas has seen the biggest decline with a jaw-dropping 86% fall in sales for November 2019 as compared to November 2018. This has forced the company to observe NDPs for the rest of December with only 8 days worked so far.

The company had observed 16-18 NPDs in October, only 11 working days in September, 13 in August and 20 in July. This will bring the total NPDs to 108 (out of 184 days) between July and December 2019. *Month* *Number of Non-Production Days* July 20 August 13 September 11 October 18 November 23 December 23

The company has been forced to observe NPDs because inventory has started piling up with the company selling only 477 units of both City and Civic during the whole month of November.

December is also shaping up to be a bleak month especially with Honda unwilling to reduce prices or offer any incentives to boost the declining sales.

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