ISLAMABAD – Pakistan auto Industry has been hit with worst crisis in years,Media Report has revealed citing data which revealed the production and thesale of the auto sector nearly slashed to half in FY 2019-20.The firstquarter of Fiscal Year 2019-20 kicked off on a depressing note for the autosectors as car sales declined by mammoth 42pc.
Pakistan’s auto-industry—once largest payer of indirect taxes—is nowfighting for its survival.
As per data garnered by GNN’s investigation cell, Suzuki Motors was hitworst as its sales plunged by 70pc in the first quarter of ongoing fiscalyear. It was followed by Honda and Toyota with decline of 65% and 60%respectively.
The key factor behind decline in car sales is rise of as much as mammoth46pc rise in prices of cars within a period of one-and-half-year.
Talking exclusively to GNN, an analyst cited high interest rates and strictcheck and balance of Federal Board of Revenue (FBR) as two key contributorsto this lower production besides mammoth rise in prices.
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The first month of 2019-20 started off on a depressing note for the autosector with 23 per cent and 42pc declines in car production and salesrespectively to 16,472 and 10,968 units.
Likewise, imports of used cars also plummeted massively. In the firstquarter of FY 2019-20, as many as 22000 used cars were imported. During thesame period in previous fiscal year, the numbers stood at 82000 units.
Back then in July 2018, 4664 units of Honda Civic were rolled out in themarket. During the same month in ongoing fiscal year, the productionplummeted to 2371 units while the company was successful only in selling1452 units.
