Monitoring Desk
ISLAMABAD/KARACHI: The auto industry of Pakistan is in dire straits due to economic volatility and restrictions on imports while the car companies observe intermittent closures of their production facilities.
According to a recent report, the carmakers have laid off 250,000 to 300,000 employees due to production downsizing. It further noted the parts suppliers are among the prime casualties of this crisis.
Pak Suzuki Motor Company, the biggest carmaker by production and sales volume, kept its production on hold for 40 days in the last seven months. Other automakers are operating in single shift and are observing periodic production halts.
The report adds that Pakistan has faced a 40 percent decline in sales in the first seven months of the current fiscal year. The carmakers foresee an even worse condition in the next five to six months.
Car maker Indus Motor Company
CEO of Indus Motor Company (IMC), Ali Asghar Jamali, stated: It is hard to predict future sales scenarios as things are not visible regarding the opening of fresh LCs for parts and accessories. We do not know what is going on.
Jamali said that IMC’s plant was closed for 53 days between August 2022 and February 2023. In 7MFY23, IMC’s sales dropped by 51 percent to 21,877 units. “I think overall auto sales in FY23 will fall by at least 50 percent, considering the current situation,”.
