The recent devaluation of Pakistani rupee and burgeoning inflation in conjunction with fuel prices has dashed much hope that country’s auto industry would be embarked on the trajectory of stability anytime soon.
Car and bike makers are announcing back-to-back production shutdown in the face of insufficient zero inventory. In a recent development, Pak Suzuki PSMC) finds itself in another challenging position. The company has been forced to halt operations at its motorcycle assembly plant until August 31.
As per the official announcement, motorcycle assembly will remain suspended from August 18 until August 31. Given the volatile nature of the dollar exchange rate, there is a possibility that Suzuki will raise bike prices once production resumes.
Suzuki is not the sole entity grappling with these difficulties; at present, the entire motorcycle and car industry is confronted with declining sales and production figures.
Car Sales Plunges by 16%
In a startling revelation, the Pakistan Automotive Manufacturers Association (PAMA) report has laid bare the grim reality of the automotive industry as car sales plummeted by a staggering 16% month-on-month (MoM). As per the report, automakers sold 5092 vehicles last month comparing 6,034 units in June’23.
Meanwhile, the industry recorded 57% year-on year decrease in car sales, selling 11,925 units in July’22 against 5,092 vehicles in corresponding period of this year.
Coming to the bike sales, the two-wheelers observed a low of 11% (month-on-month) last month, selling 72,421 units in July compared to 81,692 bikes in June’23. Honda sold 62,102 bikes in July 2023 against 75,056 units in June. Whilst Suzuki observed a jump of whopping 164% bikes in July, selling 957 units last month compared to 363 in June.
Similarly, sales of trucks are increased by 54% (MoM) whilst decreased by 29% in case of buses. Moving to Jeep and pickups, sales of pickups are increased by 26% whereas jeeps’ sales witnessed a slump of 30%.
What do you think about the ongoing situation of the industry? Drop your thoughts in the comments section.
