Local auto assembling industry is in constant shambles, none which seems to end anytime soon. The continuous slow sales in the recent months have forced Indus Motors to observe non-production days (NPDs).
Senior General Manager Marketing Indus Motor Company (IMC) Ali Asghar Jamali while talking to Dawn said that his company will extend NPDs to 10 after observing seven NPDs this month. Extending to ten NPDs means that production will be halved.
Speaking about the reason for this slackness in demand, he said that import of used cars is the main cause for it. Although Indus Motors isn’t looking forward to laying off workforce (because of Habib Group’s reputation to never firing anyone), things aren’t too friendly in the auto parts manufacturing (vending) industry who have received very low order since production has been cut off by as much as 50%.
Pak Suzuki was producing almost 8,000 to 9,000 units per month few months back but now, it is only producing 4,000-5,000 units.
Moreover, he said that Pak Suzuki has given almost zero order for parts of Cultus for the month of October 2012 because of unsold stocks. While they have shrunken the orders for Suzuki Mehran, Bolan and Ravi significantly.
Atlas Honda meanwhile hasn’t been able to cope with the difficult times being faced by the auto industry either despite launching the new Civic, an official of Atlas Honda said that the sales have remained low by 20%. However, they are not looking forward to cut down the production so far but if production remains lackluster, than they may have to slash production.
Although having a vast portfolio abroad for comparable markets, these companies have remained producing only few cars which now are not in the reach of masses. Law and Order and tumbling economy and imported cars have given them rough times but automakers reluctancy to expand their portfolio and lack of research and development has played a more vital role in today’s slump faced by auto assemblers.