Pakistani automakers have seen some exponential growth lately. All three existing automobile assemblers (Suzuki, Toyota and Honda) have reported increase in sales. The number of total units sold went from 136,888 units in 2014 to 179,953 units in 2015. That is an increase of more than 31 percent.
Toyota saw one of its most successful years in Pakistan last year. Toyota sold 57,000 units in the year 2015. That is 2200 more than their plant capacity of 54,800 units. And Corolla is their star product.
Analysts have attributed the growth to the improved economics of the auto sector and the positive outlook of the overall economy. Weaker Yen has helped the assemblers to import spare car parts for less hence keeping the prices at a level and attracting more consumers. Around 75 percent of a locally assembled car is made up of imported spare parts. Also, the continuously declining oil prices have also helped consumers to spend more on cars, nationally and internationally. The third biggest factor is the low-interest rates by banks. The interest rates are at their lowest in the last 42 years. That has made the prospect of having your own vehicle quite easy for many.
Pak Suzuki, a joint venture between Pakistan Automobile Corporation and Suzuki Motor Corporation of Japan, upped its output by 54 percent. Thanks to Punjab Taxi Scheme, Pak Suzuki cars vehicles like Suzuki Bolan and Suzuki Ravi sold more than ever. Once the scheme has ended, it will be interesting to see how PS will manage to keep the momentum going.
Minister for Commerce Khurram Dastgeer remarked,
“The auto industry must now focus on enlarging output of its cars and export more units to countries in its neighborhood. It should also tap new markets in Central Asia.”
We are exporting some spare parts to Sri Lanka and few African nations, countries to whom we have exported cars previously.