Pak Suzuki will surly post their 100% profit increment for FY 2019-2020,
While the rest of automotive industry is cutting down production:
High-end taxes were being imposed and now you might have come across sky high prices of cars in auto industry of Pakistan.
According to BR correspondent, Honda Atlas assembler and manufacture of Honda cars in Pakistan has plan to cut down its annual production target from 50,000 cars to 30,000 cars due to the current economic situation and expectation of lower sales for year 2019-20.
Due to lower production target, Honda Atlas may also layoffs considerable number of labor force from its firm where most of the employees are from manufacturing department.
In addition to Honda Atlas, Indus motors which is another car assembler of Toyota cars in Pakistan may reduce its production by 25% as per industry source, giving a huge set back to auto sector of Pakistan. It has also been said by the market sources that these companies are trying to become more technology intensive and less labor intensive.
The rupee witnessed massive depreciation against the US dollar, which then led to the existing carmakers raising their prices on multiple occasions to pass the impact of increased cost on to the consumers.
In the light of budget announcement for the fiscal year 2019-20, high Federal Excise Duties (FED) were presented to be imposed on local assembled different car types:
• 2.5% FED to be imposed on cars up to 1000cc engine displacement; whereas previously there was 0% FED on this engine capacity
• 5% FED to be imposed on cars between 1001cc and 2000cc engine displacement, while the previous FED was 0%.
