The auto industry faces a hard downturn from the last year due to the increase in dollar strength and FED tax. The outbreak of Coronavirus badly affects the auto sector first time in the Pakistan history zero sale record in the auto industry. After the outbreak COVID-19 government-imposed lockdown in the country.
Pakistan Automotive Manufacturers Associations (PAMA) released the report that zero sale record in April 2020. This is first-time auto manufacturers have no sale record at the end of the month.
Manufacturing plants are shut-down due to the zero demand. Here is the sale comparison of April 2019 as compared to April 2020:
| Suzuki Car Model | April 2019 | April 2020 |
| Swift | 453 units | Zero |
| Cultus | 2,191 units | Zero |
| WagonR | 2,641 units | Zero |
| Toyota Car Model | April 2019 | March 2020 | April 2020 |
| Corolla | 5,256 units | 2,089 units | Zero |
| Honda Car Model | April 2019 | March 2020 | April 2020 |
| City | 2,310 units | 1,327 units | Zero |
| Civic | 2,310 units |
According to the PAMA report, the FY 2020 is not doing well for auto sector car sales decline by 52% in the first 10 months of this FY 2020. In the year 2019 companies sold 177,435 passenger cars and in the FY 2020 only 85,330 units sold.
The decline is sale affect the employment ratio. The shutdown production plants increase the unemployment ration in our country.
Due to the pandemic situation and lockdown, the entrants of new vehicles disturbed. Toyota has complete the production of Yaris and ready to launch this sedan but after lockdown its delay. Auto Industry faces a hard downturn in the last year but still, they survive and sell vehicles. This time the sale of vehicles in zero and this is not bearable for them.
All over the sale of the auto industry badly decline motorbikes, LCVs, Jeeps, and Vans production is zero in April.
Factors that boost auto sector again:
The rising of the auto industry is a good sign of our economy. A high part of taxes collects by the auto industry. The closed production and zero sales mean they will never pay tax to the government. The auto industry is the fastest growing industry in Pakistan. From last year international automakers enter Pakistan with high investment plans.
The government should give relief to the auto sector to boost its sale. The relief in taxes will help them to reduce the prices and give promotions to customers. As the sale grow auto sector will grow and enhance production. The increase in production also increases the employment ration in Pakistan. Th government should help automakers to get out this hard time.
Let us know about your opinion on the down-turn of the auto sector. How we can boost the auto industry again? Stay connected with Auto Deals for more updates and news.
