Overview
After back-to-back sale slumps and plant shutdowns, one of the popular automotive brands Honda has only sold 56 units of Honda City & Civic in May 2023. The ongoing country situation has made difficulties in the sale and production of vehicles which cause sales to slump. It seems the automobile industry shattering and turning to loss. Honda City and Civic are the two most popular models in the country. Compared to the last month Honda sold a total of 159 vehicles in April 2023.
The company has faced continued 2 months of plant shutdown loss due to the non-availability of stock. this is one reason only but they are facing multiple bad situations right now in the country.
Honda Sale Slump In May
The overall sale has been declined in the month of May. Only 31 units of Honda BR-V and HR-V were sold in the last month. As per this information, Honda sold only 87 units last month which is a loss of 58% compared to the last month. The staggering low sales of vehicles have made car makers in difficulties. The production of vehicles needs a serious eye of the incumbent government.
The two other most popular Japanese brands in Pakistan Toyota and Suzuki also show some different loss and profit records. Toyota record a sale slump of 12% compared to the last month and sold only 1,718 vehicles. Meanwhile, Suzuki performed on some good terms and increased sales by 101%. The company has sold a total of 2,958 vehicles in the last month.
Pakistan’s Current Production Situation
Unfortunately, the current economic situation is not in favor of the automotive sector and overall production industry. It’s leading to severe crises and losses which are unbearable. Hyperinflation leads automakers to a challenging road.
The series of obstacles have put the automaker’s growth and profitability in a down way. The cost of production challenges made car prices huge which are not suitable for end consumers. Just like this several critical situations have come in front of them.
Conclusion
The budget 2023-24 documents are also not in favor of the automotive industry. The high taxes and duties will bring new layers of car price hikes. In the recent Budget document, the government has imposed a 35% customs duty on all car parts. It means the customs duty will not be imposed on the basis of parts value it will be the same for all car parts. Honda and Toyota are the most popular Japanese brands in Pakistan and both are suffering in loss and faces a shortage of raw material.
