Overview
After Suzuki and Toyota Indus now, Honda comes with news of the worst sale in two years. Since the government has made LCs approval difficult through the State Bank of Pakistan, automakers suffer from huge sales.
However, the prices are also made it difficult for car makers to increase sales, but automakers claim the delay in LCs approval caused several non-productive days. Honda announced several plans to shut down in a year due to observing non-productive days.
Locally manufactured car production disturbs due to the non-availability of CKD kits. This is why automakers failed to fulfill the demand for the vehicle. Meanwhile, back-to-back climbs in taxes and duties by the government have made a tough situation for automakers’ survival.
Honda Sale Down
According to the Honda Atlas report company has observed a 39% sale decline on a month-on-month basis. In the last month, Honda has only sold 1,636 units. Which is the worst record in over two years. Honda mentioned the import restriction makes it difficult to work on the smooth production of vehicles.
Production is cut down from the regular routine and affected by the CKD kit’s non-availability. The fuss in assembly kits lead to problem and disturb the sale of car makers.
Conclusion
Pak Suzuki and Toyota Indus Motors (INDU) also observe a huge decline in sales. Toyota mentioned in the report a down in sales YoY basis by 52%. Similarly, Pak Suzuki has mentioned in a report that the company has only sold 978 units in the month of February. Suzuki has only sold 44 units of Alto in January and 544 units in the last months. The overall automotive industry suffers for a long time. Toyota has mentioned the company faces a hard time since June 2020.
