The auto sector is the fast-growing industry of Pakistan. It performs a major role in our economy. The auto sector reduce the unemployment ratio in Pakistan.
The strength of the dollar was increase speedily in 2019. This is the big reason for the downturn in the auto sale. Automakers pay a high amount of customs duty which causes of increased cost of sale. The sale depends on the purchasing power of the consumer. The year 2019 was bad for the Pakistan economy. The inflation rate is going very high. It highly depends on the income and expenses. To boost the sales automakers offer different discounts but in the end no progress record.
Annual Budget Affect:
In 2019 the annual budget slumps the sale. Previously the FED tax applied according to the engine capacity. In 2019 the government has imposed FED on all vehicles. After that automakers increase the car prices to maintain the cost of the product. The main downfall of the auto sector starts after the annual budget in June 2019.
Read More: Close Automotive Plants May Cause Of Decrease In Car Prices
According to the information from January 2019 to June 2019, the sale was deterioration by 11%. After June the bad time of the auto sector had started. The prices were goes up. The sale was decline. They have closed their production plants many days in a month due to low sales. They recorded a 34% decline in the sale as compared to the same period last year. The low sale cause of many non-productive days.
Dollar Strength Increase:
The strength of the dollar hugely affected at the international level. The payment has done according to the dollar rate at the international level. 2019 is just like an extremely bad time for the auto industrialist.
Automakers import auto parts from other countries. In Pakistan, there are not enough resources to build high-quality auto parts. They have to pay custom duty according to the current dollar. After paying all amount the vehicle cost came very expensively.
New entrants of Vehicles:
Automakers introduce a new vehicle to attract is customer and increase the sale. The new entrants are a good possibility to engage the consumer. Although in Pakistan every year local automakers introduce new vehicle and its increase the sale. Have a look at the vehicles enter in 2019:
Suzuki Alto:
PAK Suzuki launched Alto to replace the Mehran. The company has discontinued the production of Mehran. They have launched Alto with 660cc engine power. To create the hustle in the local auto industry company has introduced Alto in three different variants. The launching of Alto boosts the sale of Suzuki. On the other side, the overall sale of Suzuki had declined.
They only recover the expenses with the sale of Alto. Alto is a small family used car. In Pakistan, the sale of small cars is very higher than big cars. Here are the prices of Alto three variants:
- Alto VXR: PKR 13,98,000
- Alto VXL: PKR 15,98,000
- Alto VX: PKR 11,35,000
Price Pearl:
DFSK launched its first CKD unit, Prince Pearl. The car is equipped with 800cc engine power. Prince pearl has come with the competition of United Bravo and Suzuki Alto 660cc. The small hatchback is available at an economical price. The features and specifications of the hatchback are amazing as compared to its competitors.
The locally produce car take the high attention of its consumers. The price of the car is not high. The company has launched the car with manual transmission and have the plan to launch an automatic variant soon. See below the price tag:
Prince Pearl: PKR 10.5 lacs
KIA Picanto:
Picante is another flat hatchback enter in the Pakistan local market in the year 2019. The year was good for the new entrant. International automakers invest in Pakistan. Picanto’s experience in Pakistan was not highly appreciative. The car has come with comfortable driving and advance features.
KIA already launched Picanto in the international market. Picanto is attractive but it’s not included in the low prices car. The car was launch with the competition of Suzuki Cultus. No doubt its beat the sale Suzuki Cultus. Company has launched the two variants of Picanto:
- KIA Picanto Manual Transmission Price: PKR 19lacs
- KIA Picanto Automatic Transmission Price: PKR 20lacs
Prince DFSK Glory 580T:
Here is another unit of the DFSK group. They have also introduced an SUV with a high power engine in the local auto market. The launching of two model shows that automakers have long time investment planning. Even in bad times, they want to survive and wait for the good time of the local auto industry.
The company has launched the SUV with 1500cc engine power. The SUV is the front engine and front-wheel drive. Two variants of this SUV available in Pakistan:
- Glory 580T 1.5 CVT
- Glory 580T 1.5 MT
Hyundai Ioniq:
Hyundai is back in Pakistan and announced that they will bring its car with the collaboration of Nishat Group. Hyundai cars create hustle in the local auto market. The design and features that Hyundai Nishat offer is the biggest challenge of local auto manufacturers. The company has put its high-end effort to produce a breathtaking vehicle.
The car is available with 1.6L engine power with electric motor power. Hyundai Ioniq is a most awaited car of 2019. The car was launched with a price tag of PKR 6.4 million. Ioniq is looked stunning by all sides. Ioniq is the CBU unit of the Hyundai Nishat group.
Hyundai Santa Fe:
Hyundai has come to the local auto market with high investment. The company has launched its highly appreciated units in Pakistan. Hyundai Santa Fe is paired with 2.5liter engine power with 6–speed automatic transmission. The vehicle is the best SUV for off-road driving. The car is bigger and stylish.
The exterior is amazing like its other cars. The design and style that Hyundai introduce are new for the local auto industry. Its new style and power make the name of the company popular in the market.
KIA Shortage:
KIA has introduced Sportage to beat the market of big vehicles. KIA Sportage is the first AWD unit in Pakistan. The features and specifications with the low price make its market value very high. The Sportage is a short time famous SUV. The vehicle is available in both variants Front Wheel Drive and All Wheel Drive.
Sportage has offered 2.0-liter engine power with 6-speed automatic transmission. The company has introduced all advanced features in SUV that is necessary for a powerful SUV.
- Price of KIA Sportage AWD: PKR 54lacs
- Price of KIA Sportage FWD: PKR 49lacs
Suzuki Jimny:
Suzuki Jimny is the perfect off-road driving vehicle. The company has introduced the 4th Generation of Jimny with a new style and design. The vehicle is best for off-road driving. Suzuki has redesign Jimny with some modern cuts. The redesigned unit is equipped with 1.5-liter engine power.
The shape of the vehicle is box style. The price of the vehicle is very compared to its market value. The company has launched the model with a price tag of PKR 39.9 lacs.
Conclusion:
The above review of the auto sector 2019 shows that manufacturers put their full effort to engage their consumers. They offer different discounts to boost the sale and clear the stock. The launching of the new vehicle attracts the consumer. Concerning this statement, they introduce advance and new design models in the market. The decline in sale volume cause of non-productive days. It also increases the un-employment ration in Pakistan, because the low sale affects the revenue of the company. Rupee depreciated in 2019 was 35%. This is the big reason for the decline in the sale.
Even in the crisis automakers never fair and lose hope. They are survived in the bad time of the local auto industry and struggle for a good time.
The above information is from our side to leave your thoughts in the comment section. Stay connected with Auto Deals for more updates.
