Overview
Import restriction consequence has come out and affected automotive production. The stipulation of Completely Knocked-Down (CKD) kits Tiggo 4 and 8 Pro production affected and observe non-productive days. Ghandha Nissan Limited (GNL) has announced non-productive days from 6 March 2023 to 10 March 2023.
After the back-to-back increase in car prices now non-production days are also under the effects of inflation and poor economical condition. Observing non-productive days leads to the sale breakdown. The strife current situation troubling the automotive industry.
Current Automotive Situation
Automotive stability is related to economic affairs. If the economy suffers in challenges automotive industry definitely not able to handle the prices. The ongoing economic challenges including dollar fluctuation disturb the import of CKD units. Local car production is completely dependent on CKD kits. In the last couple of months, the State Bank of Pakistan rejected the approval for CKD kits import which its led to non-productive days of vehicle production.
Not only Ghandhara Nissan but Toyota, Suzuki, Honda, and many other car brands observed several non-production days in a month. GNL handles the production of Tiggo 4 and 8 Pro in Pakistan. the company has started production of both vehicles in recent years. This big level of production break affects the overall sale.
Unstable Car Prices
Car prices increased twice in a week just after the government imposed 1% GST. The sale of vehicles fell down very badly after the prices are increasing very quickly. The last several months are more-worst to remember in car prices. Moreover, dropping car sales and back-to-back price increases caused of more than 300,000 unemployed. An erratic economic situation is linked with different connections. Observing several halted production days bring back several losses for the company.
After the GST tax increased from 17% to 18% KIA announced a price hike three times in ten days. Honda announced changes in car prices three times a month. Following these motorbikes’ prices also do not follow the Price Lock and increased prices twice in a month.
Conclusion
The smooth production and stable prices of cars required government help and it has not been favored for couple of months. Non-production leads to the major strict of unemployment. The unemployment ratio increased by the forced of non-stable economic affairs. Car and motorbikes production is almost fallen by half than before.
