The tough time for the Pakistan auto industry is still and the sale is continuously declined as the previous. Last month the most popular car production brands of Pakistan Atlas Honda and Toyota Indus Motor halted its production for the last 10 days. The main reason for shutting down a production plant is just because the company has no more order to produce. Honda and Toyota reported that they have already more than units for sale but the demand from the consumer is low. They have no order to produce more vehicles. That’s why both companies have decided to shut down their production plants for the remaining days of October.
The auto industry faces a tough time and face difficulties to survive. The high amount of taxes and duties imposed on the vehicle and poor economic conditions affect the sale of cars. The increasing in non-productive days also leaves a bad impact on companies but they have no other option.
According to the report, both companies said they have already thousand of units in their production plant and no demand for them. Toyota and Honda decide to close a production plant for 15 days in October.
In the previous, these companies even never close their production plant for one day because of the high demand from the consumer. All of these activities show that both companies face a loss.
On the other side, PAK Suzuki launched Alto 660cc this year and the company tries to stable its position with the sale of Alto 660cc. PAK Suzuki also faces a loss in the sale of its top-selling car Wagon R. the demand for Wagon R is very low as compared to the previous. PAK Suzuki never halted its production plant but last month the company ceased some of its car bookings. PAK Suzuki also faces a loss but the company provides small cars in the auto sector that will help the company to manage its expenses. PAK Suzuki provides a small and large both vehicles in Pakistan and because of high taxes mostly people prefer to buy a small car at a low price.
The government imposed a different percentage of FED on all vehicle and the devaluation of rupee value have a bad impact on the auto sector. Auto manufacturer imports a car part from other countries and now according to the new duty rates they face a heavy cost to produce vehicles.
Here is the total Non-Productive days of last three months of PAK Suzuki, Atlas Honda and Toyota Indus Motor:
| Toyota Indus | Honda Atlas | Pak Suzuki | |
| July | 8 | 20 | 0 |
| August | 12 | 13 | 0 |
| September | 15 | 11 | 0 |
| October | 15 | 18 | 0 |
| Total Days | 50 | 62 | 0 |
Toyota Indus Motor introduces several offers to its consumer is just to boost up the sale but the company noted there is no change in the sale, the sale is remaining down as the previous. On the other side, Honda Atlas introduce new models of the car in the auto industry is just to attract its consumers and engaged with the sale. All the strategies companies adopt are fail. Usually, customer attracts with the latest design, discount offers and new models but this time companies noted that consumers behavior still same it’s mean that unstable economic conditions disturbed the budget of the consumer too.
What should the government do for the auto sector to boost its sale? The reduction in tax will help the auto sector for maintaining its sale? Comment your thoughts about this.
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