Overview
The results of not approving LCs come as car makers report fifty of fifty sales drops. Toyota Indus Motors reports a huge decline in sales and announce a 52% (year on year) drop in sales. Toyota offers a number of locally assembled cars in Pakistan and is also very popular for 4×4 vehicle performance.
Moreover, Toyota Indus sales performance face a hard time since June 2020. The recent 52% decline in sale report is highlighted the Toyota’s 1HFY2023. According to Toyota’s details, the company has sold only 1803 vehicles in the last month.
How Long Toyota Faces Sales Decline
Automakers are forced to increase prices due to the economic crisis and devaluation of the rupee value part of it. Mighty dollar value prevails over non-production.
The period of COVID-19 started tough times for automakers. Car makers received multiple sales decline shocks during the pandemic. But it’s not the only cause devaluation of the rupee value, additional taxes by the government are also major reasons to consider.
The current decline in Toyota and Pak Suzuki sales is due to The State Bank of Pakistan (SBP) not approving LCs. Automakers record several non-productive days in the last few months.
Pak Suzuki Sale Drop
Pak Suzuki Motors has also announced a sale drop of its most popular small car Suzuki Alto. According to the report Suzuki has sold only 544 units of Alto last month. Suzuki sold a total of 978 units in the month of February 2023.
Suzuki has reported a sale of 44 units of Alto, 671 Wagon R units, 556 units of Suzuki Bolan, 504 Swift units, 628 Suzuki Ravi units, and 534 units of Cultus sold in January 2023.
Besides, Suzuki has announced a 74% sale drop in the month of January and the company has only sold 2940 units. Suzuki Alto sales massively decline on monthly basis. In December 2022 Suzuki sold 6,898 Alto units and only 44 units in January.
Automakers claim the sales crisis prevailing by the current unstable economic condition and not getting approval for LCs. The production department observes free days due to a lack of CKD kits.
Conclusion
The current situation of the economy dwindling sales of the automotive industry. Car production can only work in great terms if the government has allowed the import of CKD kits. The automotive industry is in the worst condition and the crisis makes troubles for automakers to stand. Several non-productive days removed more than 300,000 lac jobs.
