Pakistan’s car sales drop to lowest in more than two years, expected to decline by another 25%

Pakistan’s car sales dropped to the lowest in more than two years. The big decline happened as rising prices suppressed demand and import curbs hurt production. The financial instability and Rupee depreciation is still going on and now the devastating floods are factored in.

According to figures issued by Pakistan Automotive Manufacturers Association on Tuesday, sales decreased by 50% to 8,980 units in August from a year earlier. The previous low was 7,325 units sold in June 2020 during the coronavirus epidemic. In July, sales decreased to 10,378 units.

Pakistan’s auto industry fears almost 30% dip in car sales due to increased taxes and rupee devaluation

With one of the highest inflation rates in the area, greater borrowing costs, and a 30% decline in the currency, imports of essential auto parts are becoming more expensive, which is hampering Pakistan’s economic progress.

Suzuki Motor Corp.’s local operation is also closed due to a lack of imported parts, while Toyota Motor Corp.’s Pakistani subsidiary, Indus Motors Co., expects to close its facility for two weeks of the second consecutive month. The two businesses sell 85% of all cars in Pakistan and are the country’s leading car manufacturers.

Toyota closes production, Kia and Honda to reduce car assembly amid economic crises

Wasil Zaman, an analyst with JS Global Capital Ltd., predicts that overall auto sales could decline by more than 25% in the fiscal year that began in July.

Catastrophic floods that recently overwhelmed a third of the nation, killing about 1,400 people and incurring losses of about $30 billion, may hinder recovery.

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