Due to lockdown, Pakistani automobile industry didn’t sell a single car in April. Recently, The PAMA (Pakistan Automotive Manufacturers Association) has announced the shocking news related to automobile industry, in which they revealed that not a single vehicle was assembled or sold by automobile assemblers during the month of April 2020.
According to the official statement of PAMA, “I have never seen zero assembling and sales in auto history for a whole month and the circumstance appears to be identical for May, which is disturbing for the auto sector”. The car sales have fallen by 52% during the period of first 10 months of the existing year.
Honda Atlas has been seen the worst affected with its car sales, falling 64% on-year-on basis at this time. Similarly, Toyota Indus Motor Company (IMC) and Pak Suzuki also became the victim of sales decline by 54% and 47% on a year-on-year basis.
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Two ways are considered by which Pakistani automobile industry didn’t sell a single car in April 2020 is that, the car would not be counted as sold unless it gets delivered to buyer, which means if the buyer booked a car and even has paid full amount of vehicle but not took from dealership, will be counted as unsold.
Secondly, if the vehicle were supposed to be delivered but due to the imposing of lockdown by provincial and federal government, all the operations has been halted by automobile companies which also includes the delivery of vehicles.
Another factor is that over the previous year, there has been a consistent decrease in the sales of vehicles because of various factors, for example, the predominant financial conditions, Automobile assemblers expanding their costs and the Government trying to increase the tax net.
In Truck category, Only Isuzu and Hino disclosed its sales which is 14 units and 22 units amid plant’s operation are halted in the month of April. In Bus category, sales of Isuzu Buses remains only just 3 units, amid overall plant was shutdown in the month of April 2020.
If we talk about Suv, pickups and jeeps, Jac, Isuzu D-Max and Hyundai Porter sold only 6,11 and 22 units in the month of April meanwhile plants of all Automobile assemblers remained closed in the whole month of April 2020.
As PAMA officials stated, the sales and production in the month of May could be same like April and this could devastatingly affect the business of Auto industry.
In the recent press conference, Government finally allows to opening of Automobile plants under SoPs. We hope that after this decision, things getting better and Pakistani automobile industry will successfully manage its sells.
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