Pakistan’s auto sector is in the midst of a crisis, with just a small number of vehicles selling in June. The Pakistan Automotive Manufacturers Association (PAMA) reports that 6,034 vehicles were sold in the country during the month of February. While June sales were up 10% from May, they were down 82% from the same month a year ago when it came to automobiles. Auto sales in Pakistan plummeted by 56 percent to 126,879 units in the fiscal year 2022-23, and the downward trend is anticipated to continue this year.
The automobile sector in Pakistan is suffering the effects of the country’s shaky economic climate, which may explain why vehicle sales have dropped. Completely knocked-down kit (CKD) availability has dropped dramatically, and the exorbitant costs of the remaining inventory have dampened consumer enthusiasm. In June, Pak Suzuki, one of the leading manufacturers in Pakistan, had just a 2% increase in sales, totaling 3,009.
Sales at Indus Motor Company, which is responsible for putting together Toyotas, increased by 7 percent, to a total of 1,846 units in March. Hyundai Nishat Motors, on the other hand, had an 11% increase in June sales, with the Tuscon SUV being the best seller.
Meanwhile, industry body SIAM said on Wednesday that 3,27,487 passenger cars were sold in India in June.
For a long time now, Pakistan’s economy has been in fast slide, putting unimaginable strain on the country’s destitute people. Over $4 billion in remittances transferred by expats via unlawful routes in the current fiscal year, as reported by the State Bank of Pakistan, is more than the amount the government of cash-strapped Pakistan sought to acquire as a bailout from the IMF.
According to the Dawn daily, remittances to the nation totaled $27.024 billion in FY23, down 13.6 percent from the record $31.278 billion in FY22.
After months of talks that brought the nation to the verge of default, Pakistan and the IMF finally secured a staff-level agreement on June 29 to infuse $3 billion Standby Arrangement into the struggling economy.
a lot of folks are having a hard time making ends meet because of inflation.