Due to unstable economic conditions and import limitations, Pakistan’s auto sector is in a terrible state. As a result, auto manufacturers have seen periodic closures of their production sites.
The carmakers reportedly let off between 250,000 and 300,000 workers as a result of reduced production, according to a recent report from Dawn. It went on to say that one of the main victims of this issue are the parts suppliers.
According to production and sales volume, Pak Suzuki Motor Corporation (PSMC) is the largest automaker. In the past seven months, manufacturing has been halted for 40 days. Similarly to other automakers, there are recurring production halts and single shift operations.
The report also states that during the first seven months of the current fiscal year, sales in Pakistan fell by 40%. (7M FY2023). In the following five to six months, the automakers expect the situation to worsen.
According to Ali Asghar Jamali, the CEO of Indus Motor Corporation (IMC),
Future sales scenarios are difficult to foresee because the opening of new LCs for parts and accessories is not yet known. What’s happening is a mystery to us.
In the 53 days between August 2022 and February 2023, IMC’s factory was shut down. IMC’s sales decreased by 51% to 21,877 units in 7MFY23. According to Jamali, “I believe that overall auto sales in FY23 would decline by at least 50%, taking into consideration the current scenario.”