- Government measures to ban auto imports and raise prices are hurting car sales.
- Auto financing was Rs. 361 billion in July 2022.
- But compared to the same time last year, it has gone up by 15%.
The government’s efforts to stop auto industry imports and rising prices have started to hurt car sales, as shown by a recent drop in car financing.
According to the most recent report, auto financing was Rs. 361 billion in July 2022, which was a 2% drop from the previous month. But compared to the same time last year, it has gone up by 15%.
Samiullah Tariq, the head of Pak Kuwait Investment Company, told Dawn that recent price hikes, rising interest rates, and restrictions on loans for cars that cost more than Rs. 3 million have hurt the demand for cars.
Tahir Abbas, the head of research at Arif Habib Limited (AHL), said the same thing. He said that car financing will stay slow because of late deliveries and cuts in production.
Pak Suzuki Motor Company (PSMC) recently said that its non-production days (NPDs) have been moved from August 22–26. On the notice, it said:
“Restrictions have adversely impacted clearance of import consignment which resultantly affected the inventory levels.”
A new revelation says the SBP is delaying LC certification for CKD imports, creating production and delivery delays. Several large automakers observed non-production days (NPDs), lowered operational expenses, and adjusted to the situation.
Experts think that these steps will make the industry’s problems even worse, since import restrictions and ongoing inflation are already costing car companies thousands of sales and billions of rupees in income.
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