Following recent production-related difficulties, Pak Suzuki Motor Company (PSMC) announced a significant drop in July 2022. According to industry reports, the business delivered just under 6,800 units, a drop of more than 60% month on month (MoM).
The Suzuki Alto, as normal, accounted for the majority of sales, with around 4,600 units sold. In terms of the remaining lineup, an unofficial report claims that PSMC will not be able to sell more than 500 units of every vehicle. This is PSMC’s lowest sales month of the year.
Automakers had previously forecasted production delays and sales declines. During a financial conference earlier this year, Toyota Indus Motors CEO Ali Asghar Jamali predicted that increasing freight prices, raw material costs, inflation, and other operational issues would result in a 25% drop in sales.
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Honda Atlas Cars Limited (HACL) raised similar concerns in its most recent financial briefing, with the addition of production interruptions.
It also attributed manufacturing and delivery delays on the government’s refusal to approve letters of credit. It stated that consumer financing accounts for 40% of its sales, but that this would decline to 30% owing to high interest rates.
Furthermore, owing to CKD sourcing delays, some auto makers are declaring non-production days. Experts predict that all automakers will see a drop in sales, and that the sector will take some time to recover from the current economic crisis.
