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Lowest Sales for Pak Suzuki Since COVID, according to a report

With sales at a two-year low for Pak Suzuki Motor Company (PSMC), the decline in auto sales is still ongoing.

According to an update from Autojournal.pk, the business sold slightly fewer than 4,000 units in August 2022. Since May 2020, this is the company’s worst month for sales (the peak of COVID-19).

As a result, PSMC’s revenues decreased by 75% month over month (MOM). The lack of approval of the letter of credit (LC) for the clearing of CKD kits and limits on imports into the auto sector are the main causes of the decline.

To combat the ongoing inflation, this problem forced the auto industry to reduce production. A further factor in the reduction in demand is the recent price increases.

A bleak Prediction

Automakers predict a sharp decline in sales this year as a result of the persistent decline in the value of the local currency.

Honda Atlas Cars Limited (HACL) recently hosted an analyst briefing where it forecast a sales decline of up to 35%. In July, HACL also observed non-production days, which hindered its ability to produce.

Automakers worry about another round of price increases after another drop in the value of the local currency. A bad year may be in store for Pakistan’s auto sector as a result of the long-standing delivery delay issue, as well as production suspensions and price increases.

Abdul Qadeer

My Name is Abdul Qadeer. And CEO Pakistanwap ( JamilBaba ) 😊

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