The auto industry in Pakistan continues to suffer in 2023, Vehicle Sales in Pakistan Down by 55 Percent.
Due to the foreign exchange crisis, car production was badly affected by the ban on imports till last year and all the OEMs suspended production. Production in component factories also fell by 70 percent. The national exchequer also faced a significant decrease in revenue due to the reduced sales of vehicles.
Difficulties in opening LCs, and difficulty of managing foreign exchange privately led to the stoppage on importing important parts. Raw materials for locally manufactured parts could also be imported no longer. Even lifting the ban on imports was not enough, however; with interest rates so high demand for vehicles just could not recover.
The rupee’s depreciation prevented the price of automobiles from rising further In the final quarter of 2023. The sales were unable to rise because of the negligible decline from the previous level.
Pakistan’s auto industry also failed to achieve the policy goals of introducing low-cost vehicles and exporting vehicles manufactured in Pakistan. Vehicle manufacturers say that there is no intention to introduce small and low-cost Vehicle Sales in Pakistan, mostly SUV models have been introduced.
Along with new players entering the market, old players are also introducing increasingly popular SUVs and hatchbacks including sedans leave the public with no choice but to buy used reconditioned vehicles.
The price for used imported vehicles continued to rise during this year, according to car dealers sales were way down in comparison with last years and this was causing a sharp decline in income.
The auto industry has pinned its hopes on the year 2024. The auto industry hopes the New Year will belong to hybrid technology and thus set the stage for electric cars.