A moment of silence for all the auto manufacturing companies.
If you are a car lover you must know PAMA (Pakistan Automotive Manufacturers Association), they have shared shocking report that no car has been sold in this month of April 2020.
This month will be remembered as historical month for car companies in Pakistan, here is the chart which says alot;
Why such downfall?
Here are 3 reasons;
- Thanks to Corona virus? Due to locked down of all the production and business activities.
- Government policies
- Economic situation of the country.
- Prices hike
Thanks to Corona virus?
Due to locked down of all the production and business activities were stopped. Many people could not go out as of locked down and fear of catching the virus.
Not only auto industry but all the business activities were stopped for long now.
Did you know that government charges handsome amount of taxes from the car industry? Due to increase in taxes and changes in taxes interest of buyers have been decreased by time.
Economic situation of the country:
Since the Khan Government has taken charge, we have so many ups and downs in the economy of Pakistan.
Prices have been increased massively and noone have asked these companies why? A 2 lac manufacturing car costs around 13-15 lacs in Pakistan, that is sad but reality.
What is the future ahead?
Well, the future could be 2 possiblities;
- Increase in prices
- People loosing jobs
- Same sales results as this month
Increase in prices:
Already Honda and Toyota increased their prices, more to come. As per PAMA people only impact would be on prices.
People loosing jobs:
Companies may fire people as no sales or less sales will decline the profits and costs, so auto industry will face huge % lay down.
Same sales results as this month:
If the prices increase, customer who already are fighting for their jobs will not got for the cars and use alternatives.