Auto Parts Import Decreases During SBP Curbs

Jawad

11 Nov 2022

313

Auto Parts Import Decreases During SBP Curbs

The car sales were reduced and the local production of the cars was gone to the low position and now State Bank of Pakistan has imposed some restrictions, which left the impact on the production and sales of the car, which contributed in the decrease of auto parts imports by 36.6%. It reached at $258 million in July and September, when you compare it to $407 million in the corresponding months last year. The customers will view that Auto Parts Import decreases during SBP Curbs.

Pakistan Suzuki Motor Corporation (PSMC) faced 28 non-production days, in which five-day periodic maintenance is also included. Toyota Indus Motor Company shut down its production plant for 29 days during the months of August to September. Honda Atlas Cars Limited faced the 12-day closure. The car financing during the months from July to September were reached to slump of $17 and it is clocked at Rs.397.4 billion.

SBP Restrictions Plunging Local Auto Industry

After reduction of import by the orders of State Bank of Pakistan, the local auto industry has been shattered. The car makers are making the announcement for the continuous production cuts and price hikes. The industry is facing the big downfall, which is spreading the economic bust in the country and it has pushed down the production capacity of Toyota IMC to 40-50%.

The company has the viewpoint that the import hurdles of SBP for the consecutive production during the recent Corporate Briefing Sessions (CBS). Toyota IMC revealed that the import curbs will be observed for the next few months. The company has filled the booking slots for the next 3 months and 300-400 customers dropped their booking and they got their amount back with the markup due to the SBP restrictions on the import. The restrictions on the car loan has decrease the auto financing from 35% to 10% within few months.

Now the company made the statement that they reduce the lead time to 4 – 5 weeks after lifting the restrictions. The company has the plan to launch their first hybrid car in Pakistan and they have invested the amount of $100 million in Hybrid electric vehicle sector.

What is your opinion about SBP restrictions affect auto industry of Pakistan? Please share your thoughts in the comment box.

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