The auto sector’s slump continues in Pakistan and cause 44% reduction in sales for November 2019

The Honda and Toyota announced to reduce their production for the month of November 2019 which can continue slump in auto sector.

For the past six months these two Japanese companies are facing decreased in sales due to fluctuation and instability of the economy of Pakistan raising taxes in the cost of vehicles. That’s why Toyota and Honda decided to cut down their rate of production which can also reduce operational cost due to low demand in the market.

During the month of October 2019 recorded 44% reduction in the sales of the vehicles and still auto sector in Pakistan is not showing any recovery. The Atlas Honda Cars Pakistan Limited reported that they observe 23 non production days (NPD’s) in the going month, forced them to cut down their rate of production since July 2019. The company also observed 18 non production days (NPD’s) in the month of October.

Toyota decided to operate its manufacturing plant on single shift until December 2019. In the past four months Toyota Indus Motor also faced 50 NPD due to the low demand in the market. Both companies have not announced any reduction in the price of vehicle to recover and increase the demand. However Suzuki the third Japanese company did not have any non production day as its sales are mostly 660cc cars which are very high demanding in the local market.