ISLAMABAD: The sales of locally manufactured vehicles in the country has decreased by 49% in the last seven months.
Auto industry and vendors already had financial problems due to lack of demand, 38464 locally manufactured cars were sold during the 7 months of July-January this year compared to 74933 cars sold in the same period last year. 49% decrease in sales was recorded.
In the month of January 2024, only 7802 cars were sold across the country. In this regard, Chairman of Thermosol Industries Syed Naveed Hashmi, CEO Agha Ahmad Raza Khan and Anas Khan of Auto Industry vendor Mekas Industries said that due to the country’s economic situation, the economy shrinks, prices increase, changes in the prices of petroleum products, interest rates. Increase in income, political instability and increase in cost of production not only reduced consumer purchasing power but also reduced demand.
He said that the decrease in the demand of locally manufactured vehicles not only reduced the revenue but also reduced the employment opportunities of the people.
On the other hand, there has been an increase in imported cars. 21874 cars were imported in 7 months while last year 2990 cars were imported during this period, 5305 cars were imported in January alone and foreign exchange had to be spent.
The increase in tax on vehicles of 1400 cc and above will further increase the prices of vehicles. Anas Khan of Mekas Industries, a vendor of the auto industry, said that quality parts for vehicles are not only produced locally but also exported to other countries including Europe.
He said that the encouragement of local vehicle manufacturing will not only promote the industry of related vendors but also increase the employment within the country. Due to the current economic situation, the capacity of auto vendors to produce parts has decreased by 60 to 70%. has come Indus Motor Company provided interest-free loans worth Rs 2 crore during the Corona virus and helped the vendors to keep the industry alive.
