Due to limits put in place by the State Bank of Pakistan, the import of car components decreased by 36.6% to $258 million in the July-September quarter from $407 million in the same time the previous year. The action was taken to reduce the demand for new vehicles in an effort to prevent the loss of priceless foreign exchange reserves.
Although SBP has been distributing foreign currency at a rate of between 50% and 70% since July 2022 to aid in the clearance of imported consignments of auto components, the pace of imports has not yet increased.
Pak Suzuki closed its production plant for 28 days between August and October due to supply chain disruption and low inventory levels of parts. This included a 5-day closure for routine maintenance, a 29-day plant shutdown by Indus Motor Company (IMC) from August to September, and a 12-day shutdown by Honda Atlas in October.
Auto financing saw a decrease of Rs17 billion to Rs397.4 billion between July and September. In Q1-FY23, Pakistan had a 51% decrease in new automobile sales, to 47,178 units. Net sales decreased by 43% to Rs37 billion in Q1-FY23 from Rs66 billion in Q1-FY22 due to lower output as a result of the quarter’s sparse imports.
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