The Pakistani auto sector has suffered greatly over the past few months due to an unrelenting economic crisis, which has slowed down many operations, including vehicle production and sales.
Hinopak Motors Ltd recently notified the Pakistan Stock Exchange (PSX) that its truck production facility will be closed for 12 days. From March 24 to April 4, there will be a partial government shutdown.
This is the notification:
Why Hinopak is halting its truck production?
However, as industries lamented the losses in their operations and other productions, the demand for commercial cars had already dwindled. To survive, they have made an appeal to the authorities.
The automotive industry is being strangled by currency shortages and issues with component supply. Due to decreased demand and output last month, auto sales fell once more.
According to the most recent data from Pakistan Automotive Manufacturers Association (PAMA), automakers (association members only) sold just 5,762 automobiles in February 2023, a fall of 47% from the previous month but a 73% decrease from the previous year.
Due to decreased sales, auto financing has decreased for the eighth consecutive month. According to experts, the situation will likely stay dire for some time.
To read our blog on “Tesla launches its first Electric Semi truck,” click here.