Sunday, July 14, 2024

Car Manufacturers and Assemblers May Exit Pakistan

IMC (Indus Motor Company) who is the assemblers of Toyota cars in Pakistan told that the automobile sector of Pakistan is facing an unpredicted external challenges because of devaluation of rupee and import restrictions by SBP (State Bank of Pakistan).

IMC also alerted that if the current situation remains same “some players may exit from the market,” according to Topline Securities quoted as saying.

Further informed that IMC is operating at 40-50% of its production capability because lack of CKD parts in hand amid restrictions imposed by the State Bank of Pakistan and such restrictions are not seen to be removed soon.

Additionally, havoc flood along with increasing inflation and reduction in purchasing power of consumers also had a negative impact on the whole sector.

However, the automation financing also decreased from 35% to 10% because of high interest rates and tough financing situations.

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