In 2023, Pakistan’s auto industry faced persistent challenges as car sales plummeted by 55%, coupled with a significant 70% reduction in production at car parts manufacturing factories. The exchange rate crisis, impacting income levels, had a severe ripple effect on car production until the previous year.
The decline in car sales not only affected the national treasury but also resulted in a noticeable drop in revenue from automotive products.
H.M. Shahzad, Chairman of the All Pakistan Motor Dealers Association (APMDA), discussed the gravity of the auto sector’s current situation in a recent interview on News’ program Bakhabar Savera.
Shahzad highlighted that unless there are substantial changes in the production and assembly of cars in the country, the next two years could witness even more challenging conditions.
Despite agreements with automobile companies, Pakistan struggled to transfer technology and manufacturing capabilities, leading to the burden of expensive cars.
However, the current government is actively addressing this issue through ongoing crucial negotiations.
It’s worth noting that in response to the depreciation of the US dollar against the Pakistani rupee, automobile companies lowered the prices of their units in the final months of 2023.
While this move did contribute to a boost in car sales, it proved insufficient to fully address the industry’s challenges.
