Pakistan’s local car industry seems to get worse with a single passing day, as no good news is coming from the auto sector. As country is going through multiple crisis like devaluation of rupees against the US dollar, economic instability , non-issuance of Letter of Credit (LC) by State Bank of Pakistan (SBP) and political uncertainty among others.
In this situation, the companies are suspending the bookings halting their production in coming days, meaning there will be further delays in deliveries.
The auto industry was the focus of discussion during Public Accounts Committee (PAC) last week. During the meeting, the PAC was informed that Rs. 189 billion have been deposited by customers as advance payment to 10 car companies.
Breakdown of Rs 189 Billion Advance Payments made to Car Companies
- Toyota Indus Motors (IMC) – Rs99.2 billion
- Pak Suzuki Motors Company Ltd (PMSCL) – Rs. 35.4 billion
- Honda Atlas Cars (HACL) – Rs. 21.8 billion
- Master Changan Motors – Rs. 11 billion
- Kia Lucky Motors – Rs. 10.6 billion
- Hyundai Nishat Motors – 6.9 billion
- Al-Haj Automotive (Proton Pakistan) – Rs. 1.7 billion
- Ghandara Nissan Limited (GNL) – Rs. 1.6 billion
- Sazgar Engineering Works Limited (SEWL) – Rs. 0.7 billion
- Regal Automobile – Rs. 0.3 billion
The PAC was also told by an automaker that government had asked the assemblers if they could not deliver the vehicles on time why they are taking a huge number of bookings from the customers.