The Indian auto sector is passing through recession these days. Even after constant efforts, the sales of vehicles are not gaining momentum. However, across the border, there are some similar things, yes we are talking of Pakistan. Pakistan is also worse off with declining sales of vehicles. The month of July saw a 42 per cent drop in car sales in Pakistan. According to a report submitted by the Pakistani Media House on Tuesday, production of cars declined by 23 percent in the first month of the financial year 2019-20 Pakistan starts from July, while sales were down by 42 percent, respectively.: 16,472 and 10,968 vehicles.
Production of vehicles is expected to decline in August in Pakistan as well as sales decline. In fact, Pakistan had an official holiday for four days (August 12 to August 17) on the occasion of Eid, which led to the closure of factories. Like the Indian rupee, the Pakistani rupee is weakening against the dollar. As a result, the prices are also going up due to the increase in the cost of vehicles there. In addition, vehicles are getting away from buying new vehicles because of federal excise taxes, increased rates of taxes and high-interest rates. There is a shortage of sales of vehicles and companies are being forced to stop their production.
According to the data presented by the Pakistan Automotive Manufacturers Association (PAMA), the production of the Honda Civic and Honda City declined by 49 percent, while sales declined by 68 percent. In addition, Toyota Corolla's production declined by 39 percent, while sales fell by 57 percent. In addition, wagon-R sales also registered a decline of 70 percent.