Auto Assemblers to Cut Production in 2019

[CSPK]

Pakistan’s three major auto assemblers are revising their monthly production schedules from this month foreseeing a major slowdown in sales towards the second half of the current fiscal year.

Related: Car Sales Declined Sharply in November 2018

According to Pakistan Automotive Manufacturers Association (PAMA), the move has come due to the restrictions enforced by government, that stops companies from selling vehicles to non-filers of income tax.

According to the CEO of Indus Motor Company Ali Asghar Jamali, who is also the vice chairman of PAMA, the country’s car market is going to shrink by 10% due to the ban on non-filers. The industry’s growth momentum has just vanished and now it is facing a downward trend in sales. Ali Asghar Jamali revealed:

We have revised our production schedule and will produce around 1,000 less cars during January against the planned production for the month.

He mentioned that the company’s annual production target, which was set at 72,000/74,000, has now been revised to 62,000/64,000 units for this year. Meanwhile, Suzuki’s spokesperson told Dawn that the company has already suffered 32% production and sales losses.

Auto Assemblers to Cut Production of Cars in 2019

 

[Kompromat]

Bad news

 

[Moon]

Pakistan’s three major auto assemblers are revising their monthly production schedules from this month foreseeing a major slowdown in sales towards the second half of the current fiscal year.

Related: Car Sales Declined Sharply in November 2018

According to Pakistan Automotive Manufacturers Association (PAMA), the move has come due to the restrictions enforced by government, that stops companies from selling vehicles to non-filers of income tax.

According to the CEO of Indus Motor Company Ali Asghar Jamali, who is also the vice chairman of PAMA, the country’s car market is going to shrink by 10% due to the ban on non-filers. The industry’s growth momentum has just vanished and now it is facing a downward trend in sales. Ali Asghar Jamali revealed:



He mentioned that the company’s annual production target, which was set at 72,000/74,000, has now been revised to 62,000/64,000 units for this year. Meanwhile, Suzuki’s spokesperson told Dawn that the company has already suffered 32% production and sales losses.

Auto Assemblers to Cut Production of Cars in 2019

Consequences of raising prices well beyond their means; had they opted for localisation they wouldn't have been hit by the depreciation. Compare the prices of cars in the local market with the same cars internationally and you'll see how big the Mafia is.

 

[nahtanbob]

Consequences of raising prices well beyond their means; had they opted for localisation they wouldn't have been hit by the depreciation. Compare the prices of cars in the local market with the same cars internationally and you'll see how big the Mafia is.

manufacturing on a small scale is uneconomical
you need economy of scales for localization to work

 

[VCheng]

Bad news

This should only be a temporary downturn before demand picks up again, which is one of the few good things about a rapidly growing population which needs durable and consumer goods at an ever increasing rates.

 

[Asian.Century]

Great, these Toyota, Honda and Suzuki bastards have looted 200m Pakistanis alot with expensive cars. Ppl should stop buying cars from them altogether.

 

[AZADPAKISTAN2009]

Tax collection is more important

Purchase Thru Dealer:
Step 1: Person Buys car from Dealer (Registered Business in Pakistan)
Step 2: Dealer Lists the Sale Price gives that receipt to Buyer Example 5 Lakh Rupee
Step 3: Buyer Takes the receipt , goes to Number plate office
Pays 30% Tax on purchase 1.5 Lakh to Government of Pakistan
Step 4: Car Registration Papers are issued

Private Buy: USED CAR (CAR MUST NOT BE IMPORTED FROM OUTSIDE MUST BE MANUFACTURED IN PAKISTAN)
Step 1: Seller fills a Car sale form with Price of Sale
Step 2: Buyer pays him money , takes the filled out form
Step 3: Buyer takes the form to Licence plate office pays 10% Tax to government of Pakistan
Step 4: Car Registration Papers are issued

Renewals never paid Tax on Car:
If a car comes to Licence plate office , and it has never been registered then Government of Pakistan , applies standard tax on the car based on model year and estimated price
The list must be made public

• 30% Tax due on such vehicles unregistered

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• CARS OLDER THEN 10 YEARS ARE NOT RENEWED GO TO JUNK YARD

 

[xyxmt]

Bad news

its good news, corruption is in decline, people afraid if they buy new car taxman will come knocking

 

[nahtanbob]

its good news, corruption is in decline, people afraid if they buy new car taxman will come knocking

i see a new business opportunity. buy new cars and lease it to the corrupt SOBs

 

[Thəorətic Muslim]

Bad news

Why? Literally, everything is imported for assembly.

 

[koolio]

The cars that are sold in Pakistan are extremely expensive, the standard features you get compared to in west is very substandard, I mean look at the suzuki mehran its a horrible car to look at, with 1980s technology and still has same shape, same cheap body and crappy interior.

 

[nahtanbob]

The cars that are sold in Pakistan are extremely expensive, the standard features you get compared to in west is very substandard, I mean look at the suzuki mehran its a horrible car to look at, with 1980s technology and still has same shape, same cheap body and crappy interior.

changing the car involves changing the manufacturing line. does pakistan have a workforce that can handle those kind of changes without sacrificing quality ?