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Import of Automobile Parts Nosedived in Q3, 2022

The import of auto parts plunged by 36.6% to $258 million in the July-September quarter from $407m in the same period last year in wake of restrictions imposed by the State Bank of Pakistan (SBP). The move was initiated to dampen the demand for new cars in order to save the outflow of precious foreign exchange reserves.

Related: Vendors Want 51% Increase in Quota for Import of CKD Parts

Although SBP has been releasing foreign exchange between 50-70% from July 2022 onwards to help clear imported consignments of auto parts, but the imports are yet to pick up the pace.

Owing to supply chain disruption and shortage of inventory levels of parts, Pak Suzuki has kept its production plant closed for 28 days from August to October including a 5-day closure on account of periodic maintenance followed by 29 days plant shutdown by Indus Motor Company (IMC) during August to September and 12-day closure by Honda Atlas during October.

Related: FBR Imposes Additional Customs Duty (ACD) on Imported Car Parts

In July-September, auto financing recorded a fall of Rs17 billion to Rs397.4bn. Sales of new cars in Pakistan were down 51% to 47,178 units in Q1-FY23. In terms of value, net sales in Q1-FY23 fell by 43% to Rs37bn from Rs66bn in Q1-FY22 due to lower production on account of limited imports during the quarter.

Source: Dawn

Also Read:

Auto Parts Makers Fear They Will Go Bankrupt

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