Like most other countries around the world, the ongoing COVID-19 crisis has badly affected the economic activities in Pakistan and the local auto sector has received some serious jolts. Car sales which were already suffering from a 47% decline prior to coronavirus pandemic, witnessed worst-ever month with zero sales recorded in April 2020 due to lockdowns according to the data released by Pakistan Automobile Manufacturers Association (PAMA).
Local assemblers are observing plant shutdowns since the 23rd of March and since then the production remains at halt. Although the government has recently announced to ease the lockdowns, still there is no definite news regarding when the local auto assemblers will resume their operations. As a result of this, car sales in the first 10 months of this fiscal year have declined by 52% compared to the sales from previous year during the same period.
Sales of Honda Atlas are down by 64% YoY, followed by Indus Motors with 54% and Pak Suzuki with 47% YoY decline. Sales for the month of May 2020 are expected to be the same as April if lockdowns aren’t eased.
Related: Pak Suzuki Might Discontinue Ciaz
Auto vendors have already warned that they would lay off 20% workers besides not paying April and May salaries to the employees in case assembling of vehicles in the country continues to remain shut for more months. However automakers are still keeping their workforce intact. Furthermore, local auto industry has sought immediate government attention including a stimulus package to deal with the impact of the COVID-19 pandemic and the ongoing lockdowns.