Due to the ailing auto industry, Toyota Indus Motors and Honda Atlas will observe non-production days (NPDs) in the month of October 2019. The auto industry is witnessing a continuous decline as sales dropped by around 39% in the first quarter of the fiscal year 2019-20.
This trend of closing of the production plants in order to reduce production will continue in the month of October as well. The market demand has reduced, which has, in turn, resulted in an increase in the prices of the vehicles and a halt in its production.
This is the fourth month in a row in which Toyota Indus and Honda Atlas have observed non-production days. The production of Honda and Toyota will remain closed for 15 to 18 days. This current market situation is unfavorable for any automaker in Pakistan.
Also read: Honda, Toyota to Halt Production in Pakistan
For Pak Suzuki, Suzuki Alto is one car whose sale has not dropped down in this period. In the first quarter of the fiscal year 2019-2020, Pak Suzuki sold 12,943 units of Alto which is more than the collective sales number of its other models. There has been a significant drop in the sales of Wagon R.
It is pertinent to mention here that all this began when the US dollar started to rise and strengthen against the Pak Rupee. Car prices started to increase. The government imposes many taxes and duties on automobiles. People were unable to afford such expensive vehicles and thus the automakers were forced to observe non-production days.
Read also: Toyota Indus Motors Shuts Down its Plant