Indus motor company (IMC) announced the suspension of automobile manufacturing because of shortage of raw materials and declining demand. The country’s current economic crises made the import of raw materials difficult.
The Agriauto Industries limited (AIL) also announced the closure of automobile company for this month due to decline in demand of automobiles. The assembler from Toyota Company said that we would resume production till February 15.
State Bank of Pakistan’s policy
The State bank of Pakistan advised commercial bank to provide ease in loans in all other importing other than automobiles. This caused more difficulty in import of automobile raw materials and disturbed the entire supply chain of country.
State bank of Pakistan provided easy laws and regulations scheme to import products under various industries like oil import, food, cotton and other daily usage materials import.
Despite the shortage of demand and production, IMC increased the prices from Rs 280,000 to Rs 1.2 million on several models in this month. Along with the cars, the bike manufacturer companies also increased the prices. The price of 70cc-125 cc bike increased by Rs 6000. The maker of Super power bikes increased the price rate to Rs 7000-8000.
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This increase not only caused shortage of demand but also made it difficult for people to keep an automobile for normal use as there is shortage of parts of automobiles so the repairing.
Government should take some initiative in this concern to make automobile industry stand out again. The State Bank of Pakistan should take in concern this point and start initiatives to provide easy loan scheme for automobile manufacturing industry.