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After a fall of up to 72 percent in car sales in the first half of 2019-20, stakeholders in the automotive sector say dark clouds will likely continue to float over the sector in January-June.<\/p>\n
Issues such as high prices due to the federal excise tax ranging from 2.5pc to 7.5pc in engines of different horsepower, additional customs duties on imports of raw materials, record high interest rates and strict monitoring by the Federal Board Revenue (FBR) still persist.<\/p>\n
Below are the top 10 car brands in World:<\/strong> Top Ten Best Luxury Car Brands<\/strong> However, January and February are considered better months for sales. People resume purchases after suspending their purchases in November and December in anticipation of a change in the model.<\/p>\n The first half of 2019-20 also saw non-production days (NPD) in many assembly units, followed by plant shutdowns for longer periods, especially in tractor units. Unsold inventories accumulated in plants and dealers, which forced a large number of workers in the auto parts industry to lose their jobs.<\/p>\n The government played no role in verifying multiple price increases by car and bicycle assemblers. Frequent price increases were justified due to the value of the rupee’s fall against the dollar, which cancels the assemblers’ claim to a greater location. Although the exchange rate finally returned to Rs155 after rising to Rs164 in June 2019, car and bicycle prices continued to rise.<\/p>\n "Nobody wants to go to expansion due to bad economic and political conditions”<\/p><\/blockquote>\n Novice and novice investors who contributed more than $ 1 billion under the 2016-21 Automotive Development Policy are also operating in a hostile business environment amid depressed demand.<\/p>\n In Category A, 18 investors have obtained greenfield status since 2016. Two closed units have also been revived under the brownfield state. Regal Automobiles, United Motors, Master Motors, JW Foreland, Kia Lucky Motors and Hyundai Nishat Motors have already started the production of cars and SUVs.<\/p>\n However, the fate of two participants, Al-Futtaim Renault and Ghandhara Nissan Datsun, is at stake with the possibility of their withdrawal from Pakistan.<\/p>\n The assemblers are cautiously optimistic about their sales prospects in the second half of 2019-20. The vice president of production and commercial operations at Hinopak Motors, Naushad Riaz, said: "I don’t see any possibility of growth in the next six months. We pray for stability at least for the next few months to avoid further losses.”<\/p>\n The situation is uncertain, he added, and noted that "nobody wants to go to further expansion and investment mainly due to poor economic and internal political conditions and negative growth in large-scale manufacturing.”<\/p>\n "Low sales will continue in the next six months in the truck and bus sector,” he said, adding that the next budget will be a test case for the government.<\/p>\n At NPD, he said that Hinopak Motors had observed three to four NPDs in the first half of 2019-20. However, there was no NPD from November onwards.<\/p>\n Regarding the loss of jobs, he said that some people left the company for new participants during the last year. Sellers and suppliers suffered greatly.<\/p>\n Mr. Riaz was of the opinion that the problem of declarants and non-declarants initiated the slowdown in sales. Later, other factors made the situation worse.<\/p>\n The president of the Association of Manufacturers of Automotive Parts and Accessories of Pakistan (Paapam), Captain (retired) Mohammad Akram, who recently questioned car assemblers for low location and high prices, described from July to December 2019 a period turbulent for the car sales industry in terms of unemployment.<\/p>\n On average, production fell more than half in all auto industry sectors, he said. Being directly related to production, almost 50 percent of the workforce lost jobs, he said.<\/p>\n As for the sector, he said that the tractor industry practically collapsed. The automotive industry is also on the verge of collapse due to a massive fall in demand.<\/p>\n Heavy vehicles have a very small share in terms of location, which we want to increase, he added.<\/p>\n The Paapam chief said that the tractor assembly plants and their vendors are almost closed in view of the massive drop in production and sales. The government should sponsor the agricultural sector by helping farmers buy tractors through soft loans through the Pakistan Agricultural Development Bank (ADBP), he said. This loan facility for farmers is almost non-existent due to lack of funds in ADBP and high surcharge rates.<\/p>\n As for the next six months, he said car sales will not grow significantly.<\/p>\n The automotive industry needs a stimulus from the government to reduce car prices. This can happen by reducing some taxes that, in turn, will increase sales in addition to improving tax revenues, recovering lost jobs and generating additional industrial activity.<\/p>\n He said the government has no control over the final prices of cars. Parts suppliers do not get any benefit from car price increases, he insisted.<\/p>\n The senior executive director of Millat Tractors Ltd, Sohail Bashir Rana, seems a bit optimistic as he expects a recovery in sales from February in view of the Rabi crops in Sindh and Punjab.<\/p>\n "Despite some improvements in sales as of February, I am still anticipating a 30-35pc drop in 2019-20 versus 2018-19,” he said.<\/p>\n Mr. Rana said that the farmers were affected due to the low production of cotton and rice, in addition to the problems related to the milling of sugarcane, which made the producers reluctant to buy tractors. A high cost of inputs due to the increase in fertilizer prices also kept producers away from the purchase of tractors.<\/p>\n Tractors are also used in non-agricultural activities, such as the transport of construction materials in public and private projects. Unfortunately, the pace of these development projects also remained slow in 2019, he said.<\/p>\n Sohail Usman, CEO of Regal Automobiles and car manufacturer Prince 800cc, said the January-June period will not witness a big sales boom.<\/p>\n "I only see a 5-6pc growth in the second half of 2019-20 due to a consumer shift towards new models introduced by Chinese and Korean assemblers.”<\/p>\n The market is not witnessing new buyers in large volumes amid an intense war between new and old players.<\/p>\n Taking an example, he said that a new Korean SUV presented by Kia Lucky Motors has snatched the buyers of Honda Civic and Toyota Fortuner. "This means that buyers are the same but their preferences have changed.”<\/p>\n Regal Automobiles plans to launch Prince 800cc cars assembled locally later this month, followed by the introduction of an SUV imported in March, which will then be assembled locally.<\/p>\n Regal Automobiles also assembles Road Prince bicycles. "Bicycle sales from January to June will probably remain the same due to the decrease in consumer purchasing power,” he said.<\/p>\n According to an important Japanese assembler, the expectation of a resurgence in car sales is low in the second half of the current fiscal year.<\/p>\n \u201cThe fear factor has caught buyers. They are reluctant to make new purchases due to the documentation conducted by the FBR. "<\/p>\n Published in Dawn, The Business and Finance Weekly, January 20, 2020<\/em><\/p>\n \nSource: https:\/\/www.dawn.com\/news\/1529327\/automakers-expect-a-bumpy-ride-ahead<\/p>","protected":false},"excerpt":{"rendered":" After a fall of up to 72 percent in car sales in the first half of 2019-20, stakeholders in the automotive sector say dark clouds will likely continue to float over the sector in January-June. Issues such as high prices due to the federal excise tax ranging from 2.5pc to 7.5pc in engines of different […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[11077],"tags":[],"class_list":["post-14966","post","type-post","status-publish","format-standard","hentry","category-newspaper"],"_links":{"self":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/posts\/14966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/comments?post=14966"}],"version-history":[{"count":0,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/posts\/14966\/revisions"}],"wp:attachment":[{"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/media?parent=14966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/categories?post=14966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/umang.pk\/en_us\/wp-json\/wp\/v2\/tags?post=14966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n1st Place : Volkswagen.
\n2nd Place : Toyota.
\n3rd Place : Daimler.
\n4th Place : Ford Motor.
\n5th Place : General Motors.
\n6th Place : Honda Motors.
\n7th Place : SAIC.
\n8th Place : Fiat Chrysler.<\/p>\n
\nFerrari. …
\nLamborghini Automobili Lamborghini is an Italian brand and manufacturer of luxury sports cars and SUVs based in Sant’Agata Bolognese and tractors Lamborghini Trattori in Pieve di Cento, Italy. …
\nJaguar. …
\nMercedes Benz. …
\nAston Martin. …
\nPorsche.<\/p>\n