The automotive industry of the country currently down and face a loss. This is a bad sign for our economy. Currently report, that the sales of used cars imported and local fall down by over 60% due to the devaluation of the currency and the rising price of petroleum and other products. The increase of inflation rate directly effects on the currency rate and big reason for the devaluation of the currency and its bad effect on the import of the country.
Economy takes a big profit from the import of used cars but currently, the import of used cars for dealers don’t allow by the government. The government made strict conditions for the import of used cars.
In the start of this year there were 1200 showrooms in Lahore but because of loss in used cars 250 showroom has closed and moved to another business and if the used cars sales market stable in this condition within few months another 400 showrooms were closed down.
Cars dealers face billions of loss in this time period and move to other business lines. cars sales down directly effect to the spare parts and auto repair business. This time the automotive industry faces a high volume loss.
According to the details, Karachi and Lahore are the biggest places of sales and purchase of used cars Karachi is coming with 1st no and Lahore is in 2nd were 1200 showrooms were located in the city but all of these face loss in their business now.
The first reason for falling import of used cars is government policy, government change the policy to import used cars and under this policy overseas Pakistan and under the gift baggage scheme can import used car and another reason is devaluation of the currency and its badly affect the 80% import of used car dip due to this reason.
The import of Japanese cars in the range of 1000 cc their price go from PKR 1.3 Million-1.4 to 1.8 and 2 million, and the cars under 660cc have gone from PKR 0.9-1.2 Million to PKR1.2-1.7 million. On the other side, the local manufacture cars sales also down due to the increase in prices.