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Auto assemblers respond to SBP’s restrictions

As a response to the restrictions imposed by SBP, auto assemblers surprised its customers with tremendous price hikes

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As a result of State Bank of Pakistan’s (SBP) restriction on the import of parts and accessories, auto assemblers surprised its customers with tremendous price hikes while suspending advance bookings of vehicles.

From July 1, Pak Suzuki Motor Company Ltd (PSMCL) has temporarily suspended all two- and four-wheeler bookings. The corporation has also raised the price of two-wheelers.

Read more: SBP’s restriction caused panic for auto assemblers in Pakistan

According to market sources, the company still has an advance booking of 15,000-20,000 units for delivery in the next months.

PSMCL Head of Public Relations and Spokesman Shafiq Ahmed Shaikh told Dawn that the business managed production until June 30 but had to temporarily cease bookings owing to the ban on completely-knocked-down (CKD) kits and the uncertainty of import restrictions on production of parts.

He stated that any orders received by the company by June 30 would be catered.

PSMCL has raised the prices of its two-wheelers, including the GD110S, GS150, GS150SE, and GR150, by Rs7,000-10,000 to Rs219,000, Rs239,000, Rs256,000, and Rs349,000, effective July 2.

Since 18th May, the Indus Motor Company (IMC) had already stopped taking bookings.

However, the IMC had apologized to its customers for the late delivery of vehicles already booked by the customers due to severe hardships in operations as a result of current instability, led by the State Bank of Pakistan’s LC approval constraint for CKD imports and a significant fall in rupee value against the dollar, which disrupted its vehicle production.

Read more: Major downturn in auto industry of Pakistan

Lucky Motor Corporation Limited (LMCL) has also announced that advance reservations for the Picanto automatic transmission and Spectra will be closed on May 20, 2022, while reservations for the Picanto manual, Stonic, and Peugeot will stay open. According to sources, the corporation has advanced booking orders for over 4,000 units.

According to a Honda Atlas Cars Limited dealer, the firm has not yet provided any directions on the closure of bookings.

The Pakistan Automotive Manufacturers Association (Pama) has warned the government that car component manufacturers and distributors are experiencing production problems as a result of SBP limitations imposed on May 20. The entire supply chain, including local distributors, dealers, and support entities, has been disrupted as a result of this policy shift.

This could result in a tsunami of unemployment because the closure of vendor plants will mostly affect daily wage and contractual personnel.

Yamaha’s 125Z, YB125Z DX, YBR125, YBR125G, and YBR125G were priced at Rs255,000, Rs273,500, Rs280,500, Rs292,000, and Rs295,000, respectively, after an increase of Rs21,000-23,000 on June 3.

Atlas Honda Limited (AHL) has announced a price jump of up to Rs15,000 from July 1.

Although car sales reached a great number despite discouraging measures by the government, but now the shock has affected both sides; supply and demand in the auto industry. Now it is inevitable to increase the number of cars or overall vehicles sale in the prevailing situation.

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