Al-Haj Automotive has postponed all its bookings for Proton Vehicles due to political turmoil and economic uncertainty in the country. The suspension includes Proton Saga and Proton X70.
Additionally, Pakistan brimmed with extreme political instability for the past two months and the recent PTI’s Azadi March has further aggravated the situation. Likewise, the subsequent mobilization of the security forces and the use of tear gas and shelling bombs against the public has certainly created a larger political divide within the country.
Moreover, the company was also struggling with the car deliveries till the end of last year but after a gradual growth in sales, the recent political anarchy and economic repression are seen as the next hurdle for the company. Likewise, the company has announced that it has postponed the bookings due to fluctuation in the market conditions vis a vis the dollar exchange rate. Similarly, this is one of the immediate and effective measures taken by the company to strive in the current crisis.
Read more: Proton Pakistan has a surprise for Motorsport fans
Furthermore, the company has not announced any date for the resuming of its bookings again as yet.
Amid the uncertain political and economic situation, Al-Haj Automotive has suspended bookings for all Proton vehicles.
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— PakWheels.com (@PakWheels) May 27, 2022
In addition to Proton, Toyota has also suspended its bookings in the country since May 18. The company has also mentioned economic uncertainty and volatile market conditions as the reason for the halt. Toyota Pakistan has postponed its bookings for the second time in two months amidst the turmoil in the country.
The major reason for the ineffectiveness of the auto industry in the country is the rising dollar exchange rate and the subsequent rupee devaluation. In the past two months, the dollar skyrocketed from Rs.180 to Rs.202. Similarly, this has posed heavy import duties on the spare parts of the vehicles and a major increase in fuel prices is also one of the factors for the inefficacy of auto industries in the country.
Read more: Massive sales drop of Proton X70
Conclusively, Pakistan’s auto industry has already faced heavy losses during the COVID-19 pandemic and now the record-high freight costs and raw material prices have left the industry further deteriorated.