Automobile Industry Pakistan (Review 2012)

According to the 3rd quarter report, published by Honda Motors, the automobile industry of Pakistan remained under pressure owing to the import of reconditioned cars under transfer of residence, personal baggage and gift schemes. During the nine months period starting from April 1, 2012 to December 31, 2012, the total automobile production was 96,045 units against 101,782 units in the same period of last year, a 4 Honda Atlas Cars (Pakistan) Limited reduction of 5.6%. Correspondingly, sale was 95,191 units against 102,026 units, down by 6.7%. However, in the last quarter of Oct-12 to Dec-12, the impact of import of used cars was severe and industry production went down by 36.4% as compared with 11.8% decline in Jul-12 to Sep-12 quarter.

According to the report, a welcome step by the government last month has been the reduction of age limit of used cars from 5 years to 3 years. However, any positive impact of this change will be reflected in second half of the fiscal year. The government needs to ensure consistency of industry-friendly policies to boost economic stability and growth in the automobile sector.

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