It appears that the demand for vehicles in Pakistan has surged significantly. It was reported that local car manufacturers, including Suzuki, Honda, and Toyota, are likely to face production issues. According to the reports, the auto sector will experience a surge of vehicle sales in the coming months, which would cause serious production problems for the car manufacturers.
It has been reported that all three local auto manufacturers will be working to their full capacity in order to cater the increasing demand. It is pertinent to note that all three car makers are already facing troubles in meeting the demand.
Furthermore, none of these local car manufacturers have any large scale expansion plans in the near future. Delayed investment in the local market is also forcing consumers to import vehicles from abroad as the gap between demand and supply is increasing. Moreover, car makers are already delaying car shipments by several months even after advance payment.
For those who are wondering, Honda Atlas currently has a production capacity to produce 50,000 vehicles per annum. Considering the fact that Honda sells 35,000 to 40,000 Civic and City models every year, the car manufacturer will likely have a very tough time in catering the demand, even if it uses 100% of its production capacity.
Moreover, Toyota Indus is already manufacturing more cars than it ever has. The company is manufacturing almost 65,000 units of Corolla ever year. Nevertheless, Toyota’s maximum manufacturing capacity is 150,000 units per annum. As of yet, the company has been manufacturing 130,000 units per annum but following the approval of the Orange taxi scheme, the firm will face difficulty in meeting the demand.
It wouldn’t be wrong to assume that if the demand and supply issue continues to escalate, consumers might opt to buy Japanese manufactured vehicles, which will negatively impact the country’s auto-industry.