Report by Engineering Post
During July-March FY2024, compared to the corresponding period last year, there was a massive decline in all auto sectors except for farm tractors.
According to the information available from the official quarters concerned, total tractor production during the period under review was 36133 units as compared to 22626 units produced during the corresponding period last year, showing a commendable increase of as much as 59.7 percent.
Passenger car production was down by 36.7 percent during July-March FY2024 with 55670 units compared to 87820 units produced during the same period last year. The fall in the production has been reported in almost all passenger car segments due to persisting import restrictions and import quota restrictions tied to the new mandatory export requirements. Higher inflation and persisting higher policy rates by the State Bank of Pakistan had suppressed the bank’s leasing of local automobiles.
The production of heavy commercial vehicles i.e. buses and trucks had registered a negative growth of 51 percent and 43.9 percent , respectively during the period under review. Bus production was 297 units during July-March FY 2024 compared to 606 units produced during the corresponding period previous year.
In the case of trucks, 1502 units were produced during the first three quarters of the last financial year 2023-24 compared to 2677 units during the same period in the previous year. This fall in the production has been attributed to a combination of factors, from stunted demand due to high policy rates and depressed economic conditions in the country.
Tractor production had significantly risen, underscoring the growing interest among the farmers and the agricultural stakeholders in adopting machinery.. This trend duly reflected a broader shift towards mechanization in agriculture, driven by the need for increased efficiency, productivity, and sustainability in farming practices.
In the two/three wheelers sector , 842905 units were produced as compared to the 925943 units produced during July-March 2023 showing a decline of 9.0 percent. The continuous negative growth in the two/three wheelers sectors has been attributed to supply constraints of spare parts due to import restrictions. Inflation was also a contributing factor as the middle and lower-income groups were the principal buyers of these autos.
It is worth mentioning here that the two/three wheelers offer the most economic public transport for lower income groups. At the same time, they are also remarkably price-sensitive.
