LAHORE: Despite the challenge of increasing the input costs especially the raw material being hard to find due to post Covid growth globally, auto sector is reporting growth for the past few months.
Data of Pakistan Automotive Manufacturers Association (PAMA) showed that the PAMA members have sold 112,244 passenger cars as compared to 85,330 in the same period of last year, an increase of over 31.5 percent. The sales of two/three wheelers also picked up significantly from 1,181,685 units in July19-Mar20 to 1,438,194 units in July20-Mar21, an increase of 21.7 percent.
However, market sources said the industry is under pressure due to rising raw material prices which the manufacturers are finding hard to absorb, passing it on to the consumers.
"It is in fact a global phenomenon and each country is taking steps to reduce the stress on its economy. The mindset in Pakistan has unfortunately been to jack up taxes to create more revenues in periods of economic recession," said Ishtiaq Siddiqui, CEO SM Engineering, an auto sector vendor.
"It is surprising that the government has not taken any clue from its highly successful construction industry package that has revived 49 industries supplying materials for construction and generated more revenue than the concessions provided to the construction sector," he added.
Copyright Business Recorder, 2021
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