The auto sector in Pakistan is going through extremely difficult circumstances, and Pak Suzuki, one of the country's leading automakers, has turned to used car sales as a means of survival.
The government is now lacking a clear strategy to resuscitate the faltering industry due to the present economic difficulties. Pakistan Suzuki Motor Company (PSMC) has been impacted more than any other market participant. In partnership with Meezan Bank and Bank Al-Falah, PSMC has launched an installment plan for used automobiles in an effort to draw clients.
The installment plan offers a number of advantages, such as cheaper insurance rates, a reduction in processing costs of up to 50%, a reduced markup rate, and the choice of residual value financing for a period of up to three years. The loan term may last up to eight years.
Inside of Pakistan's auto industry, PSMC is in a perilous position. The firm has asked the government, in particular PM Shahbaz Sharif, to lower tariffs and taxes on vehicles with engine sizes up to 1,000cc in an effort to safeguard its existence.
Being the leading producer of light trucks and automobiles in the nation, PSMC focuses mostly on the low engine capacity market. It anticipates that tax cuts will lessen some of the cost.
Pak Suzuki strongly begs the government not to impose extra tariffs and taxes in the 2019 federal budget, especially on cars with engine sizes up to 1,000cc, in light of the current situation.
The issue necessitates cautious thought and action because both the company's future and the local auto industry overall remain unclear. Comment here with your opinions on the current circumstance.