Pakistan’s Auto Sector: Growth Comes at A High Cost
Karachi: The sales data for March 2021 grew 27% month over month, and everyone viewed this as a lovely development for a sector that has numerous sectors involved with its recovery because year over year comparisons are extremely unfair because of the lockdown in 2020.
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Sales for the nine-month period, from July 2020 to March 2021, were close to 135,000, a 36% rise from the previous year.
It appears that this industry, which is regarded as the backbone of Pakistan’s economy and which, after textiles, food & beverage production, and a few other industries, has one of the biggest weightages, is used as a yardstick for the nation’s recovery.
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The large-scale manufacturing growth statistics, which show that vehicles alone contributed 0.7% of the overall 7.4% growth recorded between July and February of the current fiscal year, provide the solution.
In the meantime, the value-added on imports related to the car industry would continue to be insignificant, and “localization levels” would continue to be limited to the quantity of parts in a vehicle rather than cost.
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