Automobile imports plunge as demand dips.

KARACHI -- Depressed demand in the auto sector has led to a drop of 27 per cent in overall import of completely- and semi-knocked kits (CKD/SKD) to $261 million in first quarter of the current fiscal year.

Of the total imports, arrival of CKD/SKD kits for heavy vehicles plunged to $67m from $114m, followed by $175m for cars from $216m and $18.8m for two-wheelers from $27m in 1QFY19.

Moreover, local auto sales fell by 39pc to 31,017 units in 1QFY20 while truck and bus sales dropped to 874 and 196 units from 2,049 and 267 units respectively.

Honda and Suzuki bike sales fell by 12pc and 11pc to 235,116 and 5,018 respectively, while those of Yamaha decreased by 1pc to 6,212 units.

United Auto Motorcycle and Road Prince Motorcycle sales also fell by 26pc and 35pc to 81,012 and 29,399 respectively; while Ravi's sales declined by 54pc to 3,497 units.

Pakistan Association of Automotive Parts and Accessories Manufacturers Chairman Capt Muhammad Akram told Dawn on Thursday that assemblers have decreased imports of parts and accessories due to massive fall in the overall auto sector sales.

The assemblers are also perturbed over built-up inventory at their plants and dealership network due to weakening sales.

Akram said that after a bad first quarter, vehicle sales during July-October are likely to remain under pressure as this period is already called 'slump time,' as buyers usually delay purchases in anticipation of buying new model in the first two months of next year.

He said that in the second quarter, sales and future sales from January 2020 onwards would also depend on political environment, crop situation, prices, and economic measures.

A Japanese auto assembler also said the massive...