Import of auto parts plummets in July-September.

KARACHI -- As a direct outcome of the State Bank of Pakistan restrictions to cool down the demand for automobiles, the import of auto parts plunged by 36.6 per cent to $258 million in the July-September quarter from $407m in the same period last year.

However, the central bank has been releasing foreign exchange between 50-70pc from July onwards to help clear imported consignments of auto parts but imports are yet to pick up the pace.

Owing to supply chain disruption and shortage of inventory levels of parts, Pak Suzuki Motor Company Ltd (PSMCL) kept its production plant closed for 28 days from August to October including a five-day closure on account of period maintenance followed by 29 days plant shutdown by Indus Motor Company (IMC) during August to September and 12-day closure by Honda Atlas Cars Ltd (HACL) during October.

In July-September, auto financing recorded a fall of Rs17 billion to Rs397.4bn.

In a corporate briefing of 1QFY23, the assembler of Toyota vehicles informed the brokerage house analysts that the company is currently running at a production capacity of 40-50pc due to SBP restrictions and the IMC management doesn't see restriction easing soon.

The management informed the analysts that the automobile sector had been facing unforeseen external challenges due to unprecedented rupee devaluation and import restrictions.

Furthermore, floods wreaking havoc along with higher inflation and low purchasing power of consumers will hurt demand for...