Auto industry one of best performers in LSM sector

ISLAMABAD: The auto sector continued to stand out as one of the best performing, amongst the large-scale manufacturing (LSM) sectors, in terms of providing jobs, revenues and in bringing technological advancement to the country.

According to Pakistan Economic Survey 2018-19 launched here by Advisor to Prime Minister on Finance, Dr. Hafeez Shaikh,  there might be transient deceleration in growth at present, but as the auto policy (ADP 2016-21) was going to bear fruits, there would be paradigm shift in the industry when many new players would soon join the market with entirely new models.

Besides, the survey said, the existing players had already made huge investments and a lot more is in waiting.

Despite extraneous factors particularly in terms of tariffs and import of used vehicles, which still hold 18 percent market share, huge expansion of industry volumes took place to enact much awaited take off stage as envisioned in the Auto Policy 2016-21.

Meanwhile, automobile prices witnessed multiple upward revisions due to PKR depreciation, economic slowdown to curtail domestic demand and price-sensitive potential buyers refrained from making purchases.

In addition, certain restrictions on non-filers with respect to purchase of cars further dampened the automobile demand.

There had been sluggishness everywhere in the local auto industry during the current financial year; except buses where normal growth of 17 percent has taken place, during Jul-Mar FY2019.