Suzuki Toyota & Honda Facing Issues


Pakistan local car manufacturing companies are facing some supply issues because of their poor build quality and expensive vehicles and they are also facing the production capacity issues. The market is also looking for vehicle sales in the coming months. It is expected that total 50,000 units of cars will be sold in the next few months because of the proposition of the Orange Taxi scheme, which result in procurement of various new vehicles.

The sources show that three local auto manufacturing companies like Suzuki, Toyota and Honda, which will work beyond their full capacity to meet the rising demand of the car. These thee car makers are facing some troubles in meeting the demand of the consumers and the taxi scheme is bound to increase the maximum capacity constraints for car makers.

There is no local car manufacturer, who has large scale expansion plan in near future. There is delay in investment in local market to give a push to the car buyers to go for the imported cars as the gap between demand and supply is increasing. The car making companies are delaying in the shipments of cars by many months even after making the payment in advance.

Honda Atlas has the production capacity of 50,000 cars per year and the Civic and City models are sold around 35,000 to 40,000 units. Honda will face problems in meeting the demand when they are utilizing 100% of the production capacity. Toyota Indus is producing Corolla model at rate of 65,000 units per year and Toyota has the higher maximum capacity of 150,000 units. Following the approval of Orange taxi scheme, the company will push the demand to meet it with 50,000 new cabs and the car shipments can be delayed by many months.

If the issue of supply and demand continues to escalate, there will be more consumers move towards the import of Japanese cars and the cars have high premium rate with increase in delays and it will push the uncontrolled rates at even higher on the new models.

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