KARACHI: Following weak sales in July, vehicle manufacturers predict weak demand in the months ahead as a result of flash floods that have ravaged growers’ homes and standing crops in numerous rural areas of the nation.
Large numbers of motorcycles and four-wheelers are marketed in rural areas where small- to large-scale farmers rely on a variety of crops for a living.
Sohail Usman, CEO of Road Prince Motorcycle, stated that bike sales from Chinese manufacturers have remained stagnant for the past few months due to high prices and may decline by at least 50% from sales during the same period last year.Due to the already increasing cost of living, he claimed that many consumers in rural areas would forgo purchasing new bikes. He added that the true impact will become more apparent in the following two to three months.
Around 50% of two-wheelers are sold in rural regions, according to Mohammad Sabir Sheikh, Chairman of the Association of Pakistan Motorcycle Assemblers (APMA). According to reports, standing crops of vegetables, cotton, bananas, etc. were damaged by floods.
Additionally, growers store wheat for later consumption, and floods have destroyed their main source of food.The flood-affected residents would prioritize obtaining food supplies and starting their homes’ construction again as soon as the situation improved rather than concentrating on buying cars, which would slow down overall auto sales in the upcoming two months.
Given the destruction of the road network, which may take months to rebuild, Mr. Sheikh predicted that purchasers in remote areas would be hesitant to purchase a new motorcycle.
A briefing for analysts held in the final week of May stated that 40% of Pak Suzuki Motor Company Ltd’s (PSMCL) total sales come from rural areas.PSMCL Head of Public Relations Shafiq Ahmed Shaikh that a major portion of sales will be affected due to recent floods. “We are expecting that the government will also consider some relief for the auto sector.”
An adverse situation has resulted from the floods, according to a Korean automobile manufacturer, and it will significantly affect sales. In addition to affecting growers’ incomes, he said that the seeding of all kharif crops will be postponed.
An official in Honda Atlas Cars Ltd said their majority sales are in urban areas.
