In India, car sales have been on a steady decline over the past few months. It’s a similar story in the neighbouring countries of Pakistan and China. The car industry is reportedly witnessing a slowdown there as well.
According to media reports, Honda has shut down its plant in Pakistan for 10 days due to increasing inventory. Indus Motor Company (IMC), which builds Toyotas in Pakistan, has also decided to stop car production for 8 days.
Car sales have tanked following rise in prices attributed to higher taxes and steep currency devaluation. It has been reported that if the trend continues, sales of both carmakers could drop under 30,000 units this fiscal year compared to over 48,000 units last year.
The Pakistan Suzuki Motor Company is yet to take decision on whether to cut production.
In China, vehicle sales have dropped more than 12% in the first half of 2019. While car sales were marginally up in June 2019, sales fell by 9.6% to 2.04 million units compared to the same period last year.
However, China’s EV segment witnessed a growth of 80% compared to last year.
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