Al-Haj Automotive has postponed all reservations for Proton vehicles due to political unrest and economic uncertainty in the country. The suspension includes Proton Saga and Proton X70.
Additionally, Pakistan has experienced extreme political instability over the past two months and the recent PTI Azadi March has further aggravated the situation. Likewise, the subsequent mobilization of security forces and the use of tear gas and shelling against the public certainly created a greater political divide within the country.
Moreover, the company was also struggling with car deliveries until the end of last year, but after a gradual growth in sales, the recent political anarchy and economic repression are seen as the next hurdle for the company. ‘company. Likewise, the company announced that it had postponed bookings due to fluctuating market conditions vis-à-vis the dollar exchange rate. Likewise, it is one of the immediate and effective measures taken by the company to deal with the current crisis.
Read more: Proton Pakistan has a surprise for Motorsport fans
Additionally, the company has yet to announce a date for resuming bookings.
Amid the uncertain political and economic situation, Al-Haj Automotive has suspended reservations for all Proton vehicles.
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— PakWheels.com (@PakWheels) May 27, 2022
In addition to Proton, Toyota has also suspended reservations in the country since May 18. The company also cited economic uncertainty and volatile market conditions as the reason for the shutdown. Toyota Pakistan has postponed bookings for the second time in two months amid turmoil in the country.
The main reason for the inefficiency of the automotive industry in the country is the rising dollar exchange rate and subsequent devaluation of the rupee. Over the past two months, the dollar has soared from Rs.180 to Rs.202. Likewise, it has imposed heavy import taxes on vehicle spare parts and a major increase in fuel prices is also one of the factors behind the inefficiency of automotive industries in the country.
Read more: Massive drop in Proton X70 sales
In conclusion, the Pakistani automotive industry has already suffered heavy losses during the COVID-19 pandemic and now record freight costs and raw material prices have left the industry even more deteriorated.