ISLAMABAD: The auto industry displayed sluggish performance during the current financial year, except buses where it witnessed a growth of 17 percent during July-March 2019-20.
According to the Economic Survey 2019-20 released on Thursday, during the period from July-March 2019-20, the farm tractor sector massively declined by 28.7 percent as the production recorded at 37,457 units against 52,551 units produced in the corresponding period last year.
This decline was due to massive slow down in agriculture growth, water shortages and other issues like increase in prices of agricultural inputs and halting of development projects added woes of the farmers which impacted the sale of tractors.
The passenger car sector witnessed a meager growth of 2.4 percent despite resistance to the receding trend. Its growth was impacted by repeated policy changes with regard to non-filers like imposition ban on purchase, heavy taxation on registration by non-filers and the recent 10 percent levy of federal excise duty.
The imposition of 10 percent FED on exceeding 1700cc engine capacity badly impacted locally-produced cars and jeeps. The LCV/pick-ups also lost ground and witnessed a 14 percent down in production.
The motorbikes and three-wheeler sector also failed to show normal growth, and rather dropped production by 5.8 percent during July-March 2019. The sector offers the most preferred and economical means of transport in the absence of public transport and hold potential for growth in coming years.