While the fulfillment of SOPs has become a new norm that we’ve got used to, we believe that you will be reading this piece while sitting at your office or carrying out your daily activities. Also, you are very aware that the same was impossible for the most part of 2020 as Covid-19 halted our lives due to its adverse effects. As we bid farewell to 2020, CarFirst analyses the impact of Covid-19 on the automobile industry:
Reduction in car sales:
With the instances of local car manufacturers providing discount packages and premium fee waivers, it is safe to say that Covid-19 has made us see things we never imagined.
On the whole, the automobile sector was no different than other national businesses in terms of losses as there was a massive decline in the purchase of consumer cars. Overall, the figures suggested that the consumer car sales decreased by more than 50% during the March- October tenure when compared to the period between the same months in 2019.
Increase in used car trading:
You can’t beat the love of our people for cars, can you?
With the trade activities coming to a near close during the pandemic, you could sense that our people wanted to keep the legacy of car trading afloat and they somehow managed to do it through used car trading. According to figures, used car trading witnessed a staggering increase during Covid-19 as consumers went all out for the options that came down within their budgets.
Impact on the national economy:
Before the advent of Covid-19, the sales figures between July 2019 and February 2020 showcased that automobile sales in Pakistan had tanked by as much as 44% compared to the period between the same months in 2018-19. Considering these staggering figures and the 4% contribution of Pakistan’s automotive sector to the national economy, it is safe to say that that the national economy faced a major setback due to the decrease in sales in the automotive sector.