Auto vendors optimistic amid recovery signs

Decrease in inflation, interest rates, new govt fuel hope for growth

ISLAMABAD:

Local auto vendors are optimistic about the potential growth in demand within the auto industry, foreseeing positive outcomes for the vendor sector in the near future.

“Declines in inflation and interest rates, along with increased economic activity with the new government, offer hope for sustainable recovery,” said Syed Nabeel Hashmi, Chairman of Thermosole Industries (Pvt.) Limited, during discussions with journalists. Hashmi noted a slight recovery in the local auto industry, which had endured an average 50% decline over 18 consecutive months, a trend expected to benefit vendors. He highlighted persistent challenges faced by the local auto vendor industry, including economic conditions, soaring vehicle prices, and political uncertainty, impacting vendors at all levels. “Weak demand, Letters of Credit (LCs) issues, and heavy imports of used cars are factors contributing to the industry’s plight,” he explained.

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Hashmi also pointed out that the supply and demand crisis in the local auto industry had led to frequent plant shutdowns of Original Equipment Manufacturers (OEMs), negatively impacting vendors. Thermosole Industries, Chief Operating Officer, Agha Ahmad Raza Khan underscored that the import of used cars remains a significant factor contributing to the decline of local auto vendors, wreaking havoc on