Baaghitv has learnt through reliable sources that the vicious campaign has been launched to raise automobile prices, which has in effect now harmed the automobile industry. The continuous increase in prices of automobiles is affecting the sales of automobiles. Due to sky-rocketing prices, the sales of automobiles has been dropped by half in comparison to previous year, which consequently resulted in loss of net profits.
Baaghitv has learnt that the giants of Pakistan Automobile industry, Indus and Honda, have made drastic cuts in their production. Automobile giant Honda is shutting down production from 12th to 21st July, which is an unprecedented decision of Honda. Honda has also announced Friday and Saturday as no production days.
Following Honda, Indus Motors have also also taken a day off from production of motors, and are observing a no production day in every week.
This will lead to massive shortfall in government revenues. As a result of price increases, the sales tax per unit may go up but total revenues will crash as a result of huge drop in production volumes. The PTI led government missed out revenue collection by record short fall of 500 billion in FY 2018-19 an with these campaign, federal government will not be able to achieve its target set for FY 2019-20.