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Honda, Suzuki and Toyota Face Supply Issues

27 May 2017   213
Honda, Suzuki and Toyota Face Supply Issues

Honda, Suzuki and Toyota Face Supply Issues

Pakistani local car manufacturing company is offering poor build quality and expensive vehicles and now they are facing the production capacity issues. The market is expecting the sales of the vehicles in the coming months and it can create issues for buyers and the car makers.
There are about 50,000 vehicles, which are expected to be sold in the market in next few months because of the proposition of Orange taxi scheme and they have to procure more of the new cars. It is said that there are three local auto manufacturers including Suzuki, Toyota and Honda and they will work with full capacity to meet the coming rising demand. There are three car makers, which are facing problems in meeting the demand of the consumers and the taxi scheme is bound to enhance maximum capacity constraints for the car manufacturing companies.
The local car manufacturers have large scale expansion plans in near future. There is delay in investment in the local market to push the car buyers to go for the imported cars to meet the demand and supply gap to continue to increase. The car manufacturing companies are delaying the car shipments by many months even after making the advance payment. Honda Atlas has its own production capacity of 50,000 cars per year and it sells around 35,000 to 40,000 Civic and City models each year and there are some other models and they are on offer. Honda will meet the demand with great difficulty even after utilizing 100% its production capacity.
Toyota Indus is preparing more vehicles and it is producing Corolla model at rate of 65,000 units per year and Toyota has higher maximum capacity of 150,000 units. It has been producing 130,000 vehicles in a year after the approval of Orange taxi scheme. The company will be pushing hard to meet the requirements of about 50,000 new cabs and car shipments can be delayed by months.
If the issue of supply and demand is escalated then there will be more consumers to import Japanese cars. The cars have high premium rates and increase in delays will push these uncontrolled rates even higher on newer models.

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