Economic Crisis Leads to Automobile Crisis in Pakistan

Abstract

From the previous two years Pakistan facing a crisis related to economic and political that will affect the overall business and individuals. Mainly due to political instability leads Pakistan to economic crisis that will badly impact our economy and business community. Pakistan major economic crisis are including current account deficit which means that our imports are mush higher than exports, that will cause of dollar shortage. Decrease in foreign exchange reserves, currency devalue, inflation, low purchasing power, unemployment, all those things create an impact full damage on individual as well as business. This crisis very badly impacts the automobile industry of Pakistan. Due to the unfavorable government policies regarding automobile industry and economic conditions were cause a decline in share profit. To find out which automotive company better perform in uncertain conditions we take three big automotive companies that hold the Pakistani market, which is Toyota Indus Motor, Pak Suzuki Motor & Honda Atlas Motors and conduct a SWOT analysis of these companies. Further we conduct ratio analysis and the last identify which company is performing well and why. As per the SWOT & Ratio analysis Toyota Indus Motor performs better than Suzuki and Honda Motors in uncertain conditions. Toyota gross profit decline by 2.6% from the previous year 2021 but its better/higher than other. We analyzed that Toyota has strong customer satisfaction, brand reputation, diverse portfolio, durability & reliability, and supply chain management make Toyota best automobile company. Finally, we discuss who government policies & regulations impact the automotive sectors. And what should do other automotive companies to get profitable in the uncertainty and economic crisis.