Due to a decline in sales, Baluchistan Wheels Limited (BWHL), a producer of steel wheels for automobiles, has announced it will halt manufacturing until the Eid vacations.
The company, which produces and sells automotive wheel rims for automobiles, trucks, buses, tractors, and mini commercial vehicles, informed the Pakistan Stock Exchange (PSX) of the development on Friday.
“The company is experiencing a decline in sales orders as a result of our main clients’ and OEMs’ reduced production volumes. As a result, from Friday, April 7, 2023, until the conclusion of the Eid vacations, the management of the company has decided to temporarily close/stop the production activities.
The business also stated that it would quickly begin production after the Eid holidays.
Agriauto Industries Ltd, a producer of automotive parts, recently announced that it would extend the partial shutdown of its plant for the entire month of April.
The nation’s auto industry is still in a vulnerable position following the general economic crisis. The industry is still heavily dependent on imported auto parts and raw materials, making it one of the most affected by rapid currency depreciation and the ongoing Letter of Credit (LC) problems, which resulted from decreasing foreign exchange reserves.
Companies other than Baluchistan Wheels are also facing decline in sales
In Pakistan, however, demand for low-end, price-sensitive vehicles fell dramatically in February as a result of problems with the supply chain and rising automobile prices.
Pak Suzuki, which was originally thought to serve the entry-level segment, had its sales collapse 92% year over year to just 978 units in February of this year, according to figures issued by the Pakistan Automobile Manufacturers Association (PAMA) last month.
Only 72 units of the 1,000cc Cultus were sold by the manufacturer, representing a staggering 96% year-over-year reduction. Only 544 units of the 660cc Alto were sold, representing a 92% YoY decline.
The government is still working to appease the IMF to restart the Extended Fund Facility (EFF) programme, which if authorised by its board would release a funding tranche of more than $1 billion.
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