The closing of Pak Suzuki Motor Co. Ltd.‘s plant has been postponed until January 13 due to inventory shortages.
“Due to the continued shortage of inventory level, the management of the company has decided to extend the shutdown of the automobile plant from January 9, 2023, to January 13, 2023,” PSMC said in an announcement made to the Pakistan Stock Exchange on Friday.
The motorbike plant, however, will continue to be operational, it was noted.
Prior to this, the company’s motorbike and vehicle plants were closed from January 2, 2023, to January 6, 2023.
A PSMC representative stated last week that the company was going through a difficult time as a result of import restrictions and that there was no way to predict how long the problems would persist.
“Detention, demurrages, and kibor+3 percent are really hurting our industry,” he said.
The representative claimed that lowered sales and production were also communicated to vendors and dealerships.
He asked for an urgent discussion between the government and the industry to address the issue.
Due to government import limitations, Pakistan’s import-dependent auto industry is currently experiencing a crisis.
PAMA Statement
According to Pakistan Automotive Manufacturers Association (PAMA), passenger car sales dropped by 39 percent in the first five months of the fiscal year 2023 to 55,144 units, compared to 90,303 units sold in the same period the previous year.
Sales of all other models of vehicles, lorries, buses, tractors, jeeps, and pick-ups, with the exception of Suzuki’s Alto
According to the report, both two-wheelers and three-wheelers had a reduction in November 2022 compared to November 2021.
IMC Overview on Import Hurdles
Several businesses have recently announced the end of manufacturing. For the third time in 2022, Indus Motor Company (IMC) announced last month that a 10-day plant stoppage was necessary due to “hurdles in import and clearance of consignments”.
The IMC management noted that the central bank had established a procedure for requesting prior authorization for the import of entirely disassembled kits and parts for passenger automobiles for the auto industry.
“However, the delay in aforesaid approvals for the company and its vendors has created hurdles in import and clearance of consignments for raw materials and components of the company,” IMC said.
To read our blog on “Pak Suzuki issues recall for Alto,” click here.
