Pak Suzuki has announced that it will extend its plant shutdown from August 29th to 31st, after suspending bookings for a few models on July 1st. Previously, the company had closed its plant on August 18 and 19, as well as from August 22nd to 26th.
This is due to restrictions imposed by the State Bank of Pakistan, which have hampered the clearance of import consignments, affecting inventory levels, according to the company. Meanwhile, Suzuki claims that its two-wheeler assembly plant will remain open.
In addition, Indus Motor Company (IMC) has announced a new production cut for the first half of September.
According to a company announcement, IMC has decided to temporarily halt production from September 1st to September 16th, 2022. However, it adds that any changes in production plans as a result of CKD import approvals will be communicated accordingly.
Local assemblers were already anticipating a 30% drop in sales in FY22-23, but given the current situation, the drop in sales will be much greater.
In July 2022, sales of local assembler cars, including non-PAMA members, were down 59% month on month. However, sales in August are expected to be even lower than in July.
In recent weeks, the government has attempted to limit imports in response to rapidly depleting foreign reserves, a declining currency, and a widening current account deficit, which has caused the rupee to lose more than 20% of its value this year.
To read our blog on “Despite a 90% decline in the previous quarter, Indus Toyota posts an annual profit of almost Rs. 15 billion,” click here