Agriauto Industries Ltd Prolongs Partial Shutdown

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Following the car and bike industry, Agriauto is also speaking of worse performance in the face of prevailing economic disaster. To be honest, making and breaking financial policies with no positive effect looks like a favorite pastime for the incumbent government. Not a day passes without any company announcing or extending production or crying over low sales and production.

In a recent development, Agriauto Industries Limited (PSX: AGIL) has announced to extend its partial shutdown. “Due to the reduction in production volumes of our major customers, the Company will be observing partial shutdown during the month of June 2023,” the company stated.

It is further informed “Agriauto Stamping Company Pvt. Ltd., the wholly owned subsidiary of the Company, will also observe partial shutdown in June 2023 owing to the reasons stated above”. Earlier in May, AGIL announced the same – a partial shutdown of the operations, and the reasons were not new.

It is worth mentioning that AGIL produces and sells automotive vehicles, agricultural tractors, and motorbikes components. Among the others, dwindling car and motorcycle sales is also a reason behind the downtrend the company is witnessing.

Yamaha & Suzuki Bikes Sales Decreased by 50%

Reports have informed that bike sales plunged last month. Yamaha and Suzuki bike sales fell flat, whilst Honda observed a slight jump in sales. Suzuki observed a month-over-month (MoM) decrease of 40%, selling 1,156 bikes in April 2023. Meanwhile, Yamaha reported an MoM slump of 50.4% and sold 841 bikes last month

Honda Atlas witnessed a Month-on-Month (MoM) jump of 2.4%. Chinese bikes have a similar story to the present – witnessed a down of 34% in sales.

The motorcycle makers haven’t mentioned any reason behind this fuss. While analysts hold import curbs and weeks-long production cuts responsible for the effects. Additionally, back-to-back increase in bikes price and burgeoning inflation has also shattered the customer’s purchasing power.

What do you think about the recent update regarding AGIL? Drop your thoughts in the comments section.

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