Auto Parts Manufacturers Also Shutting Down

Following car assemblers in the country, auto parts manufacturers are also facing the same fate. Car assemblers are announcing back-to-back production cuts, and so is the auto manufacturing industry.

Pakistan’s famous auto manufacturers dubbed Agriauto industries limited came with a second consecutive month of partial shutdowns stating, “Due to reduction in production volumes of our major customers, the company will be observing partial shutdown during the month of April 2023.

Honda & Suzuki’s Production Shutdown

A couple of days ago, the country’s leading carmakers, Honda Atlas and Pakistan Suzuki, also shut down their production plants. Amid not Letters of Credit (LCs) and an unstable economy, Honda Atlas decided to extend its production plant shutdown for 15 more days.

In a letter to Pakistan Stock Exchange, the company stated, “The company is not in a position to continue with its production and ultimately has continued to shut down its plant from April 01, 2023, to April 15, 2022”.

Meanwhile, Pak Suzuki Motor Company also announced that it will prolong the production shutdown of its motorcycle factory until April 15. On top of that, the company is also shutting down car production from April 07, 2023, to April 14, 2023. 

PSMC cited, “Due to shortage of inventory level… the management of the company has decided to extend shutdown period of its motorcycle plant till April 15, 202. The automobile plant will also observe shutdown on April 07, 2023, & April 14, 2023, due to a shortage of inventory level.”

If the auto industry in Pakistan shuts down, it could have significant implications for the country’s economy and employment rate. The government may need to take steps to support the industry and help it recover, such as providing incentives for investment, lowering taxes, and easing regulations.

What do you think about the ongoing condition of the local auto industry? Drop your thoughts in the comments section.

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