It’s been a year since the car makers in the country have been announcing a production shutdown, and the reason is the prevailing economic meltdown leading to the import curbs shattering the sales and profit volumes. And interestingly, Pakistan Suzuki Motor Company is faced with the worst amid this episode flaunting the sorry sight of woe and misery.
In a recent development, Pak Suzuki has announced that the motorcycle assembly plant will remain shut down from June 12 to June 16 in the face of zero inventory. Earlier, the company decided to suspend motorcycle production from May 23 to June 10.
The company cited difficulties in importing parts and raw materials necessary for vehicle manufacturing as the primary reason for this action. The major obstacle in this regard pertains to the mandatory approval process imposed by the State Bank of Pakistan for importations, which has caused delays and disrupted the supply chain for automobile companies.
While obtaining prior approval may not appear to be a significant hurdle in theory, the companies are facing shortages of parts and raw materials due to delays in approval, a common occurrence in many government departments. This delay has prevented them from maintaining adequate inventory levels for production.
Low Sales
Coming to the sales of Pak Suzuki’s car sales charts, the company observed a new low compared to what it earned in the corresponding period of last year. As per Pakistan Automotive Manufacturer Association (PAMA), Pak Suzuki’s sales went down by 76% selling only 2,958 units last month. Whereas the company sold 12,212 cars in the same period last year.
Last month, the company sold 1,902 units of Alto, 282 units of Suzuki Cultus, 148 units of Suzuki Wagon R, 332 units of Suzuki Swift, 157 units of Suzuki Bolan, and 137 units of Suzuki Ravi.
What do you think about the ongoing scenario translating the sales and production situation? Drop your thoughts in the comments section.
