After the price hike saga, comes production shut episode. Local car assembler dubbed Pakistan Suzuki Motors Corporation announced another production cut in the country. Suffice to say, prevailing operating challenges are averting company to continue producing vehicles.
As per the company’s recent notification, there will be no production and assembly operation from February 20, 2023 to February 21. And the reason behind the recent production is no inventory in the face of import restrictions inflicted by the State Bank of Pakistan.
On the contrary, PSMC will keep producing motorcycles, and any change in the plan will be informed accordingly, the company added in the notification. Previously, Pak Suzuki has also observed 10 non-production days, citing the same reason.
Suzuki Sold Only 44 Altos Last Month
The ruling car assemblers in Pakistan, dubbed Pak Suzuki, seem dead after PAMA (Pakistan Automotive Manufacturers Association) narrated a surprising slump in the company’s sales charts. As per the report, Pakistan Suzuki Motor Company (PSMC) sold only 44 Altos in January – a historic low since its inception.
Surprisingly, the company all over sales also observed a record low – declined by 74% selling 2,946 cars last month, contra 11,342 cars in December. Mind you, Suzuki used to sell around 5,000 units per month for the previous 2 years.
Pakistan Suzuki Motor Company sold 44 units of Alto, 534 units of Suzuki Cultus, 671 units of Suzuki Wagon R, 504 units of Suzuki Swift, 556 units of Suzuki Bolan, and 628 units of Suzuki Ravi.
Suzuki’s fellow Japanese companies, Toyota Indus Motor, and Honda Atlas, also reported a decrease in their sales, but Suzuki surpassed them all. Suffice it to say, PSMC came as the prime victim of the recent import curbs, no inventory, shortage of raw materials, and price hikes.
What’s your take on the ongoing economic crisis shattering country’s auto sector? Drop your thoughts in the comments section.
When you increase prices in such a short span of time without the increase of consumer savings or income . The demand for the car will drop substantially and the result will be the closure of these manufacturering plants .They have no economies of scale .Simply import new & old cars and spare parts from India they have economies of scale . Saving huge transportation cost . Pakistani automobile sector manufacturers are not viable for further production they don’t have depth and products (Different brands and variety ) .Its matter of time they have to stop operations.