Amid the uncertain economic conditions and inventory supply, Pak Suzuki has once again announced to shut down its production for two more days. The company informed Pakistan Stock Exchange (PSX) in a statement.
In the filing, the car company said that the State Bank of Pakistan’s (SBP) condition to require prior approval for the import of specific HS codes, including Completely Knocked Down (CKD) kits, had “adversely impacted the clearance of import consignment which resultantly affected inventory levels.”
The Shutting Down Days
As per the company, it will observe non-production days on September 8 -9, 2022. It is pertinent to mention that Suzuki halted production last month on 18th and 19th, followed by 22nd to 26th, and then from 29th to 31st.
This means the company’s car production saw only 12 days in August. Meanwhile, bike production continues in full swing.
Import Ban
In May this year, the government imposed a ban on the import of essential and luxury items, including car CKD kits. The step was taken under an emergency economic plan. Although the government has removed the ban, but the issue of CKD kits still persists.
Due to a similar issue, Pak Suzuki kept bookings of its cars suspended from 1st July 2022, although the bookings have been opened but for the selected models.
Like, Suzuki, the other companies, including Toyota Pakistan and Honda Atlas also observed non-production days due to the same reasons. The companies have urged the state bank to make the whole process smooth so they can get kits timely.
If the production issue continues, it will further impact the consumers and their buying power. No production means no car, no delivery, or delay in deliveries. And we all know how prices are going up in last couple of years, and this leads to an extra payment when the consumer gets his car.
What do you think about the non-production days? What would be the serious impacts? Please share your thoughts in the comments section.
