Ghandhara Nissan Limited (GNL) has announced that it will observe non-production days for Tiggo 4 & 8 Pro from March 6, 2023, to March 10, 2023, due to import restrictions on completely knocked-down (CKD) kits. The company has cited this as the reason for the Non-production days, which will lead to the suspension of vehicle production for a week.
The auto industry in Pakistan has been facing a crisis due to the country’s ongoing economic challenges. The situation has become so dire that even major auto assemblers, such as Ghandhara Nissan Limited (GNL), have been forced to suspend their vehicle production for a week. GNL is the assembler of the Chery Tiggo 4 Pro and Tiggo 8 Pro in Pakistan.
This news is a testament to the difficult times that the Pakistani auto industry is currently going through. The declining value of the local currency is impacting car prices, which has caused a significant decline in demand. This situation is expected to persist, and several new automakers are likely to face an exodus from the market as a result.
Chery has become popular among crossover shoppers across Pakistan. However, the recent decline in production and sales has dampened the company’s progress. This situation is not unique to Chery, as several other automakers in Pakistan are facing similar challenges. The declining sales have also led to the loss of jobs and revenue, which is further contributing to the economic crisis in the country.
Due to the inflation and dropping car sales, the companies kept announcing non-production days, which resulted in the loss of 250,000-300,000 direct and indirect jobs. In this era of extreme inflation, when it’s hard to make ends meet, several thousand people have lost jobs due to the downfall of the Pakistan auto industry. For perspective, Pak Suzuki has observed 40 non-production days in the past 6 to 7 months, while Indus Motors Company has kept shut for 53 days since August last year.
Thousands of people have lost jobs due to these non-production days. On top of that, the collective sales of all the car companies dropped by 40-50%. In 2023 alone, Toyota and Suzuki have observed a total of 19 non-production days.
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