KARACHI: Due to inventory constraints, Pak Suzuki Motor Company (PSMC), one of the biggest automakers in the nation, has once more extended its closure until January 20.
Due to a lack of imported parts and accessories, the automaker’s production has been on hold for the majority of the days since the beginning of the year. This is because banks are rejecting or retiring letters of credit (LCs) due to the shortage of US dollars, the current exchange rate crisis, and the nation’s rapidly declining foreign reserves.
The management of the firm has chosen to extend the shutdown of the vehicle production from January 16, 2023, to January 20, 2023, according to PSMC’s notification to the Pakistan Stock Exchange (PSX).
On the other hand, it was emphasised that the motorcycle plant will still remain in operation. It was the third time in a row that the corporation had declared that it will continue to use brakes in its production processes in 2023.
Due to import restrictions brought on by the non-issuance of letters of credit, PSMC announced that it would observe non-production days from January 2 to January 6 in the new year.
When the procedure for prior approval for imports under the “HS code 8703 category (including entirely knocked down-CKDs)” was implemented, the company claimed in a note to PSX on May 20, 2022.It should be emphasised that Suzuki vehicles, pickup trucks, vans, 4x4s, motorcycles, and related spare parts are all manufactured, assembled, and sold by PSMC.
Production will resume at Millat Tractors
In the meantime, Millat Tractors Limited (MTL) indicated in a market filing on Friday that its production activities would restart on January 16.
Due to a decline in the demand for tractors and cash flow issues, the company was experiencing non-productive days. Earlier, on December 16, 2022, MTL ceased operations on Fridays.
Due to a devastating flood that struck the nation last year, demand for tractors has decreased. PAMA data show that tractor sales decreased from 4,476 units in December 2021 to 1,015 units in December 2022.