KARACHI: The longest factory shutdown for motorbike to date will now last an additional 15 days, according to Pak Suzuki Motor Company.
The company, citing an inventory shortage brought on by import restrictions in the nation, stated in a notice to the Pakistan Stock Exchange (PSX) that its motorcycle plant will stay closed until the middle of April.
Since March 20, the business had been observing non-production days for bikes, which it did for an additional two weeks while taking into consideration the difficulties facing the sector.
The company’s management has chosen to extend the motorcycle plant’s shutdown period until April 15, 2023, according to the two-wheeler manufacturer.
The auto plant will also be closure on April 7 and April 14, it was stated, due to a low inventory amount.
Locally, the company assembles, produces, sells, and distributes Suzuki cars, pickup trucks, vans, 4x4s, motorcycles, and related replacement components. On the other side, the Suzuki name is Japanese.
Pakistan’s financial condition is at an all-time low. On the one hand, the nation is struggling to secure an International Monetary Fund (IMF) agreement because there aren’t enough foreign investments coming in from other nations, and on the other, it only has $4.24 billion in reserves (as of March 24, 2023) in its central bank.
Banks allegedly refuse to open letters of credit (LCs) for items that are not “essential” due to alarmingly low foreign reserves and a lack of US dollars.
The economy has had an effect on the nation’s import-dependent auto industry because many companies have been taking frequent production breaks and blaming inventory shortages.
For many months, Honda Atlas has also observed non-production days, and the company’s facility will remain closed until April 15. The business claimed that it had been forced to reduce production days due to the nation’s present economic situation and commercial banks’ inability to support imports of the auto industry.
