Pak Suzuki Motor Company Limited (PSMCL) in Karachi has chosen to reduce the number of manufacturing days in August due to a shortage of parts as a result of State Bank of Pakistan import restrictions.
When contacted, PSMCL’s head of public relations Shafiq Ahmed Shaikh stated that the firm had already ceased accepting reservations for automobiles as of July 1 because fewer manufacturing days were anticipated in August.
He stated that at the moment, commercial banks are not opening letters of credit for completely knocked down (CKD) kits, but he did not provide any particular dates for the NPDs that will occur next month. The shutdown of the factory next month may be caused by the lack of CKD kits and related raw materials, he added.
According to Mr. Shaikh, if the same situation persisted in August, there would be significant issues, and the return of vehicle reservations would be contingent upon LC business hours returning to normal. According to him, the State Bank’s limits on opening LCs had an impact on the port’s ability to clear import shipments.
Pak Suzuki sold 150,279 units for the current fiscal year (FY22), up from 88,032 units in the prior fiscal year (FY21), a 71 percent increase. 16,009 units were sold in June compared to 12,212 units in May.As well as scheduling NPDs for the first two weeks of the following month, Indus Motor Company also stopped producing for two weeks in July.
In July, the manufacturers of Kia vehicles decided against operating the facility on Saturdays and instead chose to undertake three to four days of NPDs.
Despite the State Bank’s tightening of auto financing starting in the third quarter of 2021 and additional restrictions in recent months, auto financing increased to Rs368 billion in June of this year, representing an increase of 19.4% year over year and 0.324% month over month due to orders placed a few months earlier.
