Overview
Inflation and economic disturbance affect car production. Haval and BAIC working with local partner Sazgar engineering in Pakistan. Haval and BAIC has announced the production shutdown of its four-wheeler in Pakistan.
Previously, all-wheel drive production increased in Pakistan due to the high demand of customers. But the economic factors affect it very badly. The unstable economic situation caused low vehicle production and now it’s causing a shut down of production plants.
Reason Behind the Shut Down
Haval and BAIC mentioned the reason for shut down and its because of the strict measures regarding the import of Completely Knock Down (CKD) kits and raw materials used for the vehicle making. Moreover, they mentioned the rising factors forced the company to shut down the production plant from 27th February 2023 to 4th March 2023. The company will take further action regarding the coming situation. Meanwhile the supply chain of the brand is affected by these factors.
Conclusion
Haval and BAIC 4-wheels face major production problems. Economic stability is the most important part of smooth production working in Pakistan. The automotive industry completely works with the support of the government. Automakers are unable to produce CKD kits in Pakistan due to lack of recourses. Any impact on imported products directly affects the vehicle manufacturing process and disturbs their regular programs and sales as well.
