Overview
Earlier, Honda Atlas announced a plant shutdown due to the non-availability of Letters of Credit (LCs), and now they decided to keep it long for more next 15 days. The assembly plant will remain shut for more time.
Honda Atlas had decided to close the plant till March 31, 2023. But the unstable economic conditions along with restrictions on imported products made the company plan change.
Not only Honda Atlas Pakistan but other automakers also facing the same issues. The non-availability of CKD kits makes hurdles in the production process and they fail to provide deliveries on time.
Honda Atlas Plant Shut Down Extended Statement
The troubling economic environment, non-availability of CKD kits, and not getting approved LCs by the State Bank of Pakistan. Along with all these messes, the company is not able to continue its operations.
Honda almost observes this whole month in the loss. On 9 March 2023, Honda announced it shut down its plant due to swearing economic shirring, restrictions on CKD kits and raw material import, and observing non-productive days. They had decided to shut down the plant till 31 March 2023 but the situation is not changing these days for the company, so they remain closed production plant.
Despite the whole worry situation, the SBP is still not consider to open LCs approval. Toyota mentioned in the earlier report that the company is not able to do production due to the non-availability of stock. Its shows that sale is not only affected by rupee depreciation, but economic factors also make hurdles in production.
Conclusion
The automotive industry ultimately fell into trouble. Prices do not stand at one point due to the devaluation of the rupee and other additional taxes also affect the car sale as well. Automakers observed half of half loss compared to the previous year. A huge increase in car prices makes car sales badly decline. Meanwhile, Automakers are forced to increase prices due to a 25% increase in GST and the devaluation of the rupee.
