Overview:
In the middle of the current economic situation and the non-availability of LCs by the State bank of Pakistan. The industry Honda Atlas Car has announced another plant shutdown. The company has made the decision and announced it in a notification to Pakistan Stock Exchange (PSX).
In the notification, the car assembler wrote, considering the current situation of Pakistan where the company restored to stringent measures including restricting the opening of LCs. For the import of kits, raw materials, and foreign payments, such measures have severely disrupted the company’s supply chain.
As a result, the company Honda Atlas is not in a position to continue with its production. “Ultimately, they have to shut down its plant from 9th of March, 2023 to March 31, 2023.
Plant Shut Down Wave:
This is not the first plant to be shut down by Company Honda or other car assemblers. The Company Pak Suzuki kept their production at a halt during January 2023. While, in October 2022 Honda announced a shutdown for a week of its plant, citing disruption in the supply chain.
“By considering the current economic situation of the country, our government has resorted to stringent measures, which include minimizing the import of CKD kits and raw materials.
Toyota Pakistan Halts in Production:
A month ago, Toyota Pakistan announced a halt in their production and related assembly of their cars from Sept, 1 to 14. In the face of the procedure regarding CKD import approval from the State Bank of Pakistan. According to the company’s notification, the new mechanism comes with some barriers to importing CKD Kits. That is gearing up the inventory problems.
The main aspect of this whole situation is that the State Bank of Pakistan still has not opened LCs for the import of CKD kits. This results in the scarcity of production material that is eventually leading to no production at all. Hence, the coming days also seem to be difficult as the past few months. The reason, the country is still facing a serious economic crisis.
