Overview
After Toyota Indus motors company (IMC) we are hearing another bad news from Pak Suzuki Motor Company (PSMC) also going to shut down its plant completely. The inventory level has grown due to a shortage caused by a restriction on the import of automotive components.
Pak Suzuki will take some serious steps
- Pak Suzuki will close its facility from January 2 to 6.
- PSMC claims a lack of inventory as the rationale for their decision.
- The company will shut down its vehicle and motorbike plants.
Pak Suzuki Motor Company (PSMC), in a letter submitted to the Pakistan Stock Exchange (PSX), claimed that the State Bank of Pakistan (SBP) has developed a procedure for prior authorization.
“Restrictions had badly impacted clearance of import cargo which resultantly reduced the inventory levels.
“As a result, due to a lack of inventory, the company’s management has decided to close its facility for automobiles and motorcycles from January 2 to January 6, 2023,” PMSC said.
The local car sector is heavily reliant on imports and is experiencing serious challenges in the middle of an exchange-rate crisis, with the central bank restricting the issue of letters of credit (LCs) in response to a severe liquidity constraint.
Due to the market’s low demand for automobiles, the management of Baluchistan Wheels Limited (BWHL) said on Friday that it will extend its production shutdown until December 30.
Earlier this month, Indus Motor Company (IMC), a Toyota automotive assembler, said that it will totally shut down its production unit from December 20 to December 30, citing delays in import permission.
Another news will be hearing from the agricultural segment,
Furthermore, Millat Tractors Limited declared a Friday production shutdown, citing a drop in demand for tractors in the nation.
Conclusion
Finally, the automobile industry was affected by these critical circumstances. It will be very difficult for auto manufacturers to face these types of issues. In our country, people mostly like new cars because new cars are reliable.
Due to limited budget, they go toward used cars with the passage of time if we talk about the future cars will be more expensive, and will be very difficult to buy any car. Always hope for the best every time will not remain the same.
What are your thoughts on Pak Suzuki decision to shut down its automobile plant? Please give your opinion in the comments section.
