Overview
The measures of continued production become more difficult for Suzuki as the company announced its motorbikes plant shut down along with cars. Suzuki motorbikes saw a huge decline in sales. In a recent report Honda Atlas, Yamaha, and other Chinese motorbike manufacturers saw a positive change in the sale in the previous month.
The company has announced its motorbike plant shut down from June 22 to July 8, 2023. The grappling situation has forced the company to take this step. Suzuki attributes the shut-down step to insufficient inventory.
Suzuki’s current situation dev into a loss. They are facing a challenging environment including high taxes, low sales due to huge prices, non-availability of stock, issues in LCs approval, and day-by-day rupee depreciation against the dollar. The back-to-back production shut-down measures also made it difficult for the company to run off proper business situations.
Suzuki Notify Pakistan Stock Exchange
Pak Suzuki notifies Pakistan Stock Exchange (PSX) regarding the temporary closure of its motorbike and car plant shutdown. The assembly plant will be closed due to insufficient inventory. Suzuki motorbikes assembly plant will be closed for five days. However, it makes a significant impact on the company’s market position and sale strategy but they haven’t any other option. Here is the official notice issued by Pak Suzuki:
The overall automotive situation become worst since the incumbent government has imposed a ban on imported products. Import restrictions cause automakers to face tough challenges and not be able to increase sales. The YoY basis Suzuki fell in huge loss. The company has written a special request to PM Shehbaz Sharif regarding led light on the automotive industry and reducing the burden of taxes.
What Will Be The Causes of Motorbike Bike Plant Shutdown?
Running in low inventory will affect the Suzuki sale and customer engagement. However, the company has already suffered a loss. As per the recent report, Suzuki motorbikes sales declined by 29.1% and the company has only sold 820 bikes in the last months. The ongoing situation highlights the urgency of the company for a smooth supply chain and a steady flow in the production department. Suzuki has also concerned about losing customers during this shutdown but the situation hasn’t left any other option for the company.
Conclusion
Suzuki motorbikes are very popular in Pakistan but the back-to-back price change made the motorbike’s prices super high. The heavy-engine motorbike is out of the range of customers. As like these, there are several factors that impact on company’s smooth sale flow. Not only Suzuki but other motorbike manufacturers have also had troubling losses on a YoY basis and loss of potential customers’ behavior.
