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Pak Suzuki Motor Company (PSMC), which has the biggest market share in the passenger car segment, said on Tuesday that it stopped entertaining new bookings from July 1, warning that it may even have to shut down its plant next month if restrictions on importing material for production continues.

“The SBP has introduced a mechanism for prior approval for import under HS code 8703 category (including CKDs),” Shafiq A. Shaikh, Head of Public Relations at Pak Suzuki Motor, told Business Recorder. “Restrictions have adversely impacted clearance of import consignments from ports.

“In July, Pak Suzuki's production did not stop as we adjusted our production plan. Presently, commercial banks are not opening letters of credit, documents of payment for automobiles' CKDs.

"The unavailability of CKDs and related raw material may result in the plant's shutdown in August. If the same situation continues, then from August 2022, we will face bigger problems."

The company's announcement comes after Business Recorder earlier reported that Pakistan’s auto industry is struggling to meet its scheduled delivery periods as restrictions have hindered timely import of auto parts, prompting another assembler to offer refunds to its customers, an unusual development that comes on the back of the country’s falling foreign exchange reserves.

Shaikh said the future of taking booking orders depends on how the situation normalises.

“As a responsible organisation, we are trying to deliver all vehicles that were booked till June 22,” he added.

Meanwhile, Indus Motor Company (IMC) has offered its customers refunds with an additional payment of interest on it. In case they want to carry on with their order, they will have to wait at least three months from the delivery month given on the PBO (Provisional Booking Order Form) and pay the price difference due to the exchange rate situation, the CEO said.

The industry, highly dependent on imports, has been caught in the midst of an exchange-rate crisis with players in the auto sector either passing on the impact of rupee depreciation to its customers or, in the case of IMC, offering its customers refunds with an additional payment of interest on it.

Last month, IMC had announced that it was facing major issues that impacted the delivery schedule of already-booked orders.

The crisis has stemmed from pressure on Pakistan's foreign exchange reserves, a development that has also taken a toll on the rupee, which closed near the 233 level against the US dollar in the inter-bank on Tuesday.

Last week, the rupee endured its worst week in over two decades.


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Comments

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Mirza Jul 26, 2022 10:45pm
Suzuki n all other car manufacturers should manufacture their all kind of car parts within Pakistan. We appreciate government of Pakistan
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Asif Khan Jul 27, 2022 10:25am
All old vehicle manufacturer are corrupt they have plant in Pakistan for around 40 years and they are not able to manufacture 100% parts
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M.saeed Jul 27, 2022 11:28am
.we appreciate govt. Of Pakistan to manufacture all kind of parts within Pakistan.
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Ammar Jul 27, 2022 12:15pm
Agreed with most of the comments over here.. All parts barring a few should have already been manufactured in Pakistan. Now they blackmail the govt that production would be halted.
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Tahir Jul 27, 2022 01:26pm
What a Joke, Look at Suzuki Mehran and Bolan. What they have been selling to Pakistan? Even Now Wagon R , Look at quality even dont have air bags, and Price very High.
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F Jul 27, 2022 04:00pm
Yes you should quite.
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Afshan Jul 27, 2022 06:57pm
Pakistan zindabad
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Afshan Jul 27, 2022 06:59pm
Pakistan zindabad
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Kashan Jul 27, 2022 07:51pm
Good for Pakistan & nation if u shut down coz what u are givin in the name of quality is no better than dung otherwise agreed with people if manufacturing starts here
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Muneeb Jul 27, 2022 09:58pm
Band kardain hamain Kiya. Pak Suzuki per waisy bhi pabandi lagani chahye
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Muneeb Jul 27, 2022 09:59pm
August main nahi AJ he July main band karain ye apna boria bister lain or jayen Yahan se. Ager Kam Karna hytu hamari Marzi chalygi warna jayen Yahan se
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Saif Ali Jul 28, 2022 03:39am
You should banned accept your shut down
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Saif Ali Jul 28, 2022 03:40am
You should banned accept your shut down
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Faizan ahmed Jul 28, 2022 06:14am
Totally black mailing loot at your cars face they are never imported parts
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Mustafa Jul 28, 2022 09:39am
Let them shutdown please. It’s been 30 years and these companies are still depending on CKD. Wha is the purpose of setting up assembly/plant when most of parts are still being imported. These companies are just benefiting Japan’s industry.
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Ali bux buledi Jul 28, 2022 10:30pm
Alto booking date please send
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Fayazali Jul 28, 2022 10:35pm
Fayaz
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Navees Jul 29, 2022 01:39am
Plz shut your plants and get the hell out of our country.we will make our own cars.we dont need your dabaas
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Shahid Khan Jul 29, 2022 09:26am
Good if all car manufacturers shut down for at least two years. Too many cars on the road and nowhere to park them. Less cars also means less fuel import bill.
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Aamir malik Jul 29, 2022 11:06am
I can't express my joy if Suzuki shut down its plant ...it WD be better for Pakistani people ....just automobile mafia king .....prices are much higher and quality is just look at the tyres ,,people change them on the very first day,,body ,very thin guage sheet,,,,and shapes you all know ..,.no air bags etc and look at the prices and their i just laughed to hear their slogans that they are going to shut down... Hahaha There is no other country in the world where your cars are selling like this.... So where should you like to go....hahaha
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