Honda Atlas Cars (Pakistan) Limited, the assembler of Honda automobiles in the country, on Monday announced the shutdown of its plant from October 04 to October 11, 2022.
In a notice sent to the Pakistan Stock Exchange (PSX), Honda Atlas attributed the development to supply chain disruptions caused by measures taken by the government.
“Considering the current economic situation of the country, the government has resorted to stringent measures including minimising the import of CKD kits and raw materials, the company's supply chain has also been disrupted by such measures.
“As a result, the company has also to rationalise its production and ultimately to shut down its plant from October 04, 2022 to October 11, 2022,” read the notice.
Pakistan’s auto industry has been struggling to meet its scheduled delivery periods since July as restrictions have hindered the timely import of auto parts, prompting one assembler back then to offer refunds to its customers as well.
The sector, highly dependent on imports, has also been caught in the midst of an exchange-rate crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on the opening of Letters of Credit (LCs).
This translated into total car sales declining by 50% year on year in July-August, clocking in at 19,358 units, down from 38,568 units a year ago due to non-production days led by a shortage of parts followed by an economic slowdown.
Earlier in August, Indus Motor Company (IMC), the assembler of Toyota-brand vehicles in Pakistan, on Tuesday announced it will temporarily shut down its production plant from September 1, 2022, to September 16, 2022.
Moreover, Pak Suzuki Motor Company (PSMC) further extended the shutdown of its automobile production plant from August 29 to 31, citing import restrictions by the SBP that have "adversely impacted clearance of import consignments, which resultantly affected the inventory levels".