Pak Suzuki Motor Company Limited (PSMC) on Thursday announced again that its automobile plant would shut down for three days starting October 24.
In a notice sent to the Pakistan Stock Exchange (PSX), PSMC attributed the development to inventory shortages caused by measures taken by the government.
“State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under HS code 8703 category (including CKDs) vide circular No.09 of 2022 dated May 20, 2022. Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.
“Therefore, due to shortage of inventory level, the management of the company has decided to shut down automobile plant for period extending from October 19, 2022 to October 21, 2022,” read the notice.
However, the motorcycle plant will remain operative, stated PSMC.
This is the sixth such notice by the automaker in a span of three months.
Last week, PSMC announced the shutdown of its automobile production plant from October 19 to October 21, 2022.
On September 6, PSMC notified that it will be extending the shutdown of its automobile production plant till September 23.
On September 2, PSMC had notified that it will be extending its automobile production from September 8 to September 9.
On August 29, it had also notified the PSX of an extension in plant shutdown from August 29 to August 31 on account of a drop in inventory levels.
Pakistan's auto industry, highly dependent on imports, has been caught in the midst of an exchange-rate crisis, as the SBP, after the unabated rupee devaluation, imposed restrictions on the opening of Letters of Credit (LCs).
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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 this month, Honda Atlas Cars (Pakistan) Limited, the assembler of Honda automobiles in the country, announced the shutdown of its plant from October 04 to October 11, 2022.
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