Pak Suzuki announces plant shutdown yet again due to inventory shortage
Pak Suzuki Motor Company (PSMC) on Wednesday announced it will shut down its automobile plant from February 13 to February 17 due to a shortage of inventory.
“Due to continued shortage of inventory level, the management of the company has decided to shut-down automobile plant from February 13, 2023 to February 117, 2023,” read a notice sent to the Pakistan Stock Exchange (PSX).
The note added that its motorcycle plant will remain operative.
PMSC is the local assembler, manufacturer and marketer of Suzuki cars, pickups, vans, 4x4s and motorcycles as well as related spare parts. The Suzuki brand itself is from Japan.
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Last month, PSMC had announced the temporary shutdown of its plant from January 2 to 6 and then again from January 16 to 20, citing an inventory shortage back then as well.
At the time, PSMC said the State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for imports. The automaker stated these “restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels”.
PSMC had also said it will suspend taking new bookings for its motorcycles starting January 20 for an indefinite period due to “import-based supply chain constraints and uncertain production possibilities”.
Bookings will resume as the situation becomes favourable to serve fresh customers, it said.
Pakistan’s auto industry, highly dependent on imports, has been caught in the midst of a crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on the opening of Letters of Credit (LCs). Industries are facing hindrances in operations as the country’s reserves have depleted to a critical level.