Ghandhara Automobiles announces extension in plant shutdown

Ghandhara Automobiles Limited, formerly called Ghandhara Nissan Limited, on Thursday announced to extend the shutdown of its production plant.

The automaker shared the development in its notice to the Pakistan Stock Exchange (PSX).

“As notified vide our letter April 7, 2023 regarding upgradation activities in the paint shop, the management of the company has decided to extend shutdown period of the plant until further notice,” read the statement.

Earlier, the company announced the complete shutdown of its plant from 10th April 2023 to 1st May 2023 “due to extensive upgradation activities in the paint shop”.

Back in March, the company said that it would resume production on an alternative weekly basis until further notice, citing inventory shortage.

“The company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company.

“Accordingly, the company has insufficient inventory levels, it is unable to continue its production activities on regular basis,” GHNL said back then.

Incorporated on August 8, 1981 in Pakistan as a private limited company and subsequently converted into a public limited company on May 24, 1992, the Company is a subsidiary of Bibojee Services (Private) Limited (BSL).

GHNL’s principal business is assembly / progressive manufacturing of vehicles including JAC Trucks, import and sale of parts/Nissan, Dongfeng and Renault vehicles in completely built-up condition and assembly of other vehicles under contract agreement.

Pakistan’s auto sector continues to face CKD shortages due to the State Bank’s (SBP) restrictions on opening new letters of credit (LCs), resulting in plant closures and long delivery times for vehicles.

As per data shared by the Pakistan Automotive Manufacturers Association (PAMA), the sales during the first nine months of the ongoing fiscal year amounted to 110,405 units, which was 46% down year-on-year.