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Business & Finance

Pak Suzuki shuts motorcycle plant till June 10

  • Decision made due to government import restrictions that have affected the auto sector, causing a shortage of inventory
Published May 23, 2023

Pak Suzuki Motor Company (PSMC) has once again announced that it will shut its motorcycle plant until June 10, 2023.

The automaker shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday. It said the decision was made due to the ongoing government import restrictions that have affected the auto sector, causing a shortage of inventory.

“Due to shortage of inventory level, the management of the company has decided to shut-down motorcycle plant from May 23, 2023 to June 10, 2023,” read the notice.

However, the automobile plant will remain operative, it added.

PSMC had earlier shut both its automobile and motorcycle plant till May 09 due to a lack of raw material. The automobile plant was also shut from April 7 to April 28.

PMSC is the 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.

Last month, PSMC recorded its highest-ever quarterly loss of Rs12.9 billion in the first three months of 2023 owing to a decrease in sales and high finance cost. The car manufacturing firm had booked a loss of Rs460.227 million in the same period last year.

Pakistan’s auto sector is currently facing several crises. Other listed companies, such as Indus Motor Company Limited and Honda Atlas Cars, have also had to halt production in recent months due to economic difficulties.

The country’s auto sector, hugely dependent on imports, have been hit hard by the government’s decision to curb imports and restrict issuance of Letters of Credit (LC). Additionally, higher finance cost and massive increase in car prices have also reduced demand from consumers.

Comments

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Tulukan Mairandi May 23, 2023 05:18pm
They should go into donkey breeding in Pakistan. Donkeys are catching on as a major transport mode
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test May 23, 2023 08:55pm
If the govt policies are right then this is the beginning of something great. Not only we will kick these foreign assembling plants out of our country but we will make sure that they never come to Pakistan again which will give the local manufacturers in Pakistan a big boost. I never support any foreign company or its assembling plant in Pakistan. Assmebling means to join parts together while manufacturing means to produce goods using local raw material and local talent and local services. There is a sky and earth difference between assembling and manufacturing. Pakistan needs manufacturing not assembling because these foreign assembling plants destroy a nations local manufacturing capability therefore creating a big outflow resulting in massive destruction so It is better to close these assembling plants and also kick these assembling plants out of our country.
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Shakil May 23, 2023 10:34pm
Present scenario suggest, consensus at the top level. All the stakeholders needs to ponder upon and find out a suitable way out of this quagmire immediately till its too late.
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test1 May 24, 2023 12:27am
@Shakil, These foreign assembling plants manfufacture nothing in the country. It is always better to close these assembling plants and kick them out of the country. Pakistan is not a small market we are a market of 250 million people and there is not a single manufacturing facility in Pakistan because the owners of these foreign assembling plants make under the table commission deals with foreign companies which results in the destruction of local manufacturers because it is easy to setup an assembling plant but setting up a manufacturing plant takes a lot of time, resources and planning as well local resources and local talent. I always advise people to google the difference between assembling and manufacturing. These foreign assembling plants has earned a lot lot of forex from our country and gives Pakistan nothing but low quality vehicles and even those low quality vehicles and auto parts are imported which is ridiculous which means complete destruction of local manufacturing.
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