Pak Suzuki Motor Company (PSMC) has announced another shutdown of its automobile and motorcycle plant from June 22 to July 08.
The automaker shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
It said the decision was made due to the ongoing government import restrictions that have affected the auto sector, pushing a shortage of inventory.
“Due to shortage of inventory level, the management of the company has decided to shut-down motorcycle and automobile plant from June 22, 2023 to July 08, 2023,” read the notice.
PSMC had earlier closed its motorcycle plant till June 16, 2023. The auto assembler closed both its automobile and motorcycle plant from May 2 to May 9, 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.
Back in April, the auto manufacturer 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, has been hit hard by the government’s decision to curb imports and restrict the issuance of Letters of Credit (LC). Additionally, higher finance costs and massive increases in car prices have also reduced demand from consumers.
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