Pak Suzuki Motor Company (PSMC) announced on Thursday that it will extend the shutdown of its motorcycle plant till September 15.
In its notice to the Pakistan Stock Exchange (PSX) on Thursday, PSMC said: “Due to shortage of inventory level, the management of the company has decided to extend the shut-down of motorcycle plant till September 15, 2023.”
Earlier, the automaker announced to close its motorcycle plant from September 01 to September 12.
Meanwhile, the automobile plant will remain operative.
During the ongoing year, the Japanese automaker has announced shutdowns over a dozen times. Last month, it said it would keep its motorcycle plant shut till August 31.
Citing a drop in sales and high finance costs, the company announced losses to the tune of Rs9.68 billion in the first six months of FY2022-23.
Pakistan’s auto sector has been facing challenges on several fronts, including high energy costs, political instability, and an inability to secure letters of credit for imports amid a severe dollar shortage.
Car sales in Pakistan (including LCVs, vans, and jeeps) were 36% lower on a year-on-year (YoY) basis in August, clocking in at 11,789 units, data from the Pakistan Automotive Manufacturers Association (PAMA) showed on Monday.
“Escalating car prices, expensive auto financing, and the low purchasing power of consumers are among the primary reasons for the decline in YoY sales,” brokerage house Topline Securities said.
Pakistan bike sales were down 14% on a yearly basis in August.
The YoY decline is due to higher bike prices, and low purchasing power of consumers, the brokerage house said.