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Pak Suzuki Motor Company (PSMC) on Wednesday announced another temporary shutdown of its automobile plant amid inventory shortage.

In its notice to the Pakistan Stock Exchange (PSX), PSMC said: “Due to shortage of inventory level, the management of the company has decided to shut down the automobile plant from November 09, 2023 to November 14, 2023.”

Meanwhile, the motorcycle plant will remain operative.

During the course of the year, the Japanese automaker has announced shutdowns over a dozen times. Last week, it said it would keep its automobile plant shut till November 3.

It made similar announcements in October, September, August, June and May as well, citing a lack of raw material.

Last month, the Board of Directors (BoD) of PSMC decided to purchase all outstanding shares of the company and delist from the PSX, citing low valuations and losses.

Citing a drop in sales and high financing costs, the Japanese automaker announced losses to the tune of Rs9.68 billion in the first six months of FY2022-23.

Auto sector woes

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

In the first quarter of FY24, sales stood at 20,983 units, down 40% as compared to the the same period in the previous year.

“The automobile industry in Pakistan is facing demand challenges, primarily driven by high prices, costly auto financing, and a surge in taxes, resulting in a YoY decline in sales,” Deputy Head of Research, JS Research, Waqas Ghani told Business Recorder earlier.

Comments

200 characters
Asif Nov 08, 2023 12:27pm
Companies are extending shutdowns or exiting the country and our stock exchange is going up daily . Something doesn’t add up .
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mustafa Nov 08, 2023 03:36pm
@Asif , no one is going anywhere (shifting company from one hand to another) ... stock market is booming because it went down from approx. 100 billion USA to 22 billion USD ( even lower than Nepal's Stock exchange) ... it will settle somewhere around 60-65 billion USA worth and later slowly move upward to 100 billion USA and beyond ... P.S :- when any country follows the footstep of IMF and tries to bring back house in order - stock market always perform
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cool Nov 11, 2023 07:18pm
Well no body is willing to buy their assembled products.
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