Baluchistan Wheels Limited (BWHL), a manufacturer of steel wheels for automobiles, has said it will shut production activities till Eid holidays due to a drop in sales.
The company, engaged in manufacturing and marketing of automotive wheel rims for trucks, buses, tractors, cars and mini commercial vehicles, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“Due to reduction in production volumes of our major customers/OEMs, the company is facing drop in its sales orders. Therefore, the management of the company has decided to temporary close/stop the production activities on account of non-production days from Friday April 07, 2023 till the end of Eid holidays,” read the notice.
The company added that it will resume production activities immediately after Eid Holidays.
Days ago, Agriauto Industries Limited, a manufacturer of auto components, announced extending the partial shutdown of its plant during the month of April.
Following the overall economic downturn, the country’s auto industry remains in a precarious position. The sector remains one of the most affected by rapid currency depreciation and the ongoing Letter of Credit (LC) issues, which arose due to depleting foreign exchange reserves as the sector remains highly dependent on imported auto parts and raw materials.
Meanwhile, demand for price-sensitive low-end cars in Pakistan dropped significantly in February amid supply chain issues and rising vehicle prices.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA) last month, Pak Suzuki, which was once seen as catering to the entry-level segment, saw its sales drop 92% year-on-year to just 978 units in February this year.
The company managed to sell 72 units of 1,000cc Cultus only, registering a massive 96% decline on a year-on-year basis, it also managed to sell only 544 units of 660cc Alto, down by 92% YoY.
Meanwhile, the government remains busy appeasing the International Monetary Fund (IMF) to revive the stalled Extended Fund Facility (EFF) programme, which if approved by its board would release a funding tranche of over $1 billion.