Pak Suzuki Motor Company (PSMC) has once again announced that it will shut its automobile and motorcycle plant until May 09. The decision was made due to the ongoing government import restrictions that have affected the auto sector, causing a shortage of inventory, it said.

“Due to shortage of inventory level, the management of the company has decided to shut down motorcycle and automobile plant from May 02, 2023 to May 09, 2023,” read a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

It is pertinent to mention that PSMC earlier announced to shut its motorcycle plant till April 28 due to a lack of raw material. Meanwhile, the automobile plant was shut from April 07 to April 14.

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 week, PSMC recorded its highest-ever quarterly loss of Rs12.9 billion in the first three months of 2023 owing to 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.

Auto sector woes

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.

Pakistan’s auto industry reported car sales of 9,211 units in March, 62% higher on a month-on-month basis but still 66% lower compared to the number in March 2022, according to data shared by Pakistan Automotive Manufacturers Association (PAMA).