Karachi, September 1, 2023 – Agriauto Industries Limited, a prominent manufacturer of automotive parts, has made the decision to shut down its production plant for an entire month due to a significant decline in demand from its key customers.
In a communication submitted to the Pakistan Stock Exchange (PSX), the company revealed that it will be implementing a partial shutdown throughout the month of September 2023. This decision comes in response to a notable reduction in the production requirements of its major customers.
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Furthermore, Agriauto Stamping Company Pvt. Limited, a wholly-owned subsidiary of Agriauto Industries Limited, will also be following suit with a partial shutdown during the same month, citing similar reasons related to decreased demand.
Agriauto Industries Limited, a public limited company established in 1981 and listed on the stock exchange, is renowned as one of the foremost manufacturers of automotive components within the private sector. Notably, it was the first company in Pakistan to attain TS16949 certification, a testament to its commitment to quality and excellence.
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The automotive industry in Pakistan is currently grappling with a series of challenges, primarily stemming from a substantial decrease in demand. Factors contributing to this downturn include high inflation rates, a significant increase in the discount rate, and a burdensome tax regime.
The decision to temporarily halt production reflects the company’s strategy to manage its operations in the face of evolving market dynamics. Agriauto Industries Limited is actively assessing the situation and remains committed to adapting to changing circumstances in order to continue serving its customers and contributing to the automotive sector’s resilience in Pakistan.
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The company’s decision to temporarily suspend production underscores the need for the industry as a whole to navigate the prevailing economic challenges while maintaining its commitment to quality and innovation. Agriauto Industries Limited will closely monitor market conditions and work diligently to restore production levels as demand rebounds.
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