In the wake of inventory shortages, leading automotive companies in Pakistan Thursday announced an extension of their plant shutdown periods.
Pak Suzuki Motor Company Limited announced that its motorcycle plant shutdown will be extended until April 28, 2023. This decision was made due to a shortage of inventory levels, as previously notified on April 4, 2023.
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Similarly, Honda Atlas Cars (Pakistan) Limited has extended its plant shutdown period from April 16, 2023, to April 30, 2023. In a communication shared with the Pakistan Stock Exchange (PSX), the company cited the current economic situation in Pakistan, where the government has implemented stringent measures, including restrictions on opening LCs for the import of CKD kits, raw materials, and halting foreign payments.
As a result, the company’s supply chain has been severely disrupted, making it impossible for the company to continue with production.
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The automotive industry in Pakistan has been facing challenges due to the global chip shortage, which has affected the production of vehicles worldwide. The shortage of inventory levels and supply chain disruptions have further compounded the situation for Pakistani automotive companies.
The extension of the plant shutdown period by Pak Suzuki Motor Company Limited and Honda Atlas Cars (Pakistan) Limited is expected to impact their production targets and revenue projections.
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The companies have assured their customers that they are taking steps to address the supply chain disruptions and inventory shortages and will resume operations as soon as possible.
The government of Pakistan has been working with automotive companies to address these challenges and provide support for the industry. The global chip shortage has been a major issue for the automotive industry, and the government is exploring options to mitigate its impact on the country’s economy.
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The extension of the plant shutdown period by leading automotive companies is a reminder of the need for urgent action to address these challenges and ensure the continued growth of the automotive industry in Pakistan.
