Suzuki Pakistan announces plant shutdown on inventory shortage

Suzuki Pakistan announces plant shutdown on inventory shortage

KARACHI: Pak Suzuki Motor Company Limited on Thursday announced a temporary plant shutdown due to shortage of inventory after conditions imposed by the central bank.

In a communication sent to Pakistan Stock Exchange (PSX), the company stated that the State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for importer under HS Code 8703 category, including CKDs through a circular No. 09 issued on May 20, 2022.

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“Restriction had adversely impacted clearance of import consignment which resultantly affected the inventory levels,” it added.

Therefore, due to shortage of inventor level, the management of the company has decided to shut down automobile plant for period extending from October 24, 2022 to October 26, 2022. “However, motorcycle plant will remain operative,” it said.

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The company for the last several months is making similar announcement due to shortage of inventory and raw material for the locally manufactured cars.

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According to latest data of locally assembled car sales, Pak Suzuki witnessed sharp decline during the first quarter (July – September) of fiscal year 2022/2023. The car sales of Pakistan Suzuki fell to 16,639 units during the first quarter of the current fiscal year as compared with 38,431 units in the same quarter of the last fiscal year.

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