Thursday, November 30, 2023

After Toyota and Honda, Suzuki Also Announce Plant Shutdown

Just like Toyota and Honda, Pak Suzuki is also planning to temporarily close its car manufacturing plant for two days, from October 25 to October 27, due to a shortage of inventory.

However, the motorcycle plant will remain operational. Honda Atlas recently announced a one-week plant closure from October 24 to October 31.

Similarly, the Indus Motor Company (IMC), which handles Toyota vehicle assembly in Pakistan, has decided to halt operations for a whole month, and the plant will remain closed until November 17.

There’s speculation that these car manufacturers might consider reducing car prices when they resume production. This potential price adjustment is related to the recent strengthening of the exchange rate against the US dollar.

The exchange rate dropped from over Rs. 300 per dollar to Rs. 280 per dollar in the latest announcement. Since the auto industry heavily relies on imports, this could lead to reduced production costs.

However, it’s uncertain whether these cost savings will result in lower car prices for consumers. KIA and MG have already set precedents by significantly reducing car prices.

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