Tuesday, July 16, 2024

Auto Parts Manufacturers also Shutting Down in Pakistan

Car assemblers in the country, auto parts manufacturers are also facing the same fate. Car assemblers are announcing back-to-back production cuts, and so is the auto manufacturing industry.

Agriauto industries limited, one of Pakistan’s most well-known auto manufacturers, announced a second consecutive month of partial shutdowns, explaining that this was due to a “decrease in production quantities of our major customers.”

The two most prominent automakers in the nation, Honda Atlas and Pakistan Suzuki, shut down their factories a few days ago. Honda Atlas opted to extend the closure of its manufacturing facility by 15 more days due to a lack of Letters of Credit (LCs) and a shaky financial situation.

“The company is not in a position to continue with its production and has eventually continued to shut down its factory from April 01, 2023, to April 15, 2022,” the company wrote in a letter to Pakistan Stock Exchange.

In the meantime, Pak Suzuki Motor Corporation revealed that it would extend the closure of its motorbike factory’s output until April 15. In addition, the business will stop producing cars from April 7 to April 14, 2023.

The management of the company has decided to prolong the shutdown period of its motorcycle production until April 15,202, according to PSMC. Due to a low inventory, the vehicle plant will also be closed on April 7 and April 14, 2023.

Pakistan’s economy and employment rate could be significantly impacted if the auto sector collapses. The government may need to take steps to support the industry and help it recover, such as providing incentives for investment, lowering taxes, and easing regulations.

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