Monday, July 22, 2024

Baluchistan wheels shutdown production in Pakistan

As a result, from Friday, April 7, 2023, until the Eid vacation’s conclusion, the company’s management has decided to close/stop the production activities temporarily. The business also said it would quickly begin production after the Eid holidays.

Based in Hub, Balochistan, Baluchistan Wheels produces steel disc wheels for cars. Domestic and foreign OEMS of passenger cars, commercial vehicles, and tractors are among the company’s clients. Initial public announcements from the corporation stated that it would observe NPDs from December 12 to December 23. Then, on December 30, the production standstill was extended until January 6.

Agriauto Industries Ltd, a producer of automotive parts, recently announced that it would extend the partial shutdown of its plant for the entire month of April.

The nation’s auto industry is still vulnerable following the general economic crisis. The sector remains one of the most affected by rapid currency depreciation and the on-going Letter of Credit (LC) issues, which arose due to depleting foreign exchange reserves as the sector remains highly dependent on imported auto parts and raw materials.

In Pakistan, however, demand for low-end, price-sensitive vehicles fell dramatically in February due to problems with the supply chain and rising automobile prices.

Pak Suzuki, thought initially to serve the entry-level segment, had its sales collapse 92% year over year to just 978 units in February of this year, according to figures issued by the Pakistan Automobile Manufacturers Association (PAMA) last month.

The manufacturer sold only 72 units of the 1,000cc Cultus, representing a staggering 96% year-over-year reduction. Only 544 units of the 660cc Alto were sold, representing a 92% decline.

The government is still working to appease the IMF to restart the Extended Fund Facility (EFF) programme, which, if authorised by its board, would release a funding tranche of more than $1 billion.

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