Monday, June 17, 2024

Suzuki Pakistan Stops Production of Motorcycles in Pakistan

Pak Suzuki Motor Company has temporarily stopped accepting new orders for motorcycles due to supply chain constraints and uncertain production prospects caused by import restrictions.

In a letter to its dealers, the company explained that it is unable to serve new customers under the current economic circumstances. Bookings for motorcycle products were halted on January 20, 2023, but will resume once the situation improves. This decision was not unexpected, as factories have been shut down and there is a shortage of raw materials. The depreciation of the Pakistani rupee and restrictions on opening Letters of Credit (LCs) are contributing to the problem.

The Association of Pakistan Motorcycle Assemblers (APMA) expressed hope that once the LC issue is resolved and foreign currency reserves increase, manufacturing and sales can resume. Currently, China-based bike assemblers, who dominate the market, have reduced production by 50% to 80%, and some companies have shut down. The situation may become clearer in the next two weeks.

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