Pak Suzuki Motor Company (PSMC) on Friday announced to extend its plant shutdown from January 9, 2023 to January 13, 2023.
In a notice sent to the Pakistan Stock Exchange (PSX) on Friday, the company said “in accordance with Section 96 & 131 of the Securities Act 2015 and clause 5.6.1 (a) of PSX Regulations and further to our letter dated December 26, 2022 on above subject, kindly note that due to continued shortage of inventory level, the management of the company has decided to extend the shutdown of automobile plant from January 9, 2023 to January 13, 2023.”
“However, motorcycle plant will remain operative. Further update, if any, in this regard will be communicated accordingly. You may please inform the TRE certificate holders of the Exchange accordingly.”
Due to a shortfall of inventory, PSMC announced on December 26 that its manufacturing for cars and motorcycles will be temporarily closed from January 2 to January 6.
Pakistan’s auto industry, highly dependent on imports, has been caught in the midst of a crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on the opening of Letters of Credit (LCs).
Economic specialists have attributed the event to the collapse in demand caused by extremely high auto prices. They claim that the situation will only get worse unless import restrictions are loosened and energy shortages are addressed.
In a significant development, Millat Tractors Limited had earlier announced that it would observe Fridays as non-production days (NPDs) from Dec 16.
The development comes as dozens of companies in recent weeks have announced either a shutdown or reduction in operations in Pakistan owing to reduced demand, inventory shortage, energy crunch and supply chain disruptions.
Last month, MTL announced that it would observe non-production days on Friday, citing lower demand.
Some textile companies, including Nishat Chunian Limited, Crescent Fibres Ltd and Suraj Textile Mills, have also partially suspended production recently due to demand destruction and market conditions.
Bolan Castings Ltd (BCL), the makers of various auto parts of tractors and commercial vehicles, had announced NPDs from Dec 5-23 due to declining sales.
Meanwhile, market experts believe that the situation will remain gloomy in the coming months, with negative growth expected in the industrial sector.
