Pak Suzuki Motor Company (PSMC) announced that it will temporarily shut down its automobile plant from February 13th to 17th, 2023, due to a lack of inventory. A notice was sent to the Pakistan Stock Exchange (PSX) stating, “Due to the persistent shortage of inventory, the company management has decided to shut down the automobile plant from February 13th to February 17th, 2023.
” However, the motorcycle plant will continue to operate. PSMC is a local assembler, manufacturer, and marketer of Suzuki vehicles including cars, pickups, vans, 4x4s, motorcycles, and related spare parts. The Suzuki brand originates from Japan.
Last month, PSMC announced that its factory would be temporarily shut down from January 2 to January 6 and then again from January 16 to January 20 due to an inventory shortfall.
At the time, PSMC claimed that the State Bank of Pakistan (SBP) had established a system for imports to have prior approval. This limitation “had significantly impacted clearance of import consignment, which therefore harmed the inventory levels,” the automaker claimed.
Additionally, PSMC had stated that it will stop accepting new motorbike reservations on January 20 for an indeterminate period due to “import-based supply chain constraints and unknown manufacturing capabilities.” Bookings will start up again as soon as conditions are right to serve new clients, it said.
Due to the SBP’s limits on the issue of Letters of Credit following relentless currency depreciation, Pakistan’s auto industry, which is heavily dependent on imports, is in crisis (LCs). As the nation’s reserves have critically declined, industries are experiencing operational challenges.