Pak Suzuki Motor Company (PSMC) said on Thursday that its motorbike manufacturing will remain closed until September 15.
PSMC informed the Pakistan Stock Exchange (PSX) on Thursday that “due to a shortage of stock level, the company’s management has decided to extend the shutdown of the motorcycle plant until September 15, 2023.”
Previously, the manufacturer said that its motorbike plant would be closed from September 1 to September 12.
Meanwhile, auto manufacturing will continue to operate.
Several times this year, the Japanese carmaker has announced plant closures. It said last month that it would close its motorbike manufacturing until August 31.
Similar statements were issued in June and May, citing a scarcity of raw materials.
The company reported Rs9.68 billion in losses in the first six months of FY2022-23, citing a decline in revenue and high finance costs.
Pakistan’s auto industry has faced numerous obstacles, including high energy costs, political instability, and difficulty in acquiring letters of credit for imports due to a chronic dollar shortage.
According to figures from the Pakistan Automotive Manufacturers Association (PAMA), car sales in Pakistan (including LCVs, vans, and jeeps) were 36% down year on year (YoY) in August, totaling 11,789 units.
“Escalating car prices, expensive auto financing, and consumers’ low purchasing power are among the primary reasons for the YoY sales decline,” brokerage Topline Securities stated.
In August, bike sales in Pakistan were down 14% year on year.
According to the brokerage house, the YoY fall is attributed to increasing bike pricing and consumers’ poor purchasing power.