Islamabad, Aug 9: Pak Suzuki Motor Company Limited (PSMCL), like Toyota Indus Motor Company (IMC), has also been forced to stop production at its factory in Karachi because of an extended delay in the clearance of Completely-Knocked Down (CKD) kits. The car industry has been rocked by this unplanned halt, underscoring the serious difficulties Pakistani manufacturers face.
PSMCL has suffered large financial losses as a result of the delay in the approval of the CKD kit, including high detention and demurrage costs. Furthermore, the suspension of manufacturing and sales has negatively impacted the government’s earnings from taxes and tariffs.
Toyota Industries to Halt Production
IMC had also declared back-to-back production shutdowns in the previous thirty days the day before. The corporation has announced a second production cut, which will take place from August 6, 2024 to August 8, 2024 (inclusive), according to a recent update. Prior to this, the business shut down its manufacturing facility from July 5, 2024, to July 22, 2024.
The local automaker notified Pakistan Stock Exchange (PSX) that there are severe shortages of parts and components as a result of continued supply chain problems. As a result, the stockpile of raw materials has significantly decreased, which is impeding the production of vehicles.
Concerns regarding the government’s adherence to the auto policy and the detrimental effects of such disruptions on investor confidence have been brought up by the Concerns & Way Forward Industry groups, which include PAMA and PAAPAM.
High taxes, loan rates, and energy expenses are just a few of the issues facing the automobile sector as a whole. Numerous local producers of parts have had to curtail production and lay off workers as a result of these causes. These problems have been made worse by the present crisis, with the PSMCL closure affecting 140–145 vendors.
Experts stress that in order to address the root causes, government action is desperately needed. They recommend that businesspeople be included in the process of coming up with answers and that any anomalies be fixed right away.What are your thoughts on Pak Suzuki’s latest announcement of a production halt? Please share your opinions in the comments area.
