Thursday, Honda Atlas Cars Pakistan Ltd announced a 15-day extension to its longest plant closure of the current fiscal year, citing the country’s economic crisis, restrictions on opening letters of credit for imports, and the suspension of foreign payments.
On March 8, the company announced a preliminary 23-day shutdown, which was anticipated to conclude on March 31. The closure was then extended until April 15th.
According to Honda, the government’s stringent measures to address Pakistan’s economic situation have “severely disrupted” the supply chain of the company.
In an announcement to the Pakistan Stock Exchange, the company, a subsidiary of Honda Motor Co Ltd of Japan, stated:
“As a result, the Company is unable to continue production and has subsequently decided to close its plant from April 16, 2023 to April 30, 2023.”
Other listed automakers in the country, including Indus Motor Company Limited and Pak Suzuki Motor Company, were also forced to halt production during the previous fiscal year due to Pakistan’s economic difficulties, which have resulted in central bank foreign exchange reserves that are barely sufficient to cover a month’s worth of imports.
Also on Thursday, Pak Suzuki Motor Company Ltd (PSMC), a subsidiary of the Japanese company Suzuki, announced a 13-day extension to a suspension in its motorcycle production.
The company announced an 11-day plant shutdown for its motorcycle facility on March 16, citing a lack of inventory. Later, the closure was extended by 15 days to April 15.
From April 7 to April 23, PSMC ceased automobile production for the same reasons.
