According to a communication exchanged with the Pakistan Stock Exchange (PSX) on Monday, Honda Atlas Cars (Pakistan) Limited has announced its intent to resume production operations.
This decision was based on the company’s consistent efforts and a minor improvement in the availability of trade finance facilities for the supply chain. In the following weeks, it plans to gradually increase production.
Earlier, on April 28, 2023, Honda Atlas Cars (Pakistan) Limited announced that production operations would be suspended until May 15, 2023, citing the economic conditions in Pakistan. Government restrictions on opening Letters of Credit (LCs) for the import of CKD (Completely Knocked Down) kits and raw materials, as well as a suspension to foreign payments, affected the company’s operations.
These measures had a significant impact on the company’s supply channels, prompting the decision to temporarily suspend operations. Honda Atlas Cars (Pakistan) Limited is now optimistic about progressively resuming production as a result of the recent improvement in the accessibility of trade finance facilities for the supply chain.
The resumption of production operations by Honda Atlas Cars (Pakistan) Limited will be beneficial for the country’s automotive industry. It indicates not only the company’s determination to surmount obstacles, but also a positive outlook for Pakistan’s economic conditions. The incremental increase in production will contribute to the revitalization of the automotive industry and provide vital support for the economy as a whole.
Industry stakeholders and investors will closely monitor Honda Atlas Cars (Pakistan) Limited’s progress as it proceeds forward with its plans to resume production operations. The resumption of operations will benefit not only the company but also the entire automotive supply chain, including suppliers, dealers, and consumers.
The automotive industry is vital to Pakistan’s economy, and the resumption of production operations by Honda Atlas Cars (Pakistan) Limited is an encouraging sign of its recovery. The company’s dedication to navigating challenging economic conditions and its efforts to progressively increase production demonstrate its dedication to serving its customers and contributing to the expansion of the Pakistani automobile industry.