Pak Suzuki Motor Company, a leading automobile manufacturer in Pakistan, has announced a three-day extension of the shutdown period for its motorcycle manufacturing facility. This decision is attributed to a shortage of required parts, compounded by a slowdown in sales and the ongoing economic challenges in the country.
The company clarified that while the motorcycle manufacturing plant would remain closed from September 20 to September 22, 2023, the automobile plant would continue its operations. The specific details regarding the nature of the parts shortage and its causes were not disclosed in the notification sent to the Pakistan Stock Exchange (PSX).
This marks the sixth such notice of shutdown from Pak Suzuki Motor Company in the past five months, highlighting the intermittent disruptions in production faced by the plant.
According to the company’s half-yearly report for the period ending June 30, 2023, the organized market for motorcycles and three-wheelers in Pakistan, represented by Pama member companies, experienced a 37% decrease. Sales figures for the company also reflected this downturn, with a 57% decline compared to the corresponding period in 2022.
In addition to production challenges, Pak Suzuki Motor Company has faced issues in its four-wheeler plant due to import restrictions caused by limited foreign exchange reserves. Although the government lifted these import restrictions in June 2023, practical implementation has been hampered by the slow inflow of foreign currencies.
The company’s half-yearly report anticipates a potential economic recovery in the fiscal year 2024, driven by improved agricultural output and the easing of import restrictions. However, it also acknowledges ongoing macroeconomic challenges, including high prices and reduced car financing due to elevated interest rates, which may impact the demand for vehicles.
Pak Suzuki Motor Company continues to navigate a complex economic landscape in Pakistan, striving to address supply chain disruptions and market fluctuations while maintaining its commitment to delivering quality vehicles to customers.
