Honda Atlas Cars Pakistan Ltd announced a 15-day extension of its longest factory outage this fiscal year on Thursday,
blaming the country’s economic difficulties, limits on obtaining letters of credit for imports, and the suspension of international payments.
On March 8, the corporation announced a 23-day downtime that was set to expire on March 31. The suspension was then extended until April 15.
Honda claims that the government’s tough stance on Pakistan’s economic crisis has “severely disrupted” the company’s supply chain.
The company, a unit of Japan’s Honda Motor Co Ltd, announced in a notice to the Pakistan Stock Exchange:
“As a result, the Company is unable to continue production and, as a result, has continued to shut down its plant from April 16, 2023 to April 30, 2023.”
Other listed automakers in the country, such as Indus Motor Company Limited and Pak Suzuki Motor Company, were forced to halt production during the last fiscal year due to Pakistan’s economic difficulties, which have reduced central bank foreign exchange reserves to barely enough to cover a month’s imports.
Also on Thursday, Pak Suzuki Motor Company Ltd (PSMC), a subsidiary of Japan’s Suzuki, announced a 13-day extension to a previously scheduled suspension in motorcycle production.
It declared an 11-day plant stoppage for its motorbike unit on March 16, citing a lack of supplies. The lockdown was later extended by 15 days till April 15.
PSMC halted car production for a week, from April 7 to April 23, for the same reasons.