ISLAMABAD: Due to supply chain disruptions, Honda Atlas Cars Pakistan Limited (HCAR) has decided to temporarily close its plant from March 9 to March 31.
The automaker announced in a notice to the Pakistan Stock Exchange (PSX) that the government’s restrictions on importing completely knocked down (CKD) kits and raw materials, as well as the halt to foreign payments, had disrupted the supply chain and that it was unable to continue operations in such an adverse situation.
“Considering the current economic situation in which the government has resorted to stringent measures such as restricting the opening of Letters of Credit (LCs) for import of CKD kits, raw materials, and halting foreign payments,” the notice stated.
“As a result, the company is unable to continue production and will be forced to close its plant from March 9, 2023, to March 31, 2023.”
Due to the government’s strict measures to save foreign currency and reduced market demand, several automakers have been forced to either completely close down or opt for a partial shutdown.
Pakistan’s foreign exchange reserves are currently very low, and the government is attempting to persuade the International Monetary Fund (IMF) to reactivate the Extended Fund Facility (EFF) for the release of a loan tranche worth more than $1 billion.
Pak Suzuki Motor Company recently resumed bookings for its two-wheelers after a one-and-a-half-month hiatus. “With regard to the circular sent on January 20, 2023, for the closure of bookings for Suzuki motorcycle products, we are now pleased to resume booking of 2W products on an allocation basis beginning tomorrow, i.e., March 3, 2023,” the company announced.
According to the most recent data, Pakistan’s car sales, including non-Pama members, were around 11,500 units in January 2023, down 37% month on month, primarily due to the lack of CKD parts.