KARACHI: Pak Suzuki Motor Company (PSMC), one of the country’s leading automakers, has prolonged its shutdown till January 20 due to inventory shortages.
The automobile company’s production activities have been suspended for the majority of the days since the start of the new year, blaming a lack of imported parts and accessories, as banks reject or retire letters of credit (LCs) amid US dollar scarcity, an exchange rate crisis, and the country’s rapidly depleting foreign reserves.
“Due to continued inventory shortages, the company’s management has decided to extend the shutdown of the automobile plant from January 16, 2023, to January 20, 2023,” PSMC said in an announcement to the Pakistan Stock Exchange (PSX).
The motorbike facility, on the other hand, will continue operational, according to the statement.
It was the company’s third straight declaration that it will continue to use brakes in its manufacturing operations in 2023. PSMC began the new year by announcing that it will be closed from January 2 to January 6, due to import restrictions caused by the non-issuance of letters of credit.
The central bank had established a procedure for prior permission for imports under the “HS code 8703 category (including fully knocked down-CKDs) vide circular No. 09 of 2022 dated May 20, 2022,” the business noted in a note to the PSX at the time.
PSMC informed the bourse last week that it will close the vehicle facility from January 9 to January 13, citing the same grounds as the previous week’s restrictions on the import of CKD kits.
Import delays have continued to afflict the car sector, which is heavily reliant on imported components and accessories.
According to data supplied by the Pakistan Automotive Manufacturers Association, passenger car sales fell 44% year on year in December, falling to 13,768 units from 24,471 units in December 2021. (PAMA).
Pak Suzuki reported an 8% month-on-month decrease to 11,342 units.
PSMC is involved in the assembly, advanced manufacture, and marketing of Suzuki vehicles, trucks, vans, 4x4s, and motorcycles, as well as associated spare parts.