Earlier this week, Toyota Pakistan announced a month-long shutdown of its production plant. The company had highlighted ongoing struggles with inventory shortages as the primary reason behind this shortage. This marks the ninth shutdown announcement by the company in 2023 alone. The hiatus, slated from October 17 to November 17, is attributed to challenges in the supply chain. This has caused parts shortages and is consequently hindering the production of vehicles.

Suzuki’s Announcement 

And now the other two companies of Big 3 have also announced temporary shutdowns. As per a notification to the Pakistan Stock Exchange (PSX), Pak Suzuki blamed the ongoing shortage of essential raw materials for the step. “Due to a shortage of inventory levels, the management of the company has decided to shut down the automobile plant from October 25, 2023 to October 27, 2023. However, the motorcycle plant will continue its operations,” Suzuki said. 

Honda’s Statement 

Honda Atlas made a similar announcement through their company secretary. “The current level of inventory and parts shortage within the company’s supply chain has severely disrupted operations,” the statement read, adding that as a result, the company is unable to continue production and, consequently, will halt its plant from October 24, 2023, to October 31, 2023. 

The first quarter of FY24 witnessed a 40% decline in sales, with 20,983 units sold, mirroring the tough times faced by the auto industry. Analysts attribute the challenges to high prices, expensive auto financing, and a tax surge, contributing to a year-on-year sales slump.

The industry’s future remains uncertain as the auto giant navigates through these challenges. Consumers are caught in the crossfire of escalating prices, costly financing, and diminished purchasing power, painting a grim picture of the Pakistani automobile landscape.

What are your thoughts on the production shutdown by the Big 3? Do you think it will further harm the auto industry of Pakistan? Let us know in the comments below!