Pakistan’s ill-fated economic charts have ruined the hopes of stability in near future. Back-to-back not-well-thought economic decisions look unable to provide relief to the industry. Car companies in conjunction with auto parts manufacturers are on the brink of ultimate damage. Production shutdowns, low sale and profit volumes and then the new episode of rupee devaluation is the grim reminder of all that is done with country’s auto industry specifically in last two years.

In a recent update, Agriauto Industries Limited has reported a partial shutdown in response to diminished production levels from its primary customer base. This update was conveyed to the Pakistan Stock Exchange (PSX) on Friday.

The filing read:

Due to reduction in production volumes of our major customers, the Company will be observing partial shutdown during the month of September 2023,”

The filing further informed that a wholly-owned subsidiary of Agriauto Industries Limited named Agriauto Stamping Company Private Limited, will likewise undergo a partial shutdown in September 2023 for the same reasons mentioned earlier.

It is related to mention that the company is has been experiencing prolonged episodes of partial shutdowns since February 2023. Furthermore, Agriauto is actively involved in the production and distribution of components for automotive vehicles, motorcycles, and agricultural tractors.

As of the filing, the company’s stock on the exchange was priced at Rs. 55, reflecting a decrease of 6.78 percent or Rs. 4, with a trading volume of 12,500 shares on Friday.

Toyota Pakistan’s Closure

In a notification to the Pakistan Stock Exchange (PSX), the IMC stated per Sections 96 and 131 of the Securities Act 2015 and Clause 5.6.1 (a) of PSX Regulations, IMC hereby conveys the following information:

• In the fiscal year 2022-23, the demand for the auto sector has continuously declined due to the challenging economic environment, low consumer purchasing power, and increased duties and taxes by the Federal Government.
• While considering the low demand and inventory levels, the company has decided to close its production plant from Friday, August 25, 2023, to Wednesday, September 6, 2023 (both days inclusive).

What do you think about the recent shutdown series? Drop your thoughts in the comments section.