A Month ago, Shahbaz-led PMD coalition government passed the baton to the interim premier. The incumbent caretakers were the only source of hope for inflation-stricken masses but economy continue to worsen faster than before while toppling all the previous records. Surprisingly enough, the caretaker finance minister Shamshad Akhtar stated that the severe is yet to come.

Amid all this chaos, like any other, Pakistan auto industry is also facing the worst that it had never before. Car makers are announcing production cuts in the face not-enough inventory. Whereas, low sales and dwindling profits volumes is a part of another grim episode automakers are witnessing since long.

The Shutdown Saga

In a communication to the Pakistan Stock Exchange (PSX), Pakistan Suzuki Motor Company (PSMC) stated, Due to shortage of inventory level, the management of the company has decided to shut-down its motorcycle plant from September 01, 2023 to September 12, 2023.” In the meantime, the car manufacturing facility will continue to operate.

Throughout the current year, the Japanese automotive company has declared temporary closures on more than twelve occasions. Just last month, it confirmed that its motorcycle production plant would remain closed until August 31st.

Similar declarations were made in both June and May, with the company attributing these shutdowns to a shortage of raw materials.

Due to a decline in sales and substantial financial expenses, the company reported losses amounting to Rs9.68 billion in the initial six months of FY2022-23.

Pakistan’s automobile industry has encountered various difficulties, including elevated energy expenses, political instability, and difficulties obtaining letters of credit for imports amid a severe shortage of dollars.

In another update Agriauto industries also announced partial shutdown this month. In a filing, the company stated, “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.