In a recent press release, Pak Suzuki Motor Company (PSMC) has announced the extension of its plant shutdown due to an alarming shortage in inventory. The auto manufacturer revealed that its automobile plant will be non-operational from October 30 to November 3, with the motorcycle plant following suit from November 1 to November 3.

The decision comes on the heels of an earlier announcement where Pak Suzuki had initially planned a two-day shutdown from October 25 to October 27.

Pak Suzuki’s move to suspend production echoes a wider trend in the Pakistani automotive industry. Toyota Indus Motor Company (IMC) has already shut down its plant for a month until November 17, and Honda Atlas is halting operations from October 24 to October 31.

Downtrend in PSMC Sales

A significant factor contributing to these shutdowns is the decline in sales for Pak Suzuki. Compared to its Japanese counterparts, the company experienced a 1% decrease in sales last month, selling 4,234 vehicles against 4,268 cars in July. The breakdown of sales includes 2,551 units of Alto, 332 units of Suzuki Cultus, 359 units of Suzuki Wagon R, 506 units of Suzuki Swift, 229 units of Suzuki Bolan, and 257 units of Suzuki Ravi

According to the Pakistan Automotive Manufacturers Association (PAMA), the overall car sales witnessed a 10% increase in September 2023, with 8,312 vehicles sold compared to 7,579 units in August.

However, in a year-to-year (YoY) comparison, there was a substantial decline of 26%, as car makers sold 11,288 cars during the same period last year.

The inventory shortage and subsequent production halts underscore the challenges faced by the Pakistani automotive industry.

As manufacturers grapple with supply chain disruptions, fluctuating demand, and economic uncertainties, the extension of Pak Suzuki’s plant shutdown serves as a reminder of the fragile balance within the country’s automotive sector.