The Pak Suzuki has chosen to halt motorcycle assembly for 16 days owing to insufficient inventory. According to an official announcement, motorcycle production will be suspended from July 31 until August 15. After resuming production, Suzuki might consider raising motorcycle prices, citing the instability of the local currency as a possible reason.

Recently, the company made another announcement to extend the production halt for a longer duration, starting from June 22 and continuing until July 15. This has led to a significant period of non-production lasting 24 days.

Suzuki, being the largest automaker in Pakistan based on production and sales, has experienced a substantial decline in sales and revenue due to these intermittent production pauses.

In the initial week of June, Suzuki conveyed its concerns about the dire condition of the automobile industry to Prime Minister Shahbaz Sharif, emphasizing the challenges they are facing.

The company’s notification to the Prime Minister read:

    “Here, we would like to bring to kind notice that PSMC is going through the very worst of times in its history of about 40 years. The company has already suffered huge losses of Rs. 12.9 billion in the first quarter of the current year due to current economic uncertainties. The company is also observing many “No Production Days” every month throughout the year. In addition to this, our dealers and vendors are also suffering very badly due to the current economic and business situation, as some of them are already closed and many more are on the bring of closure.”

As per recent reports, the government has implemented a tax hike on all locally assembled vehicles, while maintaining strict restrictions on imports. Considering the current state of affairs, the future of the auto industry seems bleak. The combination of increased taxes and limited import options is likely to pose significant challenges for the industry’s growth and sustainability.