Honda, KIA, and Suzuki Stopping Production?

The year 2022 is not a good one for the automobile companies in Pakistan.  

Due to the current economic and political uncertainty in the country, Pakistan auto industry is going through some tough times. Toyota Indus Motor Company is considering refunding its customers citing delay in deliveries. What’s more, Honda, KIA, and Suzuki may stop their car production entirely in the coming days. 

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Some reports are suggesting that KIA and Honda might opt for single-shift operations. Also, some sources suggest that Suzuki Pakistan is planning to stop production of its vehicles in August. 

Analysis

Toyota and some other companies have stopped taking bookings for vehicles on multiple occasions this year.

However, our readers would be confused citing our previous blogs in which only positive sales figures have been quoted. So, if everything is rosy, what’s the worry? 

One of the biggest worries is the ever increasing car prices. And their effects are due to be felt. Insiders are predicting that you’ll start to see them in September 2022. The companies are already aware of dwindling car bookings, so as a precautionary measure, they’re shutting down their production lines. 

Another reason behind this is the State Bank of Pakistan’s restriction on importing CKD kits. Some sources say that SBP is delaying the issuance of letters of credit to the automobile companies for importing these parts. It is affecting their production.

Some industry insiders are predicting a shutdown for a short time. Irrespective, people will start to buy used cars. 

What is your take on this? Do you think that the auto industry in Pakistan is on the brink of a shut down? Share your thoughts in the comment section below.