Autos

Pak Suzuki: Plant Shut Down Duration Extended

Pak Suzuki: Plant Shut Down Duration Extended

Update: Pak Suzuki Motor Company (PSMC) has further extended the shutdown from January 16, 2023 to January 20, 2023. This is for the lack of availability of inventory. However, their motorcycle assembly plant will remain operational.

After Toyota shut down its plan in Pakistan, Pak Suzuki has also shut down its production in the country. The reason mentioned by the company is the hurdles in importing parts and raw materials for the manufacturing of its vehicles. The main hurdle in this regard is the prior approval the automobile companies have to take from the State Bank of Pakistan for the imports. 

Earlier, the company has notified the Pakistan Stock Exchange of its plan to shut down its production from 2-Jan-2023 to 6-Jan-2023. Now, the period is extended from 9-Jan-2023 to 13-Jan-2023. The production isn’t only stopped for the cars but also for Suzuki’s Motorcycles in Pakistan

The mechanism of getting prior approval doesn’t seem like a hurdle in general. But a delay in approval (which is common in most government departments) is the reason why the companies are facing a shortage of parts and raw materials (as stated by Toyota and Suzuki). As a result, they are unable to maintain appropriate inventory levels for production.

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Pak Suzuki Motorcycles: No More Bookings Until Further Notice

Suzuki’s Declining Sales in Pakistan

If we see the sales of Suzuki cars in Pakistan, they have declined compared to the previous year as per PAMA car sales report Nov-2022 except Alto which is surprisingly gaining exceptional sales figures in the country. Shutting down the plant may further reduce the sales of the company. 

The sales figures are not negative for the Suzuki bikes though (as per the latest PAMA bike sales report). It is mainly due to the Suzuki bikes’ 0% markup installment plan which has enabled its consumers to buy the motorcycles with easy monthly installments. It is pertinent to mention that the company has recently launched Suzuki GSX 125 in Pakistan. This production shutdown will impact its sales as well. The company has also stopped taking bookings for this bike though.

suzuki-bikes-sales-comparison

Overall, it is pretty bad news for the automobile industry as major manufacturers have to shut down their plants in Pakistan. However, there is one important thing to notice. Other companies are also following the same policy, but they haven’t shut down their plants. Strange right?

What are your thoughts about the suspension of production by these companies in Pakistan? Share your opinion with us in the comment section below. 

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