- Due to shortage of inventory level, the company has decided to shut-down motorcycle plant from 23-May-2023 to 10-June-2023.
- Due to shortage of inventory, the company has extended its motorcycle and automobile plant shut down till 9-May-2023.
- The company has decided to extend its motorcycle plant shutdown till April-28-2023.
- The management of the company has decided to extend shut down period of its motorcycle plant till April 15, 2023.
- The automobile plant will also observe shutdown on April 07, 2023 & April 14, 2023.
- Pak Suzuki has shut down motorcycle plant from 20-March-2023 to 31-March-2023.
- Production and assembly operations of Suzuki Pakistan will be paused from 20-Feb-2023 to 21-Feb-2023.
- PSMC has announced its automobile plant shutdown from February 13 to February 17, 2023, due to a shortage of inventory. Its motorcycle plant will remain operational however.
- Pak Suzuki Motor Company (PSMC) 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 remains 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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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.
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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