Pak Suzuki Motor Company (PSMC) on Wednesday announced another temporary closure of its car factories due to inventory shortages.
In a notification to the Pakistan Stock Exchange (PSX), PSMC said, “Due to insufficient inventory levels, the company’s management has decided to close the automobile factory from November 9, 2023 to November 14, 2023. It has been decided.”
Meanwhile, motorcycle factories will continue to operate.
Throughout the year, Japanese automakers announced shutdowns more than a dozen times. The company announced last week that it would close its car factories until November 3.
The company made similar announcements in October, September, August, June and May, citing raw material shortages.
Last month, PSMC’s Board of Directors (BoD) decided to purchase all of the company’s outstanding shares and delist it from the PSX, citing low valuation and losses.
Citing lower sales and higher financing costs, the Japanese automaker announced a loss worth Rs 9.68 billion in the first half of 2022-23.
Auto sector woes
The country’s automobile sector is highly dependent on imports and was hit hard by the government’s decision to curb imports and limit the issuance of LCs. Additionally, rising finance costs and significant increases in vehicle prices are also reducing demand from consumers.
Sales volume in the first quarter of FY2011 was 20,983 units, a 40% decrease compared to the same period last year.
“Pakistan’s auto industry is facing demand challenges mainly due to high prices, high auto financing and rising taxes, resulting in year-on-year decline in sales,” said a research vice by JS Research. Director Waqas Ghani said. business recorder Before.