Pak Suzuki announces another shutdown of automobile plant

KARACHI: Pak Suzuki Motor Company (PSMC) on Wednesday announced another temporary shutdown of its automobile plant amid inventory shortage.

In its notice to the Pakistan Stock Exchange (PSX), PSMC said: “Due to shortage of inventory level, the management of the company has decided to shut-down automobile plant from November 09, 2023 to November 14, 2023.”

Meanwhile, the motorcycle plant will remain operative.

During the course of the year, the Japanese automaker has announced shutdowns over a dozen times. Last week, it said it would keep its automobile plant shut till November 3.

US dollar continues to gain ground

It made similar announcements in October, September, August, June and May as well, citing a lack of raw material.

Last month, the Board of Directors (BoD) of PSMC decided to purchase all outstanding shares of the company and delist from the PSX, citing low valuations and losses.

Citing a drop in sales and high financing costs, the Japanese automaker announced losses to the tune of Rs9.68 billion in the first six months of FY2022-23.

The country’s auto sector, hugely dependent on imports, was hit hard by the government’s decision to curb imports and restrict issuance of LCs. Additionally, higher finance cost and massive increase in car prices have also reduced demand from consumers.

In the first quarter of FY24, sales stood at 20,983 units, down 40% as compared to the the same period in the previous year.