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Monday, November 18, 2024

Suzuki to halt production in August?

After Toyota Indus Motors halted the production and booking of cars, the Pakistan Suzuki Motors has also announced to shut its plants. The economy is in worst period.

Non-Production Days (NPD) may be implemented by Pakistan Suzuki Motor Company (PSMC) in August. PSMC’s Head of Public Relations, Shafiq Shaikh, confirmed this to a local newspaper, The Profit. Car CKDs’ letters of credit (LCs) and documentation for payment (DPs) are now not being opened by commercial banks. In August 2022, CKDs and other raw materials may no longer be available, resulting in a production shutdown, according to Shaikh.

There were no NPDs in July, says Shaikh, and Suzuki is aiming to meet orders booked through June. Continued implementation of the programme, however, is contingent upon the State Bank of Pakistan’s planned negotiations with the LCs and DPs to normalise relations (SBP).

Read more: Toyota to invest $100mn in Hybrid Electric Vehicles in Pakistan

A few days ago, Toyota Indus Motor Company (IMC) CEO Asghar Ali Jamali said that IMC will provide buyers the option of either a refund or a further three months of waiting.

State Bank of Pakistan (SBP) letters of credit for CKD imports have caused panic in the automobile business.

The car industry may be in for a bleak August. In addition to PSCMs’ prospective NPDs, there are rumours that IMC will also monitor NPDs for two weeks in the first half of the month. It isn’t clear if Honda will join the other two Big 3 members in their likely choice to halt production.

Read more: Gandhara Nissan to launch electric cars in Pakistan within the next three years

Unfortunately, the recent revival in Pakistan’s automobile https://gil.com.pk/ may be coming to an end.