Pak Suzuki Motor Company (PSMC) has announced the resumption of its vehicle production. The company, according to a recent report from Autojournal.pk restarted local car assembly on July 21.
The production halt initially began on June 22 and was supposed to last until July 8. However, due to a persistent shortage of parts, PSMC extended the shutdown first until July 15 and then further until July 19. The company’s decision to resume operations comes after receiving completely knocked-down (CKD) assembly kits sufficient for the next three months.
This significant stock update has sparked optimism within the company, with expectations of a considerable surge in sales. However, market speculations suggest a contrasting scenario. The demand for new economy cars is believed to have dipped due to inflation, which has eroded the purchasing power of the masses.
In an attempt to stabilize the sector, the government has been gradually easing import restrictions for carmakers. Additionally, banks have started issuing letters of credit (LCs) to automakers. Despite these measures, the sector’s stability remains uncertain due to the volatility of the local currency and economic turbulence.
As PSMC resumes production, it will be interesting to see how the company navigates through these challenging market conditions and whether the anticipated sales boost materializes.
