The current economic crisis has put Pak Suzuki Motor Company (PSMC) in a bind once more. The company has chosen to cease bike assembly for 19 days due to an inventory deficit.
Suzuki Stops Bike Assembly From May 23 to June 10
According to the official notification, the bike assembly will be halted from May 23 to June 10. The following is the notification:
Auto Industry Drying Up
Due to a limit on raw material imports, a large currency devaluation, and growing prices, Pakistan’s automotive sector has laid off thousands of people.
According to Munir Karim Bana, head of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), industry issues have resulted in large industrywide layoffs.
He went on to say that, as a result of regular automobile manufacturing shutdowns since mid-2022, car sales had plummeted to dangerous levels. Furthermore, the enormous price increases have had an impact on automobile demand.
PAAPAM provides 90% of the local components for the car industry. Bana noted that, despite its collaboration with banks, the car parts business has received no positive return.
We were profitable and paying state taxes since all of our sales were documented and taxed. But we are already insolvent, and there is little likelihood of our industry reviving in the near years.