Pak Suzuki has joined Honda and Toyota in temporarily suspending operations at its car manufacturing plant. The shutdown, scheduled for two days from October 25 to October 27, 2023, is attributed to an inventory shortage.
This decision follows similar moves by Honda Atlas and Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan.
Honda Atlas announced earlier that it would be closing its plant for a week, from October 24 to October 31, 2023. IMC decided to halt its operations for a more extended period, with its plant remaining closed for a month until November 17, 2023.
Despite the temporary halt in car production, Pak Suzuki will continue to operate its motorcycle plant during this period. This indicates that the inventory shortage primarily affects the company’s automobile segment.
In related news, there is speculation that car prices may decrease once production resumes. This expectation stems from the recent significant improvement in the exchange rate versus the US dollar, which has fallen from above Rs. 300 per dollar to Rs. 280 per dollar.
As the auto industry heavily relies on imports, this change could result in lower production costs for these companies. However, whether these potential savings will be passed on to consumers remains uncertain.
KIA became the first company to reduce car prices by up to Rs. 500,000, followed by MG, which also reduced the price of HS Essence by Rs. 600,000. It remains to be seen if other manufacturers will follow suit after resuming production.