Honda Halts Car Production for Ten Days: Report

Honda Atlas Cars Pakistan (HACP) has reportedly closed its production plant for ten days.

The decision was taken on Friday after Honda’s inventories piled up to 2,000 units due to a sharp dip in car sales following the price hike.

The company had blamed higher taxes and unstable currency for the three consecutive price hikes in the last two months.

However, the decision hasn’t helped as the inflation-ridden masses are anything but ready to buy cars.


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According to unconfirmed reports, Indus Motors Company (IMC) – the producers of Toyota models in Pakistan – have also decided to follow suit.

A leading English Daily has quoted IMC sources, saying that the company has decided to close down the manufacturing plant for eight days – two days every week – this month. They also cited poor car sales for decreasing production.

Pak Suzuki, on the other hand, was still indecisive whether or not to reduce car manufacturing in the present scenario, the newspaper said.

According to its report, the spokesperson of Pak Suzuki said that the company would decide in the next couple of days after analyzing sales trends and booking orders.


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Both Honda and Toyota sources maintained that the sales of their units during the first ten months of the new fiscal year were extremely disappointing, which prompted them to slow down the production as inventories were piling up.

“The currency devaluation and imposition of Advance Customs Duty (ACD) on all our imports and Federal Excise Duty (FED) on assembled cars, left us with no option but to shut down the plant to cut production. If the present trend holds, we expect our sales to drop to less than 30,000 units this business year (April 2019-March 2020) from over 48,000 units last year,” a senior executive of HACP said.


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The IMC official also gave similar remarks.

“[We are] observing eight no-production days this month. It is a dire situation for the local car manufacturers who are piling up inventories,” he said without mentioning the size of inventory.

Via: Dawn


  • This is because these companies are not competitive and are just assembling imported car parts in Pakistan from the past 30 years. They can never be of any use to Pakistan economy. Giving them protection has only helped them to increase their profits at the cost of the consumer

  • Totaly planted stories, If this is situation than why they are not delivering may booking even in july???

  • Thanks to Selected PrimeMinister Imran khan for pushing us into such a situation…

  • Strange how come there stocks are piling up as whenever a customer want to buy a new unit he get reply that deliveries are 3-4 months and you have to pay own money if you want current deliveries

  • These automobile companies in Pakistan are black mailers. I went to buy Alto last week and stunned to hear that the delivery period is around 3 to 5 months while you may take immediate delivery by paying 2 hundred thousand own money on AGS model, Ridiculous

  • Govt should give them ultimatum to develop imported parts in pakistan or else face shutdown. Govt policies always give tax exemptions for such developments, problem is, car companies have always counted money in huge prifits and never bothered to reduce ported parts,shame on these companies, even alloy rums are not made in pakistan. I am an engineer by profession, and i know how wverything is made, one needs simple import of Machinery in order to devslop plants, similar practltive hundayi is following, they are investing 200 million dollars, and they wont spend another 1 million dollar to start trandmission and engine manufacturung units which is 80 percent of car price. They import costly items and manyfacture cheap items in pakistan. Such policiies of these big thre fish have never let a common man enjoy the ownership of a comfortable rides by putting prices such high and laming all the excuse on ruse of dollar.
    Until they dont invest and start local manufacturing of imported parts, govt shpuld force them to contribute 50 percent price of all imported parts that ruse the car price.

  • All three units and their 3S dealers have minted money in last 3 decades and now its their time to suffer. I wish they suffer badly and realise the pain and sufferings of middle class of Pakistan who in the absence of public transport and to acquire basic luxury have paid too much to this network. They are so cruel that airbag is considered as a special feature whereas it is must for the safety. Still they r selling cars without airbags and those installing are all substandard. The quality of the vehicle is so pathetic specially of Lahore based manufacturer that they are not providing after sales service for manufacturing faults even. The PM and his able team should punish them so they and the new lot of assembly plant owners remain in their limits

  • These will promote local option for buying sohrab cycle. Promote local buying. Healthy life and reasonable price.

  • Before a couple of months i have read the news that Honda Atlas Car sold out Honda Civic more than 50,000 units and make a record.

    Who is right. ???

  • Still don’t understand why people blame Imran Khan for devaluation of rupee? This is how the situation of country is, this country is importing everything and exporting nothing, how do you then expect it to make positive balance of payment.

  • Already there are late deliveries and own money involved for early delivery, the piled up units should resolve those but they do not want to resolve that also, dont they.

  • Under the auspices of PAMA (Pakistan Automobile Manufacturer Association) under the auspices of the respected bodies JAMA (Japan Automobile Manufacturer Association) which has enabled Pakistan after independence from the assembly of cars, bus, trucks, motor cycles only in Pakistan. As there’s contractual binding for complete assembly in Pakistan for Pakistanis, as the demand will not let them export. Today as reported in this story necessitates to export Corollas, and Civics, and Hino Bus to the regional market as they are made by Japanese guidance, skilled technicians of Pakistan, so what’s stopping. Many of us would never know that they’re not to the standards for global safety, and UN Road Safety standards for accident avoidance, and under JD Power recommendation would not comply to enter any port of the world. Would the PAMA reply to this question? Why the cars are not exported to the international markets?


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