Following Toyota, Honda Pakistan Shuts Down Car Production

After Indus Motor Corporation (IMC) observed Non-Production Days (NPDs) for the latter half of September, Honda Atlas Cars Ltd (HACL) has followed suit slashing working days to 11 in September. Honda saw only 13 working days in August and 20 in July.

On the other hand, Pak Suzuki Motor Company (PSMCL) is in a less dire state. They haven’t seen a single NDP with the new 660CC Alto driving continued sales with 8,109 units sold in the last couple of months despite the WagonR seeing a 71.5% drop in sales during July-August 2019 compared to the same period in 2018.

Shafiq Ahmed Sheikh, spokesperson for PSMCL said,

The company has so far not observed any NPDs. We are monitoring the situation and by the end of this month we will review our production and sales outlook of July-September and future prospects of sales in coming months.

He refuted the rumors on social media about a halt in bookings of various cars saying, “Booking of new cars is going on.”

According to information available, Honda has over 3,000 units unsold at its plant and network, coupled with the stoppage of the second shift, the company has also laid off over 1,000 contractual employees in the last 3 months.

Sales have fallen by 30% in the FY2019 as compared to 2018 with Sabbir Alibhai, CEO-Partner of Honda Drive-In and Honda Quaideen saying, “The meltdown in the auto industry is far more frightening than expected.”

IMC, the automaker behind Toyota cars has observed 15 NPDs in September due to sustained decline in demand. The automaker saw 8 NPDs in July and 12 NPDs in August. It too has over 3,000 cars in unsold inventory. In September, the plant has been operational at less than 50% capacity.

  • Would love to see both these companies go down the gutter, because that’s where they belong. Yes it will cause a few people to lose their jobs but that’s collateral. Both these companies have looted millions from hard working people who have to spend a fortune to buy a substandard car. And also caused a lot of deaths in road accidents because of lack of structural integrity and safety features.
    F u both IMC and HACL.

  • It’s not like that these are collapsing overall this is because of new taxes many other new entrants are also collapsing, think about it.
    Cars purchasing are going out of our hands bear in mind

  • Its just due to the wait and see policy being excercised by the business community in particular and public in general due to the uncertain tax regime and the aggressive stance of FBR. These people are afraid that their sources will be identified and then they have to cough up the illegal money and taxes.
    So it has helped in vanishing the premium on the bookings and loss of value of money for customers due to abnormal waiting times.
    Now the time is ripe that the government should set up a regulatory body for this sector which can fix the increase in car prices for local (socalled) and imported cars and ensure the production of local parts as well as maintaining the safety standard and quality.

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