Pakistan’s car industry is teetering due to heavy blows from US Dollar appreciation, logistical costs, tax rate hikes, and general economic instability in the country.
According to reports, the State Bank of Pakistan (SBP) is delaying the letter of credit (LC) approval for CKD imports, which is causing a slump in production and delivery delays. These issues caused Toyota (IMC) to begin observing non-production days (NPDs) to cut back on operational costs and adjust as per the ongoing situation.
A recent report suggests that Honda Atlas Cars Limited (HACL) and Kia Lucky Motor Corporation Limited (KLMCL) have also decided to downsize vehicle assembly by moving to single-shift operations. It adds that Pak Suzuki Motor Company (PSMC) will start observing NPDs in August.
These steps are likely to heighten the delivery delay issue, which could take a toll on car sales in the coming days. The coalition government is currently silent as the ongoing situation continues to cost car companies millions of rupees in revenue, while thousands of employees lose their jobs as a result.
Via: Autojournal.pk
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