Similar to the entire car industry, Pak Suzuki Motor Company (PSMC) is facing issues in keeping up production.
In a recent notification, the automaker announced that it will halt production for two days, citing a delay in the approval of the letter of credit. It highlighted that PSMC will shut down production from August 18 to 19.
Restrictions have adversely impacted clearance of import consignment which resultantly affected the inventory levels.
According to a previous report, 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 observe non-production days (NPDs) and cut back on operational costs and adjust as per the ongoing situation.
Market reports add 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 worsen the delivery delay issue, which could negatively impact 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.
