Pak Suzuki Motor Company (PSMC) has announced further production pauses in September. It made the announcement at Pakistan Stock Exchange (PSX) on Tuesday, notifying alternate non-production days (NPDs) throughout the month.
PSMC blames the new mechanism that requires CKD import approval from the State Bank of Pakistan (SBP). It states that the mechanism has slowed down CKD kit imports, causing the inventory to run short.
An official statement reads:
Due to shortage of inventory levels, the company management had decided to shut down the automobile plant till September 9, 2022. However, due to continued shortage of CKD raw materials, management decided to extend the shutdown of automobile plant from September 12, 2022 to September 16, 2022. However, motorcycle plant will remain operative. Further update in this regard, if any, will be communicated accordingly. Further, in lieu of periodic maintenance, the automobile plant will also be shut down from September 19, 2022, to September 23, 2022. However, motorcycle plant will remain operative.
This brings the total tally of PSMC’s NPDs to 12 days within this month. Despite that, the automaker is still shy of Toyota Indus Motor Company (IMC) which announced 14 NPDs in September.
The federal government’s four-month import ban has brought the auto industry’s progress to a screeching halt. Experts reckon that the auto sector will continue to suffer the effects of inflation and production cuts despite the import ban relaxation.