Honda Atlas Cars Limited’s (HACL) production cuts continue due to new CKD import approval measures from the State Bank of Pakistan (SBP). In a notification, the automaker announced that it will halt production for 3 more days from October 12 to 15.
The notification reads:
As a result of the government’s stringent measures of minimizing the import of CKD kits and raw materials, the company’s supply chain had been disrupted, leading to the plant shutdown till October 11, 2021. Due to the continuation of te said problem, management has decided to further extend the shutdown of the plant from October 12, 2022 to October 15 2022.
As mentioned in the notice, the initial plan was to suspend production between October 3 and October 11, 2022. However, the shortfall of inventory has prompted an extension of production suspension.
HR-V Launch Delayed
Late last month, a reliable source told ProPakistani that the ongoing economic turmoil has prompted HACL to delay HR-V’s launch.
The company began teasing HR-V at the 2022 Pakistan Auto Show (PAS). However, since then, the following events have occurred:
- US Dollar (USD) rate has reached an all-time high twice within two months.
- State Bank of Pakistan (SBP) has sanctioned auto-sector imports, causing carmakers to observe production cuts.
- Government has announced tax rate hikes on various car segments.
- Car prices have shot up by up to 20 percent.
- Car sales have plummeted massively.
These factors will prompt all automakers to hold off on new car launches. The source added that auto-sector activity will remain muted until the ongoing chaos continues, which may last up until Q2, 2023.