The car industry continues to face problems with production as Suzuki has just announced to shut down its plants for 3 more days this month.
Pak Suzuki has issued a notification to Pakistan Stock Exchange, mentioning that it’s unable to keep its production going due to State Bank of Pakistan’s import restrictions.
Here’s the notification:
The company will be shutting down production from 24 October 2022 to 26 October 2022.
This isn’t the first time the company had to close up its assembly lines. Suzuki stopped production for 15 days in September and October 2022 combined.
Why is it Happening?
The central bank is not approving letters of credit by Suzuki and other car companies, which are required to import car parts.
To put things in perspective, locally assembled cars are made using imported complete knockdown kits (CKDs), which are essentially car parts that are put together in Pakistan. A number of parts are produced locally, however, key components like the engine and electronics have to be imported, and these are the parts which companies like Suzuki, Toyota, Honda and others have to import to produce and sell cars.
As the State Bank has restricted these imports, the companies have to stop production due to a lack of parts.
