On Thursday, an auto parts manufacturer Agriauto Industries Limited informed the Pakistan Stock Exchange (PSX) that it would partially close its plant in March.
The official notice cited reduced production volumes of its major customers, which include car assemblers, bike makers, and tractor manufacturers. Its clients also include ‘the big three’ of the Pakistani car industry — Suzuki, Toyota, and Atlas Honda.
The carmakers themselves are also facing production closures due to the ongoing economic meltdown. In recent months, dozens of Pakistani industries have shut down, citing market demand and the inability to maintain inventory due to Letters of Credit (LC) issues.
On March 2, the Pakistani Rupee took a nosedive against the US dollar, which opened the floodgates for another wave of price hikes. Recently, Lucky Motor Corporation (Kia and Peugeot) as well as Hyundai Nishat Motors increased the prices of their vehicles.
With the new PKR depreciation update, other automakers are likely to announce price hikes very soon.