Earlier this month, Ghandhara Tyre and Rubber Company Limited — formerly known as The General Tyre and Rubber Company of Pakistan Limited — closed its doors till April 3, citing “the ongoing economic crisis and diminished demand,” as the reason for the shutdown.
The news of its shutdown and several others created worry in the industry and among the people. In a recent development, though, the company has issued a notification stating that it will restart its operations on April 5, 2023.
The official notification reads:
No End to Car Industry Troubles in Sight
Foreign exchange shortage and supply chain issues are wreaking havoc on the local car market. The sales have fallen again last month due to decreased production and demand.
The latest data from Pakistan Automotive Manufacturers Association (PAMA) shows that carmakers (association members only) collectively sold just 5,762 vehicles in February 2023, witnessing a month-over-month (MoM) decrease of 47% and a year-over-year (YoY) decrease of 73%.
Recent developments pertaining to shutdowns may further worsen the overall sales. Earlier today, Honda Atlas decided to extend the production shutdown to 15 more days.
The last production shutdown remained in effect from the 9th of March till the 31st. Whereas, the latest shutdown will continue from April 1 to 15. This implies that, by the end of this shutdown, Honda will have observed a car assembly shutdown in Pakistan for 38 days.
The current dry spell in production will likely take a heavy toll on car sales going forward.