Honda Atlas Cars Limited (HACL) is in dire straits due to the letter of credit (LC) issue that is eating the entire industry alive.
In a recent worrying development, Honda Atlas has extended the production shutdown to 15 more days. An official notification reads:
Honda Atlas’ production shutdown was to continue from 9th March till the 31st. However, earlier this month, the company extended the shutdown from April 1 to 15. The latest notice states that this shutdown will continue from April 16 to 30.
This implies that Honda will have observed a car assembly shutdown in Pakistan for almost 2 months.
This will likely take a heavy toll on Honda’s sales and revenue. The company had already seen a huge decline in sales in March, primarily due to poor City and HR-V sales, which are usually the company’s star players.
Also, the company wasn’t able to sell a single Civic in Pakistan, which is unheard of. The latest production suspension implies worse sales next month.