Pak Suzuki Motor Company (PSMC) is, once again, caught in a predicament due to the ongoing economic crisis. Citing inventory shortage, the company has decided to halt bike assembly for 19 days.
According to the official notification, the bike assembly will remain on hold from May 23 till June 10. The notification is as follows:
Auto Industry Drying Up
Pakistan’s automotive industry has laid off thousands of workers due to a ban on raw material imports, a massive rupee depreciation, and rising inflation.
Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) chairman Munir Karim Bana told Arab News that the industry challenges have prompted massive industrywide layoffs.
He added that, due to frequent car production closures since mid-2022, car sales have fallen to a perilous degree. Additionally, the massive price hikes have also taken a toll on car demand.
PAAPAM supplies 90% of the auto industry’s local parts. Bana lamented that, despite its cooperation with the banks, the auto parts industry is not getting any affirmative response.
We were profitable and paying taxes to the state as all our sales are documented and tax paid. But we are bankrupt now, and there is hardly any chance of revival of our industry in the coming years.