The tumultuous economy of Pakistan has wreaked havoc on numerous industries, with the auto sector taking the brunt. According to a recent update, Pak Suzuki Motor Company (PSMC) has extended its bike manufacturing plant shutdown due to a lack of inventory.
The official notification suggests that the motorcycle assembly will be suspended from September 1 to 12. With the US dollar exchange rate getting sky-high, Suzuki may increase prices following the resumption of production.
The previous shutdown was announced from August 18 to 31, also due to a decline in inventory levels.
An Industrywide Issue
Suzuki is not alone in its struggle, as the entire bike industry is facing a downward spiral in sales and production.
According to the data from the Pakistan Automotive Manufacturers’ Association (PAMA), bike sales stood at 73,588 units, down 11% in July 2023 compared to the previous month. Atlas Honda, Pakistan’s biggest bike maker by production and sales volume, sold 62,012 bikes, down 17% month over month (MoM).
Pak Suzuki sold just 957 motorcycles in July, up 164% compared to June 2023. Yamaha sold 675 motorcycles in July, down 28% compared to the previous month. Sales of Chinese motorcycles fell by up to 80% compared to June.
With the ongoing rupee depreciation and import hurdles, the current dire situation is expected to continue.
