Pakistan Suzuki Motor Company Limited decided to shut down its bike and four-wheelers manufacturing plant till July as the company is having a shortage of parts and accessories.
The company said that it was suspending the production due to a shortage of material, parts and accessories owing to the mechanism introduced in May 2022 by the State Bank of Pakistan.
Read more | Honda Pakistan shuts down its plant
The State Bank of Pakistan does not provide any approval for the import of completely knocked-down kits, which have adversely affected the clearance of consignments, thus affecting inventory levels.
Auto Financing Fall
Pak Suzuki Motor also kept its four-wheeler plant shut down for over 75 days in August 2022. The company sold 2,958 vehicles in May 2023 compared to 1,474 units in April 2023.
The sales also recorded a steep fall of 54pc to 62,354 units in 11MFY23 from 134,270 units in the same period last fiscal year.
The Central bank took some measures to slow down auto financing and demand for four-wheelers is now finally paying off. The SBP imposed various restrictions, like an upper limit of Rs3m on auto loans and a reduction in loan repayment tenor.
Read more | Cars set to get Cheaper in Pakistan
Now the revival of auto financing activities will largely depend on the resolution of political stabilitity and the alleviation of the dollar crises, while much will depend on the approval of IMF loan.