Pak Suzuki Faces Another Plant Closure Now: June 2023
Pak Suzuki motorcycle assembly plant in Pakistan will remain shut down this week from 12-June-2023 to 16-June-2023.
Pak Suzuki Previous Updates:
- The company decided to close the motorcycle factory from May 23, 2023 to June 10, 2023, due to lack of Inventory.
- Pak Suzuki has extended the shutdown of its motorcycle and car factories till May 9, 2023 due to lack of Inventory.
- The company has decided to extend the motorcycle plant shutdown till April 28, 2023.
- Company leaders decided to extend the closure of the motorcycle plant until April 15, 2023.
- The Suzuki car plant will also be closed from April 7, 2023 till April 14, 2023.
- The Suzuki has closed its motorcycle factory from March 20, 2023 till March 31, 2023.
- Production and assembly operations at Suzuki Pakistan will be suspended from February 20 2023 to February 21, 2023.
- PSMC announced that the car plant will be closed from February 13 to February 17, 2023 due to inventory shortage. However, the motorcycle factory is still operating.
- Pak Suzuki Motor Company (PSMC) has extended its closure from January 16, 2023 to January 20, 2023. This is due to lack of inventory. However, the motorcycle assembly plant is still operating.
After Toyota closed its Pakistani factory, Suzuki Motors also stopped production of it’s vehicles and bikes in the country. The reason given by the Pak Suzuki Motors is that there is a barrier to import spare parts and raw materials to produce its cars. The main hurdle in this regard is the pre-approval that car companies need to get from the State Bank of Pakistan for imports.
Earlier, the company announced plans to shut down production at its Pakistan factories from 2-Jan-2023 to 6-Jan-2023. The current period has been extended from January 9 to January 13, 2023. The production is not only for cars but also for Suzuki motorcycles in Pakistan.
The pre-approval mechanism is not an obstacle at all. But approval delays (common in most government departments) are the main reason companies face shortages of spare parts and raw materials (Toyota and Suzuki). As a result, they are unable to maintain adequate inventory levels for production.
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Pak Suzuki’s Declining Sales in Pakistan
If we look at the sales of Suzuki cars in Pakistan, according to the PAMA car sales report, it has decreased compared to November-2022, except for the Alto, which has a good sales performance in the country. The closing of the factory will further reduce the company’s sales.
Suzuki’s Bike sales figures are not negative (according to the latest PAMA bike sales report). Mainly because of the 0% registration plan of Suzuki bikes, this allows consumers to buy motorcycles with easy monthly installments. It is worth mentioning that the company recently launched the Suzuki GSX 125 in Pakistan. This production shutdown will also affect its sales. However, the company has stopped bookings for this bike.
Conclusion
Overall, it is very bad news for the automobile industry as major manufacturers have to close their factories in Pakistan. However, there is one important thing to note. Other companies followed the same policy but did not close their factories.
What do you think about the suspension of production by these companies in Pakistan? Share your thoughts in the comments section below.
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