A notification was received from Pakistan Stock Exchange (PSX) from Pak Suzuki Motor Company (PSMC) with the following context, “Restrictions had adversely impacted clearance of import consignment, affecting inventory levels”.
“Therefore, due to a shortage of inventory level, the management of the company has decided to shut down its plant for the automobile as well as a motorcycle for the period from January 02, 2023, to January 06, 2023.”
Remember that the State Bank of Pakistan announced prior approval for importing any product into the country. Pakistan’s automotive industry largely imports the product to meet their production. A result of PKR depreciation and delayed approval for importing hurts the automotive industry.
The demand for vehicles badly decreased by 39% in the last year’s first 5 months compared to the previous year. Besides the PSMC, many other major companies, BWHL, IMC, etc., also announced to shut off their production.
Keep in mind that Pak Suzuki Motors company holds a share of 73% in the Pakistan automotive industry.