Following the other car makers, Pakistan Suzuki is also facing a harrowing fate – low sales, no inventory, and a series of production shutdowns. However, the ongoing economic meltdown has made the matter worse.
In a recent report, Pakistan Suzuki Motor Company (PSMC) came with a new down in its month-on-month sales. The company sold less than 1,500 vehicles in April’23. It is related to mention that this is the third decrease this year and the worst sales digits since the pandemic ‘COVID-19’ hit the country in April 2020.
The reason behind all the mess is the Letter of Credits issue came after import embargoes imposed by the State Bank of Pakistan (SBP). The bank looks hesitant to approve LCs toward the clearance of imported CKD kits listed among the non-essential luxury items.
Tale of Woes & Misfortune
Above is not the episode restricted to only ‘PSMC’; this tale of woes and misery prevailed across the country’s auto industry horizon. In a recent notification, Honda Atlas announced another production cut till May 15. And not surprisingly, the reason is not new – the same import curbs inflicted by the State Bank of Pakistan (SBP) led to zero inventory and a ceasing supply chain.
Distressed enough, HACL’s production-shutdown episode incepted from March 9 till 31st. In the subsequent notification, Honda Atlas Cars Limited (HACL) extended the production from April 1 to 15. And then, the new circular stated that the episode would be continued from April 16 to 30.
Coming to Suzuki’s fate, the situation is concerning, as the company’s financial performance will further affect the entire industry. Moreover, PSMC is one of the largest automobile manufacturers in Pakistan, and it provides employment opportunities to a significant portion of the population. The company’s current financial situation may lead to layoffs or reduced salaries for employees, which will trickle down the effect on the country’s economy.
What do you think about the decreasing Pak Suzuki’s sales? Tell us in the comments section.
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