Pak Suzuki Motor Company (PSMC) has announced the extension of the shutdown of its motorcycle plant till June 16, 2023.
The Pakistan Stock Exchange (PSX) received a notice of the order on Tuesday, 13th June.
Due to the ongoing government restrictions on imports, there is a shortage of inventory, which has led to the temporary shutdown of the plant.
It is worth noting that the automobile plant will continue its operations as usual, despite the closing of the motorcycle plant.
Rs. 460.2 Million to Rs. 12.9 Billion in Losses
PSMC is an assembler, manufacturer, and marketer of Suzuki pickups, vans, cars, 4x4s, motorcycles, and related spare parts.
It, therefore, plays a crucial role in the automobile industry of Pakistan.
Earlier, PSMC temporarily closed its motorcycle plant till June 10th but has now extended the shutdown.
In April, PSMC reported a loss of Rs. 12.9 billion for the first quarter of 2023, compared to a loss of Rs. 460.2 million during the same period in 2022.
Falling Automobile Industry in Pakistan
The auto industry in Pakistan is currently facing numerous challenges, with Indus Motor Company Limited and Honda Atlas Cars also halting production recently.
As the sector relies on imports, it is extremely vulnerable to the government’s import restrictions.
Suzuki Pakistan’s Request to the PM
Earlier, Suzuki Pakistan directly contacted the current PM of Pakistan, Shehbaz Sharif. They requested the PM to not increase taxes further on imports in budget 2023-24.
As the company is forced to move towards a shutdown, we hope the relevant authorities take timely action before it’s too late.
