Pak Suzuki extends plant shutdown

Pak Suzuki Motor Company Ltd (PSMCL) has prolonged its plant shutdown after suspending operations from June 22 to July 8 due to a “continued shortage of inventory level.”

Pak Suzuki, Pakistan’s largest manufacturer by production and sales volume, informed the Pakistan Stock Exchange (PSX) of the development on Friday.

The automaker stated in the stock filing that the decision was made due to a scarcity of inventories.

“Due to continued inventory shortages, the company’s management has decided to extend the shutdown motorcycle and automobile plant until July 19, 2023,” according to the PSX notification.

PSMC had previously announced the closure of its motorcycle and vehicle plants until July 15, 2023. Due to a scarcity of raw materials, the automaker temporarily stopped both its automobile and motorbike plants from May 2 to May 9.

It is worth noting that Pakistan’s auto sector is still besieged by numerous crises, with a number of automakers declaring entire or partial shutdowns in recent months for a variety of reasons.

In April, the automaker announced its highest-ever quarterly loss of Rs12.9 billion in the first three months of 2023, owing to lower sales and higher financing costs. In the same period last year, the automobile manufacturing company lost Rs460.227 million.

Pak Suzuki had previously requested Prime Minister (PM) Shehbaz Sharif not to impose “new duties and taxes” in the upcoming budget 2023-24, citing the country’s challenges and losses as a result of “economic uncertainties.”

The post Pak Suzuki extends plant shutdown appeared first on Economy.pk.