Pakistan’s auto industry is also on the verge of bankruptcy, three car companies closed their business.
[ad_1]
New Delhi : The clouds of poverty have started looming in Pakistan’s auto industry, which has been facing financial crisis since the time of Covid-19. Pakistan’s Shahbaz Sharif government does not even have enough money to launch any Indian production incentive scheme to save the auto industry from the economic crisis. The situation is that due to the indifferent attitude of Shehbaz Sharif government and economic crisis, three major car companies in Pakistan have closed their business and stopped production completely. It is being told in media reports that Honda Atlas Cars, Pak Suzuki Motor Company and Indus have currently stopped the production of cars in Pakistan. Indus assembles cars for Japanese car manufacturer Toyota in Pakistan.
Why was the production of cars stopped?
It is being told in media reports that Indus Motor, a car assembling company for Japanese car company Toyota, has announced to stop the production of cars for one month from October 17, 2023. At the same time, Honda Atlas Cars and Pak Suzuki Motor have decided to temporarily close their production plants. In the official statements issued by these three car companies, it has been said that the production of Honda, Toyota and Suzuki in Pakistan has been halted due to shortage of essential raw materials. The news also states that Indus Motor production has been suspended for a month, while Suzuki’s production plant will remain closed for two days till October 27, 2023. At the same time, Honda Atlas Cars has announced that it has stopped the production of cars in Pakistan.
Car production has stopped in Pakistan before too
Stopping production of cars in Pakistan is not a new thing. Even before this, in June 2023, Pakistan Suzuki Motor Company had stopped the production of cars for 75 days. Now that the clouds of economic crisis are again looming over the Pakistani auto industry, the company has said that due to the decrease in the inventory level, the management of the company has decided to close the auto plant by October 27, 2023. . However, production of motorcycles will continue as before. The company also said that the current inventory level and lack of space in the supply chain has seriously impacted operations. The result of this is that the company is unable to continue production. This is the reason why the production plant will remain closed till October 31, 2023.
Pakistan’s economy is in bad shape
The biggest reason behind global car manufacturing companies winding up their businesses in Pakistan is the non-availability of spare parts used in the production of cars on time. It is being told in the media reports that due to the economic crisis in Pakistan for the last one year, the automobile sector is badly affected there. The decline in inventory levels has triggered a series of temporary closures in Pakistan’s auto industry. Fear is also being expressed that if the indifference of Shehbaz Sharif government continues like this, then in the coming days the global car producing companies will completely wrap up their business and go somewhere else.
Shahbaz government took wrong step
Pak Suzuki assembles Suzuki vehicles and motorcycles in Pakistan and is loss-making in 2019, 2020 and 2022. The company has cited financial losses as one of the primary reasons for delisting. Elaborating on the situation in Pakistan, a statement issued by the Director of Pak Suzuki said that due to difficult external environment, devastating floods and policy missteps, large fiscal, external deficit, rising inflation in the financial year 2022-23. And reserve buffers have decreased. According to a report in The News, Pakistan’s auto sector largely depends on imports. The auto industry here has been badly affected by the Shehbaz Sharif government’s decision to completely curb imports due to the shortage of dollars and the huge fall in the Pakistani rupee. At present, imports have not only become expensive in Pakistan, the prices of cars have also increased wildly. Due to this, car companies are not able to get customers properly.
[ad_2]
Source link
