KARACHI
\nFacing an acute crisis of raw material shortage, Pak Suzuki Motor Co (PSMC) has once again announced to halt its motorcycle production for the third time in this fiscal year, The News reported Saturday citing a bourse filing. The automobile manufacturer issued a notice to the Pakistan Stock Exchange (PSX), saying that the production will be suspended for the next 12 days \u2014 starting from September 1 to 12, 2023.
\nPreviously, the PSMC had announced a shutdown from August 18 to 31, 2023, as reported by the company\u2019s secretary. Before that, the company was closed from July 31 to August 15, 2023, due to inventory constraints.
\nDespite a halt in production, regular operations would continue at the vehicle manufacturing plant, the bourse filing said.<\/p>\n
Pak Suzuki has been grappling with raw material shortages since July of the preceding year, primarily stemming from difficulties in importing these essential components. The country\u2019s dwindling foreign exchange reserves have contributed to import disruptions.<\/p>\n
Analyst Sunny Kumar of Topline Securities in a note said: \u201cPSMC produced 19,293 units with capacity utilisation of 26% in 1H2023 compared to 76,325 units produced with capacity utilisation of 102% in 1H2022.\u201d<\/p>\n
The management of the company expects economic recovery in FY24 on the back of a rebound in agriculture output and easing of import restrictions, with expected improvement in manufacturing\/construction activity, the analyst added.<\/p>\n
PSMC\u2019s situation mirrors that of other renowned automakers, such as Honda Atlas and Indus Motor Company, the local manufacturer of Toyota vehicles. All automakers have been experiencing repeated shutdowns due to the ongoing raw material shortage. This scarcity has also affected the automobile parts industry, causing intermittent production stoppages.<\/p>\n
In a similar vein, Agriauto Industries Limited \u2014 a prominent automotive parts manufacturer \u2014 announced a partial plant closure in September due to decreased production. Furthermore, Agriauto Stamping Company Pvt Ltd, a wholly-owned subsidiary of the company, will also undergo a partial shutdown during the same period, as confirmed by the company secretary.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Facing an acute crisis of raw material shortage, Pak Suzuki Motor Co (PSMC) has once again announced to halt its motorcycle production for the third time in this fiscal year, The News reported Saturday citing a bourse filing. The automobile manufacturer issued a notice to the Pakistan Stock Exchange (PSX), saying that the production […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-353518","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n