Honda Atlas Cars Pakistan, one of the Big 3, has announced a shutdown of its plant for a whole week. In a notice sent to Pakistan Stock Exchange (PSX), the company has announced that its production will remain halted from October 4 to October 11, 2022.
As per the car manufacturer, the disruption in the supply chain caused by the government is the main reason for this shutdown. “Considering the current economic situation of the country, the government has resorted to stringent measures including minimising the import of CKD kits and raw materials, the company’s supply chain has also been disrupted by such measures,” the notification read, adding that as a result, the company also has to rationalise its production and ultimately shutdown from October 4, 2022, to October 11, 2022.
Honda is not the only company affected by the country’s current economic condition. Earlier, Toyota and Suzuki Pakistan announced plant shutdowns for the same reasons.
Toyota and Suzuki Plant Shutdown
Last month, Toyota Pakistan announced a halt in production and related assembly of its cars from September 1-14 in the face of a procedure regarding CKD import approval from the State Bank of Pakistan (SBP). As per the company’s notification, the new mechanism came with some barriers to importing CKD Kits, which are gearing inventory problems.
The notification further informed:
“Due to insufficient inventory levels to maintain production, the company has decided to temporarily halt its production activities. In the light of above, the company has decided to temporarily shut down its production from September 1 2022 to September 16 2022. However, in case of any change in production plan due to approvals being sought, the same will be communicated accordingly.”
Similarly, Suzuki Pakistan also announced and then extended the non-production days in the same month. The company observed non-production days on the following days:
- September 12-16
- September 19-23
It is pertinent to mention that the company had already announced that its plant would remain closed on September 8-9.