Pak Suzuki stops production over inventory shortages

• PSMC has temporarily closed its production plant
• It cited inventory shortages after import restrictions
• Indus Motor has also stopped production

KARACHI: Pak Suzuki Motor Company (PSMC) announced the temporary shutdown of its plant for automobiles and motorcycles from 2-6 January 2023, citing inventory shortages.

In a notice sent to the Pakistan Stock Exchange (PSX), PSMC said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under HS code 8703 category (including CKDs) vide circular No.09 of 2022 dated May 20, 2022.

It said the restrictions had adversely impacted the clearance of import consignment which resultantly affected the inventory levels.

“Therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for automobile as well as motorcycle for period from January 02, 2023 to January 06, 2023,” the company said.

PSMC is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts.

Earlier this month, Indus Motor Company (IMC), the assembler of Toyota-brand automobiles in Pakistan, also announced that it will completely shut down its production plant from December 20 to December 30, citing its struggle with delays pertaining to approval for imports.

Pakistan’s auto industry is highly dependent on imports and has been caught in an exchange-rate crisis, as the SBP imposed restrictions on the opening of Letters of Credit (LCs).

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