• Honda has chosen to halt vehicle production for more than 20 days.
• The official announcement cites supply chain disruption due to economic degradation.
• Import delays and inventory rate increases are being caused by limitations on Letters of Credit (LC).

The automotive industry is struggling as a result of the ongoing economic difficulties. In an unfortunate turn of events, Honda has chosen to halt vehicle production for more than 20 days.

The official announcement cites supply chain disruption owing to economic degradation, as well as restrictions on raw materials and CKD imports, as the reasons for the lengthy stoppage.

The specifics are as follows:

Due to import limitations, the auto sector has faced production reductions and supply delays since July 2022. Customers could also cancel their reservations and obtain full refunds with a markup from some automakers.

The auto industry is also feeling the effects of the rupee depreciation due to its reliance on imports. Import delays and inventory rate increases are being caused by the State Bank of Pakistan‘s (SBP) limitations on Letters of Credit (LC).

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Hopefully, the present production shutdown will not be followed by another price increase announcement.