The two biggest manufacturers in the nation, Honda Atlas Cars and Pak Suzuki Motor Company (PSMC) have announced a temporary shutdown of their production operations due to a persistent shortage of necessary raw materials, The News reported on Thursday.
The company’s management has chosen to close the car manufacturing from October 25, 2023, to October 27, 2023, as a result of low inventory levels. But the motorbike plant will keep running,” the PSMC said in a statement released by its corporate secretary.
Honda Atlas Cars also announced a similar statement via its company secretary.
“The company’s supply chain’s present level of inventory and parts shortages have severely impacted operations.
The company will shut down its factory from October 24, 2023, to October 31, 2023, as a result of which it is unable to continue production, according to the statement.
For more than a year, Pakistan’s vehicle company has been troubled by a bigger issue that is reflected in the shutdown of the main automobile manufacturers. A cycle of forced shutdowns has been sparked by low inventory levels throughout the sector.
The impact of these supply chain issues increased just recently when the Indus Motor Company Limited (IMC) made news by announcing that it would be halting its production plant for a full month.
The month-long suspension of IMC shows how deeply and far-reaching these problems have affected Pakistan’s industrial landscape.
News reports that the problem is not specific to the automobile sector.
Several industries, such as those that produce auto parts and those that depend on imported raw materials, have experienced a similar situation. Due to this, the companies are forced to shut down regularly, which further strains the supply chain.
The main reason for Pakistan’s continuous shortage of vital raw resources is its low foreign exchange reserves. This obstacle has made it difficult to open letters of credit (LCs), which makes it more difficult to import essential components.
As a consequence, there are major disruptions throughout the whole supply chain, from automakers to their suppliers, forcing them to temporarily stop production.
The brief shutdown of PSMC and Honda Atlas Cars shows the necessity of resolving supply chain problems for the stability and effectiveness of Pakistan’s auto sector.
The publication states that to address the root causes and develop long-term solutions, the government and the stakeholders must collaborate.
Analysts believe that to lessen these disruptions and clear the path for a strong and resilient automotive sector, quick thinking and teamwork are essential.