The troubling times for import-dependent local auto industry continues as more assemblers will observe non-production days (NPDs) in July and August.
Related: IMC to Offer Refunds to its Customers
In order to curtail the outflow of precious foreign reserves, State Bank of Pakistan (SBP) is not issuing the letter of credit (LC) approval for CKD imports, which is causing a slump in production operations resulting in delivery delays. Indus Motor Company is already observing NPDs in July while it is about to offer refund on bookings since there is a big question mark on the resumption of CKD imports & production activities.
Now according to AutoJournal, Honda Atlas is also observing NPDs in July whereas Pak Suzuki will do so from the month of August. Additionally Kia has also cut off its production schedule and is operating on single-shift basis. The report further states that if by chance the government decides to allow CKD import in coming days the production activities might resume, otherwise the current situation will lead to a complete shutdown of assembly plants.
Related: Assemblers Anticipate a Massive Drop in Sales
Industry sources believe if the crisis scenario persist, auto assemblers will suffer from millions of rupees in revenue, while thousands of employees are feared to be losing their jobs.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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