It’s a piece of big news for Honda customers in Pakistan as the company has announced to resume plant operations in the coming weeks amid relief in trade finance.
The announcement was made after the company’s plant had been shut down for two straight months as a result of the shortage of CKD parts due to specific import restrictions that were put in place to save the outflow of precious US dollars.
Honda has formally informed the Pakistan Stock Exchange (PSX) of the development. According to the notice:
“With the consistent efforts of the company and slight improvement in accessibility of trade finance facilities for the supply chain, the company is now preparing to resume its production in the weeks ahead, with the hope to increase the same gradually.”
Honda which has been observing a plant shutdown since March 9, 2023, is the worst affected assembler in Pakistan during the current economic crisis. In April 2023, Honda sold just 207 cars overall with zero units of its flagship Civic model in that month. Sales within the first quarter of this calendar year have been reduced to half, however now that the company is resuming its plant operations, there is a hope it might cover up the losses in coming months.
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But considering the ongoing political & economic challenges including rising inflation, the reduced purchase power of consumers, high car prices, stringent auto financing conditions and fluctuating currency value against the US Dollar are just some of the challenges the company will face in its phase of revival.
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