Pak Suzuki has once again announced to extend the shutdown of its plant. The company was observing NPDs (non-production days) from 1st to 3rd November as per its last notification, and now it will keep its plant shut between 6th and 8th November 2023 as well.
The motorcycle plant, however, will remain operational according to the notification sent to the Pakistan Stock Exchange (PSX). The reason behind the move is mentioned as “shortage of inventory levels” in the company notification.
Bear in mind Pak Suzuki has observed the highest number of NPDs (non-production days) than any other local assembler. Suzuki has a market share of almost 52% in Pakistan, but during the first quarter of this fiscal year, it only sold 10,946 units, a 34% decrease from the already low 16,639 units sold during the same period last year. The overall sales of Pak Suzuki vehicles in Pakistan have declined by nearly 65% from the peak period.
Besides battling with low inventory, the situation of the auto industry is further worsened by the low purchasing power of consumers, rising vehicle prices, tougher auto financing conditions, and an increase in government duties and taxes that have further decreased the demand for new cars. According to industry pundits, sales of new cars will remain subdued throughout fiscal year 2024 with another 9% drop in sales anticipated.
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