Pak Suzuki has announced yet another plant shutdown for cars and motorcycles citing low inventory levels. The company has decided to close its 2-wheeler and 4-wheeler plants from October 30 to November 3 and from November 1 to 3, respectively, according to the notification.
Pak Suzuki, which recently decided to delist from the Pakistan Stock Exchange (PSX) after buying all remaining majority shares, is the worst to be affected by the economic crisis and depleted inventory levels. The company 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, stringent auto financing conditions, and an increase in government duties and taxes that have further decreased the demand for new cars.
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