Pak Suzuki, the largest auto assembler in Pakistan continues to struggle with depleting inventory in the wake of the import restrictions imposed by the government.
Having already announced an NPD schedule in June according to which Pak Suzuki’s 2-wheel, as well as 4-wheel plant, will remain shut from June 22 to July 8, 2023, the company in its latest notification sent to the Pakistan Stock Exchange (PSX) has informed to extend the shutdown till the 15th of July 2023. The NPD will be applicable to both 2-wheel and 4-wheel plants.
In the notification, Pak Suzuki cited a “continued shortage of inventory levels” as the reason behind the move. Bear in mind Pak Suzuki has been observing NPDs since August of last year in regular intervals and has seen more than 100 non-production days that took a major hit to its production, sales as well as revenue.
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The company also suffered a record Rs 12.9 billion quarterly loss which was Pak Suzuki’s worst financial performance since its inception. With sales already cut in half, Suzuki alerted Shahbaz Sharif to the terrible status of the auto sector in a letter last month, pleading with the PM to take action to rescue the sector from its crisis. The letter claims that the current economic and commercial climate is having devastating effects on Pak Suzuki’s dealers and vendors since some of them have already closed and numerous more are on the verge of doing so.
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