Honda Atlas Cars Limited (HACL) will stop manufacture between October 4 and October 11, 2022.
Honda Atlas claimed supply chain challenges coming from the government’s import prohibitions and the failing economy in a notification to the Pakistan Stock Exchange (PSX).
The notification states:
Given the country’s present economic circumstances, the government has imposed strict regulations such as banning the import of CKD kits and raw materials.
These actions have caused a disruption in the company’s supply chain. As a consequence, the corporation must rationalise its operations and, eventually, shut its facilities from October 4 to October 11, 2022.
Due to import limitations, Pakistan’s car sector has faced production cutbacks and delivery delays since July. Customers may also cancel their reservations and get full refunds with a markup from Toyota IMC.
The car sector is also suffering the consequences of the rupee depreciation due to its dependence on imports.
Import delays and inventory rate increases are being caused by the State Bank of Pakistan’s (SBP) limitations on Letters of Credit (LC).
Due to a lack of components and an economic downturn, the companies are observing non-production days (NPDs).
According to Business Recorder, this resulted in a 50% drop in overall automobile sales year on year in July-August, to 19,358 units, down from 38,568 units the previous year.
Analysts believe the situation will deteriorate until the economy stabilises, which may not occur until the second quarter of 2023.
As manufacturers battle to stay afloat, all plans for new automobile launches in Pakistan have been halted.
