Tag: consumer demand.

  • Inventory shortage forces Pak Suzuki to extend motorcycle plant shutdown

    Pak Suzuki Motor Company (PSMC) has officially announced the extension of the shutdown of its motorcycle plant until June 16, 2023. The decision was conveyed to the Pakistan Stock Exchange (PSX) through a notice on Tuesday. The company attributed this action to ongoing government restrictions on imports, which have negatively impacted the automotive industry and resulted in a shortage of inventory.

    The notice stated, “Due to shortage of inventory level, the management of the company has decided to shut down motorcycle plant from June 12, 2023 to June 16, 2023.” However, the automobile plant will continue its operations as usual.

    Previously, PSMC had temporarily closed its motorcycle plant until June 10, 2023, due to a shortage of raw materials. Furthermore, both the automobile and motorcycle plants had experienced a shutdown from May 2 to May 9. Similarly, the automobile plant underwent closure from April 7 to April 28.

    As an assembler, manufacturer, and marketer of Suzuki cars, pickups, vans, 4x4s, motorcycles, and related spare parts, PSMC plays a crucial role in the automotive sector. The Suzuki brand, originating from Japan, holds prominence in the company’s product lineup.

    Earlier in April, PSMC reported its highest-ever quarterly loss of Rs12.9 billion for the first quarter of 2023. The decline in sales and substantial finance costs were cited as contributing factors. In comparison, the company had incurred a loss of Rs460.227 million during the same period last year.

    The auto industry in Pakistan is currently grappling with numerous challenges. Indus Motor Company Limited and Honda Atlas Cars, two other prominent listed companies, have also halted production in recent months due to economic hardships.

    The country’s auto sector heavily relies on imports, making it particularly vulnerable to the government’s import restrictions and the tightening of Letters of Credit iissuance. Furthermore, soaring finance costs and significant increases in car prices have dampened consumer demand.

  • Toyota IMC records worst sales in three years, selling less than 2,000 cars in February

    Toyota IMC records worst sales in three years, selling less than 2,000 cars in February

    Toyota Indus Motor Company (IMC), a leading automaker renowned for offering the country’s best-selling sedan, has reported a significant decline in sales in February 2023, marking the worst sales month since the onset of the Covid-19 pandemic.

    Having previously sold over 7,100 units in March 2022, the company’s sales have now plummeted to a meager 1,803 vehicles in February 2023, according to Autojournal.

    It is pertinent to note that this represents the lowest sales figures for Toyota in the past three years, since the outbreak of the Covid-19 pandemic and subsequent lockdowns.

    Toyota is not the only company experiencing this phenomenon, as Pak Suzuki Motor Company has also reported a massive decline in sales, selling only 544 units in February 2023, despite having sold over 6,000 units of Suzuki Alto in a single month previously.

    Pakistan’s auto industry is currently facing significant challenges due to production halts, resulting from a lack of availability of auto parts and restrictions on imports.

    As a result, car manufacturers are facing difficulties in meeting consumer demands, leading to decreased sales figures for many companies, including Toyota and Suzuki.