Pakistani Honda facility will not reopen
According to media sources, Honda Atlas Cars, which assembles Honda vehicles in Pakistan, said in March that it would be unable to continue with production and would be closing down its plant for the remainder of the month.
According to media sources, Honda Atlas Cars, which assembles Honda vehicles in Pakistan, said in March that it would be unable to continue with production and would be closing down its plant for the remainder of the month. According to a notice the automaker issued to the Pakistan Stock Exchange, the decision was made because the company’s supply chain has been “severely affected,” according to a report by Geo News.
The company’s supply chain has also been severely disrupted by these measures, it said, citing the reasons for the plant’s closure. “Considering the current economic situation of Pakistan whereby the government resorted to stringent measures including restricting the opening of LCs (letter of credits) for the import of CKD (completely knocked-down) kits, raw materials, and halting foreign payments,” it said.
Since the company “is not in a position to continue with its production, it will finally be forced to shut down [its facility] from March 9 to March 31,” it was stated as a result.
As a result of Pakistan having one of the highest rates of inflation, rising borrowing costs, declining demand, and a depreciating rupee, imports of essential vehicle parts are becoming more expensive. The auto industry is still experiencing numerous crises, and in recent months, a number of automakers have announced full or partial shutdowns, citing a variety of factors, including decreased market demand and the inability to maintain inventory as businesses struggle to obtain LCs, according to Geo News.
Import restrictions put in place by the coalition government to reduce the trade deficit also hurt the industry. Other two- and four-wheel manufacturers, including Pakistan Suzuki and Toyota Motors, have repeatedly closed their operations, which has had an impact on sales. In addition to affecting manufacturing, the companies boosted the costs of their CKD models, which severely reduced people’s already limited purchasing power.
