Pak Suzuki shutters motorcycle plant for fortnight

Decision came as result of persistent shortage of raw materials

By
Shahid Shah
Suzuki GS 150 bike parked outside a showroom in Karachi. — Geo.tv illustration
Suzuki GS 150 bike parked outside a showroom in Karachi. — Geo.tv illustration

  • Pak Suzuki's automobile plant to continue its operations.
  • Recent shutdown follows previous closure in same month.
  • Company afflicted by persistent lack of raw materials for a year.


KARACHI: The Pak Suzuki Motor Company (PSMC) has once again been forced to halt its operations, this time shuttering its motorcycle plant for at least 15 days, The News reported.

The decision came as a result of the persistent shortage of raw materials, which was communicated in a statement released to the Pakistan Stock Exchange (PSX) on Monday.

According to the company secretary, the motorcycle plant will remain non-operational from July 31, 2023, to August 15, 2023, due to the shortage of inventory levels.

However, the automobile plant will continue its operations.

This recent shutdown follows a previous closure earlier in July, where both the motorcycle and automobile plants were shut down till July 19. The closure was extended from the previous month.

Since July of the previous year, the company has been afflicted by a persistent lack of raw materials, principally as a result of difficulties importing these crucial components due to a reduction in the nation’s foreign exchange reserves.

Other automakers are suffering similar interruptions besides Pak Suzuki. Due to the shortage of essential raw materials, both Honda Atlas Cars and Indus Motor Company, which manufactures Toyota cars in Pakistan, have had several shutdowns recently.

This scarcity has even affected automotive parts manufacturers, forcing them to temporarily halt their production lines.

These closures have an effect that goes well beyond the affected businesses. Due to the interruption in raw material imports brought on by postponed credit letter openings, the whole automotive industry has been struggling with unproductive days.

This has led to reduced operational capacities and an overall decrease in productivity across multiple sectors of the economy.

The news of Pak Suzuki’s latest shutdown has sparked concerns among employees, stakeholders, and the general public alike. The motorcycle plant, a significant division within the company, is a major employer in the country. The closure will undoubtedly have a considerable impact on both the company’s workforce and the overall economy.

According to one analyst, the closure of the motorbike manufacturing plant serves as a sharp reminder of the larger problems plaguing Pakistan’s automotive sector.

In order to address the underlying causes of the raw material scarcity and put permanent solutions into place to avert further disruptions, he said stakeholders and governments must collaborate.