Webdesk: Honda Atlas Cars, the country’s Honda car assembler, stated that it would shut down its plant for the month.
The automaker informed the Pakistan Stock Exchange that its supply chain was “severely affected.”
“Considering the current economic situation of Pakistan whereby the government resorted to stringent measures including restricting the opening of LCs [letter of credits] for import of CKD [completely knocked-down] kits, raw materials and halting foreign payments, the company’s supply chain has also been severely disrupted,” the company said, listing all the reasons for the plant shutdown.
So, the company “is not in a position to continue with its production. It ultimately has to shut down its operation from March 9 to March 31.”
Pakistan’s economic development is stalling as one of the highest inflation rates. Rising borrowing prices reduce demand and a large currency drop makes crucial vehicle parts more expensive to buy. The coalition government’s trade deficit-reducing import restrictions hurt the industry.
Toyota Motors, Pakistan Suzuki, and other four- and two-wheel manufacturers have repeatedly closed their plants, hurting sales. In addition to production activities, corporations boosted CKD model pricing, which lowered people’s already poor purchasing power.
