Pak Suzuki Stops Production Due to CKD Kit Delay

Jawad

09 Aug 2024

310

Pak Suzuki Stops Production Due to CKD Kit Delay

Following Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company Limited (PSMCL) has also suspended production at its Karachi plant due to delays in the clearance of Completely-Knocked Down (CKD) kits. This unexpected halt underscores the significant challenges facing automotive manufacturers in Pakistan.

Impact on the Industry

The CKD kit delay has led to considerable financial losses for PSMCL, including substantial detention and demurrage charges. Additionally, the halt in production has negatively affected government revenue from taxes and duties due to decreased production and sales.

Toyota Indus Production Issues

Toyota Indus has also experienced production disruptions, announcing two separate shutdowns in the past month. The latest shutdown spans from August 6 to August 8, 2024, following an earlier closure from July 5 to July 22, 2024. Supply chain issues have caused severe shortages of parts and components, impacting their production capabilities.

Industry Concerns

Industry associations, including PAMA and PAAPAM, are concerned about the government’s adherence to the auto policy and the adverse effects of these disruptions on investor confidence. The broader automotive sector is struggling with high taxes, interest rates, and energy costs, which have already led to workforce reductions and production cutbacks among local parts manufacturers.

Call for Government Action

Experts are urging immediate government intervention to address the underlying issues. They recommend involving industrialists in problem-solving efforts and swiftly addressing any irregularities. The ongoing crisis has affected approximately 140-145 vendors, emphasizing the need for prompt action to mitigate the situation.

Pak Suzuki Shutdown CKD Kit Delay Automotive Production Halt PSMCL Production Issues Toyota Production Shutdown Karachi Plant Closure Vehicle Production Delay Auto Industry Disruptions Manufacturing Challenges Pakistan Supply Chain Problems

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