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Honda Extends Plant Shutdown in Pakistan

Technofinite by Technofinite
March 8, 2023
in News
Honda Extends Plant Shutdown in Pakistan
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The automotive sector is facing a continuous battle with economic difficulties. Unfortunately, Honda has recently announced its decision to halt vehicle manufacturing for more than 20 days, exacerbating the challenges.

The prolonged shutdown has been attributed to disruptions in the supply chain resulting from the economic downturn, as well as limitations on the import of raw materials and CKD. This information is confirmed in the official notification.

The details are as follows:

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Image Credit: Honda

Starting from July 2022, the automotive sector has encountered difficulties with production cuts and shipment delays resulting from import restrictions. In addition, certain car manufacturers have provided consumers the option to cancel their bookings and obtain a complete refund with a surcharge.

The auto industry is currently experiencing the consequences of the devaluation of the Rupee, primarily due to its significant dependence on imports. Import delays and inventory rate hikes are being caused by the State Bank of Pakistan’s (SBP) limitations on Letters of Credit (LC).

I hope that the ongoing production shutdown will not culminate in yet another announcement of increased prices.

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