Honda Atlas Cars Pakistan Ltd, a subsidiary of Japan’s Honda Motor Co Ltd, has announced a 15-day extension to its longest plant shutdown for the current fiscal year due to Pakistan’s economic crisis, import restrictions, and suspension of foreign payments.
The initial shutdown, announced on March 8, was intended to last 23 days, ending on March 31. However, the company extended the shutdown from April 15 to April 30, 2023.
The government’s stringent measures to address the nation’s economic challenges have severely disrupted Honda’s supply chain, forcing the company to shut down its plant.
In a notice to the Pakistan Stock Exchange, Honda stated that it could not continue production under these circumstances.
Other automakers in Pakistan, such as Indus Motor Company Limited and Pak Suzuki Motor Company, have also been forced to suspend production during the last fiscal year due to economic difficulties. These issues have caused a significant drop in central bank foreign exchange reserves, leaving only enough to cover a month’s worth of imports.
In addition to Honda, Pak Suzuki Motor Company Ltd, a subsidiary of Japan’s Suzuki, announced a 13-day extension to its existing halt in motorcycle production. Initially, the company announced an 11-day plant shutdown for its motorcycle plant on March 16, citing a lack of inventory.
The shutdown was later extended by 15 days to April 15. For the same reasons, PSMC also shut down its automobile production for a week from April 7 to April 23.
