Pakistan’s automotive crisis: Honda, Suzuki, Toyota stop production



At least three major automotive companies in neighbouring country Pakistan have announced a halt in production due to various reasons, including Honda Atlas Cars, Pak Suzuki Motor Company and Indus Motor Company – the assembler of Toyota vehicles in Pakistan. Indus Motor Company had announced a suspension in production for a month from October 17, 2023, while Honda Atlas Cars and Pak Suzuki Motor separately announced a temporary shutdown of their production plants.
Honda, Toyota and Suzuki’s production halt in Pakistan is due to an ongoing shortage of essential raw materials, as per official statements released by the three companies. While Indus Motor Company’s production has been suspended for a month, Suzuki’s plant will be closed for just two days from October 25, 2023, to October 27, 2023. On the other hand, Honda Atlas Cars has announced that it will halt production at its plant from October 24, 2023, to October 31, 2023.

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“Due to the shortage of inventory levels, the management of the company has decided to shut down the automobile plant from October 25, 2023, to October 27, 2023. However, the motorcycle plant will continue its operations,” said the PSMC, in a statement issued by its company secretary. A similar announcement was also made by Honda Atlas Cars through their company secretary.
“The current level of inventory and parts shortages within the company’s supply chain has severely disrupted operations. As a result, the company is unable to continue production and, consequently, will halt its plant from October 24, 2023, to October 31, 2023,” said the statement.
The shutdown by these global carmakers highlight a broader issue that has been affecting Pakistan’s automobile sector for over a year now. Shortages in inventory levels have driven a cycle of temporary shutdowns across the auto industry. As per a report by The News, the country’s auto sector, which relies heavily on imports, has been hit hard by the government’s decision to curb imports on dollar shortages and depreciation of the rupee, which has made imports more expensive and pushed up car prices.





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