KARACHI – Honda Atlas Cars, the maker of Honda vehicles, has again decided to shut down its production plant in the country citing restrictions in import approvals.
One of the leading auto manufacturers shared the development in a letter sent to the Pakistan Stock Exchange (PSX) on Wednesday. “Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting the opening of LCs for import of CKD kits, raw materials and halting foreign payments, the Company’s supply chain has also been severely disrupted by such measures,” the letter reads.
It said the company is not in any position to continue with its production and ultimately has to shut down its plant from March 09, 2023, to March 31, 2023.
The country’s auto industry has been facing severe issues mostly due to import curbs while carmakers are offering customers to cancel bookings and claim refunds.
Amid staggering price hikes, the sales of several vehicles also plunged as the auto industry bears the brunt amid an uncertain economic situation.
Pakistan’s auto industry is mostly dependent on imports and remained under stress amid the shocking depreciation of the local currency, and imposed curbs on the LCs.