Honda Atlas Cars temporarily shut down its plant amid financial crunch
Pakistan’s auto sector remains engulfed in various crises
Honda Atlas Cars, a leading Pakistan automaker, has temporarily shut down its plant amid a financial crunch!
The assembler of Honda automobiles in the country — on Wednesday announced its decision in a notice to the Pakistan Stock Exchange (PSX).
“Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting the opening of Letters of Credit (LCs) for the import of CKD kits, and raw materials and halting foreign payments, the company’s supply chain has also been severely disrupted by such measures,” read the notice.
“As a result, the company is not in a position to continue with its production and ultimately has to shut down its plant from March 09, 2023, to March 31, 2023,” Atlas Honda notified.
Prior to this, Toyota Motors, Pakistan Suzuki and several other four- and two-wheel makers have time and again shut down their plants which has affected their sales.
Furthermore, not only the production activity has affected the companies also raised the prices of their CKD models which has crippled people’s already low purchasing power.