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Pak Suzuki Motor Company Limited has once again opted for a temporary shutdown, scheduled from December 1 to 6, for its motorcycle plant. The decision stems from sluggish sales demand and a strategic move towards inventory optimization, as confirmed by the company. It’s noteworthy that this shutdown specifically applies to the motorcycle production facility, while the car production plant will remain operational during this period.
This isn’t the first instance of Pak Suzuki implementing a shutdown; a similar move occurred on October 24, where both the automobile and motorcycle plants were temporarily closed due to low inventory supply. The company cited challenges in import consignment clearance, impacting inventory levels and necessitating the shutdowns.
In a recent development, Pak Suzuki has also made the decision to delist its stock from the Pakistan Stock Exchange (PSX) market. The company has announced plans to repurchase all shares from small stakeholders, appointing Arif Habib Limited as its agent for the buyback. The statement accompanying this decision emphasizes that Pak Suzuki has been operating at a loss for the past three years, citing a challenging environment, reduced consumer purchasing power, and increased government duties and taxes as contributing factors. The fiscal year 2022-2023 witnessed a decline in demand for the auto sector due to these challenges.
As the auto sector in Pakistan faces various crises, with multiple automakers announcing shutdowns in recent months, Pak Suzuki’s strategic measures aim to navigate the adverse conditions prevalent in the industry.
