PSMC (Pak Suzuki Motor Company) Restarting Production
Pak Suzuki Motor Company (PSMC) has resumed vehicle production after a nearly month-long halt. As of July 21, the company has restarted local car assembly and has received completely knocked-down (CKD) assembly kits for the next three months.
Initially, the plant was shut down from June 22 to July 8. However, due to the persistent shortage of parts, PSMC extended the closure until July 19. With the resumption of production and the arrival of CKD assembly kits, the company is hoping for a significant increase in sales.
Despite the optimistic outlook, market speculations indicate that the demand for new economy cars might have declined. The diminished purchasing power of the masses caused by inflation could be a contributing factor to this trend.
To support the automotive sector, the government is gradually easing import restrictions for carmakers, and banks have begun issuing letters of credit (LCs) to automakers. These measures are aimed at stabilizing the sector amid economic turbulence and local currency volatility.
While PSMC has taken steps to resume production and replenish their stocks, uncertainties remain in the automotive market. The challenges posed by economic conditions and fluctuating currency rates continue to impact the stability of the industry.
Overall, PSMC’s decision to restart vehicle production and the availability of CKD assembly kits are positive developments for the company. However, ongoing economic uncertainties and market dynamics may influence the industry’s performance in the coming month