Auto Exodus in Pakistan as carmakers pack bags amid economic slump
The economic dwindling in Pakistan doesn’t seem likely to stop in the foreseeable future. As a result (along with several other factors such as depreciation of local currency, govt’s curb on imports, decline in demand etc), the automotive industry, one of the largest taxpaying and significantly impacted industries, has started to diminish too. While a host of big names have been shutting operations temporarily, a few are expected to exit permanently.
Here, we take a look at the carmakers that have closed their shutters in Pakistan, and the ones that are about to.
Kia
The latest manufacturer to face the heat of the slumped economic conditions is South Korean manufacturer Kia. It has reportedly closed down four car dealerships in Pakistan due to the impending economic crisis.
Honda
Honda Atlas Cars, the assembler of Honda vehicles in Pakistan, declared a full closure of its plant throughout March owing to disruptions in its supply chain. The carmaker conveyed through a notice to the Pakistan Stock Exchange that the decision was prompted by significant disruptions in its supply chain.
Toyota
Indus Motor Company, the manufacturer responsible for assembling the Toyota cars in Pakistan again shut its operation due to inventory shortage in June. It was the fifth time in this year alone that the company was forced to halt its production due to raw material shortages. Reportedly, Toyota is planning to permanently shut its operations in Pakistan.
Suzuki
Citing the government’s import restrictions in Pakistan, Japanese manufacturer Suzuki has shut its operations in the country multiple times. After recently resuming its four-wheel manufacturing facilities, the company again shut down its production of both two-wheelers and PVs in July.