Summary The company announced its decision in a notice to the Pakistan Stock Exchange (PSX)
LAHORE (Web Desk) - Citing supply chain disruptions, leading automaker Honda Atlas Cars (Pakistan) Limited has decided to temporarily shut down its plant from March 9 to 31.
The company 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 import of CKD kits, 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."
Few days ago, Ghandhara Nissan Limited (GHNL) also announced to shut down its plant from March 6 to 10, citing facing major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks.
The country’s auto sector remains engulfed in various crises, with a number of automakers announcing complete or partial shutdowns in recent months citing various reasons including reduced demand in the market and the company’s inability to maintain inventory as companies struggle to secure LCs.
