Following Toyota and Honda, Suzuki Also Declares Plant Closure.
In a move mirroring Toyota and Honda, Pak Suzuki is making plans to temporarily shut down its car manufacturing plant for a brief period, spanning from October 25 to October 27. This action is primarily a response to an inventory shortage the company is currently facing.
It’s important to note that their motorcycle plant will continue its regular operations. Concurrently, Honda Atlas has also made a similar announcement, indicating a one-week plant closure from October 24 to October 31.
In addition, the Indus Motor Company (IMC), responsible for overseeing Toyota vehicle assembly in Pakistan, has opted to suspend its operations for an extended period, with the plant remaining inactive until November 17.
There is growing speculation that these car manufacturers might consider reducing car prices when they resume production. The motivation behind this potential price adjustment is closely tied to the recent strengthening of the exchange rate against the US dollar. It’s noteworthy that the exchange rate has recently shifted from over Rs. 300 per dollar to Rs. 280 per dollar.As the vehicle industry intensely depends on imports, this change might prompt reduced production costs.
Nevertheless, it remains uncertain whether these cost savings will ultimately lead to lower car prices for consumers. It’s interesting to observe that KIA and MG have already taken steps to significantly lower their car prices, setting a precedent in this regard.
