After Toyota and Honda, Pak Suzuki has also decided to shut down its automobile plant for two days, October 25 to October 27, ‘due to shortage of inventory.’
However, the auto giant will keep its motorcycle plant operational during this period. Earlier today, Honda Atlas announced to keep its plant closed for a week, from October 24 to October 31.
Similarly, Indus Motor Company (IMC), the assembler of Toyota vehicles in Pakistan, decided to cease its operations for a month. The company’s plant will remain closed for a month until November 17.
It is likely that the auto manufacturers will reduce the prices of their cars once they resume production. This is because in recent weeks, the exchange rate versus the US dollar has improved significantly, falling from above Rs. 300 per dollar down to Rs. 280 per dollar as per the latest announcement. As the auto industry is heavily reliant on imports, this will result in lower costs of production for the companies. Whether they pass on this benefit to car buyers is another question.
KIA became the first company to reduce car prices by up to Rs. 500,000. Furthermore, MG also reduced the price of HS Essence by Rs. 600,000.