Sazgar engineering, the distributor of Haval and BAIC in Pakistan, has shut down production of its four-wheeler production plant.
The company has cited the main reason behind this shutdown to be the new stricter measures of minimizing the import of Completely Knocked Down (CKD) kits and raw materials of vehicles. As a result, the company’s supply chain has been disrupted. This has consequently forced the compnay to shut down the production process from 27th February 2023 to 4th March 2023.
Production Shutdown By Other Companies
Due to the inflation and dropping car sales, the companies kept announcing non-production days, which resulted in the loss of 250,000-300,000 direct and indirect jobs. In this era of extreme inflation, when it’s hard to make ends meet, several thousand people have lost jobs due to the downfall of the Pakistan auto industry. For perspective, Pak Suzuki has observed 40 non-production days in the past 6 to 7 months, while Indus Motors Company has kept shut for 53 days since August last year.
Thousands of people have lost jobs due to these non-production days. On top of that, the collective sales of all the car companies dropped by 40-50%. In 2023 alone, Toyota and Suzuki have observed a total of 19 non-production days.
What are your views on this wave where companies shut down production for some days? Share them in the contacts below!
I don’t understand if LCs are not being opened and CKD kits are not being imported, then would increase in price resolve issues ? As companies are not paying anything to outside world than why crying on Pak Rupee devaluation.? We have witnessed unprecedented and insane increase. This has severely and devastatingly affected Auto Industry due this step on part of consumers. In Pakistan, who cares btw !