Suzuki has informed the Pakistan Stock Exchange that it would suspend all production from January 2 to January 6 to conduct maintenance. For the sixth time in the current fiscal year, Suzuki will take a day off from manufacturing. Suzuki, however, will be ceasing manufacturing for the first time at both its motorbike and automobile operations.
Suzuki has attributed its actions to low inventory levels caused by the State Bank’s prohibitions on the importation of fully knocked-down (CKD) kits. Production has already suspended by the corporation from August 18 to August 19, August 22 to August 26, August 29 to August 31, and October 19 to October 21.
Suzuki made its statement exactly one week after Toyota Indus Motor made it known that it will be stopping manufacturing for the rest of the year for the same reason. In a similar vein, Honda has also seen 15 production-free days this fiscal year as a result of import limitations imposed by the State Bank.
Only one day before the State Bank’s pronouncement, the government banned the import of luxury goods to stop the flow of foreign currency out of the country. Cars are not included in the list of “luxury” goods that the government had outlawed, but the State Bank did examine them more subtly.
Due to its inability to manage the same levels of demand it saw in prior years, Suzuki is consequently capable of accepting smaller orders entirely in time. In comparison to the same period in FY 2021–2022, Suzuki’s five-month total volume of sales for vehicles and motorcycles is 24% lower year over year. Suzuki is not the only company experiencing demand destruction in the present environment, though, as with non-production days. The announcement follows Millat Tractors’ decision to officially adopt a four-day workweek due to inadequate sales two weeks prior.
