Honda Atlas Cars Pakistan Limited (HACPL) has decided to keep its car production closed for the remainder of April 2023 due to shortage of inventory due to restrictions of LCs and halting of foreign payments by the government.
According to the a letter issued by Honda Atlas to the Pakistan Stock Exchange (PSX), the company has decided to keep its production closed extend plant shutdown till April 30.
“Considering the current economic situation of Pakistan whereby the Government restored to stringent measures including restricting opening of LCs for import of CKD kits, raw materials and halting of foreign payments, the Company’s supply chain has also been severely disrupted by such measures.” the company wrote.
“As a result, the Company is not in a position to continue with its production and ultimately has continued to shutdown its plant from April 16, 2023 to April 30, 2023.” it added.
It is pertinent to mention that Honda Atlas has kept production closed since 9th March and always ends up extending the plant closure as the company continues to suffer due to worsening economic conditions of the country.
Meanwhile, other players in the automotive industry face similar hurdles. Pak Suzuki Motor Company (PSMC) has also announced an extension of its plant shutdown for motorcycles due to shortage of inventory.
Read more: Pak Suzuki Extends Shutdown for Motorcycles Plant.
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