The automotive industry continues to struggle due to the worsening economic conditions and restrictions on import of Completely Knocked Down (CKD) kits. In light of the situation, Honda Atlas Cars Pakistan Limited (HACPL) has shut down production for the entire month of March.
In a letter sent to the Pakistan Stock Exchange, the company said, “Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures, including restricting opening of LCs for import of CKD kits, raw materials and halting foreign payments, the Company’s supply chain has also been severely disrupted by such measures.”
As a result, Honda Atlas Cars Pakistan Limited (HACPL) has decided to shut down its production plant from March 9th to March 31th, 2023.
Here is a copy of the letter:
Meanwhile, the matter is expected to get worse as car prices are going to rise once again as the Government has imposed 25% General Sales Tax (GST) on vehicles with 1400cc engines and above.
Read more: Cabinet Approves 25% GST on Luxury Products.
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