Pak Suzuki announces motorcycle plant shutdown

Pak Suzuki Motor Company Limited has once again announced its motorcycle plant shutdown from December 1 to 6 following low sales demand and inventory optimization, ARY News reported.

Pak Suzuki Motor Company Limited announced the motorcycle plant shutdown again, however, it clarified that the car production plant will remain operational.

In its correspondence to the Pakistan Stock Exchange, the company reasoned the temporary closure of the motorcycle plant with the low level of sales demand and to optimize the inventory of the finished goods.

It is not the first time the company has shut down its motorcycle plant.

On October 24, the company announced automobile and motorbike plant shutdown due to low inventory supply.

According to Pak Suzuki’s announcement, due to a shortage of inventory level, the management of the company has decided to shut down motorcycle and automobile plants from November 1 to 3 and October 30 to November 3, respectively.

In the filing, Pak Suzuki said that the company’s imports adversely impacted clearance of import consignment which consequently affected inventory levels.

In another development today, Pak Suzuki officially issued a statement and decided to delist its stock from the Pakistan Stock Exchange (PSX) market.

According to the official notification, the company decided to buy back all the shares from the small stakeholders.

In the statement, Pak Suzuki stated that 26.91 percent or a total of 22,145,760 shares of the company are in the stock market at the price of Rs 406 per share and appointed Arif Habib Limited its agent to buy the shares of the company.

Pak Suzuki in its statement claimed that the company has been operating at a loss for the past three years.

In the fiscal year 2022-2023, due to a challenging environment, low consumer purchasing power, and an increase in duties and taxes by the government, the demand for the auto sector has continuously declined.

It is pertinent to mention here that Pakistan’s auto sector remains engulfed in various crises, with several automakers announcing complete or partial shutdowns in recent months citing various reasons.