Honda Atlas Cars Pakistan has extended its plant shutdown until May 15, 2023 due to the current economic situation in Pakistan.
The government has taken steps such as restricting LCs for import of CKD kits, raw materials and halting foreign payments, which have severely disrupted the company’s supply chain. As a result, the company is unable to continue with its production and has been shut down since May 1, 2023.
Honda Atlas had initially planned to restart production on April 1, but had to extend the shutdown until April 15 and then until April 30. Sales for the company have also declined by 49% and 77% month-on-month and year-on-year, respectively.
Pakistan’s auto sector has faced several crises, with other automakers also announcing complete or partial shutdowns due to reduced demand in the market and inability to maintain inventory. The country is also facing a shortage of dollars to meet its import needs and external payment commitments.
The government is working to revive the stalled Extended Fund Facility programme with the International Monetary Fund, which, if approved, would release over $1 billion in funding.
