Faced with a demand slump and raw material shortages amid unfavourable economic conditions, Indus Motor Company (IMC) on Tuesday announced a fourth production suspension from Feb 1-14.
Also, Agriauto Industries Ltd (AIL), an auto vendor, announced a partial closure this month due to a sharp decline in demand for parts and accessories from major automakers.
The assembler of Toyota vehicles in a stock filing said it would resume production from Feb 15 on a single shift basis until further notice.
IMC said the State Bank of Pakistan (SBP) on Jan 2 advised commercial banks to prioritise/facilitate imports to specified sectors only, which does not include the auto sector. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company, IMC said.
The company had kept its production operation suspended from Aug 1-13, Sept 1-16 and Dec 20-30, 2022.
Despite production stoppages and a 52pc drop in sales in IHFY23, IMC shocked its customers by raising prices from Rs280,000 to Rs1.2 million on various models in the second week of this month.
Lucky jacks up prices: Kia Lucky Motor Corporation has raised the price by Rs100,000 to Rs1.3m from Feb 1. Till last month, the company has been offering a price lock option to the customers with immediate delivery.
As per the company’s website, the new price of Kia Picanto Manual and Automatic will be Rs3.2m and Rs3.4m, a rise of Rs100,000 and Rs200,000 respectively.
Bike gets costlier: The country’s no.1 bike assembler, Atlas Honda Ltd (AHL), has raised the price of 70cc-150cc bikes by Rs7,400-30,000 from Feb 1. The new rates of CD-70, CD-70 Dream, Pridor, CG-125, CG125S, CB125F, CB150F and CB150F (Silver) are Rs128,900, Rs137,900, Rs170,900, Rs194,900, Rs230,900, Rs305,900, Rs383,900 and Rs387,900.
United Auto Industries, the country’s second-largest bike assembler, has announced a price hike of Rs6,000-10,000 in 70cc-125cc bikes from Feb 1.
Memon Motor Private Ltd, assembler of Super Star Motorcycle, has raised the price of 70cc-125cc bikes by Rs6,000 from Jan 30. NJ Auto Industries, maker of Super Power bikes, has made a price jump of Rs5,000-8,000 in 70cc-200cc bikes from Jan 27.