Following the new taxation laws and hike in car prices, two of the leading auto manufacturers have already announced that they will be cutting production and even shutting down production plants during weekdays, following a 10-day complete plant shutdown by both Toyota and Honda. However, despite this, Pak Suzuki Motor Company (PSMC) has ensured its parts suppliers and consumers alike that it does not plan on shutting down plants during weekdays for July-December or cutting current production.
In its suppliers’ coordination meeting held at a local hotel on Wednesday, the management of PSMC shared their production plans for July-December. While the auto industry is going through a crunch, some vendors who attended the meeting even said the company would produce over 76,000 units in the second half of current year, compared to 60,000 units rolled out in the first half.
Suzuki assured its vendors that the production targets of 2019 would remain the same as to those fixed at the start of the year.
The management of the company also assured its vendors that the current circumstances have opened another opportunity for Pak Suzuki as it will now have to cater for the vacuum of used small cars, which were being imported previously.
Vendors said PSMC had the advantage of making low-priced cars on which the Federal Excise Duty (FED) imposed in budget 2019-20 is also low compared to high-end models being produced by Indus Motor Company and Honda Atlas Cars Pakistan (HACP) where the impact of FED is higher.