Industry woes force Baluchistan Wheels to limit production days

The company will cease production for two weeks in December due to reduced demand by automobile manufacturers   

LAHORE: Baluchistan Wheels Limited (BWHL) notified the Pakistan Stock Exchange that it will be observing non-production days (NDPs) from December 12 till December 23. 

The reason behind this is the reduced orders from its clientele, original equipment manufacturer (OEMS). The reduced orders have impacted the overall automotive industry resulting in reduced demand. 

BWHL is a manufacturer of steel disc wheels for automobiles based out of Hub, Balochistan. 

The company’s clientele includes both domestic and international passenger cars, commercial vehicles, and tractor OEMS. 

In a conversation with Profit, Muhammad Asad Saeed, Company Secretary of BWHL, stated that the decision was purely due to the “depressed demand in the automotive sector”. 

The decision of NDPs seems like the logical consequence of the current demand destruction that’s occurred in Pakistan’s automotive industry. Other parts manufacturers are likely to take similar decisions in what Abdul Waheed Khan, Director General of the Pakistan Automotive Manufacturers Association (PAMA), has described as an “unprecedented situation” across Pakistan’s automotive industry. 

Although the monthly sales rose by 14% in October, but the yearly sales still plateaued at 37% lower than the last year. Furthermore, the first four months of the current fiscal year have only seen a cumulative automotive demand of 59,402 units sold. This is 46% lower than the 109,238 units sold over the same period in the previous year based on the data provided by PAMA. 

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Daniyal Ahmad
Daniyal Ahmad
The author is a member of the staff, and covers the automobile sector as a sector analyst. He can be reached at [email protected]

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