LAHORE: Baluchistan Wheels Limited has notified the Pakistan Stock Exchange that it will extend its plant shutdown till January 6, 2023. The company will have cumulatively observed 26 calendar days as non-production days (NPDs) from December to January.
Baluchistan Wheels 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. The company had initially publicly conveyed that it would observe NPDs from December 12 to December 23. This halt in production was then extended December 30, and now finally till January 6.
Profit had previously asked Muhammad Asad Saeed, Company Secretary of Baluchistan Wheels Limited, about the reasoning for the decision to which he responded that it was purely 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. The current five month FY 2022-23 volume stands at a total of 601,971 units which is a 31.52% YoY decrease from the 879,401 units sold in FY 2021-22 based on the figures released by the Pakistan Automotive Manufacturers Association.
The decision comes the week of Suzuki announcing their NPDs for January, two weeks after Toyota’s decision to cease operations for the remainder of December, and three weeks after Millat Tractors’ decision to observe Friday as an NPD in perpetuity.
