LAHORE: Agriauto Industries has informed the Pakistan Stock Exchange (PSX) that it will undergo a partial shutdown throughout May. The company cites a decrease in its customers’ production volumes as the reason for this decision. This will be the fourth consecutive month that the company has observed a partial shutdown.
“As we have previously stated in our notification, our reliance on the automotive sector as consumers has led us to observe partial shutdowns on a monthly basis since the beginning of the year,” explains Shaharyar Ashraf Khan, Company Secretary at Agriauto Industries.
“The shutdowns are also due to our forecasts not indicating an increase in automotive demand. This is why Agriauto has issued notifications regarding the partial shutdowns,” adds Khan.
What is Agriauto Industries?
Agriauto Industries Limited is a public limited company that was incorporated in 1981 and is listed on the stock exchange. It is one of the foremost manufacturers of automotive components in the private sector, and was the first company in Pakistan to obtain TS16949 certification.
The company also owns a wholly-owned subsidiary, Agriauto Stamping Company. Its associated companies include Thal Limited, Shabbir Tiles & Ceramics, and Thal Boshoku Pakistan (Private) Limited.
Agriauto Industries’ product portfolio includes shock absorbers and struts, motorcycle shock absorbers and parts, sheet metal press parts, and tractor parts, among others.
Is there respite on the horizon?
“The automotive sector is facing a daunting predicament, but it’s not alone. The entire economy is reeling from the pernicious effects of rampant inflation. We’re all in this together. But there’s a glimmer of hope on the horizon. As we approach the final quarter of the fiscal year, we’re cautiously optimistic that we’ll see a resurgence across the board,” Khan explains.
“And there’s more good news. As restrictions on letters of credit (LC) are gradually lifted and more are released, we’re expecting to see an uptick in momentum and a return to our normal production schedule,” Khan continues.