PSMC announces temporary shutdown of motorcycle plant

KARACHI: Pak Suzuki Motor Company (PSMC) has announced a temporary shutdown of its motorcycle production plant due to an inventory shortage, the company said in a notice to the Pakistan Stock Exchange on Friday.

The shutdown, which is set to last from December 1 to December 6, 2023, is aimed at optimising the inventory of finished goods amid fluctuating sales demand. “Based on the current level of sales demand and to optimize the inventory of finished goods, the management of the company has decided to shut down the motorcycle plant,” the notice stated.

Despite the shutdown of the motorcycle plant, PSMC confirmed that its automobile plant will continue operations as usual.

This year has seen the Japanese-owned automaker announce over a dozen shutdowns, with the most recent closure of its automobile plant lasting until November 8. The company has repeatedly cited a lack of raw materials as the reason for the production halts, which have occurred in November, October, September, August, June, and May. In a significant move last October,PSMC’s Board of Directors resolved to purchase all outstanding shares and delist from the Pakistan Stock Exchange. The decision was attributed to persistently low valuations and financial losses faced by the company.

PSMC’s recurring shutdowns reflect ongoing challenges in the country's automotive industry, including supply chain disruptions and material shortages that have affected production schedules.