In the face of an ongoing economic crisis, Pak Suzuki Motor Company (PSMC) finds itself in another challenging situation. Due to a lack of inventory, the company has made the decision to suspend motorcycle assembly for five days.
According to an official notification, the motorcycle assembly will be halted from June 12 to June 16. The fluctuating dollar rate has further compounded the issue, potentially leading Suzuki to consider increasing bike prices once production resumes.
The situation is causing concern for parts makers as well. The recently announced 2023-24 fiscal budget for the car industry offers little relief. The government has imposed a substantial 35% customs duty (CD) on the import of various car components, regardless of their complexity.
This high CD rate on basic components is expected to hinder car price control or reduction. Parts importers are likely to face significant challenges due to these taxes, posing further obstacles to the industry’s stability.
Overall, the combination of production suspensions and increased import duties presents a worrisome scenario for Pak Suzuki and the wider automotive sector in Pakistan.
