Pak Suzuki Motor Company (PSMC) has suspended operations at its Karachi manufacturing plant due to significant delays in the approval of Completely Knocked Down (CKD) kits at the port.
Reports indicate that the CKD kits have been stranded at the port for the past 45 days, accruing substantial detention and demurrage charges amounting to billions of rupees.
The approval delays have led to a critical shortage of CKD kits, compelling Pak Suzuki to halt production.
Automotive associations have called on the government to adhere to the auto policy for 2021-2026, warning that prolonged delays in approving these inputs could negatively impact Pakistan’s auto industry and deter potential foreign investors.
This development comes on the heels of Pak Suzuki’s recent expansion into exporting vehicles to Bangladesh and Afghanistan. Despite this setback, Pak Suzuki’s CEO, Hiroshi Kawamura, recently inaugurated the Suzuki Vendor Cluster Area.
In related news, the Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed Pak Suzuki’s credit ratings at “AA-” for long-term and “A1” for short-term, with a stable outlook.
PACRA’s ratings reflect Pak Suzuki’s strong market position among established auto manufacturers in Pakistan, bolstered by the support of its foreign sponsor, Suzuki Motor Corporation of Japan.
