Honda Pakistan to suspend production in Pakistan

Honda Atlas Cars (Pakistan) Ltd will close its production from March 9 to March 31, 2023, since the company’s supply chain has been badly impacted by Pakistan’s current economic crisis.

The firm noted in a notice issued to PSX today that the government has resorted to restrictive measures, such as prohibiting the opening of LCs for the import of CKD kits and raw materials, and blocking international payments, affecting the company’s ability to continue manufacturing.

The shutdown is projected to have an impact on Honda automobile manufacturing in the region, as well as the company’s financial performance.

Read More: Smartphone industries stopped manufacturing in Pakistan due to economic crisis.

HCAR is one of Pakistan’s largest automobile manufacturers, and the closure of its plant is expected to have an impact on the region’s automotive industry.

The decision to shut down the plant notified the difficulty experienced by businesses in Pakistan due to the economic environment. The government’s restrictions on the opening of LCs for imports and the suspension of foreign payments have put a pressure on sectors that rely on imports, particularly the car industry.