March 08, 2023 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) will be shutting down its plant from March 09, 2023, to March 31, 2023, as the company's supply chain has been severely disrupted by the current economic situation in Pakistan.
In a notice sent to PSX today, the company stated that the government has resorted to stringent measures, including restricting the opening of LCs for the import of CKD kits, and raw materials, and halting foreign payments, which has impacted the company's ability to continue production.
The shutdown is expected to affect the production of Honda cars in the region and is likely to have an impact on the company's financial performance.
HCAR is one of the leading car manufacturers in Pakistan, and the shutdown of its plant is expected to have a ripple effect on the automotive industry in the region.
The decision to shut down the plant notified the challenges faced by businesses in Pakistan due to the economic situation. The government's measures to restrict the opening of LCs for imports and halt foreign payments have put a strain on businesses that rely on imports, including the automotive industry.
