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Pakistan Economic Crisis: Honda Closed its Manufacturing Plant in Pakistan Due to Worst Supply Chain

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      Home Business

      Pakistan Economic Crisis: Honda Closed its Manufacturing Plant in Pakistan Due to Worst Supply Chain

      by Shubham Dayal
      March 10, 2023
      in Business, International
      Reading Time: 2 mins read
      Honda

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      Why Honda Shuts Down Manufacturing Plant in Pakistan?

      The Official Honda Plant, which manufactures Honda Altas Cars, in Pakistan, announced to shut off the manufacturing unit in March due to supply challenges. Honda mentioned the reason for supply chain problems in the notice sent to the Pakistan Stock Exchange.

      Pakistan’s government is restricting the opening of Letters of credit for the import of Completely knocked-down kits and raw materials and halting foreign payments to consider the current economic situation in Pakistan. Due to these measures taken by Pakistan entire supply chain of the company is disrupted. The company said these measures are the reasons to shut down the manufacturing plant and not in the position to continue. Therefore, the manufacturing remains closed from 9 March 2023 to 31 March 2023.

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      Pakistan‘s economy is continuously collapsing for the last fewer months. As a result, the Inflation rates reached the highest, the cost of borrowing also increased, and the demand for goods is reducing. As a result, Pakistan is losing the value rupee value, making it hard for automobile manufacturers to continue production and sales in Pakistan as their expenses increase.

      Majorly, automobile manufacturers have announced a shutdown of their units in Pakistan due to lower sales. Car Prices in Pakistan have increased as manufacturers increase the prices of CKD models, affecting buyers’ purchasing power.

      Tags: Closed manufacturing plantHondaPakistanWorst Supply Chain
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