On Thursday, an auto parts manufacturer Agriauto Industries Limitedinformed the Pakistan Stock Exchange (PSX) that it would partially closeits plant in March.
The official notice cited reduced production volumes of its majorcustomers, which include car assemblers, bike makers, and tractormanufacturers. Its clients also include ‘the big three’ of the Pakistanicar industry — Suzuki, Toyota, and Atlas Honda.
The carmakers themselves are also facing production closures due to theongoing economic meltdown. In recent months, dozens of Pakistani industrieshave shut down, citing market demand and the inability to maintaininventory due to Letters of Credit (LC) issues.
On March 2, the Pakistani Rupee took a nosedive against the US dollar,which opened the floodgates for another wave of price hikes. Recently,Lucky Motor Corporation (Kia and Peugeot) as well as Hyundai Nishat Motorsincreased the prices of their vehicles.
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With the new PKR depreciation update, other automakers are likely toannounce price hikes very soon.
