September 13, 2023
Economy Pakistan

Auto Parts Maker Agriauto Industries to Partially Close Plant Due to Reduced Production Demand

Auto parts manufacturer Agriauto Industries Limited has announced plans to partially close its plant in March due to reduced production demand from its major customers, which include car assemblers, bike makers, and tractor manufacturers. The company’s clients include the top players in the Pakistani car industry, including Suzuki, Toyota, and Atlas Honda.

The auto industry in Pakistan is currently facing production closures due to the ongoing economic meltdown. Several Pakistani industries have shut down in recent months due to market demand and issues with maintaining inventory, caused by problems with Letters of Credit (LC).

The Pakistani Rupee took a nosedive against the US dollar on March 2, leading to another wave of price hikes. Lucky Motor Corporation (Kia and Peugeot) and Hyundai Nishat Motors have recently increased the prices of their vehicles, and other automakers are expected to follow suit soon due to the depreciation of the PKR.

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