The automotive industry continues to face troubles due to the economy’s continuous deterioration. Honda Atlas has recently announced that they will be extending their production shutdown for an additional 15 days.
The reasons cited for this lengthy shutdown are supply chain disruption due to the economy’s deterioration and restrictions on raw materials and CKD imports.
According to an official notification, the last production shutdown began on March 9th and lasted until March 31st. The latest shutdown will begin on April 1st and continue until April 15th. This implies that Honda will have observed a car assembly shutdown in Pakistan for 38 days by the end of this shutdown.
This will likely have a significant impact on Honda’s sales and revenue. The company had already seen a decline in sales in February, primarily due to poor City and HR-V sales, which are usually the company’s star players.
It remains to be seen how the current dry spell will affect car sales going forward. Honda is expected to face challenges in terms of meeting customer demand due to the supply chain disruptions and import restrictions, which could lead to further production shutdowns.