GNL halts production on parts shortages

GNL deferred production of parts squeezing

Ghandhara Nissan Ltd (GNL), the assembler of Dongfeng and JAC vehicles, on Monday announced production suspension from March 6-10 due to a shortage of parts.

In a stock filing, the company also informed that from March 13 it would start production activities on an alternative weekly basis until further notice.

The company said its vendors continued to face major hurdles in the import of raw materials and receiving clearance for their consignments from commercial banks.

This has disrupted the entire supply chain and vendors are unable to supply raw materials and components to the company, GNL added.

Meanwhile, Sazgar Engi­neering Ltd on Monday resumed car production after keeping it suspended from Feb 27 to March 4 due to government restrictions on the import of completely knocked-down kits and raw materials of vehicles.

In the meantime, the Pakistan Association of Aut­omotive Parts and Accessories Manufactures has expressed its deepest concerns about the industry’s rapidly deteriorating situation due to the country’s worsening economic conditions mainly the ru­pee depreciation and import curbs have led to large-scale production shut­downs triggering drastic layoffs across the auto sector.

Chery has also become popular among crossover shoppers across Pakistan. Although, the recent decline in production and sales has dampened the company’s progress.

Furthermore, the turbulent currency value is also taking a toll on car prices, subsequently causing the demand to decline. Experts reckon that this situation is likely to persist, which may lead to a mass exodus of several new automakers.