KARACHI: After a massive drop in sales of automobiles since July, auto parts vendors have suspended production, leaving a large number of workers unemployed.
Bolan Castings Limited (BCL), a manufacturer of various auto parts for tractors and commercial vehicles, has informed the Pakistan Stock Exchange (PSX) that it has suspended its production activities from December 5 to December 23, due to sales There is a shortage due to a huge shortage. Orders from its collectors.
BCL’s revenue fell to 474 million in 3MFY23 from 621 million in the corresponding period last fiscal.
Production activities of Balochistan Wheels Ltd (BWL), a maker of steel wheel rims for cars, heavy vehicles and farm tractors, will remain suspended from December 12 to 23 due to low orders from assemblers, the company said in a stock filing. Friday. BWL’s revenue fell 26pc to Rs 403m in 3MFY23 from Rs 547m in the same period last fiscal.
Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) Chairman Munir K Bana told JEE News that the situation in the vending industry was alarming as most manufacturers were operating at half their capacity due to low demand from assemblers. . Decline in sales since July this year.
“Most auto vendors have laid off 30 percent of their permanent and casual employees and 20 percent of employees are working on low wages,” he claimed.
Import restrictions imposed by the State Bank of Pakistan had not only created a shortage of parts in auto manufacturing but also resulted in heavy demurrage and detention charges for late port clearance.
BWL Chief Operating Officer Mohammad Irfan Ghani said the tractor industry has been facing a sharp drop in production since July due to recent floods, restrictions on import of parts, delays in sales tax refunds and uncertain exchange rates.
In other auto segments, they claimed to have informed the Ministry of Industries and the Federal Board of Revenue that the average rate of local parts in various vehicles has been stable at 30 percent since 2000.
