Honda Atlas, the smallest of the “BIG 3” automobile assemblers in Pakistan, has been hit hard by the current economic crisis and is now facing an extended production shutdown until May 15. The company cited supply chain disruptions, inventory shortages caused by LC restrictions, and the overall economic downturn as reasons behind this move.
The prolonged suspension of production comes as a result of non-production days (NPDs) being observed by assemblers since August of last year at regular intervals. However, Honda’s current streak of NPDs started in March 2023, when the company announced it would keep its plant shut from the 9th to the 31st of that month.
Honda then prolonged the suspension from April 1 to April 15, with a subsequent notice specifying that the outage would last from April 16 through April 30, thus keeping the plant shut for the entire month of April. Now, the latest notification has announced an extension of the production closure from May 1 to May 15, which means that Honda’s assembly plant will be closed for a total of 67 consecutive days by the end of the latest production pause.
The Honda Atlas extended shutdown will likely impact the delivery of in-hand orders and have a significant impact on Honda’s sales and revenue. The company’s financial health has already been strained by the economic crisis, and the prolonged production shutdown is expected to worsen the situation.
Honda Atlas has been struggling in recent months due to a shortage of parts caused by supply chain disruptions and LC restrictions. These issues have resulted in a decline in production, which has affected the company’s sales and revenue. The prolonged shutdown of the assembly plant is expected to exacerbate these problems, further hampering the company’s ability to meet demand and maintain its financial stability.