ISLAMABAD/KARACHI: As Pakistan is reeling under the worst economic crisis, Honda automaker announced that it will end production in the cash-strapped country by the end of March after 20 years.
The Japan-based Honda company cited disruption in the supply chain, due to economic deterioration, and a ban on raw materials and CKD imports as the reasons for the shutdown.
Honda auto industry in Pakistan
Since July 2022, the Honda auto industry in Pakistan has been facing production cuts and delivery delays due to import restrictions.
Some automakers offered customers to cancel their vehicle bookings and receive full refunds with a markup.
Due to its reliance on imports, the auto industry also feels the effects of the rupee devaluation. The State Bank of Pakistan’s restrictions on letters of credit is also causing import delays and inventory rate hikes.
