Indus Motor Company is shutting down its plant for 3 days because of a significant shortage of parts, a direct consequence of delays caused by port congestion all across Asia.
According to Indus Motor Company’s Chief Executive Officer, Ali Asghar Jamali, the company will call workers to work overtime as compensation for production loss.
Pakistan’s overall car production fell by 14.4 per cent to 39,175 units in 4MFY21 while production in October also sunk to 11,601 units from 12,117 units in the preceding month.
Munir K. Bana, CEO of Loads Ltd, stated that an immediate arrangement of airlifting of parts had to take place in order to meet the sudden rise in demand rates from assemblers as shipments were stuck in transit, with deliveries being delayed due to backlog in various Asian countries.
Abdul Rehman Aizaz, chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), said that a global disorder in supply chains has caused raw materials such as aluminum, copper, steel and plastics to encounter a jump of 40-50pc from July till to date, leading to the bludgeoning of input costs for auto parts manufacturers.