Baluchistan Wheels Limited (BWHL), an auto parts maker, on Friday announced to extend the closure of production activities till January 6, citing depressed demand.

BWHL shared the development in its notice to the Pakistan Stock Exchange (PSX).

“As explained earlier vide our letters dated December 09, 2022, and December 23, 2022, regarding temporary closure of production activities due to a drop in our sales orders from the OEM’s [Original Equipment Manufacturers] owing to depressed demand of autos.

“It hereby further informed that closure of production activities of the company shall continue till Friday, January 06, 2023,” read the statement.

Earlier this month, the management of BWHL, which is engaged in manufacturing and marketing automotive wheel rims for trucks, buses, tractors, cars and mini-commercial vehicles, decided to temporarily close or stop production activity due to depressed demand for autos in the market, from December 12, 2022, till December 23, 2022.

“The company is facing a drop in sales orders from the OEMs,” said the company then.

Subsequently, the company on December 23 announced to prolong its closure of production activities till December 30.

Days ago, Pak Suzuki Motor Company Limited (PSMCL) decided to completely shut down its plant for both automobiles and motorcycles from January 2, 2023, to January 6, 2023, due to inventory shortage.

Moreover, Indus Motor Company (IMC), the assembler of Toyota-brand automobiles in Pakistan, announced that it will completely shut down its production plant from December 20 to December 30, citing its struggle with delays pertaining to approval for imports.

The country’s auto industry, highly dependent on imports, has been caught in the midst of a crisis, as the SBP, after unabated rupee depreciation, imposed restrictions on opening of Letters of Credit (LCs).

It has recently rolled back restrictions, but subject to Pakistan’s foreign exchange position, which has weakened further in recent weeks.