Automaker airlifts parts over geopolitical risks
British automaker MG has said that they have taken swift action to overcome recent disruptions to its supply chain by airlifting critical vehicle components to Pakistan.
The move comes in response to delays caused by geopolitical issues that temporarily rerouted shipments, affecting the delivery schedule for certain colour options for their HS PHEV – Pakistan's first locally assembled plug-in hybrid electric vehicle.
To minimise customer inconvenience and get production fully back on track, the company opted for the faster, though more expensive, method of air transport for essential parts. MG Pakistan General Manager Marketing Division Syed Asif Ahmed stated that production has now resumed at full pace and deliveries are restarting immediately, emphasising that getting vehicles to customers with minimal further delay is their top priority.
Managing logistics for automobile manufacturing in Pakistan poses significant challenges for global automakers, especially in today's world, where competition between Japanese, European and Chinese automakers is becoming intense in Pakistan and globally.
The country relies heavily on imported parts, especially for new variants, which makes supply chains vulnerable to international shipping delays, port congestion, complex customs procedures and fluctuations in global freight costs. Geopolitical instability in surrounding regions can further complicate shipping routes, as MG Pakistan recently experienced, creating bottlenecks and forcing rerouting.
Infrastructure limitations within Pakistan, including the transportation networks, also add layers of complexity to ensuring parts arrive at assembly plants just in time for production.
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