Indus Motor Company Limited (IMC), the assembler/manufacturer of Toyota-brand vehicles in Pakistan, again said it has temporarily shut down production plant citing low level of inventory and supply chain challenges.
The automaker shared the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The company is currently having low level of inventory of raw materials and components and facing continuous supply chain challenges, resulting in shortages of parts and components for manufacturing of vehicles.
“Under these circumstances, the company is unable to meet its production requirements,” it said.
“Therefore, the company has decided to temporarily close its production plant from August 6, 2024, to August 8, 2024, inclusive of both dates,” it added.
Pakistan’s auto sector has been under pressure with the country’s slowing economic growth, spiking inflation, and high costs of borrowing denting sales of vehicles.
Analysts say it hasn’t helped that the sector – heavily reliant on imports – has moved to increase prices in tandem with the dollar’s appreciation with many calling for higher localisation to counter the dependency.
Days ago, IMC said it initiated the export of certain vehicles to other Toyota-affiliated companies.
“We are pleased to announce that IMC has commenced an export activity of certain vehicles to other Toyota affiliated companies,” the company said back then.
Indus Motor temporarily halts production citing inventory shortage
“This event not only highlights our dedication to expanding our business horizons but also underscores our commitment to contributing to Pakistan’s presence in the international market,” it added.
The company said that while this initiative marks a significant step, “it is important to note that, at this initial stage, the financial benefits from this export activity are minimal”.
“The impact on our overall business remains insignificant and immaterial,” read the notice.
“We consider this information immaterial at this point,” it added.
Comments