The Pakistani economy continues to struggle in the midst of financial turmoil, which has led to production cuts and complete shutdowns in Pakistan’s automobile industry. As a result of reduced production in February and March, Toyota Indus Motors will be returning booking payments with a markup.
According to the CEO of Indus Motor Company (IMC), recent import restrictions have severely impacted the local car industry, which is currently operating at 40-45% of its capacity. The CEO warns that unless these restrictions are eased, complete plant closures and non-production will become inevitable. As a result of the devaluation of the rupee, production costs are also increasing, resulting in reduced volumes, supply and demand problems, and low margins.
In the past, IMC has refunded its customers 100% due to uncertainty in delivery dates, but this is not the first time it has done so. The company has now announced a two-week production halt from February 1st to February 14th 2023, due to inventory shortages. It remains a challenge for IMC to import raw materials and clear consignments with commercial banks.
Due to the devaluation of the rupee, Indus Motor Company Limited (IMC Ltd.), the assembler and distributor of Toyota vehicles in Pakistan, has been forced to shut down operations for two weeks. Manufacturers and consumers alike are concerned about the current economic situation affecting the local auto industry.
There is an urgent need for the incumbent government to act immediately in order to restore political stability and stability to the nation’s economic graphs. The future of the local auto industry rests on the government’s ability to address these challenges and support the growth of local businesses.
