Assembler and distributor of Toyota vehicles in Pakistan, Indus Motor Company Limited (IMC), has announced that production will be suspended for a short period of time. The company will cease all operations from February 1st through February 14th, 2023, in order to address inventory shortages. As a result of its decision, the company informed the Pakistan Stock Exchange (PSX) on Tuesday.
Inventory shortages have been attributed to difficulties in importing raw materials and clearing consignments with commercial banks. In light of the recent devaluation of the rupee, Toyota has recently increased the price of its vehicles.
Toyota has temporarily halted production in Pakistan on numerous occasions in the past. Similar inventory issues led to the suspension of operations in December of last year.
In spite of efforts by the State Bank of Pakistan to ease imports by reducing custom duty taxes on CKD kits earlier this month, restrictions on imports persist due to the shortage of dollars, negatively impacting the automotive industry. Until further notice, operations will resume on February 15th on a single shift basis.
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