Indus Motor Company Limited (IMC), the manufacturer of Toyota vehicles in Pakistan, has announced a temporary shutdown of its production plant, citing low inventory levels and ongoing supply chain challenges.
In a notice to the Pakistan Stock Exchange (PSX) on Wednesday, the company stated, “We are currently experiencing low inventory of raw materials and components, alongside continuous supply chain disruptions, leading to shortages in the parts necessary for vehicle manufacturing. Under these circumstances, we are unable to meet our production requirements.”
As a result, IMC has decided to close its production plant from August 6 to August 8, 2024.
Pakistan’s automotive sector is currently facing pressure due to slowing economic growth, rising inflation, and high borrowing costs, all of which have affected vehicle sales. Analysts also point out that the sector’s heavy reliance on imports, coupled with price increases linked to the dollar’s appreciation, has further strained the industry, with many advocating for greater localization to reduce dependency on imports.
Recently, IMC announced the initiation of vehicle exports to other Toyota-affiliated companies, marking a step towards expanding its business and contributing to Pakistan’s international market presence. However, the company noted that the financial benefits from this export activity are minimal at this stage and do not significantly impact its overall business.
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