KARACHI – Indus Motor Company, the maker of Toyota vehicles in Pakistan, has again decided to shut down its production plant in Pakistan supply chain disruptions.
One of the leading auto manufacturers shared the development in a letter sent to the Pakistan Stock Exchange (PSX) on Thursday.
In a recent announcement, Indus Motor announced a complete shutdown of its plant from August 25 to September 06, 2023, amid supply chain disruptions.
The company flagged a challenging environment, low consumer purchasing power, and an increase in duties and taxes by the government. The latter said Indus Motors and its vendors are facing significant hurdles in importing raw materials and receiving clearance for their consignments.
Therefore, the auto-giant cited insufficient inventory levels, saying it cannot continue its production activities.
This is the second shutdown in recent weeks earlier the company’s announced a complete shutdown of its plant from July 21 to August 3, 2023.
Pakistan’s auto industry has been facing severe issues mostly due to import curbs while carmakers are offering customers to cancel bookings and claim refunds.
Amid staggering price hikes, the sales of several vehicles also plunged as the auto industry bears the brunt amid an uncertain economic situation.
Pakistan’s auto industry is mostly dependent on imports and remained under stress amid the shocking depreciation of the local currency, and imposed curbs on the LCs.
