Breaking: Toyota Shuts Down its Production Now in Pakistan

Due to inventory shortages, the Toyota Indus Motor Company (IMC) has decided to shut down its production plant from March 6 to March 11, 2024.

Toyota Previous Updates (July & August 2023)

• Due to inventory shortages, the Indus Motor Company (IMC) has decided to shut down its production plant from October 17 to November 17, 2023.
• Facing inventory shortages, the Indus Motor Company (IMC) has opted to halt production at its plant from September 28th through October 9th, 2023.
• While considering the low demand and inventory levels, the company has decided to close its production plant from Friday, August 25, 2023, to Wednesday, September 6, 2023.
• Toyota Indus has once again shut down its car production in Pakistan from July 21 to Aug 3 due to a lack of CKD kits. This comes despite the fact that the government lifted import restrictions under pressure from the IMF.

This year has not been a good year for the Pakistani automobile industry. Toyota has temporarily closed its factory in Pakistan. This is because of the new mechanism introduced by the State Bank of Pakistan. Under this new mechanism, car companies must obtain approval before importing CKD kits and spare parts for passenger cars in Pakistan.

As far as the mechanism seems good, there is a situation that many of us face in Pakistan (especially in the government department); delay in approvals. Yes! In a letter to the Pakistan Stock Exchange, Toyota said, “Delay in the aforesaid approvals for the company and its vendors has created a huddle in the import clearance of consignments for raw materials and components of the company.”

This leads to insufficient inventory levels, which affects the supply chain and other manufacturing operations. Consequently, Toyota Pakistan announced non-production days from December 2022 to December 30, 2022 (11 days).

Toyota’s Declining Sales

Note that Toyota sales are also down compared to previous years (PAMA Source). One of the main reasons for this decline is the frequent increase in prices this year, which has led many people to buy used Toyota cars in Pakistan.

Also check: Bikes or Cars, Buy & Sell Now With Top Classifieds Pakistan

Due to the decline in sales, low demand, and LC issues, the company had to shut down production. As a result, we can expect a further decline in sales.

It should be noted that Suzuki Pakistan has been shutting down its factories frequently since last year. We can only hope that the company will not start pulling out of the Pakistani market due to the prolonged bad economic situation.

Also check: Pak Suzuki Faces Another Plant Closure Now: June 2023

Stay tuned for more information about the automotive industry in Pakistan.