Toyota Shuts Down Production in Pakistan – Latest Update

Latest Update:

Toyota Shuts Down Production – Considering the low sales and minimal parts inventory levels, Toyota Indus has decided to shut down production plant for 2 weeks (From Friday, 25 August, 2023 To Wednesday, 6 September, 2023).

Previous Update (Toyota Shuts Down Production – July 2023)

Toyota Indus once again shut down car production in Pakistan from July 21, 2023 to August 3, 2023 due to lack of CKD kit. This comes despite the government lifting the import ban under pressure from 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.

As far as the mechanism seems good, but then there is a situation that many of us face in Pakistan (especially in the government department), delay in approvals. Yes! In a letter to Pakistan Stock Exchange, Toyota said, “Delays in the above-mentioned approvals for companies and traders have caused difficulties in clearing goods from imports for raw materials and spare parts.”

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.

Due to the decline in sales and LC issues, company has to shut down production. As a result, we can expect 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 leave the Pakistani market due to the prolonged bad economic situation.

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

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