In today’s update on badly impacted business community due to deteriorating economic conditions, Indus Motor Company Limited (IMC), the manufacturer of Toyota cars in Pakistan sent a letter to Pakistan Stock Exchange stating that it has decided to temporarily shutdown its production plant from August 1, 2022 to August 13, 2022.
Read more: Major downturn in auto industry of Pakistan
The letter read that due to unforeseen devaluation of the Pakistani Rupee, coupled with the Government restrictions, including the LC approval constraints rendering it impossible to import CKD kits without prior permission, and the continuing economic instability, the company is facing hurdles in import of CKD kits and components which is adversely affecting the supply chain and production activities.
The IMC claimed, “the aforesaid delay and unforeseen factors have resulted in insufficient inventory levels as would be required to maintain further production. The situation is forcing the company towards a temporary production to shut down and closure of the company’s plant.”
In a statement issued by the company on July 27, 2022, the company stated that taking the economic challenges and uncertainty into consideration, customers who wish to cancel their order bookings will be refunded 100 per cent of the deposited amount along with a mark-up payment.
Read more: Toyota IMC offers 100% refund as it fails to meet delivery deadlines
In light of this uncertainty, the tentative delivery timelines mentioned in the PBO for pending orders are being provisionally pushed back by at least 3 months. The price prevailing at the time of delivery shall continue to be applicable.
However, looking at the prevailing situations, it was already apprehended that the auto industry of Pakistan is prepared for a major downturn, as rupee depreciation, increased taxes, and rising fuel prices all weigh on the industry’s outlook.