Toyota Indus Motor Company (IMC), the assembler of Toyota cars in Pakistan, has decided to start offering 100% refunds to customers along with a mark-up payment if they decide to cancel their orders.
In an official statement issued by Toyota IMC, the company said that it is facing unprecedented difficulties in its operations due to factors beyond the Company’s control.
According to the notification, Toyota IMC says that it will issue a 100% refund to customers along with a mark-up payment if they decide to cancel their orders. It added that “mark-up shall be paid from the date of receipt of payment by the company to the date of cancellation of the order, without any deduction of administrative charges.”
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The company explained that the unforeseen devaluation of the Pakistani Rupee against the US Dollar (USD to PKR) along with the inability to obtain Letters of Credit (LCs) for the import of Completely Knocked Down (CKD) kits has created a disrupted the production process for the company, which will lead to delays in vehicle delivery.
— Economy of Pakistan (@Pakistanomy) July 27, 2022
It is pertinent to mention that reports of Toyota Indus Motor Company (IMC) shutting down production in Pakistan have been going around for a few days and while the company is not going to shut production completely, it will observe non-production days (NPDs) to cope with the unavailability of CKD kits.
Pakistan’s car industry in decline?
Owing to the dire economic trends currently in Pakistan, many auto manufacturers are facing difficulties and are mulling complete or partial shutdowns.
Pakistan’s two leading car assemblers, Toyota and Suzuki, plan partial plant shutdowns next month due to the unavailability of raw materials amid import restrictions and exchange rate volatility.
To clarify, the government in recent weeks has attempted to curb imports in the face of fast depleting foreign reserves, a declining currency, and a widening current account deficit. As a result, industries that rely on imports to complete finished goods have been severely impacted.
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