Indus Motor Company (IMC), the assemblers of Toyota vehicles in Pakistan, has said that it is shutting down its plant for two weeks due to inventory shortages.
In a notice filed to the Pakistan Stock Exchange (PSX) on Tuesday, the company said that recent changes by the government in import rules have adversely affected its business, disrupting its supply chain and resulting in insufficient inventory levels to continue production. The notice reads:
“In light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022, (effective from 2nd January 2023), commercial banks are advised to prioritize/facilitate the imports to specified sectors only, which does not include auto sector. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company. Accordingly, the company has insufficient inventory levels, therefore, the company is unable to continue its production activities.“
IMC says it will resume production activities from 15th February 2023 on only a single-shift basis until further notice. The company had closed down production plants for 10 days in a similar manner last month, citing the unavailability of letters of credit (LCs) following a State Bank of Pakistan restriction on the import of auto parts.
Related: IMC Announces Another Increase in Toyota Car Prices
This comes after the company announced two price hikes in January 2023 following the country’s volatile foreign exchange situation and increase in the price of utilities and overheads.
Source: The Express Tribune
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
wpDiscuz
