Due to the continuing economic crisis, Pakistan’s automobile industry is struggling much like all other businesses. In the most recent development, Toyota Indus Motor Company (IMC) has temporarily halted automobile production.
Non-production days (NPDs) will be observed by the automaker from February 1 to February 14, 2023. Due to limited supply, the corporation will also switch to single-shift manufacturing from February 15, 2023.
An official notification from Toyota IMC reads:
The company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks. 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.
Last month, the State Bank of Pakistan decided to withdraw the restrictions placed on imports with effect from January 2, 2023. The SBP said that Authorised Dealers (ADs) may prioritise or facilitate imports under essential imports, energy imports, imports by export-oriented industry, imports for agriculture inputs, deferred payment / self-funded imports and import for export-oriented projects near completion.
However, import restrictions due to dollar shortage are still hampering many industries including the auto sector.
The prices of Toyota IMC’s vehicles have already increased twice in a single month. The uncertainty caused by the continued economic decline is now casting doubt on the future of Pakistan’s auto sector.
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