Indus Motor Company Suspends Plant Operations For 12 More Days
The Indus Motor Company, responsible for assembling Toyota vehicles in Pakistan, will suspend production from August 25 to September 6 due to reduced demand resulting from lower consumer purchasing power. The announcement was communicated to the Pakistan Stock Exchange (PSX) on Thursday.
Amid the fiscal year 2022-2023, Pakistan’s auto industry faced challenges like diminished consumer buying capacity, higher taxes, and government duties. This combination led to a consistent decline in automobile demand.
Facing these circumstances, Indus Motor Company will temporarily shut down its production plant to match sluggish demand and manage inventory levels. This suspension will last from August 25 to September 6.
Despite an agreement with the International Monetary Fund (IMF), both industries and consumers in Pakistan continue to grapple with financial difficulties.
Numerous sectors, including companies like Sitara Peroxide and Pak Suzuki Motor Company, have already suspended production due to factors like demand fluctuations and supply chain limitations. The automotive sector, in particular, faces economic challenges such as obtaining Letters of Credit (LCs) for imports, high pricing, high interest rates, and currency depreciation.
In the first month of the fiscal year 2023-24, car sales witnessed a significant 57% year-on-year reduction, as reported by the Pakistan Automotive Manufacturers Association (PAMA). In July, registered car manufacturers under PAMA sold a total of 5,092 units, with a 16% month-on-month decline in sales.