BUSINESS(B-Trams):Due to a lack of raw materials and components, the assembler and seller of Toyota vehicles in Pakistan , Indus Motor Company Limited (INDU), has decided once more to suspend production from March 24 to March 27.
On Friday, the automaker informed the Pakistan Stock Exchange (PSX) of the development.
According to Indus Motor, the difficulties in banks opening Letters of Credit (LCs) for raw materials continue to prevent the company and its vendors from importing raw materials and receiving clearance for their consignments.
The company’s supply chain has been disrupted as a result, and its vendors are unable to supply the company with raw materials and components. As a result, “the company is unable to continue its production and toyota indus motors booking status activities because the company has insufficient inventory levels to maintain production” according to the notice.
Consequently, “the company has decided to completely shut down its production plant from March 24th, 2023 to March 27th, 2023 (both days inclusive)”
This is Indus Motor’s second production shutdown and toyota indus motors booking status announcement this year. An inventory shortage the reason given for the company’s earlier announcement of a complete plant shutdown from February 1 to February 14.
Due to the anticipated dip in production in February and March, it offered its customers a full refund with interest last month.
While CEO Ali Asghar Jamali acknowledged the difficult times for the local auto industry, he stated at the time that one of the most significant issues affecting the auto industry was the restriction on CKD kits, causing manufacturers to operate at 40-45% of their capacity.
Since the State Bank of Pakistan (SBP) imposed restrictions on the opening of LCs following an unabated rupee depreciation, Pakistan’s auto industry, which is heavily dependent on imports, has caught in the middle of a crisis. The country’s low foreign exchange reserves continue to impede industry operations.
The central bank made the decision to lift import restrictions in January.read more…
The SBP said that Approved Vendors (Advertisements) may focus on or work with imports under fundamental imports, energy imports, imports by trade situated industry, imports for horticulture inputs, conceded installment/self-supported imports and import for send out arranged projects close to the end.
However, many businesses, including the auto industry, continue to suffer from import restrictions brought on by the dearth of dollars.