Toyota car manufacturer Indus Motor Company (IMC) has chosen to “totally” shut down its production facility in Pakistan from February 1 until February 14 due to “insufficient inventory levels.”
The IMC management stated in a letter to the general manager of the Pakistan Stock Exchange that commercial banks were advised to prioritize/facilitate the imports to specific sectors only, which do not include auto, in light of the recently implemented mechanism via EPD Circular No. 20 of 2022 dated December 27, 2022 (effective from January 2).
The letter stated that “the company and its vendors continue to confront significant obstacles in importing raw materials and obtaining clearance of their consignments from commercial banks.”
The Toyota maker stated that these obstacles have disrupted the entire supply chain, preventing the vendors from supplying the company with raw materials and components.
The notice stated, “Accordingly, the Company has insufficient inventory levels and is unable to continue its production activities.”
The automaker declared that it would shut down entirely from February 1 through February 14. Additionally, the business has made the decision to begin manufacturing on a “single shift” basis beginning on February 15 and continuing until further notice.
For the third time in 2022, the IMC earlier on December 19 declared a 10-day plant stoppage owing to “hurdles in import and clearing of consignments.”
The company informed the PSX that the production facility would be shut down entirely from December 20 to December 30, 2022. (both days inclusive).
It should be mentioned that the IMC declared a temporary halt of its manufacturing facility from September 1 to September 15, 2022, citing a lack of inventory levels to support production as well as a delay in SBP clearances for the import of CKD kits and passenger car components.
Additionally, the business had already closed its facility from August 1 to August 13, 2022.
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