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The assembler of Toyota cars, Indus Motor Company, has said that production will be shut down from September 26th to 30th, 2024 due to part scarcity. This was revealed by the company in a notice it filed with the Pakistan Stock Exchange (PSX) on Wednesday.
“The company is currently experiencing low levels of raw material and component inventory and facing ongoing supply chain challenges. This has resulted in a shortage of parts and components necessary for vehicle production. As a result, the company is unable to meet its production requirements,” read the notice.
The company currently has a low stock of raw materials and component inventory apart from supply chain issues. This has led to a scarcity of parts and other components needed to assemble automobiles hence posing a major challenge.
“Consequently, the company has decided to temporarily suspend operations at its production plant from September 26, 2024, to September 30, 2024, both days inclusive,” it added.
The company said it could not serve the production needs, and thus, Indus Motor Company shut down its plant from August 6 to 8 for the same reasons.
Pakistan’s auto industry is under pressure as the country’s economic expansion continues to weaken, the inflation rate ticks up, and credit costs surge which has affected sales of vehicles.
Industry analysts argue that the sector imports most of its raw materials and has been raising prices every time the dollar rises, provoking demands for greater localization.
This was revealed earlier this month when Indus Motor Company Limited (INDU) disclosed that its board has endorsed an investment of Rs 1.1 billion ($3.94 million) aimed at increasing localization. It comes after the company announced a Rs 3 billion investment in February.
The auto assembler recorded FY24 revenues of Rs 152.48 billion, compared to Rs 177.71 billion in the corresponding period of the last year, a decline of 14%. However, the company realized a gross profit of Rs 19.38 billion in FY24, down from Rs 7.93 billion in the previous year, because of lower costs of sales.
INDU was formed through a Joint Venture between House of Habib companies, Toyota Motor Corporation, and Toyota Tsusho Corporation for assembling, progressive manufacturing, and marketing of Toyota cars.
It is the official dealer of all the Toyota models in Pakistan and has a license for assembling & progressive manufacturing in Pakistan only.
