Ahmed Mukhtar Naqshbandi
ISLAMABAD: Indus Motors Company (IMC), the maker of Toyota vehicles, has decided to “completely” shut down its production plant in Pakistan from the first till the 14th of February, citing “insufficient inventory levels” as the basic reason.
While sending a letter to the general manager of the Pakistan Stock Exchange, the IMC management mentioned that in light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022 (effective from January 2), the commercial banks were advised to prioritize/facilitate the imports to particular sectors only, which does not include auto sector.
“The company and its relevant vendors continue to face major issues in import of raw materials and receiving clearance of their consignments from commercial banks,” the notice further mentioned.
The Toyota manufacturer further said that these laggards had disturbed the entire supply chain, and the vendors could not supply raw materials and components to the company.
Toyota manufacturer IMC’s stance
“Accordingly, the company has insufficient inventory levels and is unable to continue its production activities,” the notice mentioned.
Accordingly, the automaker announced that the company has decided to completely shut down its plant from February 1 to 14.
Besides, the company has also decided to begin its production on a “single shift” basis from February 15 until further notice.
Earlier on December 19 last year, the company announced a 10-day plant shutdown, for the third time in 2022, due to “hurdles in import and clearance of consignments.”
It should be noted that earlier, the IMC also announced another temporary shutdown of the production plant from September 1 to September 15 last year on insufficient inventory levels to maintain its production, as well as on account of a delay in approvals from the SBP for the import of CKD kits and components of the passenger vehicles.
Before that, the company also shut down its plant from August 1 to August 13, 2022.
