KARACHI – Indus Motor Company Limited, a leading player in Pakistan’s automotive industry and the manufacturer of Toyota vehicles, has taken the decision to temporarily shut down its production plant for a duration of two weeks.
This move comes in response to significant challenges the company has been facing in importing raw materials, which have led to disruptions in its supply chain. Last month, the company experienced a brief shutdown due to similar raw material import issues, but the current situation has worsened, leaving them with inadequate inventory levels to sustain production.
The company’s secretary released a statement outlining the difficulties they and their vendors are encountering in importing raw materials and clearing consignments. Key challenges include problems with opening letters of credit (LCs) and supply issues from certain foreign vendors.
As a result, Indus Motor has no choice but to halt its production activities temporarily. The plant will remain closed from July 21, 2023, to August 3, 2023. It’s worth noting that other prominent automotive manufacturers in Pakistan, such as Pak Suzuki Motors and Honda Cars, have also faced shutdowns due to raw material scarcity in recent months, highlighting a broader issue in the industry.
The shortage of foreign exchange reserves in Pakistan has severely impacted industries reliant on imported raw materials, including the automotive sector. The struggle to open LCs has disrupted the supply chain and resulted in production delays.
Toyota manufacturer shuts production plant in Pakistan owing to import hurdles
