Indus Motors Company (IMC), the maker of Toyota vehicles, has decided to “completely” shut down its production plant in the country from February 1-14, citing “insufficient inventory levels” as the reason.
In a letter addressed to the general manager of the Pakistan Stock Exchange, the IMC management said that in light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022 (effective from January 2), commercial banks were advised to prioritise/facilitate the imports to specified sectors only, which does not include auto sector.
“The company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks,” the notice read.
The Toyota manufacturer mentioned that these laggards have disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company.
“Accordingly, the company has insufficient inventory levels, therefore, the company is unable to continue its production activities,” the notice read.
The automaker announced that the company has decided to completely shut down its plant from February 1 to 14.
Moreover, the company has also decided to start its production on a “single shift” basis from February 15 until further notice.
Earlier on December 19, the IMC announced a 10-day plant shutdown — the third time in 2022 — due to “hurdles in import and clearance of consignments”.
The company, in a notice sent to the PSX, had said that the production plant will be completely shut down from December 20 to December 30 (both days inclusive).
It should be noted that the IMC had announced a temporary shutdown of its production plant from September 1 to September 15, 2022 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 passenger vehicles.
The company had also shut down its plant earlier from August 1 to August 13, 2022.