A day after the Indus Motor Company (IMC) delegation met Prime Minister Shehbaz Sharif and showcased the first locally-manufactured unit of Corolla Cross Hybrid Electric Vehicle (HEV), the company announced another plant shutdown. 

Toyota Pakistan Statement 

In a notification to Pakistan Stock Exchange (PSX), the assembler of Toyota vehicles said its production will remain suspended from June 3 to June 8, 2023. “The production is halted due to Letters of Credit (LCs0) issue and inventory shortage,” the company said. It added that IMC’s vendors continue to face problems in importing raw materials and receiving clearance of their consignments due to challenges in opening LCs and supply issues by certain foreign vendors. 

“This has disrupted the company’s supply chain, and vendors are unable to supply raw materials and components to the company,” the notice mentioned, adding that the company has insufficient inventory levels to maintain production. Therefore, it is unable to continue its production activities. 

“In view of the above, the company has decided to completely shut down its production plant from June 3, 2023, to June 8, 2023 (both days inclusive),” IMC said. 

Previous Shutdowns

It is pertinent to mention that this is IMC’s fourth production shutdown of this year. Earlier, it announced shutdowns on these dates: 

• February 1 to February 14
• March 24 to March 27
• May 2 to May 3

Along with Toyota, other car assemblers, especially Suzuki Pakistan and Honda Atlas, have announced multiple closures of their production plants due to the same reasons mentioned above. Worriedly, the situation is going from bad to worse with each passing day, and unstable forex exchange is playing an additional primary role in this plight. Not only is the production effective for these companies, but sales have also automatically taken a serious hit since the start of 2023. 

What is your take on the latest plant shutdown of Toyota Pakistan? What would be the impacts on the local car industry? Please share your thoughts with us in the comments section.