Pakistan’s Toyota manufacturer shuts down the plant for two weeks

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Pakistan's Toyota manufacturer shuts down the plant for two weeks

Indus Motor Company Limited, a significant player in Pakistan’s car sector and a producer of Toyota vehicles has temporarily shut down its production facility for two weeks, according to The News on Friday.

The selection is being made as the business experiences significant challenges importing raw materials, causing disruptions in its supply chain. Due to comparable issues with importing raw materials last month, Indus Motors briefly shut down its plant for production.

The company now has insufficient inventory levels to support its production activities since the current scenario has gotten worse.

Indus Motor’s company secretary told the Pakistan Stock Exchange of the problems the business and its vendors are having with the importation of raw materials and the clearance of deliveries.

Due to these difficulties, the company is forced to temporarily stop its production activity.

Between July 21, 2023, and August 3, 2023, the facility will be totally shut down. The lack of raw materials affects numerous automakers than just Indus Motors. Other shutdown days have recently taken place at other prominent companies like Pak Suzuki Motors and Honda Cars as a result of related problems. Due to a lack of foreign exchange reserves in Pakistan, the automobile industry has been having trouble, along with other industries dependent on imported raw materials.

The supply chain’s capacity to run smoothly has been seriously hampered by the effort to open LC, which has caused industrial activities to be halted.

Indus Motors has a substantial position in the auto sector in Pakistan and has committed $100 million to local HEV growth. With over 50 part manufacturers contributing to the value chain by producing parts worth over Rs250 million each working day, the company has played a critical role in developing the local automotive ecosystem.

In addition, the company has built 53 independently owned approved dealerships that offer consumers after-sales support, creating employment prospects for over 450,000 people across Pakistan both directly and indirectly.

The company, its employees, and the entire automotive industry face challenges as a result of the temporary closure of the production facilities.

The management of Indus Motor Company Limited is probably looking for solutions to deal with the shortage of raw materials and resume operations as soon as circumstances allow. According to one analyst, developing long-term solutions to guarantee a steady supply of raw materials for automobile manufacturing and other impacted industries might call for collaboration between the government and relevant players.

To reduce the effects of these closures on the economy while preserving the growth trajectory of Pakistan’s automotive sector, quick action and innovative approaches would be required.

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