Pakistan’s economy is currently experiencing the worst financial turmoil in decades, placing the country’s industry under a new state of lockdown. Following the first signs of a back-to-back decline in output from local automakers, Toyota recently began refunding booking amounts to customers who had no production.
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Toyota Indus Motors announced that it would refund the booking fee plus a markup because it was unable to produce a sizable number of vehicles in February and March. The chief executive of Indus Motor Company (IMC) claims that the local auto industry has been completely destroyed by the most recent import restrictions. The current administration must act right away to stabilize the declining economic trends and establish political stability.
Right now, we’re only allowed to operate at 40 to 45 percent of our potential. If these restrictions are not lifted, complete plant closures and complete non-production are likely, he added.
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The speaker continued, “The persistent depreciation of the rupee will drive up manufacturing costs, thereby constraining manufacturers’ bottom lines in the upcoming quarters due to reduced volumes, demand and supply issues, and low margins.”
It’s also noteworthy that IMC has in the past declared a 100% refund. Due to delays in delivery dates, the company has in the past refunded booking payments with interest.
Production Stops at IMC for Two Weeks
Toyota IMC has announced that from February 1 through February 14, 2023, it will completely halt production due to a lack of inventories.
Indus Motor Company Limited (IMC Ltd.) is a Pakistani automaker and distributor of Toyota vehicles. Due to the devaluation of the Indian Rupee, Toyota has increased vehicle prices and is now suspending operations for two full weeks.
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This operation’s delay is primarily due to a lack of inventory. The company claimed that it still has trouble importing raw materials and getting the approval of its shipments from commercial banks.
What impact do you think the current economic situation is having on the local auto industry? Fill out the space for comments with your thoughts.
