Indus Motors Company (IMC), the manufacturer of Toyota vehicles in Pakistan, has announced the temporary closure of its production plant due to disruptions in the company’s supply chain. The decision was made due to delays in the opening of Letters of Credit (LCs) and inventory shortages.
In a letter addressed to the general manager of the Pakistan Stock Exchange (PSX), the IMC management explained that their vendors are facing challenges in importing raw materials and obtaining clearance for their consignments. These hurdles have led to disruptions in the supply chain, preventing vendors from supplying the necessary components and materials to Indus Motors.
As a result, the company has insufficient inventory levels to maintain production, forcing them to shut down their production plant from June 3 to June 8. This closure is intended to address the supply chain issues and ensure that production can resume smoothly.
The decision to temporarily shut down the production plant comes after a meeting between Prime Minister Shehbaz Sharif and President Toyota Asia Yoshiki Konishi, along with the CEO of Indus Motors, Ali Asghar Jamali.
It is worth mentioning that the auto sector in Pakistan has been facing various challenges, leading to several automakers announcing complete or partial shutdowns in recent months. The State Bank of Pakistan (SBP) imposed restrictions on the opening of Letters of Credit due to the depreciation of the rupee, which has affected industries’ operations as the country’s reserves reached critical levels.
This marks the fourth production closure announcement by Indus Motors this year. The company previously shut down its plant from February 1 to February 14, May 2 to May 3, and March 24 to March 27.
The temporary closure reflects the ongoing challenges faced by the auto industry in Pakistan, highlighting the need for a stable supply chain and measures to address currency depreciation and other operational hurdles.
