Toyota’s Indus Motor Company (IMC) has announced to shut down its production plant and observe 11 Non-Production Days (NDPs) due to shortage of raw materials and components arising from restrictions of Completely Knocked Down (CKD) kits.
In a letter letter issued by the company to the Pakistan Stock Exchange (PSX), the company said that under the new mechanism introduced by the State Bank of Pakistan (SBP), a prior approval is required for import of CKD kits and components for the production of passenger cars, which creates hurdles for the ocmpany.
“This has resulted in insufficient inventory levels and consequently have created an adverse impact on the supply chain and production activities.” said the company. “Therefore, the company is unable to continue its production activities.” it added.
“In light of the above, the company [Toyota IMC] has decided to completely shut down its production plant from December 20, 2022 to December 30, 2022 (both days included).” it concluded.
It means that Toyota Indus Motor Company’s (IMC) plant will remain closed for a total of 11 days (including 20th and 30th as stated in the letter). The impact on the shut down will likely be the delay of deliveries to customers by several days.
This is a copy of the letter issued to the PSX:
It is pertinent to mention that automotive companies in Pakistan have been observing Non Production Days (NPDs) for months now due to the economic conditions and restrictions on imports of CKD kits by the State Bank of Pakistan (SBP).
On the other hand, Pak Suzuki Motor Company (IMC) has restarted bookings for most cars, including all variants of their recently launched Suzuki Swift after months of suspension.
Read more: Suzuki Swift GLX-CVT Bookings Reopened.