Toyota Indus Motor Company (IMC) is reportedly shutting down production in Pakistan for an indefinite period due negative effects from the current economic crisis. According to the details, Toyota IMC will be refunding customers who made advance payments for bookings as the company is unable to fulfil those orders.
Update: Toyota IMC Announces Full Refund With Mark-Up On Order Cancellation.
Previously, Toyota IMC had cited constraints regarding the approval of Letter of Credits (LCs) by the State Bank of Pakistan (SBP) for import of Completely Knocked Down (CKD) kits as one of the main reasons behind disruption in production, which has also led to a backlog of orders.
Toyota IMC will be refunding the advance payments made for booked orders to customers who cannot wait for delayed deliveries and the company is said to make an announcement in this regard by the end of the month. However, the development has left fans wondering if Toyota IMC plans is completely shutting down operations in Pakistan.
According to Profit by Pakistan Today, the situation may only be temporary as Toyota IMC will be offering refund to customers for booked orders but it will not cancel orders if the customer accepts delayed delivery of the vehicle and willing to pay additional difference due to the exchange rate fluctuations.
“We will give customers the option to avail a refund with the full interest. In case they choose not to opt for this (refund), they will have to wait at least 3 (more) months from the delivery month given on the Provisional Booking Order Form and (also) pay the price differential due to the exchange rate situation.” Asghar Ali Jamali, CEO at Toyota IMC told Profit.
The current economic crisis has affected several industries, including the automotive sector as the State Bank of Pakistan (SBP) has restricted the opening of Letters of Credit (LCs) in a bid to recover the trade deficit, which has led to some companies suspending production operations.
Read more on Automotive.
