Overview
The automotive industry strike is continuing. Automakers’ choices for survival cutting down day by day. Pakistan’s automotive industry going overlooked by the government and it seems there are no help eyes on them. IMC Toyota is one of the leading automakers in Pakistan. the ongoing situation of this well-settled strong brand go down due to the ongoing economic situation. Toyota closed its production plant several times in a year due to non-productive days. Back-to-back production shut down shrunk sale volume and affect on company’s yearly revenue.
The only reason for the production shutdown is a shortage of raw materials and it is due to the non-availability of LCs and import restrictions.
Toyota Production Shut-Down Schedule
Toyota announced a production shutdown from 26 June to June 27 and the company has notified the decision to Pakistan Stock Exchange (PSX). It’s worth mentioning that this is the 5th production closure IMC announced in the ongoing year. Previously company announced production closure on June 3 to June 8, May 2 to May 3, February 1 to February 13, and From March 24 to March 27.
The reason behind all these production shutdowns is low inventory and issues in approval of the Latter of Credits (LCs). The government restrictions on the import of automotive parts and other luxury items made them suffer. The production closure not only affect the company’s sales but also made employees suffer. Due to the huge loss, several employees become jobless. The inflation strike hit the economy and disturb the overall production industry across the country.
On the other side, Pak Suzuki also announced a production closure of its motorbikes and car plant from June 22 to July 8, 2023. Pak Suzuki announced a 29.1% sale decrease for its motorbike on an
MoM basis and sold only 820 bikes last month. So, it’s clear that the whole automotive industry is suffering and facing a challenging situation.
Conclusion
Toyota Pakistan continues its operation as recently the company has shown its first locally assembled hybrid car to PM, Shehbaz Sharif. Automakers required the support of the government to continue the operation and development of automotive growth. Various new models’ productions tuck due to the non-availability of stock. It’s been a long time since automakers didn’t offer new models or add new technology to the cars as the resources are very less to support production.
