Indus Motor Company (IMC) the car manufacturer of Toyota in Pakistan has announced to close its Production plant for the remaining days of September 2019 and the total 15 Non-Productive Days (NPDs) of this month. The company closed its production plant due to the low demand for the vehicle.
The spoke person of Toyota Indus Motors Company said that the company already had 8 NPDs in July and 11 to 12 NPDs in August and the reason is just the decline in demand from consumers. He said that after the Federal Excise Duty Imposed by the government on all vehicles the prices of vehicles higher and the other main reason is the devaluation of rupee value against dollar effect the import because of the customs duty paid in international currency.
All the local dealers import the raw material and parts of a vehicle from other countries and pay the customs duty in dollar currency this is a reason that the manufacturer’s rise issue that the cost of sale is not recovered with old rates.
According to the details 3000 cars have seen unsold in the nationwide Toyota Dealership plant and this month September 2019 the Toyota plant operating only 50% capacity.
Toyota Indus Motor reported that the company sales fall 40 to 57% as compared to the previous year Corolla is the top-selling car of the Toyota and this year July and August 2019 the total units of Corolla sold 5,308 and 3,708 and the last year same time period July and August 2018 8,804 and 8,770 units sold by the company.
The local auto industry of Pakistan falls and the sales are not recovered from the last 2 months. The demand of consumers down due to the high rates and auto manufacturers said that the taxes and duty charges force them to increase the rates because in this situation it’s not possible to sale vehicles with old prices because the cost of sale is not recovered with old prices.
For More: Pak Suzuki Close Down The Booking Of Its Several Cars
Recently PAK Suzuki closed the orders of its several cars. Because the sales fall by 56.15% even the top-selling cars sale also down. PAK Suzuki has not mentioned the reason but according to the current auto industry situation, the decline in sales not recovered the expenses of the company.
