Toyota Indus Motor Company, the maker of Toyota automobiles in Pakistan blamed the State Bank of Pakistan (SBP) for the massive decline of the auto industry. The company claimed that the continuous economic and operational constraints implemented by the SBP in Pakistan have forced Toyota Indus Motor Company (IMC) to work at 40-50 percent production capacity.
Toyota Corporate Briefing Session:
In its latest Corporate Briefing Session (CBS), the chairman of Toyota IMC stated that the major reason behind the huge decline in productivity is the limitations on imports by the State Bank of Pakistan (SBP). The company also said it has expected that the restrictions will remain for a long period of time.
IMC release its current pace of production, and as per the current rate, the company has bookings filled up for the next 3 months. It further stated that 400 to 500 of its clients canceled their reservations and collected the money with markup and car financing has come down from 35 percent to just 10 percent in recent months due to restrictions on car loans by the State Bank.
Massive Decline of the Auto industry:
Toyota has stated that domestic automotive industry issues such as rising inflation, supply chain disruptions, production cuts, and import restrictions could also lead to the left of some new automakers from Pakistan. The SBP’s import limitations on automobiles mostly blamed by the firm for most problems.
According to the details, the localization of both the Toyota Corolla and Yaris has reached 65 percent after a 39 percent reduction in duties and taxes. Additionally, the company has planned to invest $100 million in the local development of hybrid electric vehicles (HEVs), with the introduction of its first locally-made hybrid automobile anticipated for late 2023.
