Again – Toyota Pakistan Halts Production in Pakistan

0 3,017

Pakistan is the land where the worsts do come true, and so is our local auto industry. Dwindling economic graphs are hitting the industry hard. The local car assemblers are announcing back-to-back production cuts following Import curbs inflicted by the State Bank of Pakistan (SBP).

In a recent notification, Toyota Indus Motors (IMC) announced a second production cut this year. As per the circular, the company’s assembly plants will remain close from March 24, 2023 to March 27, 2023. Moreover, from March 28, 2023, the company will resume with single-shift and the reason is limited inventory.

IMC’s official notification is here:

Hinopak Also Shut Down Operations in Pakistan

The Pakistani car industry has been hit hard by the ongoing economic crisis, with many operations, including vehicle sales and production, being severely affected. Hinopak Motors Limited recently announced that it will shut down operations in its manufacturing plant for 12 days, from March 24 to April 4, due to low demand for commercial vehicles.

Industrialists have expressed their concerns about the impact of these shutdowns on their businesses and have appealed to the government for support.

The automobile industry is also facing challenges due to foreign exchange shortages and component supply problems, which are further exacerbating the situation. Car sales have slumped once again last month due to diminished production and demand.

The latest data from Pakistan Automotive Manufacturers Association (PAMA) shows that carmakers collectively sold just 5,762 vehicles in February 2023, a month-over-month (MoM) decrease of 47%, and a year-over-year (YoY) decrease of 73%.

The car financing sector has also been impacted by the economic crisis, with financing dropping for the 8th consecutive month due to diminished sales. Experts believe that the situation will remain bleak for the foreseeable future.

What’s your take about this temporary shutdown of Toyota Pakistan? Share with us in the comments below!

Google App Store App Store

Leave A Reply

Your email address will not be published.