Toyota Indus Motor Company (IMC) has halted its vehicle production completely for the rest of the month of September 2019 due to considerable fall in demand and piled-up unsold inventories.
According to the details, the auto manufacturer has decided to keep its production plant closed from 20th to 30th September. The closure of the company’s production also makes the total tally of non-production days (NPD’s) to 15 in this month only. The news was also confirmed by an official of a local authorized dealership. The automaker is observing the non-production days for the last two months, and the situation is getting worse day by day. In July 2019, IMC halted its production for as many as eight days while the number jumped to 12 non-production days in the month of August. It has now gone further one step ahead as the production plant records 15 days of closure in September.
The country is going through an economic slowdown process, and the local auto industry is suffocating in this situation. The local currency has devalued so sharply against the US dollar, which left a huge impact on the prices of all automobile products in the market. A majority of auto parts and raw material used in the production of vehicles are imported, and under the current rate of the dollar, their cost has gone beyond limits. Furthermore, the government, instead of improving the situation, also watched the industry suffer. Perhaps it decided to impose new taxes and duties on vehicles to worsen the situation. For instance, the imposition of Federal Excise Duty (FED) resulted in a massive increase in the prices of automobiles. Later on, the government expanded the FED circle and imposed it on all categories of vehicles at 2.5% – 7.5% in accordance with the engine capacities. The additional customs duty on imported parts and high rates of interest sky-rocketed the prices of vehicles beyond the reach of the end consumer.
According to the sources, the nationwide dealership network of IMC is struggling in selling vehicles. More than 3000 vehicles of Toyota have piled up in the unsold inventory. As a result, the production plant is also kept running at 50% of its capacity. The fiscal year 2019-20 has started poorly for all the auto manufacturers in the country. Toyota IMC managed to sell only 3708 units of its hot-selling Corolla in the first two months, i.e. July and August 2019 as compared to 8770 units in the corresponding period last year thus recording a massive decline of 57.7%. In the same way, the sales of Toyota Hilux also dipped by 44.6% during the same period under review. The company sold only 716 units of Hilux as compared to 1292 units last year. Its SUV Fortuner also suffered in this period with a decline of 61.8% in the sales from 424 units last year to only 162 units in the first two months of FY 2019-20. Keeping in view a massive decrease in car sales, the company has also decreased its production to nearly 50%. The sales stats are taken from the PAMA website.
Note here that same is the case with Honda Atlas as it’s also observing the non-production days every month. Pak Suzuki initially announced no reduction in its production, but that didn’t last too long. It has now notified all its authorized dealers across the country to temporarily suspend the bookings of some variants of all its vehicles. The list includes the following variants of their vehicles:
- Swift DLX
- Mega Carry
- Vitara
- Cultus VXR
- Alto VX
- Wagon R VXR
Even the newly launched 660 cc Alto is among those temporarily suspended for booking, which shows the clear picture of economic crisis. The government needs to quickly take action before the local auto sector collapses completely. The additional taxes and duties such as FED should be withdrawn immediately to give the industry some space to breathe. Otherwise, the situation will only deteriorate in the future.
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Aur vote do “TABDEELI” ko. Ab sirf BHUGTO.
Owners of Toyota and Honda Motors are part of corrupt Sicilian Mafia noon league. They were right hand men of Nawaz Shareef and were part of his cabinet in 1999 and 2013.
Maryam Safdar is in secret relation with their sons. They want to destroy economy to avenge our supreme leader Imran Khan. Let’s destroy them. Let’s hang them all.
Army chief should immediately order to take over their properties and bank accounts.
Pak Army Zindabad.
Imran Khan Zindabad
Biased Article, wrong analysis, always criticizing government. They were supposed to produce locally. Yet they import all items destroying our country economy. This government has banned imported cars. And these assembler still continue to loot our country. Why don’t they produce item locally, because in that way Japan export will decrease. That’s the only reason my friend whatever u r saying u r saying wrong.
Why can’t they reduce their super profits and tell their damn dealers to work without the so called “ON”. They are all corrupt and can only blame government.
Wrong article and stop supporting these big 3 automobile companies instead of closing why not start building engine plant also foucs on 100 local manufacturing and lower profit. Govt should invite other auto manufacturers under 100% transfer of technology and give tax relax to those
This govt policies total destroy the auto sector.
The article is not as wrong.
First thing the govt should withdrawn FED.
and the second thing is if the parts were made locally in our country I think the car engine will topple down in the road during the ride.
Our country have no technology first thing is to improve our technology.
Imran khan is the leader of donkey kingdom and he is thirsty of money.
He is making 20 crore people life miserable.
You are dull and dumb,nothing else another word for you is donkey.
Imran Khan is the chosen one. He is chosen directly by Allah and army to rule us.. to be our king.. to be our savior. He is our messiah. Economy is shit because of you people. Pimps of Maryam Safdar. People who spend nights with her and f*** Pakistan. You tax chor ghaddar ghatia patwari.
Why would Imran Khan care about economy anyway. He has far bigger things to achieve. He is fast becoming the greatest leader of Islamic Ummah. Soon he’ll be ruler of whole Islamic World.
General Qamar Zaman Bajwa Zindabad
Imran Khan Zindabad
Why you are keep on supporting the Thieves, You know very well that Toyota, Honda and Suzuki has already made people fool for decades, their units doesn’t meet international standards, overly priced and poor material used in cars, no safety features, no add on’s. They are selling cars without floor mats, what bullshit you are taking mate. Can you imagine having a car with one million rupees with no floor mats and seat covers. Stop being a hypocrite and let them suffer and let them manufacture the parts locally so it would be cheap and easily available. The irony is that I dnt know what bloody Auto policy has been approved where the new comers are also trying to fool the nation, look at KIA they have priced the PICANTO for 2 million and you are promoting like some thing special has been in the market.
Imran khan is chosen by donkey peoples like you
he will achieve nothing except failure.
Well it seems Pakwheels is earning is bread through these big 3s. Because I was not expecting a support for these companies in such a situation.
This is not entirely because of government policies or economic slowdown. Issue is this mafia wants to keep making heavy margins and dont pay due tax. When $ touched 162 they robbers increased the price instantly but why they have not decreased it when $ came down to 156… I’m unable to understand how wastage of money people have that they are paying 3 Or 4 million for toyota and civic. Even 2015 prius is better then 2019 toyota grande nd civic top of the line. Your can buy camry for $30k but here toyota imc charges you 16M for it and insane ppl are buying it. Only thing that disturbs me is th people who may lose their jobs
agar itny unit falto pary hain inky pas to baigarat log own kis chiz ka lety hain garion per.
aj tak yahi sunty ay hain company apni full capacity py production kar rahi hai phir b 6 months lag rahy hain aik customer ko gari milny mai otherwise own pay karo.
ab kia hoa haram khoro karty raho production ta k ya own ki zalalat is mulq sy khatam ho
Corporations pay taxes on what they earn from you and this tax is based on government policies. Further, if government is really sincere then, it should raise the taxes, reasonably, for non-filers only.
Great, then why don’t you and other people jump into auto industry and launch your own cars? Perhaps, that decision would enlighten upon you the dynamics of doing a business on realistic basis.
Either I read the article with my eyes closed or you have missed the point.
Who do you think you are? To tell us that Imran Khan is chosen by Allah SWT is a comment that makes me wonder about your sanity. No body except the nabis knew exactly what Allah SWT wills to happen and lost kind of person stand there and tell us that he chose Imran Khan. What an insane thought. Shame on you.
Pak Wheels team, I expected better from you, you should have deleted this stupid comment.
Harami, tum sab ki maa ch…. dain gay, mill owner ….. take over properties …… harami ka bani gala wala mehal and kanjri pirni ko pakro, sali gashti hai …..
Pak army should kick these all 3S MAGIA out of the country. Allow the people of Pakistan to import the cars of their own choice with out any custom duty.
If the car price is totally dependent on dollar rate then this car is not made in Pakistan. Do they export any car? How many parts are made in Pakistan?
This was going to happen sooner or later. The price of Toyota cars along with car manufacturers are absolutely unreasonable, unjust and absurd. Let me give you comparison. Price of GRANDE in USA is $20000 and price in Pakistan is $22000, keep in mind the per capita income of USA is $62000 and of Pakistan is $1357. Toyota is assembling cars for over 25 years in Pakistan, why they didn’t shifted or helped Pakistani vendors to manufacture cars parts in Pakistan. They only protected manufacturers of Japan and plundered people of Pakistan. It is only Japanese cars manufacturers to blame for their current situation. They bought themselves into their created mess and now blaming Govt. for the slow sales. This a lesson for them the sooner they start manufacture majority cars parts in Pakistan, they will get out this mess.
Produce locally what? Engines? Airbags? Name one notable building we have constructed without a foreign architect. In twenty five years we have only developed capacity to manufacture small parts and assemble imported ones. (there too you can see the difference between imported ones and local ones).
Even they didn’t give you some fuel to reach home. Every time they said, “sir petrol nahi hay, Pehlay petrol dalwaa lain”. Bhai you are charging us in millions, and you don’t even give us 5 or 10 liter fuel with new car.