After rupee depreciation and related economic fuss made a considerable dent in car sales, import restrictions are hitting hard the local automakers. Following Pakistan Suzuki, Toyota Pakistan came up with some disturbing revelations.
Toyota Indus Motor Company (IMC) has revealed that its production capacity dropped to 40-45% amid SBP import curbs. The company was left with no option but to announce production cuts.
Furthermore, with the newly introduced refund policy, IMC disclosed that around 800-1000 customers have canceled their bookings and received a refund with a markup. Whereby Toyota Pakistan is anticipating a reasonable down in earnings in the next few months.
On the other hand, the ongoing production cuts are adding more pain to the company’s sales charts. Again, the new process to import the CKD kits has made all the loss to the automaker.
Honda Reduced Its Production By 40%
The pandemic-led supply chain issues still prevail, forcing the automakers to observe production cuts. Honda has reduced its production by 40% amid supply chain and logistics issues. The company is facing difficulties increasing car production in the second half of FY2023.
Reports have revealed that Honda’s Saitama assembly plant in the north of Tokyo will bring its production down by 30%, whilst Suzuka plant in western Japan will reduce its production by 40% approximately.
The Japanese car giant has disclosed that ongoing semiconductor chip shortage and logistics delays are the aftershocks of COVID-19. The production hiccup will affect the Honda Civic, Vezel, and Stepwgn.
Pakistan’s auto industry is witnessing the same, but the reason behind the slump is aggravating inflation and import curbs. The recent mechanism of requiring CKD import clearance, introduced by the State Bank of Pakistan (SBP), has urged the automakers to announce production cuts. Pak Suzuki, Toyota Pakistan, Honda Atlas Pakistan, and Hyundai Nishat have left with no option but to observe production cuts.
