You must have heard the news of Toyota Indus shutting down in Pakistan. But, the reality is different.
Toyota is not shutting down its factory in Pakistan; rather, it is a partial shutdown of its operations. Toyota has cited the issues regarding the LC (Letter of Credit) restraints as the main reason behind its temporary partial shutdown. As the State Bank is not issuing LC to automobile companies, it is impossible to import CKD kits for assembling here. This, coupled with the devaluation of the Pakistani Rupee and the ongoing financial instability, has temporarily pushed Toyota Indus to halt its production operations.
The company has also informed in its official notice about the delay in delivery of cars which might be pushed back 3 to 4 months. In case customers want to cancel their orders, Toyota Indus has offered to refund a 100% deposit along with the mark-up.
“There will be 10 working days next month, only if the central bank allows us to open a letter of credit based on the quota they promised,” Ali Asghar Jamali, chief executive at Indus Motor Company Ltd, which assembles Toyota vehicles in Pakistan, told Reuters.
Other automobile companies in Pakistan are facing similar situations. In your opinion, how can this issue be resolved? Share your thoughts in the comments below!
It is good to hear that they are not shutting down because most of the car buyers prefer to buy a Toyota vehicle.
Assembler industry