After the government ended the import ban, Toyota Indus Motor Company still has things to settle. In a notification, the company has announced a new production cut to observe in the near coming days.
What urged the company to halt Its Production?
The recent notification has stated the company will halt production and related assembly of its cars from September 1-14 in the face of a new procedure regarding CKD import approval from the State Bank of Pakistan (SBP).
As per the company’s notification, the new mechanism came with some barriers to importing CKD Kits which in turn are gearing inventory problems.
The notification further informed:
“Due to insufficient inventory levels to maintain production, the company has decided to temporarily halt its production activities. In the light of above, the company has decided to temporarily shut down its production from 1st September 2022 to 16th September 2022. However, in case of any change in production plan due to approvals being sought, the same will be communicated accordingly.”
Where new capital value tax (CVT), auto finance restrictions, increased withholding tax on filers and non-filers, price hikes, high interest rates and non-issuance of State Bank of Pakistan drop the car sales, the newly defined process from the SBP has further aggravated the situation.
It should be noted that this is not the first time a car company announced a production cut. Earlier, almost all the automakers did so.
The car companies suspended the bookings and observed production cuts in the face of non-issuance of letters of credits (LCs). State Bank of Pakistan hesitated to issue LCs for CKD kits which in turn suspended local assembly of cars.
What do you think about the ongoing situation of the local car industry? Will the prevailing episode of production suspension stop anytime soon? Drop your thoughts in the comment section.
They simply want to hike the prices.Why not they should permanently shutdown the Indus motors it will be a blessing to all Pakistanis . They are here since early 90’s yet cant produce 80% in Pakistan.