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Indus Motor Company (IMC), the manufacturer of Toyota automobiles, has chosen to "totally" shut down its production unit in Pakistan from February 1 to 14.
The IMC management stated in a letter addressed to the general manager of the Pakistan Stock Exchange that in light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022 (effective from January 2), commercial banks were advised to prioritize/facilitate imports to specified sectors only, which does not include auto.
"The firm and its vendors continue to confront significant challenges in importing raw materials and obtaining clearance from commercial banks," the notification stated.
According to the Toyota manufacturer, these deterrents affected the whole supply chain, and vendors were unable to provide raw materials and components to the firm.
"As a result, the firm has insufficient inventory levels and is unable to continue its production activities," the notification stated.
The manufacturer said that it has chosen to shut down its factory fully from February 1 to 14. Furthermore, the corporation has opted to begin manufacturing on a "single shift" basis beginning February 15 until further notice.
Earlier on December 19, the IMC announced a 10-day plant stoppage — the third time in 2022 — owing to "hurdles in import and clearance of consignments".
The firm informed the PSX that the manufacturing plant will be totally shut down from December 20 to December 30, 2022. (both days inclusive).
It should be mentioned that the IMC declared a temporary suspension of its production unit from September 1 to September 15, 2022, citing insufficient inventory levels to sustain production as well as a delay in SBP clearances for the import of CKD kits and passenger car components.
In addition, the business has shut down its factory sooner, from August 1 to August 13, 2022.
