Karachi August 24 2023: Toyota Pakistan, known as Indus Motors Limited, has temporarily halted its manufacturing operations for a span of thirteen days due to economic difficulties, as reported in a filing to the stock exchange.
Throughout the fiscal year 2022-23, the auto industry has faced a decline in demand due to a challenging economic landscape, diminished consumer purchasing power, and an increase in duties and taxes imposed by the Federal Government.
This is the first time that the closure prompted by a demand decline, in contrast to previous shutdowns that were attributed to supply chain challenges arising from delayed opening of letters of credit, a consequence of the country's enduring currency crisis.
Given the prevailing circumstances of low demand and inventory levels, the company has made the decision to cease production activities from Friday, August 25th, 2023, to Wednesday, September 6th, 2023, inclusive of both days.
In July 2023, the combined sales of Toyota Corolla and Yaris experienced a sharp drop of 38 percent compared to the same month in the previous year, totaling only 1,067 units. In the same period, the industry sales witnessed a staggering decline of 64 percent. Toyota's sales of its Brand Fortuner and Hilux were limited to 301 units, despite a production of 512 units and previous year's sales of 641 units.