Toyota Shuts Down for 2 Weeks After Running Out of Raw Materials - Capital TV

May 29, 2023


Toyota Shuts Down for 2 Weeks After Running Out of Raw Materials

Mahnoor Tariq

Due to weak demand, a lack of raw materials, and unfavourable economic conditions, Indus Motor Company (IMC) announced a fourth production suspension, effective from February 1–14.

Previously: Indus Motors Temporarily Shuts Down Plant Operations in Pakistan

Agriauto Industries Ltd (AIL), an auto supplier, also announced a partial closure this month as a result of a dramatic fall in demand from significant manufacturers. The Toyota automobile manufacturer announced in a stock filing that it would restart production on February 15 and work in a single shift until further notice.

According to IMC, the State Bank of Pakistan (SBP) ordered commercial banks to prioritize/facilitate imports to only certain industries on January 2. The car sector was not one of them. 

Related Stories: Another One Bites The Dust; Pak Suzuki is Out of Motorbike Business For Now

“This has affected the entire supply chain and the vendors are unable to provide the company with raw materials,” says IMC. The consumers were surprised by the boosting prices from Rs 280,000 to Rs1.2 million on a variety of models despite production halts and a 52% reduction in sales in IHFY ‘23.

From Feb 1, Kia Lucky Motor Corporation has also increased the price by Rs. 100,000 to Rs1.3m. The business has been giving clients the opportunity to lock in a pricing with fast delivery up until last month.

The revised pricing for automatic versions will be Rs3.2m and Rs3.4m, an increase of Rs 100,000 and Rs200,000 respectively.

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