Toyota confirms two-week plant shutdown in August
Automobile manufacturer Indus Motor Company Limited - which manufactures Toyota vehicles, confirmed on Wednesday that it will be shutting down its plant in Pakistan for two weeks in August.
There had been reports that with the auto industry facing a host of issues, including the widening exchange gap and the reluctance of the State Bank to open lines of credit for imports of complete built-up units and complete knockdown (CKD) units and other parts for the manufacture of vehicles, that local plants have started to extend plant shutdowns to save on costs.
But in a filing with the Pakistan Stock Exchange (PSX) on Wednesday, the company said that “there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022,” the letter read.
It added that the “production schedule of the company and any non-production days remain contingent on a number of external and variable factors.”
Indus Motors explained that the auto sector is facing unprecedented difficulties in its operations due to ongoing economic challenges and factors which are beyond the control of automobile manufacturers.
“The unprecedented devaluation of Pakistan rupee, coupled with restrictions imposed by State Bank of Pakistan (SBP) regarding prior LC approval for CKD imports and continuing financial instability has radically impacted the auto industry.”
The company said that it is actively monitoring its production and operations and is closely working with the government and SBP to alleviate the present challenges.
On the back of this news, share prices of Indus Motor Company (INDU) were down 3.75% or Rs40.54 from its opening value of Rs1,071 down to RS1,040. Moreover, just 5,838 shares were traded.