In an unprecedented move, Toyota Motor Corporation has announced the cessation of its vehicle production operations in Pakistan. This decision comes as a shock to many, as Toyota has been a dominant player in the Pakistani automotive market for years. The closure of its local manufacturing facilities raises questions about the future of the automotive industry in the country and the potential consequences for both consumers and the economy.
In this article, we will explore the reasons and consequences of Toyota shuts down its production in Pakistan.
Due to restrictions on imports, raw materials, and parts the Indus Motor Company Limited (INDU), which makes and sells Toyota-brand cars in Pakistan, has decided to shut down production again from March 24 to March 27.
The car company told the Pakistan Stock Exchange (PSX) about the change on Friday.
According to Indus Motor, it is hard for the company and its suppliers to import raw materials and get approval for their shipments because commercial banks can’t open Letters of Credit (LCs) for raw materials.
“This has messed up the company’s supply chain, so its suppliers can’t send raw materials and parts to the company.” So, the company doesn’t have enough inventory to keep making things. Because of this, the company can’t keep making things.”
So, “the company has decided to shut down its production plant completely from March 24 to March 27, 2023” (both days included).