Low parts inventory forces Toyota Pakistan to halt car production

KARACHI: Indus Motor Company Limited (IMC), the assembler and manufacturer of Toyota vehicles in Pakistan, has announced a temporary shutdown of its production plant from July 15 to July 22, 2024, inclusive.

The company disclosed this decision in a filing to the Pakistan Stock Exchange (PSX) today.

The shutdown is attributed to a low inventory of manufactured vehicles and a shortage of essential parts and components, stemming from ongoing supply chain challenges. The company assured stakeholders that any changes to this plan will be communicated promptly.

In April 2024, Indus Motor Company reported impressive earnings for the first quarter of the year, achieving a profit of Rs4.45 billion.

This represents a significant year-on-year growth of 38.3 per cent. Alongside the strong financial results, the company declared an interim cash dividend of Rs34 per share, which followed an earlier interim dividend of Rs37.7 per share.

The temporary closure underscores the broader supply chain disruptions affecting the automotive industry globally, with manufacturers grappling with shortages of critical components.

Read next: Mobile prices surge in Pakistan