Indus Motor Company, the manufacturer of Toyota vehicles in Pakistan, has made the decision to halt car production from August 25th to September 6th, 2023. This decision stems from a decline in car sales attributed to reduced consumer spending.
In a statement submitted to the Pakistan Stock Exchange, the company highlighted the challenging conditions faced by the automotive industry during the fiscal year 2022-2023. The primary issue has been the diminished purchasing power of potential car buyers due to financial constraints.
Furthermore, the government has imposed additional taxes on automobiles, and the overall economic situation has been unfavorable, resulting in decreased demand for cars.
As a consequence of these challenges, Indus Motor Company finds itself with an excess inventory of cars and insufficient demand in the market. Consequently, they have opted to suspend production from August 25th to September 6th, 2023.
It’s worth noting that other companies, such as Sitara Peroxide and Pak Suzuki Motor Company, have also faced production stoppages in the past, albeit for different reasons. Occasionally, fluctuations in consumer demand impact car production, while at other times, disruptions in the supply chain for essential car components contribute to these interruptions.