The auto giant and manufacturer of the Toyota cars in Pakistan, Indus Motor Company (IMC), has halted production for the rest of September. This step will bring the total number to 15 “non-production days” (NPDs) this month due to a sharp decline in demand.
An anonymous official at IMC said that Toyota had already seen 8 NPDs in July and 11-12 NPDs in August. There were a number of reasons for this including the imposition of the federal excise duty (FED), rise in prices due to devaluation of rupee coupled with customs duty on parts and raw material and high interest rates which made their cars out of reach. He said, in September, “half of the current month is off.”
The Toyota plant and nationwide dealership network, according to sources, has seen unsold cars pile up numbering 3,000. This month, the plant had been operating at 50% capacity. The news about the NPD from 20th Sept to 30th Sept has been validated by a Toyota vendor.
In July and August, the production and sales of Corolla fell to 5,308 units and 3,708 units from 8,804 and 8,770 units in the corresponding period last year, a fall of 40 and 57% respectively.
Toyota Hilux saw its production and sales fall from 1,383 units and 1,292 units to 793 units and 716 units a plunge of 42% and 44% respectively. Furthermore, the Fortuner saw its production and sales nosedive to 232 units and 162 units from 484 units and 424 units, a fall of 52% and 62% respectively.