Toyota Indus Motor Company (IMC) is planning to halt production in Pakistan for an extended period due to difficulties in complete knockdown (CKD) kit imports and plummeting local currency value vs US Dollar.
The company had previously announced non-production days (NPDs) to cope with slow CKD imports. However, recent reports suggest that Toyota IMC will be seizing production for a significant duration, without mentioning the exact number of days.
They also add that IMC will refund customers who had booked cars. Toyota IMC CEO Ali Asghar Jamali corroborated this report by Profit stating:
We will give customers the option to avail a refund with the full interest. In case they choose not to opt for this (refund), they will have to wait at least 3 (more) months from the delivery month given on the Provisional Booking Order Form and (also) pay the price differential due to the exchange rate situation.
The company will likely issue an official statement in this regard soon.
Toyota IMC’s situation has prompted rumors that its days might be numbered in Pakistan.
ProPakistani reached out to an industry expert, who stated that these rumors are completely false. He said that the company is looking to clear the backlogged orders in the interim and start fresh soon.
Once the crisis subsides, Toyota (IMC) will return to its regular operating schedule.
Toyota has been facing production issues across the globe. Most of its problems in Japan are due to natural calamities, the resurgence of COVID-19, and the chip shortage, which hampered its exports.
Although Toyota IMC does not import its CKDs directly from Japan, the chip shortage and other logistical issues have impacted its vehicle assembling operations. Toyota’s sales are likely to take a massive hit as the automaker continues to struggle in Pakistan and several other markets.