No one is safe from the ongoing economic turmoil as, after Pak Suzuki, Toyota Indus Motor Company (IMC) recorded the worst monthly sales figure in almost 3 years.
According to the latest update from Autojounal.pk, the company only sold 1,803 cars last month, recording the lowest sales since June 2020, when it only sold 547 vehicles due to COVID-19-induced challenges.
The report attributes the decline to intermittent production shutdowns and the unavailability of completely knocked down (CKD) kits. The automakers have also blamed the reluctance of the State Bank of Pakistan (SBP) to approve letters of credit (LCs) for the clearance of imported goods.
Honda has decided to shut down vehicle production for over 20 days.
The official notification cites disruption in the supply chain due to the economic deterioration and restrictions on raw materials and CKD imports as the reasons for the lengthy shutdown.
Due to its heavy reliance on imports, the auto industry is also feeling the effects of the Rupee devaluation. The SBP’s restrictions on the LC are causing import delays and inventory rate hikes. As a result, the local industry is in shambles.
