Indus Motor Company Limited, the assembler of Toyota vehicles in the country, has decided to close its production plant till October 9, 2023.
In a notice to the Pakistan Stock Exchange (PSX), the company said that based on the current level of inventory of manufactured vehicles, it has decided to close its production plant from September 28, 2023, to October 9, 2023 (both days inclusive).
Previously the company closed its production plant from August 25, 2023, to September 6, 2023. At the time the company said the decision was taken considering low demand and inventory levels.
Moreover, the company also shut down its production plant from July 21, 2023, to August 3, 2023. At the time it said that the company and its vendors continue to face hurdles on import of raw materials and receiving clearance of their consignments on account of challenges in openings of LCs and supply issues by certain foreign vendors. The company said this has disrupted the supply chain of the company and the vendors are unable to supply raw materials and components to the company. Accordingly, the company has insufficient inventory levels to maintain production.
Citing the same reasons, the company also shut down its production plant from June 26, 2023, to June 27, 2023.
why they cannot produce everything in Pakistan ?
Because most businesses cannot do that on their own. They need other businesses (vendors) to do that for them. For example, Toyota is not in the business of creating plastic parts. It requires other businesses to create plastic for them.
Pakistan does not have businesses that can manage all raw materials from Pakistan.
Most countries do not have that luxury.
Unless Pakistani system fixes itself that’s broken for 75 years, producing things from scratch will remain a distant dream.
well said man! along with broken system, the manufacturing industry is facing high energy cost which makes them incompetent to export and compete against the likes of China and India.