Toyota Indus Motor Company (IMC) cites the State Bank of Pakistan’s (SBP) heightened control of the import of completely-knocked-down (CKD) as the main cause for its suspension in production in the notification it gave to PSX on Tuesday.
It claims that the action has reduced its inventory levels to levels below what is required to sustain production. As a result, IMC has chosen to stop manufacturing from September 1 to September 16. For identical reasons, the business has previously halted manufacturing from August 1–13, 2022.
The decision is in line with those of many other businesses in the sector since Pak Suzuki Motor Company (PSMC) has already stopped production three times in August: from August 18 to August 19, from August 22 to August 26, and from August 29 to August 31.
On the other side, MTL has stated that manufacturing has been suspended due to the recent floods in Pakistan.
According to MTL, their delivery and inventory levels have suffered as a result of the damage to the roadways. As a result, they have chosen to stop production from August 31 through September 16.
Due to the Federal Board of Revenue (FBR) holding onto the sales tax returns from the tractor sector for more than two years, which in turn caused a financial issue, MTL previously stopped manufacturing in March of this year.
To read our blog on “Toyota and Suzuki have extended plant closures in Pakistan,” click here.