KARACHI: Indus Motor Company (IMC), the assembler of Toyota vehicles, will keep its production plant shut from Dec 20-30 due to a shortage of parts.
On May 20 the State Bank of Pakistan introduced a mechanism for obtaining prior approval for the import of completely knocked (CKD) kits and components of passenger cars (HS CODE 8703 category) for the auto sector. The delay in aforesaid approvals for IMC and its vendors has created hurdles in the import and clearance of consignments for raw materials and components, resulting in insufficient inventory levels. This situation has created an adverse impact on the supply chain and production activities, making the company unable to continue its production activities, the company said in a stock filing on Monday.
This is the third plant shutdown by the IMC since July 1. The company had kept its production operation suspended from Aug 1-13 and from Sept 1-16.
When IMC chief executive Ali Asghar Jamali was contacted regarding any layoff of workers (daily-wage, contractual and permanent employees) because of continuous plant closures, he said “we do not lay off our assets.”
In a corporate briefing to brokerage house analysts in November, IMC management said that the company was operating at 40-50pc capacity and the auto financing was down to 10pc from 35pc of total sales due to rising interest rates and a reduction in financing tenure.
Published in Dawn, December 20th, 2022