ISLAMABAD: An auto manufacturer has started returning the booking amount to buyers, lamen­ting that the current economic conditions had made it difficult for it to continue production.

Toyota has offered the option for a full refund along with the interest amount, saying that the company’s production would remain “very low” in February and March.

Ali Asghar Jamali, chief executive officer of the Indus Motor Company, which makes Toyota cars in Pakistan, said the government must take steps to bring political stability, harmonise trade relations with neighbouring countries and harness daylight hours to reduce oil imp­orts and save electricity.

Talking to the media in Islamabad on Friday, he said the ongoing import restrictions on comple­te­­ly knock-down (CKD) kits had proven catastrophic for the auto industry.

“We are forced to currently operate at 40-45 per cent of our capacity. Unless these restrictions are eased, complete plant closures and total non-production will be inevitable,” he added.

He said these decisions, along with the fragile economic conditions of the country, wou­ld further hurt the industry.

“The continued weake­n­­ing of the rupee will push the cost of production higher, in turn rest­ricting manufacturers’ bottom line in the forthcoming quarters because of reduced volumes, dem­and and supply issues, and low margins,” he added.

Published in Dawn, February 4th, 2023