Indus Motor Company Limited (IMC), one of Pakistan’s leading automakers, declared a six-day suspension of its production plant beginning from June 3, 2023, due to obstacles in raw material imports.
The announcement follows a meeting between IMC officials and Prime Minister Shehbaz Sharif and comes only a month after a similar shutdown.
In a statement to the Pakistan Stock Exchange, IMC’s company secretary outlined that the company and its vendors have been grappling with import complications, primarily from difficulties in opening LCs (letters of credit) and supply issues with certain foreign vendors.
The resulting supply chain disruption has prevented vendors from delivering necessary raw materials and components to IMC. Consequently, the company’s inventory levels are insufficient to sustain production operations.
Pakistan’s industries, including the automotive sector, have been experiencing raw material shortages due to complications in opening LCs, largely attributed to the country’s foreign exchange reserves deficit.
Recent months have seen several shutdowns for leading car manufacturers in Pakistan, such as Indus Motors, Pak Suzuki Motors, and Honda, due to the scarcity of raw materials. IMC declared the shutdown just a day after a meeting with the prime minister in Islamabad.
Vice Chairman Shinji Yanagi and Chief Executive Ali Asghar Jamali led an IMC delegation to meet PM Sharif at his office on Thursday. The meeting included a showcase of the first locally produced Toyota Corolla Cross Hybrid Electric Vehicle.
The PM praised Toyota’s initiative to introduce Pakistan’s first locally manufactured Hybrid SUV. However, he stressed the importance of boosting localization and export efforts. Sharif further committed to maintaining incentives for Hybrid Electric Vehicles as prescribed in the AIDEP 2021-26 policy.
Ishaq Dar, Federal Minister of Finance, also lauded the Corolla Cross Hybrid and the economic and environmental benefits it would bring to the country.
IMC has made a $100 million investment in the domestic production of hybrid electric vehicles. It has played a pivotal role in establishing the local automobile industry in Pakistan, creating an entire value chain with over 50 part manufacturers producing over Rs250 million worth of parts each working day. With 53 independently owned authorized dealerships offering after-sales service nationwide, IMC, directly and indirectly, employs over 450,000 people.
 announces a six-day suspension of its production plant due to hurdles in importing raw materials. The issue underscores the challenges facing Pakistan's automotive industry amidst a foreign exchange reserves deficit){kind=link}