Indus Motor temporarily halts production again

KARACHI: Indus Motor Company (IMC), Pakistan’s leading automaker, has announced a three-day production halt due to severe supply chain disruptions and dwindling raw material inventory, said the automaker’s notice to the Pakistan Stock Exchange (PSX).

This marks the latest setback for the struggling automotive sector, which has been grappling with economic headwinds. The company cited continuous supply chain challenges and parts shortages as the primary reasons for the temporary closure, effective from August 6 to 8.

“The company is currently having low level of inventory of raw materials and components and facing continuous supply chain challenges, resulting in shortages of parts and components for manufacturing of vehicles.”

“Under these circumstances, the company is unable to meet its production requirements,” the notice said said. Pakistan’s auto industry has been under immense pressure from soaring inflation, rising interest rates, and a depreciating rupee. The sector’s heavy reliance on imported components has exacerbated the crisis.

In a bid to diversify its revenue streams, IMC recently initiated vehicle exports to other Toyota affiliates. However, the company clarified that the initial financial impact of these exports is minimal.