Indus Motor Company, the assembler of Toyota vehicles in Pakistan, has cautioned that the ongoing floods are disrupting supply chains and damaging infrastructure, while weakened consumer purchasing power in affected regions is expected to dampen vehicle demand in the near term.
In a corporate briefing, the automaker noted that the “full impact of the floods and monsoon season is yet to unfold,” but stressed that short-term demand will likely remain subdued.
Pakistan has been grappling with severe flooding since late June 2025, with the extended monsoon season intensifying through September, particularly impacting densely populated areas of Punjab.
Read more: Toyota Indus Motors Halts Production
Earlier this week, the State Bank of Pakistan’s Monetary Policy Committee kept the policy rate unchanged at 11%, citing the adverse effects of floods on the near-term economic outlook.
