Islamabad, Aug 6: A series of production problems that impacted automakers’ sales and earnings were caused by low inventories, a disrupted supply chain, and a shortage of parts and components. And once more, the issue is interfering with the production schedule.
Another manufacturing stoppage has been declared by Toyota Indus Motors Company, with operations set to resume on August 6, 2024, and end on August 8, 2024 (inclusive). Prior to this, the business shut down its manufacturing facility from July 5, 2024, to July 22, 2024.
The local automaker notified Pakistan Stock Exchange (PSX) that there are severe shortages of parts and components as a result of continued supply chain problems. As a result, the stockpile of raw materials has significantly decreased, which is impeding the production of vehicles.
The auto sector in Pakistan is facing a confluence of dire economic circumstances. Rising interest rates, rapid inflation, and slow growth have reduced consumer demand for automobiles.The problem has been made worse by the industry’s excessive reliance on imports, which has forced producers to shift the cost of a higher currency to customers. Increased local production is recommended by experts as a way to reduce this dependency.
Toyota Pakistan Is To Start Exporting Autos
With an official launch date of January 1, Toyota Indus is now exporting to nations in Oceania. This completes a plan that has been in the works since last year. The popular domestic models Fortuner, Hilux, and several Corolla Cross versions are part of the first export portfolio.
Asghar Jamali, CEO of Indus Motors, acknowledged the importance of this achievement and referred to it as a turning point for Pakistan and the company. The action is in complete accordance with the government’s AIDEP 21-26 policy, which places a premium on local component production, strict safety regulations, and the penetration of international markets for automobiles built in Pakistan.Toyota Indus is broadening its market penetration and bolstering the growth and international reputation of Pakistan’s automotive industry by exporting its flagship models.
Pakistan Suzuki Is Acting In The Same Way
While Pak Suzuki’s entry into the global market is facing difficulties, Toyota Indus has begun exporting cars with success. The UN’s reservations over safety and compliance criteria are currently impeding the company’s aim to export cars to Bangladesh.
According to Pak Suzuki, most of its export models already comply with UN safety standards. By June 2025, the business promises to have all remaining models fully compliant. These regulatory obstacles have put the export plans to Bangladesh on hold until then.What are your thoughts on the latest information regarding Toyota’s temporary production stoppage and vehicle exports? Please let us know in the comments.
