Toyota again temporarily suspends production

By: News Desk
Published: 03:17 PM, 1 Sep, 2022
Toyota again temporarily suspends production
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The Toyota Indus Motor Company has again temporarily suspended its production due to shortage of inventory, reported 24NewsHD TV channel on Thursday.

In a notice sent to Pakistan Stock Exchange, the Toyota Company has cited that the State Bank of Pakistan’s (SBP) increased oversight of the import of completely-knocked-down (CKD) as the primary reason for its halt in production.

The company cited that the measure has depleted their inventory levels to levels insufficient to maintain production. The company has consequently decided to halt production from September 1 to September 16.

The company had previously suspended production from 1st-13th August 2022 on account of similar reasons. 

The decision was in line with many other companies in the industry as Pak Suzuki Motor Company (PSMC) has halted productions three times during August from 18th-19th August, 22nd-26th August, and from 29th-31st August. 

The car companies suspended the bookings and observed production cuts in the face of non-issuance of letters of credits (LCs). State Bank of Pakistan hesitated to issue LCs for CKD kits which in turn suspended local assembly of cars.