Indus Motor Company (IMC), the makers of Toyota vehicles in Pakistan has decided to shut down all productions for the remaining days of September, according to report published in Dawn.
This will bring the total number of non-production days to 15 in the month due to ongoing plunge in demand. According to information, the company had observed 8 non-production days in July and 12 in August already.
The imposition of federal excise duty ranging from 2.5 to 7.5% on various engine capacity cars, constantly increasing prices due to rupee-dollar parity coupled with additional customs duty on imported parts and raw material and high interest rates had pushed most of their vehicles out of the range of masses.
As per sources, IMC plant and its countrywide dealership network has piled up unsold inventory of over 3,000 vehicles, while the plant is running at 50% capacity in September.
Toyota Corolla production and sales dropped to 5,308 units and 3,708 units respectively in July-August from 8,804 and 8,770 units in same period last fiscal year, representing a fall of 40 and 57% respectively.
Furthermore, Toyota Hilux production and sales plunged to 793 units and 716 units from 1,383 and units 1,292 units, a drop of 42% and 44% respectively. Further, production and sales of Toyota Fortuner came down to 232 units and 162 units from 484 units and 424 units, rendering a decline of 52% and 62% respectively.