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Year back, short inventory, disrupted supply chain and not-enough parts and components were the reason leading to a series of production which in turn engulfed sales and profits of car makers. And once again the problem is disrupting the production order.

Toyota Indus Motors Company has announced another production shutdown commencing from August 6, 2024 to August 8, 2024 (both days inclusive). Earlier, the company closed its production plant from 5th July 2024 to 22nd July 2024.

In a communication to Pakistan Stock Exchange (PSX), the local auto maker informed that ongoing supply chain issues have resulted in critical shortages of parts and components. This has caused a significant decline in raw material inventory and is hindering vehicle production.

Pakistan’s auto industry is grappling with a perfect storm of economic challenges. Slow growth, soaring inflation, and high interest rates have dampened consumer demand for vehicles.

The sector’s heavy reliance on imports has exacerbated the issue, forcing manufacturers to pass on the burden of a stronger dollar to consumers. Experts advocate for increased local production to mitigate this dependency.

Toyota Pakistan To Begin Car Exports

Toyota Indus has officially commenced its export operations, targeting Oceanian countries. This marks the realization of a plan in the works since last year. The initial export lineup includes the popular domestic models Fortuner, Hilux, and various Corolla Cross variants.

Indus Motors CEO, Asghar Jamali, expressed the significance of this milestone, declaring it a pivotal moment for both the company and Pakistan. The move is directly aligned with the government’s AIDEP 21-26 policy which prioritizes local component manufacturing, stringent safety standards, and global market penetration for Pakistani-made vehicles.

By exporting its flagship models, Toyota Indus is not only expanding its market reach but also contributing to Pakistan’s automotive industry’s growth and international recognition.

Pak Suzuki Doing Same

While Toyota Indus has successfully started vehicle exports, Pak Suzuki’s venture into the international market is encountering challenges. The company has expressed its intention to export cars to Bangladesh but is currently impeded by UN objections related to safety and compliance standards.

Pak Suzuki maintains that a majority of its export models already adhere to UN safety regulations. The company has committed to bringing the remaining models into full compliance by June 2025. Until then, the export plans to Bangladesh remain on hold due to these regulatory hurdles.

What do you think about the update narrating temporary production closure of Toyota cars and vehicle exports? Tell us in the comments section.