Indus Motor Company Ltd. (INDU), the renowned manufacturer of Toyota vehicles in Pakistan, has once again been compelled to temporarily suspend operations at its production plant. This decision, necessitated by persistent supply chain disruptions and a critical shortage of essential raw materials
Toyota Pakistan’s official notification to the Pakistan Stock Exchange (PSX) highlighted the severity of the issue, stating, “The company is currently experiencing low levels of raw material and component inventory and is facing ongoing supply chain challenges. This has resulted in a shortage of parts and components necessary for vehicle production.”
This isn’t the first time INDU has been forced to halt production this year. In September, a similar suspension was implemented from September 26 to September 30 due to identical supply chain constraints.
Strong Financial Performance
Despite these challenges, Toyota Pakistan managed to deliver a strong financial performance in the first quarter of fiscal year 2025. The company reported a net profit after tax (NPAT) of Rs5.1 billion, marking a substantial 58% year-on-year increase. However, a 10% decline quarter-on-quarter was observed.
However, Indus Motor Company’s sales inched up by 7% selling 2,532 units last month compared to 2,367 vehicles in September 2024. The local car maker sold 2,101 units of Corolla, Yaris, and Corolla and 431 units of Fortuner and Hilux.
While the auto maker’s financial results were impressive, the ongoing supply chain disruptions pose a significant threat to its future operations. The ability to consistently meet production targets and deliver vehicles to customers remains uncertain.
As the global automotive industry continues to grapple with supply chain issues, INDU’s experience underscores the challenges faced by manufacturers in emerging markets. The company’s proactive approach to addressing these challenges will be crucial in ensuring its long-term sustainability and growth.
What do you think about the recent development regarding car production reported by the Toyota Pakistan? Tell us in the comments section.
