Indus Motors Company (IMC), the manufacturer of Toyota vehicles, has decided to stop all production of vehicles for the remaining days of September.
Due to continuously decreasing in demand, bringing the total number of “non-production days” (NPDs) to 15 in the month.
An IMC official, who requested not be named, said the company had already observed eight NPDs in July and 11-12 NPD in August.
Official of Indus Motors express reasons behind this act that cost of Toyota vehicles are out of the market because the federal excise duty (FED) of 2.5-7.5 % on various engine capacity cars, rising prices on account of rupee and dollar, charges of additional customs duty on imported parts and raw material and high interest rates.
Sources from Indus Motors confirmed that IMC’s production would remain shut from Sept 20 to 30 so IMC plant and countrywide dealership network has pack up all unsold inventory of over 3,000 vehicles. The plant is running at 50pc capacity in September.
Production and sales of Toyota Corolla 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 57pc respectively.
Production and sales of Toyota Hilux dropped to 793units and 716 units from 1,383 and units 1,292 units, a drop of 42pc and 44pc respectively.
Production and sales of Toyota Fortuner dropped to 232 units and 162 units from 484 units and 424 units, a drop of 52pc and 62pc respectively.