IMC announces eight-day production shutdown

KARACHI: Indus Motor Company Limited has announced to close its production plant for eight days amid ongoing supply chain disruptions.

In a statement addressed to the Pakistan Stock Exchange (PSX) on Friday, the company secretary of Indus Motor said, “Based on the current low level of inventory of manufactured vehicles and shortage of parts and components for manufacturing of vehicles due to supply chain challenges, the company has decided to close its production plant from July 15 to July 22, 2024.”

It is crucial to understand though that Indus Motor’s predicament is not unique to the automotive sector. The company is one of the many automakers that have had to deal with the difficult dual challenges of decreasing demand due to rising pricing and shortages of raw materials.

Two other significant companies in the Pakistani automotive scene, Pak Suzuki Motors and Honda Cars, have also encountered a similar situation that has led to several production facility shutdowns.

These disruptions are mostly the result of Pakistan’s depletion of foreign exchange reserves, a situation that has negatively impacted a number of industries that significantly depend on the import of raw materials.