Automakers suspend production
Faced with a demand slump and raw material shortages amid unfavourable economic conditions, Indus Motor Company (IMC) on Tuesday announced a fourth production suspension from Feb 1-14. Also, Agriauto Industries Ltd (AIL), an auto vendor, announced a partial closure this month due to a sharp decline in demand for parts and accessories from major automakers. The assembler of Toyota vehicles in a stock filing said it would resume production from Feb 15 on a single shift basis until further notice. IMC said the State Bank of Pakistan (SBP) on Jan 2 advised commercial banks to prioritise/facilitate imports to specified sectors only, which does not include the auto sector. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company, IMC said. The company had kept its production operation suspended from Aug 1-13, Sept 1-16 and Dec 20-30, 2022. Despite production stoppages and a 52pc drop in sales in IHFY23, IMC shocked its customers by raising prices from Rs280,000 to Rs1.2 million on various models in the second week of this month.