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In Pakistan, Have Toyota’s Days Come To An End?

In Pakistan, Have Toyota’s Days Come To An End?

July 25, 2022 / By Zunair Tahir / Automotive News

Toyota Indus is said to be ceasing automobile manufacture in Pakistan and may be required to reimburse advance payments made for reserved vehicles.
Toyota has earlier said that the major cause of the production hiccup was the restrictions on the LC permission for CKD (completely knocked down units) imports from the State Bank of Pakistan. In June and July, the corporation also noticed two weeks of idle manufacturing, which delayed production.


Due to challenges importing complete knockdown (CKD) kits and the sharp decline in the value of the local currency relative to the US Dollar, Toyota Indus Motor Company (IMC) is preparing to cease manufacturing in Pakistan for an extended period.

To deal with sluggish CKD imports, the business has previously established non-production days (NPDs). However, new rumor’s imply that Toyota IMC would suspend manufacturing for an extended period of time, however they do not specify how many days.

According to our sources, the corporation will formally reveal its production delay scenario the following week. Customers who are unable to wait for delayed delivery will also receive refunds for any advance payments they made on Toyota Indus vehicles. Toyota Indus may have to stop all manufacturing if the situation doesn’t improve.

The State Bank of Pakistan has limited the opening of Letters of Credit (LC) to a number of industries, including the automotive sector, as a result of the devaluation of the rupee on the global market. This has disrupted the manufacture of vehicles and delayed deliveries as a result.

We will give customers the option to avail a refund with the full interest. In case they choose not to opt for this (refund), they will have to wait at least 3 (more) months from the delivery month given on the Provisional Booking Order Form and (also) pay the price differential due to the exchange rate situation.

The business will probably soon make a formal announcement in this respect.

The predicament of Toyota IMC has given rise to rumours that suggest its time in Pakistan may be numbered.

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An industry professional that ALL ABOUT CARS contacted said that these rumor’s are wholly untrue. He stated that the business intended to start anew shortly and clear the backlog of orders in the interim.

Despite not importing its CKDs directly from Japan, Toyota IMC’s car assembly operations have been hampered by the chip shortage and other logistical problems. As the carmaker continues to struggle in Pakistan and other nations, Toyota’s sales are anticipated to suffer greatly.


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