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Toyota Shuts Down Assembly Plant Due To Low Demand

In a star-studded assembly, the business introduced the new HEV while revealing the next day that it will be stopping manufacture starting next week.

Overview

Toyota Pakistan executives met with Prime Minister Shehbaz Sharif on Thursday. To unveil their future hybrid Corolla Cross, paying lyrical homage to the turbulent year. The country’s automotive industry has suffered. Fortunately, a notice that production will be halted due to a shortage of raw materials was announced the following day.

Profit attempted to contact Asghar Ali Jamali. The CEO of Toyota Pakistan, for a comment but was sadly unable to do so.

The Prime Minister, and all of Toyota’s men

The first domestically produced Toyota Corolla Cross Hybrid Electric Vehicle (HEV) was handed to Prime Minister Shehbaz Sharif. By the Toyota delegation, which was led by Vice Chairman Shinji Yanagi and Chief Executive Ali Asghar Jamali. The Prime Minister praised Toyota’s commitment and emphasised the value of stepping up localization efforts. While putting an emphasis on exports. Additionally, he promised to safeguard the HEV incentives set forth in the Auto Industry Development and Export Policy (AIDEP) 2021–26.

Yoshiki Konishi, President of Toyota Asia and Chief Engineer of the Corolla Cross. As well as Mitsuhiro Wada, the Japanese Ambassador to Pakistan, also attended the conference. Ishaq Dar, the federal minister of finance, and Makhdoom Murtaza Mehmood, the federal minister of industries and production, were both in attendance.

One may be curious The Toyota delegation, led by Vice Chairman Shinji Yanagi and Chief Executive Ali Asghar Jamali, made the first local presentation. Explaining why such a distinguished group of people met to discuss the launch of a new vehicle. Maybe to talk about Pakistan’s advantages with the Corolla Cross? Toyota did spoken on this subject.

 Announcement Of Shutdown

August 24, 2023, in Karachi Due to waning demand and a lack of stock. Toyota Pakistan has announced a temporary halt of its production facilities.

This choice was made while the nation’s auto industry continues to suffer from a difficult economic climate. The declining consumer purchasing power, and rising government levies and taxes.Toyota Indus Motor Company (IMC) has issued yet another round of non-production days (NPDs). Due to ongoing operational issues and financial difficulties.

The firm stated that the inventory deficit was the cause of the automobile assembly plant shutdown. Which will occur from August 25 to September 6, 2023, in an official notification to the Pakistan Stock Exchange (PSX).

Reasons Behind The Shutdown

The most recent notification also cites lower sales as a factor in the decreased demand.

1,368 vehicles were sold by Toyota IMC, which reported a 26% MoM decline in sales. The main cause of the reduction is the sharply decreased sales of the Toyota Fortuner and Hilux, which fell by 63% last month.

Due to these unfavourable circumstances, the demand for automobiles in the Pakistani market has been steadily declining, causing businesses like Toyota Pakistan to rethink their manufacturing plans.

Indus Motor Company Limited has made the decision to temporarily suspend its production activities in order to adjust to the present market conditions. The production facility will be shut down starting on Friday, August 25, 2023, and lasting through Wednesday, September 6, 2023, inclusive.

This short-term production stoppage will aid the organisation in better inventory management and production demand matching. This action is expected to help Toyota Pakistan navigate the difficult economic environment and maintain the viability of their operations in the Pakistani car industry.

Despite A Supply Chain Problem, Innovation

It’s not all bad news for Toyota IMC, though, as the carmaker is about to introduce Pakistan to its first-ever locally built hybrid electric crossover SUV.

Recently, a test Corolla Cross Hybrid was sighted in Karachi while wrapped in a black and blue wrap. Despite the silence of Toyota Indus Motor Company (IMC), sources from industry analysts reportedly indicate that the company has started testing the crossover hybrid SUV on public roads.

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