Toyota IMC Shuts Down Again, the suspension of production at its assembly plant in Pakistan due to a severe shortage of parts and inventory caused by the ongoing global chip shortage and import restrictions. The chip shortage has significantly disrupted the supply chain and production operations for many automakers worldwide, including Toyota, leading to the reduction of its global production targets and temporary closures of multiple production facilities throughout the year.
As per the latest notification issued by Toyota IMC, the assembly plant will remain closed from July 21 to August 3, resulting in a substantial loss of 20,000 units. The company has made the announcement public by disclosing it to the Pakistan Stock Exchange.
The notification is as follows:
Company and suppliers face challenges importing raw materials and obtaining shipment clearance due to non-issuance of Letters of Credit (LCs). These hurdles have further exacerbated the production problems caused by the chip shortage, causing significant disruptions to Toyota IMC’s operations.
Toyota IMC Shuts Down Again The suspension of production will notably impact Toyota’s market share and competitiveness in Pakistan. Presently, the company holds a dominant position, commanding 35% of the car market. Production halt may pose challenges for Toyota, allowing competitors like Honda, Hyundai, and Suzuki to seize market share opportunities.
This is the 6th production closure notification made by Indus Motor this year. Factory closures occurred due to inventory deficits on June 26-27, June 3-8, May 2-3, February 1-14, and March 24-27.
This suspension highlights the severity of the ongoing global chip shortage and its far-reaching consequences for industries worldwide. Automakers, including Toyota IMC, must find solutions to mitigate chip shortage impact, and secure supply chains for stable future production.
