Toyota Indus Motor Company and Millat Tractors suspend production

The companies will halt production till Sep 16

LAHORE: The Toyota Indus Motor Company (IMC) and Millat Tractors Limited (MTL) have separately notified the Pakistan Stock Exchange (PSX) that they will be suspending production till September 16. 

In the notice sent to PSX on Tuesday, IMC cites the State Bank of Pakistan’s (SBP) increased oversight of the import of completely-knocked-down (CKD) as the primary reason for its halt in production. It cites that the measure has depleted their inventory levels to levels insufficient to maintain production. IMC has consequently decided to halt production from September 1 to September 16. The company had previously suspended production from 1st-13th August 2022 on account of similar reasons. 

The decision is in line with many other companies in the industry as Pak Suzuki Motor Company (PSMC) has halted productions three times during August from 18th-19th August, 22nd-26th August, and from 29th-31st August

On the other hand, MTL has cited the ongoing floods across Pakistan as the reason for halting production.

MTL states that the damage to the roads has damaged their deliveries and inventory levels. They have consequently decided to halt production August 31 till September 16.

MTL had previously halted production in March of this year on account of the tractor industry’s sales tax refunds being stuck with the Federal Board of Revenue (FBR) for over two years, which in turn led to a liquidity crisis. 

 

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Daniyal Ahmad
The author is a member of the staff, and covers the automobile sector as a sector analyst. He can be reached at [email protected]

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