Indus Motor extends plant shutdown

KARACHI: Indus Motor Company Limited has decided to completely shut down its plant from August 25 to September 06, 2023, amid supply chain disruptions.

In a letter addressed to the general manager of the Pakistan Stock Exchange (PSX), he IMC management said that its production will be shut down from August 25 to September 6 due “delay in opening of Letters of Credit (LC) and inventory shortages”.

Accordingly, the company has insufficient inventory levels and cannot continue its production activities.

This development follows company’s announcement of a complete shutdown of its plant from July 21 to August 3, 2023

In the fiscal year 2022-2023, due to a challenging environment, low consumer purchasing power, and an increase in duties and taxes by the government, the demand for the auto sector has continuously declined.

Indus Motors said that its vendors continue to face hurdles in importing raw materials and receiving clearance of their consignments, on account of challenges in opening of LCs and supply chain issues.