Amid the increasing exchange rate and imposition of heavy taxes and duties on the automobile sector, which caused a sharp decline in car sales, Indus Motor Company has decided to shut down the plant for the rest of the month of September. This would bring the total number of ‘non-producing days’ (NPDs) to 15 in the month of September alone. The IMC observed 11 NPDs in the month of August and had reduced the plant running capacity in the months prior to August. The plant is currently operating at a 50% capacity.
An official of the IMC said that the imposition of 2.5%-7.5% excise duty on different engine capacities, increasing exchange rate, imposition of duties on imported parts and raw materials and increased interest rates have increased the prices of cars outside the reach of the general public.
IMC officials also said that the dealerships had compiled unsold stock of 3000 units, with the plant running at just 50% capacity. The sales of different Toyota cars in the month of August 2019 were decreased by almost 50% as compared to the sales of the same time period last year. The sales of Toyota Corolla decreased from 8,770 units to 3,708 units, Toyota Hilux sales dropped to 716 units from 1292 units and Toyota Fortuner sales decreased by 162 units from 424 units.