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KARACHI: Indus Motor Company (INDU) has announced another shutdown of its plant for six days citing low inventory and shortage of components.
The company communicated its decision to halt production to the Pakistan Stock Exchange (PSX) through an official notice.
The notice cited the current depletion of vehicle inventory and shortages in parts and components due to supply chain difficulties as reasons for the production plant’s closure from March 6th to March 11th, 2024.
Pakistan’s automotive sector faces challenges amid the country’s slowing economic growth, rising inflation, and high borrowing costs, all of which are impacting vehicle sales.
Analysts note that the sector’s heavy reliance on imports, coupled with price hikes aligned with the dollar’s appreciation, has exacerbated the situation, prompting calls for increased localization to reduce dependency.
Indus Motor Company recently announced a Rs3 billion investment (~$10.76 million) to boost production localization, part of its broader strategy to enhance local manufacturing of vehicle parts and components.
According to the company’s latest financial report, it recorded a profit of Rs4.95 billion for the half-year ending December 31, 2023, marking an 89% increase from the previous year’s earnings of Rs2.63 billion over the same period.