Indus Motor Company (INDU) has announced a temporary shutdown of its manufacturing plant for five days due to low inventory levels and a shortage of essential components. The company conveyed this decision in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
The notice indicated that Indus Motor is experiencing challenges in obtaining sufficient raw materials and components, exacerbated by ongoing supply chain issues. As a result, the company is unable to meet its vehicle production requirements.
Consequently, operations at the production facility will be suspended from September 26 to September 30, 2024.
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This situation reflects broader challenges facing Pakistan’s auto industry, which is struggling amid a slowing economy, rising inflation, and high borrowing costs. These factors have negatively impacted vehicle sales.
Analysts point out that the industry’s heavy reliance on imports has led to price increases in line with the rising value of the dollar. Many experts are advocating for increased localization in production to reduce dependency on imports and help stabilize the market.
