Indus Motor Company (IMC) the assemblers of Toyota cars in Pakistan informed in a management briefing that the automobile sector of the country faces unforeseen external challenges due to unprecedented rupee devaluation and import restrictions by State Bank of Pakistan (SBP).
IMC also warned that if the current situation persists “some players may exit from the market,” according to Topline Securities quoted as saying. This was discussed during IMC’s Corporate Briefing Session (CBS) for the first quarter of the current fiscal year’s financial results and company outloo
It was informed during the briefing that IMC is currently operating at 40-50% of its production capacity due to lack of CKD parts in hand amid restrictions imposed by the SBP. However IMC management don’t see these restriction to ease soon.
Furthermore, floods wreaking havoc along with higher inflation and low purchasing power of consumers will have a negative impact on demand of the entire auto sector in upcoming periods. The auto financing is also down from 35% to just 10% due to higher interest rates and tougher financing conditions