Toyota IMC Expects Major Decline in Sales Due to Production Cuts

Toyota Indus Motor Company (IMC) has revealed a number of depressing facts in its most recent corporate briefing. The automaker operates at a capacity of 40-45% because the State Bank limits car kit imports.

The company outlined the reasons that led to the decrease in production. The company cited the drop as a reason for the decrease. automaker also warned of a drop by 40 percent in volumetric sales during FY2023.

The report also noted that the soaring cost of automobile prices as well as an increase of interest rates restrictions on financing cars supply chain issues, and limitations regarding complete knockdown kits (CKD) exports significant factors in the declining demand.

Based on Arif Habib Limited (AHL), Toyota IMC recorded a 31% increase in sales when it sold 75,611 units in FY2022 , compared to 57,731 units at the same time the previous year.

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In relation to the recent policy of refunds, IMC management informed analysts that between 800 and 1000 customers have cancelled bookings and received credit with an increase. In the report for FY22 that advances and loans received from dealers and customers grew to an amount of Rs. 112 billion for FY22 from 51 billion in FY21. 51 billion in FY21.

Due to depreciation of local currencies and the imposition of a super tax, sales in FY 21 grew by 54%, reaching the figure of Rs. 276 billion, up from. 179 billion. Meanwhile, profit after tax only grew by 23% to Rs. 15.8 billion, up from 12.8 billion. 12.8 billion.

Toyota IMC is likely to see a decrease in its earnings over the next few days due to production interruptions. Toyota IMC is currently observing the non-production day (NPDs) because of the new procedure which needs CKD authorization for imports by SBP. State Bank of Pakistan (SBP).

The company says that this has led to hurdles in the import of knockdown kits, which has caused difficulties with their inventory.