One of the leading automobile manufacturers, IMC has decided to shut down all production for the remaining days of September, the total number of non-production days will be 15 in the month due to continuous fall in demand.
According to Dawn, the company had already observed eight non-production days in July and 11-12 days in August.
Due to the increase in federal excise duty (FED) of 2.5-7.5 percent on various engine capacity cars, dramatically shooting prices on account of rupee-dollar parity coupled with additional customs duty on imported parts and raw material and high-interest rates had priced most of their vehicles out of the market. For September, “half of the current month is off,” the official said.
IMC plant and all the dealership network has stocked up an unsold inventory of over 3,000 vehicles.
Their longest-running model Toyota Corolla production and sales drastically dropped to 5,308 units and 3,708 units respectively in July-August from 8,804 and 8,770 units. Toyota is trying to sell the unsold inventory by giving low prices and zero percent down payment to customers.
The increase in dollar and taxes has affected the automobile industry, resulting in downfall in sales and production.