ISLAMABAD -Indus Motor Company faces yet another setback over the sloweconomic conditions of the country.
The Indus Motor Company (IMC) will function on a single shift basis untilDecember 2019 to reduce costs and deal with decreasing sales as theauto-sector’s slump shows no sign of halting.
The company expressed hopes that the situation would improve during thesecond half of the current financial year due to the continuedstabilization of the economy.
This isn’t the first time Toyota has had to shut down its plant this yearwith the plant halting production for 15 days in September, 12 in August,and 8 in July.
A report published by Pearl securities said,
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The Company anticipates total industry demand to clock-in at160,000-170,000 units during FY20 as compared to 240,000 units recordedduring the previous fiscal year.
A report by Next Capital says, “Rural market is still driving IMC’s salesas it constitutes 60 percent of the total sales whereas urban marketaccounts for 40 percent sales.”
It added that with respect to pricing, considering stability in theexchange rate along with focus of the company towards supporting volumes,the management does not expect prices to be further increased during Q2FY20.
