Indus Motor Company, which assembles Toyota vehicles in Pakistan, has issued a warning that rising geopolitical tensions in the Middle East may disrupt the supply of imported auto parts, potentially impacting production schedules within the country’s automobile industry.
The alert was communicated during a management briefing referenced in a report by Topline Securities, which indicated that logistical congestion, increased freight costs, and shipping delays could exert pressure on supply chains in the upcoming weeks.
Pakistan’s automobile sector is significantly dependent on imported completely knocked down kits and components, rendering it susceptible to interruptions in global shipping routes.
The situation has been worsened by tensions surrounding the Strait of Hormuz, where the Islamic Revolutionary Guard Corps has cautioned about possible threats to vessels navigating through this crucial energy and trade corridor.
New models under review by Indus Motor Company
In spite of the ongoing uncertainty, the company has stated that new models and product modifications are still being reviewed, although no specific timeline has been established due to the changing nature of the situation.
The automaker also expects that the government will take steps to rationalise taxes within the sector.
Indus Motor Company further pointed out that certain vehicle categories are currently subjected to a 25 percent sales tax, which could potentially be lowered to approximately 18 percent to ensure fairness across the industry.
Management expressed that vehicle demand for car companies such as Toyota may gradually rebound with economic stability, moderate financing rates, and controlled inflation in Pakistan.
It also advocates for a definitive Auto Policy 2026–31 that aligns with reforms under the International Monetary Fund programme.
Read more: Is the Toyota Corolla price increasing in Pakistan?
