Indus Motor suspends booking of new cars


Indus Motor Company has decided not to take any new orders till further notice following disruption in supply of parts from Japan after the earthquake and tsunami.

The maker of Toyota Corolla has an average monthly sale of 4,100 units. A JS Global Capital analyst estimates that closure for two months will result in an earnings reduction of Rs4.1 per share in fiscal year 2011.

Indus Motor Company’s production level will fall 40 per cent in May due to lack of parts that are imported from Japan, according to a statement issued on Friday. It also predicted a similar outlook for June.

“Our current focus is to ensure that we meet all orders at hand,” said a company spokesperson.

Customers should be prepared for some delays in vehicle delivery keeping in mind the supply chain disruption following the Japanese crisis. “We request our customers to be patient while Indus Motor endeavours to minimise any inconvenience to them,” the spokesperson added.

The company will keep its 1,900 employees busy in training and plant improvement activities during their idle time.

Global scenario

Toyota, the world’s biggest auto maker, said on Friday output will start recovering in mid-year but will not be back to normal until end 2011 after Japan’s quake-tsunami disaster caused parts shortages.

Toyota announced production disruptions domestically and in the United States, European Union, China and Australia because of the crisis, temporarily shutting some plants or running them at half-capacity or less.

Toyota’s Japan plants are now working at 50 per cent capacity and those in North America at 30 per cent because of parts supply shortages.



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