OUR STAFF REPORTER KARACHI - After a comprehensive assessment of the impact of Japans March 11 earthquake and tsunami on its parts supply chain, Indus Motor Company will be operating at around 60 per cent of its production capacity in the month of May with a similar outlook for the month of June. Keeping in view the unprecedented situation and uncertainty, the company has decided not take any new orders from April 19 till further notice. A press release issued by the Indus Motor Company Limited (IMC) said that future production schedules have not been firmed up as yet and IMC will be monitoring the situation with the support of its principals and inform its stakeholders accordingly. Despite this crisis, the company will continue to provide employment to its more than 1,900 staff, with their idle time utilised in trainings and plant improvement activities. This is a necessary response to address the ongoing supply crisis in Japan and we intend to resume peak production levels as soon as possible. Our current focus is to ensure that we honour all commitments against the orders at hand and reduce the impact on customers of our immediate production shortfalls. Given the nature of the Japanese crisis resulting in a parts supply shortage, customers should be prepared for some delays in vehicle delivery. We would request our customers to be patient while IMC endeavours to minimise any inconvenience to them, said IMC spokesperson. It must be mentioned here that the company, according to some media reports, has suspended booking of all its products for at least 2 months. The recent earthquakes in Japan have been the main reason cited for the disruption in production. IMC has average monthly sales of 4,100 units. Auto analysts estimate a loss of 8,200 units will result in an earnings erosion of Rs4.1/share in FY11 (base case: Rs28.4/share). However, sales could recover post the opening of bookings amid pent up demand. Further, since Honda Car (HCAR) and Pak Suzuki (PSMC) also procure their raw materials from Japan they face the same risk of closure, he said.