PAAPAM expects increase in auto parts’ exports to $5 billion in 5 years

LAHORE: Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) expects an increase in the auto parts’ exports to $5 billion in the next five years from the current exports of around $150 million, Mashood Ali Khan, senior vice chairman of PAAPAM, said this while talking to journalists on the second day of the event on Saturday.

He said Pakistan is manufacturing quality auto parts and sought government’s support in this regard.

Khan said that diplomats, especially from those countries where Pakistan is exporting auto parts expressed interest in the exhibition. “We are manufacturing tractor, truck and car parts and accessories,” he said.  PAAPAM has entered in an agreement with The Netherlands for Export Coaching Programme for next three years, under which they would get training on enhancing exports in the sector, he said. In this regard, two skill development centres were already developed in Karachi and Lahore.

“Once we are trained, we will enhance export coaching to other sectors, as well, including textiles, leather and food,” he said. He said there was a target of giving coaching to 50 member companies in the next three years, of the 350 member companies.

In the field of auto parts manufacturing, India, China and Thailand were major competitors of Pakistan, while total after market export (parts and accessories manufactured by the third party vendors and not the original vehicles producers) market exists at $600 billion.

Pakistan’s share of around $150 million was very little despite huge potential, he said. Pakistan exports parts to Germany, France and other countries. “We are getting repeated orders that are increasing our confidence,” Khan said.  Indus Motor Company Limited, (IMC), the manufacturer and distributor of Toyota vehicles and a regular participant in the event, is the diamond sponsor of PAPS 2016. IMC Chief Operating Officer Ali Asghar Jamali said, “Supporting PAPS is in line with the IMC’s vision to support local allied industries. We recognise that our future growth and sustainability is reliant on having capable and dependable local parts manufacturers.” “Sourcing the components from domestic market reduces the exposure to exchange rate fluctuations and strengthen Pakistan’s economy,” he said. IMC remains committed to uphold the spirit of continuous localisation as cornerstone of its strategy. “We are proud of the localisation achieved in 25 years since formation. Through the efforts of local vendors and suppliers, we were able to achieve over 65 percent localisation in Corolla,” he added.

FAW Motors, a Chinese company, that assembles trucks in Pakistan, announced its first 1000CC car production in Pakistan from next year. “FAW V2 1000CC will be launched in Pakistan from next year,” a representative said. Meanwhile, the three-day Pakistan Auto Show 2016, organised by PAAPAM, attracted a large number of visitors, including foreign companies and diplomats.