Thursday December 09, 2021

New EV policy must to end auto export roadblocks

June 10, 2021

KARACHI: The government must overhaul its auto policy to end roadblocks in the way of this sector's exports with Electric Vehicles (EV) in the driving seat of its future plans, an industry official said on Wednesday.

"The existing AIDP (Automotive Industry Development Programme) II is quite a relaxed policy and hampers the potential of Pakistan’s automotive exports to other strategic regions,” said Mashood Khan, director at Mehran Group.

“The government should craft a new EV policy to boost technology and produce parts to export from Pakistan.”

Khan, who is a former chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), said the government should create avenues of incentives for those original equipment manufacturers (OEMs), who would plan to export left-hand drive vehicles to European countries.

“In this regard, infrastructure has already been built by way of Gwadar port, which is strategically connecting Pakistan with Europe and will turn out to be a competitive advantage for our country,” he said.

Also, he added, the government should associate all OEMs to channelise local auto parts manufacturers to enter the global supply chain within a period of five years.

Moreover, he also advised the government to develop an international market research center for the identification of untapped markets and for the nourishment of the automotive industry. "We can surely start an export coaching programme for auto parts manufacturers to train them in line with international market norms and procedures."

Besides, he added, there was a huge requirement of building a design house for every OEM in Pakistan in the initial stage as it would act as a building block for a strong export base for this industry.

"The government has to focus on one model to pick it for maximising localisation on quality standards and give incentives for export," said Mashood.