Pakistan eying export of vehicles

LAHORE: The automobile manufacturing sector is likely to be able to export locally assembled vehicles in the next five years, but currently the manufacturers do not have the capability to compete with international models despite an additional production capacity, an industry official said.

The automobile sector has a capacity to produce around 270,000 vehicles per annum, but at present, around 135,000 units are being manufactured and sold in the domestic market. Hence, it has the capacity to export provided it enhances quality.

Procon Engineering Senior General Manager Ehsan-ul-Haq told The Express Tribune the automobile manufacturers can export locally-manufactured cars provided there is no economic slump and no other major hurdle undermines targets of vendors and manufacturers.

He said that vendors have a major role to play along with manufacturers regarding making innovations, enhancing the quality of locally manufactured vehicles and complying with rules set for acceptability in the international market.

He said that the manufacturers and vendors have taken the Economic Coordination Committee’s decision allowing import of five-year-old cars as a challenge and will improve product quality to international standards. Indus Motor Chief Executive Pervez Ghias acknowledged that the auto manufacturers are not producing advanced and quality cars that can gain recognition abroad. He said that the auto manufacturing sector cannot export its cars due to uncompetitive quality despite the fact that the manufacturers have an extra production capacity of around 100,000 units compared with local needs.

Published in The Express Tribune, February 5^th, 2011.