Pak Suzuki Motor Company Limited, Chief Executive, Hiroshi Kawamura, has announced the company’s intentions to explore car and component exports from Pakistan. Suzuki Motors has upgraded its vehicles to meet multiple WP-29 standards, emphasising its commitment to providing affordable vehicles to the people of Pakistan.
During the second round of interaction meetings with part manufacturers, Kawamura also revealed Suzuki Motors’ ongoing efforts in developing hybrid variants for the market. He stressed the need for collective action to address the escalating crisis within the automotive industry, highlighting the indispensability of local partners in achieving their goals.
In response, Senior Vice Chairman of the Pakistan Association of Automotive Parts and Accessories (PAAPAM), Usman Aslam Malik, addressed core issues plaguing the industry. Malik identified the lack of primary raw materials, technological limitations, and inadequate localisation as major challenges. He emphasised the necessity of achieving economies of scale to make vehicles more affordable for the average citizen.
Malik posed a thought-provoking question regarding Pakistan’s production volume, pointing out that the country, despite being the fifth-largest, still produced fewer than 0.3 million vehicles. He attributed this shortfall to the frequent introduction of variants, which hindered localisation efforts. Malik proposed PAAPAM as a catalyst for capacity building and aligning the industry with current demands. He urged Original Equipment Manufacturers (OEMs) to share their non-localised lists with vendors through PAAPAM to promote localisation.
Read Pak Suzuki Motor reports Rs3.2b profit
Furthermore, Malik underscored the potential in exploring the export-after-market for engine and transmission parts due to their high replaceability rate. He assured complete support to OEMs for exporting parts through a global supply chain, facilitated by the recently introduced Export Facilitation Scheme, which replaced the cumbersome Duty and Tax Remission for Exporters (DTRE) programme. He urged stakeholders to respond effectively to these initiatives to enhance regional competitiveness.
Malik criticised the government for its inconsistent and industry-unfriendly policies, including the periodic opening of the used car market and the replacement of effective deletion programmes. He highlighted the need for stable policies to support the growth of Pakistan’s automotive sector.
Published in The Express Tribune, September 29th, 2023.
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