Auto experts seek clear vision for growth, diversification
PHOTO: FILE
Amidst the challenges posed by rising inflation and economic pressures, experts from the auto sector have come together to offer a series of compelling proposals to steer the industry towards new heights. At the heart of their plea is a call for the government to provide a clear vision and roadmap to navigate these turbulent times.
This resounding message was delivered at the Pakistan 2023 Auto Show symposium, entitled “The Future Drive: Innovation, Exports, Trends, and Way Forward for Auto Parts Manufacturers,” hosted at the Expo Centre in Karachi.
Imtiaz Rastgar, a Manufacturing and Export Specialist, emphasised the need for Pakistani vendors to tap into the global market. He highlighted an array of opportunities, from orthopedic implants and hardware to the gearbox market, steering wheels, hydraulic pumps, pistons, and more. Diversification into unrelated products, services, and markets is the key to the future for auto parts manufacturers, according to Aamir Allawala, CEO of Technopack Telecom and former chairman of PAAPAM.
Auto parts manufacturers currently grapple with challenges such as cost and price pressures from Original Equipment Manufacturers (OEMs), diminishing profitability due to cost inflation, and a surge in input costs. Aamir Allawala stressed the importance of exploring joint ventures with China as a viable option during these challenging times.
Mashood Khan, an Auto Expert, underlined the government’s role in boosting engineering goods exports. He advocated for a clear and long-term vision spanning at least 25 years to promote sustainable growth. Khan believes that embracing electric vehicles (EVs) is the way forward, with significant potential for Pakistan to become a global player in EV charger manufacturing. He emphasised the pivotal role the government can play in facilitating initiatives aligned with future technologies and global market demands.
Economist and Financial Analyst Ali Khizer shed light on the industry’s dependence on imported raw materials, contributing to its lack of competitiveness. The absence of economies of scale and critical mass hampers the sector’s growth. Khizer highlighted the historical cycle of automobile slowdowns in times of balance of payment crises and urged the need for systemic change.
Dr Aadil Nakhoda, Assistant Professor and Research Fellow at IBA, proposed empowering Small and Medium-Sized Enterprises (SMEs) through trade policy improvements, cluster development, streamlined trade procedures, and enhanced technical capacities.
Tariq Khan, Senior Director Corporate Strategy and Regulatory Affairs at Indus Motor Company, discussed the transformative impact of electric and autonomous vehicles on the automotive industry. He urged the exploration of markets like Saudi Arabia and called for government support to shape the industry’s future.
Asim Ayaz, General Manager Policy at the Engineering Development Board (EDB), highlighted the government’s perspective on the auto sector, emphasizing the introduction of new technologies, the inclusion of new players in tractor manufacturing, hybrid and EV developments, and export mandates.
In this collaborative effort between industry experts and the government, the future of Pakistan’s auto sector stands poised for innovation, diversification, and sustainable growth.
Published in The Express Tribune, October 29th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.