Auto Parts Show: ‘Exports of automobile parts generate $80 million’

Indus Motor announces new model of Hilux.

LAHORE: Transfer of technology and localisation of parts is gaining pace as exports of automobile parts have reached $80 million in 2011, said Engineering Development Board (EDB) Chief Executive Officer Aitzaz Niazi at the opening ceremony of the Pakistan Auto Parts Show on Monday.

The three-day exhibition kicked off in style at the Expo Centre as stalls of international and national automobile manufacturers and parts makers cramped the two major halls of the exhibition centre.

EDB launched an ambitious market expansion programme in 2005 for the engineering sector and achieved remarkable success by giving exposure to over 150 companies to the global sourcing chain, Niazi said.

The EDB chief executive officer advised the auto industry to vigorously explore global markets not only to enhance business but to meet challenges at domestic level as well.

Representatives from Japan, Germany, UAE, Italy, Holland, Sri Lanka, China and Australia are attending the auto show. Product range includes completely assembled vehicles including cars, trucks, buses, tractors, motorcycles along with more than a thousand types of auto components.

Indus Motor Company (IMC) CEO Parvez Ghias said that investment in developing the engineering base and enhancing the skills of engineers has helped the company achieve 50% localisation of parts.

He revealed that IMC is going to add one more model to the Hilux-IMV family very soon which would not only enhance options for the customers but parts suppliers would also get orders for the new IMC variant.

Talking about the company’s contribution, Ghias said that IMC has given business worth Rs22 billion to the vendors for purchase of parts and assemblies in fiscal 2011.

Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Chairman Syed Nabeel Hashmi said that PAAPAM members now manufacture 70 per cent parts of passenger and light commercial vehicles, 90 per cent of motorcycles and tractors and 45 per cent of heavy commercial vehicles.

He added that the most shining sector was motorcycles due to the strength of local content and minimal intervention of the government.

Published in The Express Tribune, October 25^th, 2011.