Auto parts vendors, who supply different components and merchandise to the original equipment manufacturers (OEMs), have urged the government to help expand this segment of the auto industry.
Just like all other sectors, this sector too is dependent on government policies. Before investing a mammoth capital into the auto parts sector, the stakeholders have demanded a clear policy with details of incentives and future returns.
According to the industry stakeholders, there is no long-term policy to protect the future investment by around 400 auto vendors, who are currently generating around Rs120 billion per year for three OEMs in Pakistan.
Ravi Auto Sundar Chief Operating Officer Majid Nawaz stated, “Auto parts manufacturers are taking a huge risk by pouring investment into the rapidly growing sector.”
“Unfortunately, the government tends to favour those who import components and assemble vehicles in Pakistan.”
There are many issues that need to be addressed to give a push to Pakistan’s auto vendors and to resolve them consistent long-term policies are required.
“If we plan to make new investment in hi-tech component production in our factory, we should know what the policy offers to the engineering firms,” he underlined. “It is a big risk to invest in infrastructure for new components without a clear policy.”