‘Auto parts manufacturing industry going through toughest phase’

LAHORE: The auto parts manufacturing industry is going through its hardest phase and is in dire need of support from the government to gain stability, Aamir Allawala, Chief Executive, Tecno Auto Glass Limited, said.

While talking to a select group of media persons, Aamir said, “This industry is facing a very dire situation in its history due to various issues including low vehicle demand and import restrictions.”

To a query, he said the current higher prices of cars can only be reduced through the production of hi-tech parts in the country, and for that the auto parts industry needs support from the government. He said that car consumption per capita in Pakistan is quite low, even if compared with underdeveloped, regional countries.

He said, “We need production volumes of half a million cars for any viable investment in manufacturing critical engine and suspension components. But this seems impossible due to incessant import of used cars.”

He maintained that the local auto parts manufacturers have achieved the level of quality production of hi-tech parts through localization in the motorcycles segment and now they are doing the same in the cars segment, but facing numerous challenges.

He added that the car segment witnesses a change in models much more frequently, so it resulted in very limited volume for each model, therefore, auto parts manufacturers don’t find it feasible to invest in dies/ molds and technical assistance fees.

Copyright Business Recorder, 2023