AGL 38.70 Increased By ▲ 1.00 (2.65%)
AIRLINK 140.50 Increased By ▲ 5.93 (4.41%)
BOP 5.44 Decreased By ▼ -0.03 (-0.55%)
CNERGY 3.83 Decreased By ▼ -0.01 (-0.26%)
DCL 7.54 Increased By ▲ 0.11 (1.48%)
DFML 45.95 Increased By ▲ 0.48 (1.06%)
DGKC 78.16 Increased By ▲ 0.16 (0.21%)
FCCL 29.15 Decreased By ▼ -0.14 (-0.48%)
FFBL 56.38 Increased By ▲ 0.38 (0.68%)
FFL 8.60 Increased By ▲ 0.05 (0.58%)
HUBC 95.80 Decreased By ▼ -1.44 (-1.48%)
HUMNL 14.35 Increased By ▲ 0.16 (1.13%)
KEL 3.86 Decreased By ▼ -0.04 (-1.03%)
KOSM 6.98 Increased By ▲ 0.19 (2.8%)
MLCF 36.90 Increased By ▲ 0.60 (1.65%)
NBP 69.30 Decreased By ▼ -0.40 (-0.57%)
OGDC 167.50 Increased By ▲ 0.50 (0.3%)
PAEL 25.76 Increased By ▲ 0.43 (1.7%)
PIBTL 6.67 Decreased By ▼ -0.07 (-1.04%)
PPL 131.56 Increased By ▲ 1.06 (0.81%)
PRL 25.40 Increased By ▲ 0.01 (0.04%)
PTC 16.34 Increased By ▲ 1.09 (7.15%)
SEARL 58.35 Increased By ▲ 0.65 (1.13%)
TELE 6.93 Increased By ▲ 0.14 (2.06%)
TOMCL 34.63 Decreased By ▼ -0.16 (-0.46%)
TPLP 7.48 Decreased By ▼ -0.12 (-1.58%)
TREET 14.00 Increased By ▲ 0.09 (0.65%)
TRG 44.98 Decreased By ▼ -0.02 (-0.04%)
UNITY 25.43 Increased By ▲ 0.35 (1.4%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,085 Increased By 17.2 (0.19%)
BR30 27,042 Increased By 16.1 (0.06%)
KSE100 85,521 Increased By 259.7 (0.3%)
KSE30 27,100 Increased By 88.6 (0.33%)

The country’s auto part makers have asked the government to reduce taxes on the auto sector to boost localisation.

“The government should realise that its treatment of the auto industry as a cash cow by burdening it with taxes ranging between 37% and 43% per locally produced car is hampering the growth of the auto industry,” said Abdul Rehman Aizaz, chairman of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).

He was speaking to the inauguration ceremony of the Pakistan Auto Show 2023 in Karachi on Friday.

Higher finance costs and massive increase in car prices also reduced consumer demand for cars.

In the first quarter of FY24, car sales in Pakistan stood at 20,983 units, down 40% as compared to the same period the previous year.

PAAPAM chairman said around 300 companies in Pakistan are manufacturing thousands of components for car manufacturers in the country, generating employment and contributing to the industrial output of the country.

“Majority of low-tech components and certain hi-tech components of this segment are made in Pakistan,” he said, “However, it doesn’t mean that the localisation goal is near completion like in motorcycle and tractor segments due to various reasons, including low volumes, certain non-tariff barriers, and reluctance in the transfer of technology by international companies.”

Aizaz said car consumption per capita in Pakistan is quite low even if compared with regional underdeveloped countries.

Govt, auto sector appear ‘close to resolving manufacturing certificate’ issue

“PAAPAM believes that OEMs [original equipment manufacturers] shall give priority to the potential of the market we possess and work on lines of tripartite joint ventures among international part manufacturers, local OEMs, and auto part manufacturers of Pakistan,” he added.

PAAPAM chief said the automobile horizon is not limited to passenger cars and SUVS only.

“It also comprises sectors like motorcycles and tractors, where we are world competitive in terms of value provided to end customers.

“The main reason for competitiveness in these sectors is the 90% to 95% localisation we achieved in these sectors, contributing heavily to the GDP and the national exchequer,” he said.

Aizaz shared that complex and critical components of motorcycles are manufactured in Pakistan under technical assistance of Japanese companies, adding hi-tech components and assemblies from complete engine to suspension are completely locally manufactured.

After Toyota, Honda Atlas also reduces car prices in Pakistan

“The resultant good quality and competitive pricing are getting the acknowledgement not only from local but international customers also, as motorcycles are now being exported to various countries,” he said.

PAAPAM chairman claimed that Pakistan producer cheapest tractors in the world, even cheaper than India and China, due to the localisation of almost all engine, transmission and suspension parts.

Earlier, Zain Shariq, convener of Pakistan Auto Show 2023 said local parts manufacturers are not confined to auto parts only, as they are manufacturing parts for defence, aviation, and healthcare industries too.

Comments

Comments are closed.

Maqbool Oct 28, 2023 01:02am
Can the PAAPAM chairman please explain why the cars assemblies in Pakistan are at ridiculous higher prices compared to the same cars and models in India ?? At the same time he claims local Tractors are cheaper than those in India and China . Tractors are cheaper and Cars at least 100% more expensive .
thumb_up Recommended (0)
shah Oct 29, 2023 09:46pm
Can the chairman shed light on the millions of parts that he claims his manufacturers are producing? The entire cars come with KDKits and Pakistan produces less than 10% of parts locally.
thumb_up Recommended (0)