PAAPAM Requests a 10-Year Auto Part Localization Policy

The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) commended Prime Minister Imran Khan’s stern stance against the high prices of automobiles in Pakistan and acknowledged that the extravagant prices of vehicles are because of the non-localization of auto parts in the country.

The representatives of the association attended a meeting pertaining to this matter in which they voiced their support for the Cabinet’s decision to investigate the reasons behind issues like the rapid rise in car prices and illegal premiums on cars’ original Manufacturer’s Suggested Retail Price (MSRP).


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The representatives also expressed their concerns regarding the absence of a transparent import regulatory system, fearing that “the economic situation will have a further dip with the New Entrants coming into the field and the launch of Electric Vehicles (EVs) being at the doorstep”.

PAAPAM, as a major organ of the Automotive Industry in terms of employment and revenue contribution to the exchequer is fully geared up to venture formally in global exports/supply chains – an area so far denied to local parts manufacturers.

They added that the many years of having non-localization of auto parts had also resulted in an economic disbalance causing exorbitant foreign exchange outflows due to imported parts.


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The representatives further stated,

It’s time to deeply analyze the root cause of the high prices of cars in the country, and devise a long-term strategy to duly produce vehicles in line with the demand, besides devising and implementing a 10-year ‘Auto Parts Localization Policy’ (APLP) to ensure the localization of all value-added parts.

They also stressed the importance of the policy by saying that it will result in the reduction of the production cost, expedite the production process, and aid the upkeep of stocks for automakers to meet the market demands in time.