Auto Part Manufacturers Request Govt for Support

In order to expand in the burgeoning automotive industry of Pakistan, the auto-parts vendors have sought out the help of the government.

These parts makers supply various components to the Original Equipment Manufacturers (OEMs), and like other segments, they too rely on government policies to thrive in the market.

The stakeholders of the auto parts industry highlighted that there are near 400 such vendors in the industry that are responsible for generating around Rs. 120 billion worth of annual revenue for the three major OEMs in the country.


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The stakeholders have appealed to the government for the creation of a sustainable policy with details of incentives and future returns, so as to ensure the growth of the auto parts industry.

About the ongoing state of affairs, Chief Operating Officer of Ravi Autos, Majid Nawaz made the following statement while talking to The Express Tribune:

“Auto parts manufacturers are taking a huge risk by pouring investment into the rapidly growing sector, [but] unfortunately, the government tends to favour those who import components and assemble vehicles in Pakistan. 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. It is a big risk [on the part of the auto-parts makers] to invest in infrastructure for new components without a clear policy.”

Nawaz further highlighted that the automakers that had been operating here since before the recent advent of new players had reached up to 70% localization of parts in the 4-wheeler segment by employing the latest technology and trained manpower.


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He said that the government should not only form a new policy in this regard on an urgent basis but also urge the new automakers in the market to cooperate with the existing parts makers in order to ensure mutual benefit and the growth of the entire industry.

Nawaz also stated that the government must focus on ensuring the proper training of the engineers in the academic realm as well to bring the young engineers forward and perform their duties in accordance with the modern standards.

He said that now is the perfect time for the government to focus on the development of the industry by the aforementioned means, as the growth of the industry is very much already in motion.



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