Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) unveiled a three-day mega auto parts exhibition – Pakistan Auto Parts Show 2011 (PAPS 2011) – here on Monday. As many as 128 exhibitors are showcasing engineering products over an area of 88,000 square feet at Expo Centre, Lahore.
Inauguration
Engineering Development Board Chief Executive Officer Aitzaz Niazi inaugurated auto show, which would attract participants from different parts of the world, including Japan, Germany, Italy, Holland, Australia, Sri Lanka, China and the United Arab Emirates. Addressing the inaugural session, EDB chief said that the auto vendor industry was continuously embracing the latest technologies to meet the ever increasing global challenges and industry demands. Auto parts exports had touched the $80 million mark in 2011 and under the patronage of Ministry of Industry and Production and Engineering Development Board auto industry would continue to grow, he maintained.
Exploring global markets
He urged the auto manufacturers to vigorously explore global markets not only to enhance the country’s exports but also to meet challenges at domestic level. In 2005, he indicated, the EDB launched an ambitious market expansion programme for the engineering sector and achieved remarkable success in terms of export development and exposure of over 150 companies to global sourcing chains. However, due to various reasons the market expansion plan could not be continued, but industries should raise their concerns over discontinuation of this important program, he added.
Capacity building
Niazi said that EDB was pursuing various capacity building and training programs in collaboration with international organisations. Under these programs, international organisations would arrange volunteer experts as per the requirement of domestic industry. He further said that over a period of time auto industry had achieved a lot of progress in standardisation. “I believed now the auto sector has reached a stage where it can launch a national car,” he underlined.
Vibrant auto industry
Speaking on the occasion, PAAPAM Chairman Nabeel Hashmi underscored that Pakistan had a vibrant auto industry that played host to major global original equipment manufacturers (OEMs) like Toyota, Honda, Suzuki and Massey Ferguson who had made Pakistan their home. “Today, Pakistani manufactures of cars, motorcycles, tractors and heavy vehicles are playing a vital role in the economic development of the country,” he maintained.
Component localisation
He pointed out that PAAPAM members had achieved 70 per cent component localisation in case of passenger and light commercial vehicles, 90 per cent in case of motorcycles and tractors and 45 per cent in case of heavy commercial vehicles. The auto industry encompassed technologies that included plastics, steel, forgings and castings, electronics, textile, rubber, oils and lubricants, design engineering, services etc.
Global competitiveness
Hashmi further pointed out that Pakistan was one of the most competitive global manufacturers of tractors and two-wheelers that had geared up into the export markets. In case of passenger vehicles, domestic products were highly competitive in comparison with regional counterparts because of high level of localisation, technology acquisition and long term investments done by the PAAPAM members, he added.
Impact of depreciating Pak rupee
Despite increase in volumes of passenger cars last year, he mentioned, the profitability eroded owing to depreciation of Pak rupee, higher utility and raw material costs. He said that illegal import of 7,000 modified sprinkler trucks with massive under invoicing and 16 per cent General Sales Tax had also made a heavy dent on the sales of locally manufactured trucks and busses. All these anti-industry moves had pushed the domestic auto industry on the verge of closure he lamented and added that motorcycles and three-wheelers were the only shining sectors in auto industry.
Export potential
He asked the government to immediately withdraw the reformed GST from tractors and allow loans for tractor purchase through Zarai Taraqiyati Bank, which had been withheld for the last one year. Hashmi said that the country had good export potential, but the industry lacked in incentives and international exposure support. He urged the EDB to restart its Export Development Wing to enhance engineering products export. Speaking about the PAPS 2011, he said that the show would organise seven seminars covering areas of automotive industry, management and export promotions. This mega event would have a positive impact on local manufacturing. Foreign and domestic manufacturers and part makers of cars, motorcycles and tractors were exhibiting their products in PAPS 2011, which would continue till Wednesday at the Expo Centre.
what is the time of show?
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