Auto part makers, who provide various components and merchandise to original equipment manufacturers (OEMs), have requested the government to assist in the expansion of this segment of the industry.
This sector, like all other sectors, is dependent on government policies. Stakeholders demanded a straightforward strategy with specifics of bonuses and potential returns before investing a large sum of money in the auto parts industry.
According to industry stakeholders, there is no long-term policy in place to protect the investment of around 400 auto vendors in Pakistan, who currently generate around Rs120 billion per year for three OEMs.
In an interview, Ravi Auto Sundar Chief Operating Officer Majid Nawaz said, “Auto parts manufacturers are taking a huge risk by pouring money into the rapidly growing market. Unfortunately, the Pakistani government favors those who import components and assemble vehicles in the country.”
Numerous issues must be resolved in order to give Pakistan’s auto vendors a boost, and consistent long-term policies are needed to fix them.
