Auto part makers have asked the government to support them grow their market by supplying different parts and merchandise to original equipment manufacturers (OEMs).
Like all other industries, this one is based on government policy. Before spending a huge amount of money in the car parts market, stakeholders wanted a clear plan with information on incentives and future returns.
According to industry stakeholders, there is no long-term strategy in place to secure the investments of Pakistan’s 400 auto vendors, who produce about 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.”
To offer Pakistan’s auto vendors a boost, a variety of issues must be tackled, and long-term policies are needed to do so.