Pak Suzuki Explores Car and Component Export Opportunities

Jawad

30 Sep 2023

243

Pak Suzuki Explores Car and Component Export Opportunities

Hiroshi Kawamura, Chief Executive of Pak Suzuki Motor Company Limited, has announced the company's intention to delve into the export market for automobiles and auto parts originating from Pakistan. He emphasized Suzuki's commitment to conforming to WP-29 requirements and reiterated their dedication to providing affordable vehicles to the Pakistani market.

Hybrid Variants on the Horizon

Kawamura also unveiled Suzuki's plans to develop hybrid vehicle variants tailored for the Pakistani market. This announcement was made during interactions with auto parts manufacturers, underlining the growing need for collective efforts and local partnerships to tackle challenges within the automotive industry effectively.

Challenges and Solutions

In response, Usman Aslam Malik, senior vice chairman of PAAPAM (the Pakistan Association of Automotive Parts and Accessories), shed light on the critical issues plaguing the sector. He pointed to shortages of essential raw materials, technological limitations, and insufficient localization as the primary hurdles. Malik emphasized the significance of achieving economies of scale to bring down car prices for the average consumer.

Production Volume and Localization

Malik highlighted Pakistan's low production volume in the automotive sector, producing less than 0.3 million cars annually despite being the fifth-largest country by population. He attributed this shortcoming to the frequent introduction of variants, which hindered localization efforts. Malik proposed PAAPAM as a catalyst for enhancing industry capacity to align with market demands. He encouraged Original Equipment Manufacturers (OEMs) to collaborate with PAAPAM to share their non-localized lists with vendors, thereby promoting localization.

Export Opportunities

Malik emphasized the potential for exploring the export-after-market for engine and gearbox parts, given their high replaceability rate. He lauded the introduction of the Export Facilitation Scheme, replacing the burdensome Duty and Tax Remission for Exporters (DTRE) scheme. The new scheme simplifies OEMs' ability to export parts across a global supply chain, enhancing regional competitiveness. He urged stakeholders to respond effectively to these initiatives.

Concerns Over Government Policies

Malik criticized the government's inconsistent and unfavorable business policies, which included the recurrent allowance of used automobile imports and the discontinuation of effective deletion programs. To foster the growth of Pakistan's automotive industry, he stressed the importance of stable policies.

Pak Suzuki Automobile Exports Auto Parts Manufacturing Hybrid Vehicles WP29 Compliance Automotive Industry Challenges Localization Efforts Export Facilitation Scheme Government Policies Pakistan Automotive Sector

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