Auto vendors’ industry crisis

Auto vendors’ industry crisis

The auto parts manufactures have laid the blame of decline in production and increase in prices of cars on the assemblers who are averse to using the locally manufactured auto kits, parts and accessories. Chairman Pakistan Automotive Parts and Accessories Manufacturers’ Association (APAM A)  has claimed that 70 percent of auto components and parts are locally manufactured but car assembling companies prefer the expensive imported substitutes by misusing the SROs of Ministry of Industry. On the contrary, car assemblers argue that deletion ratio has reached to 45-55 percent in the production of 660 -1800 cc cars.

Over the past few months, sale of cars, trucks and tractors have dropped by more than 30 percent which squeezed the demand for the locally fabricated auto parts and accessories. The auto vendors have laid off 40000 daily wage workers. The availability of smuggled auto parts in the local market at relatively cheaper rates has added to woes of vendors.

If the claim of APAMA is correct then it is for the relevant ministries to intervene into the matter and take appropriate measures for establishing viable linkage between vehicle assemblers and vendors to reduce the prices of cars, trucks and tractors. The powerful cartel of Japanese car assembling units have often blocked the way for West European cars and trucks manufacturing companies such as Renault and Volks Wagon to set up their plants in Pakistan.

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