Auto Parts Manufacturers in Pakistan is booming. Metaline Industries Pvt Ltd, such as auto parts manufacturing, make up the largest manufacturing sector of Pakistan. Companies in the automotive industry in Pakistan include those involved in production, assembly, and repairs. It also has an integrated spares and service network that serves both local and international auto makers. This article will explore the importance of a good auto-parts supplier and its role in the automotive industry. Listed below are a few of the important factors to consider.
Auto-Parts Industry in Pakistan:
The Auto-parts industry in Pakistan has been growing significantly in the last years and its future looks bright as well. During the past three years, the industry has recorded annual earnings growth of 13% and revenue growth of 20%, respectively. More sales means higher profits for the industry and the changes in the Pakistani consumer discretionary market are largely due to this industry. In Pakistan, around 1,600 automotive parts companies are active, of which 400 Tier I vendors supply original equipment manufacturers (OEMs) with a variety of auto parts.
The auto-parts industry in Pakistan needs to be promoted and developed as a reference to attract foreign and local investment. The industry should facilitate technology transfer, foster R&D, and obtain support for skill development, training, and value addition. Moreover, government support in the form of infrastructure and incentives should be provided to promote auto-parts industry in Pakistan. This will ensure that it is a viable business destination for all.
The automotive industry in Pakistan is growing rapidly in Die and Tool making companies. The government is encouraging local production by providing incentives such as heavy tariffs on imported spare parts. As a result, almost 4% of the auto-parts manufactured in Pakistan exported. The low costs of manufacturing locally make the industry extremely competitive in the global marketplace. Here is a look at the auto-parts supply chain in Pakistan. Here are some tips to boost the local auto-parts industry.
Auto-Parts Supply Chain in Pakistan:
Metaline Company operates a complex value chain. It sources parts from more than 60 local suppliers and imports key components from manufacturing plants in Japan and Thailand. The company operates on a just-in-time model and must be able to predict demand accurately in order to meet the demand on dealership forecourts. But how will these suppliers ensure that demand doesn’t exceed supply? The auto-parts supply chain in Pakistan is at a critical point.
Importers of automobile spare parts in Pakistan have demanded the government to reduce the customs duty and the tax rate, a move that will encourage local producers to compete with foreign counterparts. Import duties on auto-parts amount to nearly 90 percent in most cases, which encourages smuggling. In addition, high duties make it difficult for local original equipment manufacturers to compete. A reduction in these taxes would help promote local production, increase exports and create jobs.
While the government introduce certain laws to curb illegal imports, some are still not satisfied with these measures. For example, the import of used automotive chassis is banned, since these parts can classified as scrap steel. In response to this, a comprehensive special procedure is develop to inspect used auto-parts. As part of this procedure, all consignments of used auto-parts are examined for 100% authenticity, and are de-stuffed at specified ports.
Pakistani Manufacturers and Suppliers:
The Pakistan Auto Parts and Accessories Manufacturers Association (PAAPAM) has welcomed the recent government directive to launch an investigation into soaring car prices. Government tariff policies and a low percentage of locally manufactured components are the main reasons for these high prices, which will drop once the localization regime is fully implemented. In addition, a structured technology transfer program makes it easier for OEMs to partner with local auto parts manufacturers.
Pakistan’s automotive industry faces several challenges. First, the quality of steel in Pakistan is very poor, limiting local production. Second, the economic stimulus package under the auto parts manufacturing in Lahore Development Policy 2016-21 he expires in two years, leaving little time for local manufacturers to operate. Third, it is impossible to manufacture quality parts in Pakistan without importing raw materials, which is a major challenge for the automotive industry.
Importation of Auto-Parts in Pakistan:
The ban on import of consumer goods and luxury cars has been welcomed by the Pakistan Association of Automobile Parts and Accessories Manufacturers (Paapam). In a recent article, the chairman of Metaline Industries Pvt Ltd has urged the government to also ban the import of auto-parts. By preventing the import of auto-parts from abroad, Pakistan could prevent the looming threat of default. Controlling under-invoicing and smuggling of auto-parts could save the country billions of dollars.
The fast-growing automobile industry in Pakistan is fueling the import of auto-parts. The government is promoting local production of auto parts in Pakistan through its heavy tariff structure on auto-parts imported from overseas. As of 2016, almost 4 percent of auto-parts produce in Pakistan are exported to other countries, including Europe and Asia. This is a sign of Pakistan’s growing manufacturing industry, thanks to lower cost of production.
Founded in 1996, Metaline Industries Pvt Ltd is a leading automotive spare parts supplier in Pakistan, serving local market leaders in the automobile industry. The company has a history of innovation and is a leader in new technology, which has allowed it to create a unique brand in the automotive market. This company has a variety of products, ranging from air conditioners to wiring harness and heater blowers. Listed on the Pakistan Stock Exchange, Metaline Industries Pvt Ltd is a global automotive spare parts supplier and has the latest technology to meet the needs of the global auto market.
Auto Parts Demand:
A recent car show in Lahore has spurred a local parts manufacturing industry. Improving macroeconomic indicators, rising car sales and falling oil prices are encouraging local manufacturers to expand their operations. Increased auto financing and the recent drop in oil prices are also encouraging investors to invest in the automotive industry. After years of economic stagnation, Pakistan is finally starting to attract investors.
Recent government policies are promoting the domestic production of auto parts. Currently, there is a worldwide shortage of electronic components such as semiconductors, and large investments required. Lack of resources and skilled labor, high production costs and government policies on indirect taxes exacerbate the situation. Fuel tank manufacturers in Pakistan should therefore work with auto parts manufacturers to develop a roadmap for self-reliance. There are currently 3 players playing against his 4-5 newcomers.
Given the potential of this sector, more and more investors are pushing to invest in the region. The booming automotive industry in Pakistan has increased the demand for auto parts. Government incentives and tax incentives make it easy for new entrants to capture market share. But to compete with existing players, newcomers need to create his chain of supply to remain competitive. To meet this challenge, auto parts manufacturers can work with new entrants to build their supply chains.
Conclusion:
The company is part of the Metaline Industries Pvt Ltd and manufactures auto air conditioning units and wiring harness in Pakistan. It supplies genuine auto air conditioners to Toyota in Pakistan, as well as buyers of automotive aftermarket. They allowed to import off-the-shelf units at heavily discounted government taxes that they will enjoy until 2023. However, local variations will have to pay higher tariffs on parts than imported ones. I have.
