The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has expressed concern about the sustainability of the auto parts industry. Original equipment manufacturers (OEMs), which have been continuously charging high prices from end customers, angered parts manufacturers for not passing along the price hike. They want an increase in pricing from OEMs based on a pro rata methodology.

Dr. Salman Shah, a former finance minister, stated that the government has failed to create a viable industrialisation strategy. He recommended the manufacturers of parts to cease relying on OEMs and the government for assistance, and instead acquire technology and form alliances to attain excellence in parts production and avoid becoming enslaved to any one industry.

PAAPAM Senior Vice Chairman Usman Aslam Malik emphasised that it was essential to unite the experts in order to brew the knowledge of the group and chart the course ahead. He said that the lack of raw materials was causing challenges for exporting businesses in trying to serve consumers overseas.

Usman Malik also urged the government to make significant modifications to the car industry growth plan 2022–2026, requiring assemblers to export a certain proportion of vehicles and parts. He urged that the auto industry deletion programme be amended to reinstate the deletion programmes in their entirety along with monitoring mechanisms.

He reassured the members that in these challenging times for opening letters of credit for raw materials, PAAPAM stood shoulder to shoulder with its members. Many industry and financial experts also called for PAAPAM members at the convention to discuss ways to survive in this gray environment.

Credit: Independent News Pakistan-WealthPk