Country still importing 50 per cent auto parts – The Nation

LAHORE – The share of local content in vehicles needs to be increased, as the country is still importing almost 50 per cent of the automotive parts. There is an opportunity for Japanese investors to fill the remaining half, as it will cut manufacturing costs in Pakistan and enhance profitability of Japanese investors.

This was stated by the Pakistan Association of Automotive Parts and Accessories Manufacturers while terming 2012 a special year for Pakistan-Japan relations, as was declared by the President Asif Ali Zardari too. The PAAPAM sought further investment and technical collaboration with the Japanese automobile companies for high-tech auto parts manufacturing in Pakistan.

Keeping in view of the 60th anniversary of Pak-Japan diplomatic relations, PAAPAM and BFP chairman Syed Nabeel Hashmi, observed that it is the year of celebrations and also a year of reflection on what more needs to be done to take relations of Pakistan and Japan to new heights through new investment and transfer of high technology especially in auto sector.

He also greeted the Honda Pakistan, the Japanese automaker, for adding another chapter to its achievement books by rolling out its 200,000th unit. Behind the success are loyal customers backed by workforce that has worked tirelessly at Honda’s production facility to achieve this milestone, he added.

The chairman urged the Japanese companies to increase the share of the local content in the automotive parts. He said automobile sector in Pakistan is completely dominated by Japanese companies and Japan’s share in car and truck market is almost 100% and it has almost 50% share in the motorcycle market. It has a major share of the market in other vehicles.

The PAAPAM chairman said Japanese goods enjoy consumer’s confidence all over the world as well as in Pakistan. Despite a strong Yen and high prices, consumers prefer Japanese products in Pakistan.

He said Japanese manufacturers are producing goods at a high cost in Japan for Pakistan and the neighbouring markets. Japanese investors, he said, can take advantage of low cost production, abundant raw material and cheap labour available in Pakistan.

He said by virtue of its unique geographical location, Pakistan can serve as hub for Japanese production houses. He said our location is such that we can serve a market of over three billion in our neighbourhood.

PAAPAM vice chairman Munir K. Bana said Pakistan’s investment policies have been consistent and investors’ friendly.
He recounted various incentives available to the investors including freedom to invest without any restrictions, complete ownership of the businesses, equal treatment to local and foreign investors, free repatriation of profits and capitals, and generous tax and customs incentives for bringing raw materials, plant and machinery into Pakistan.

He said despite the challenges over the past decades, Pakistan’s economy has shown great resilience. He said Pakistan has maintained a positive rate of growth despite terrorism and natural disasters.

He said Pakistan is the 6th most populous country in the world and offers a large consumer market. He said energy shortage was a great challenge. However, we are not deficient in potential and resources in meeting the challenge, he added.

PAAPAM vice chairman said that Pakistan looks towards Japan and Japanese technologies to assist it in meeting the energy challenge too and it will be a mutually profitable venture, he added.