The automobile industry in Pakistan is poised to produce better quality products in large quantities to meet increasing demand despite the hard circumstances, it is experiencing due to reduction in customs duty on CBU units and relaxation on import of second hands cars up to three-year-old.
This was stated by Shinichiro Ashizawa, director, Japan External Trade Organisation (Jetro), Karachi Office, while speaking at the inaugural session of a one-day seminar on "Sheet Metal Press Technology" at a local hotel on Saturday.
He said with the continuing growth of GNP at more than 8 percent, the economic situation of Pakistan under which the automotive industry has also registered tremendous growth and the automobile production is also increasing every year.
In this scenario, assemblers are demanding mass production and better quality products to meet demand as there is a strong pressure on the vendors and some of the vendors may be facing problems to fulfil assemblers demands.
He, however, said even under these hard circumstances, the vendor industry should continue their efforts to produce better quality products in large quantities to meet the ever increasing demands.
Shinichiro Ashizawa said that most of the Pakistanis are very hard working people and have the capability to meet the most difficult challenges even in the adverse conditions. All the automobile assemblers also recognised these facts, therefore, they are continuing their investment, he added.
"We at Jetro will support the development of automotive industry in Pakistan and continue to assist in various segments of this industry", he said.
He told that Jetro Karachi office was established in 1954 and its main activity is to strengthen the economic activities between Pakistan and Japan specially export promotion from Pakistan to Japan and investment promotion from Japan into Pakistan and support the industrial development of Pakistan. This time to support the development of automotive industry of Pakistan, Jetro has invited automotive specialist Hiroshi Ito to give technical guidance to the vendors in this country.
S. Mehdi Ali Rizvi, chairman, Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam), said on this occasion that the volume of the auto industry in Pakistan has grown by 400 percent in the last four years. Last year, the production of cars was 125,000. "This year, we are projecting a volume of 155,000 cars followed by 175,000 cars next year", he added.
He said the metal stamping group holds the largest promise as well as challenge for the vending industry.
"Most of the OEMs have geared their production for the forthcoming years and we also have to gear up to meet the growing demands of our customers", he added.
He said the Government of Pakistan intends to provide protection to vending industry in the form of tariff-based system, but rules of the game are changing, adding that the vendors who adopt the latest managerial and technical skills to achieve quality cost and delivery would survive.
He thanked the Jetro director for introducing training programme for vendors in Metal Stamping Group in Thailand. First batch of trainees has already got training and the second batch consisting of 38 representatives is leaving for Thailand on Saturday.
Hiroshi Ito, specialist on the subject, delivered lecture and provided technical guidance and information at the seminar.