Through indigenous technical resources and technical tie-ups with well-known global companies, the auto parts industry has by and large developed into a well-organized sector of the country.
There are 400 organized units in the auto parts industry, most of which are registered vendors to assemblers/OEMs. Many of these are bound to supply only to OEMs as per their agreements, but due to low demand by the assemblers, they are forced to sell their products in the replacement market in one or the other way. These units efficiently manufacture sophisticated parts like piston, engine valves, gaskets, camshafts, shock absorbers, struts, steering mechanism, cylinder head, wheel hubs, brake drums, wheel bumpers, instruments and instrument panel, gear of all types, radiators, cylinder liners, blinkers and light/lamps, door locks and auto air conditioners.
Along with the organized sector, a good number of small and large units (approximately 1200) are operating in un-organized sector. In fact, 90% of automotive parts industry constitutes of Small and Medium size Enterprises (SMEs), out of which about 95% are self-financed. These units produce a wide range of parts for the replacement market.
The larger operators in this unorganized sector even manufactures crankshafts (aside from wheel Hubs, brake drums, filters etc.) for replacement market, although not even a single assembler has yet deleted crankshaft because of high accuracy required in metallurgy and machining. However, these dozens of crankshaft manufacturers in the unorganized sector are successfully catering to most of the demand of the replacement market.
The major Statistics and Economic Indicators related to automotive parts manufacturing industry are as follows:
Table: Industry Statistics
Pakistan is the only country in world which has formulated the industry specific deletion program to specify local content requirements for cars, motorcycles, buses & trucks,tractors etc. The basic purpose of deletion program is to develop and protect the local auto parts industry. This local deletion program was formulated up to June 2005 and a new Tariff Based System TRIM’s compliant will be introduced soon.
