Stagnant exports — a wake-up call for auto part makers

Auto parts exports have shown a lethargic growth in the last seven years despite holding a regular prestigious auto show in Pakistan and active participation of local vendors in global auto exhibitions. Exports stood at $16 million in FY18 and after some ups and downs, they reached $27m in FY22 but fell to $22m in FY23. During July-October FY24, exports dipped to $7.1m from $8m in the same period last year, according to the Pakistan Bureau of Statistics (PBS) data. The export of auto parts also depends on the world market scenario relating to demand and supply situation, exchange rate parity and the country’s economic conditions. Mashood Ali Khan, auto parts manufacturer/exporter, said vendors have kept themselves in their comfort zone by continuously making parts for local manufacturers instead of diversifying towards auto parts exports. In the times of frequent plant shutdowns by the local assemblers from July 2022 onwards, only those vendors are a bit relaxed who have been persistently exporting parts to various countries besides exploring new markets.