Auto industry demands urgent govt support

The local auto industry has urged the new government to promptly implement measures to support the sector and restore investor confidence in Pakistan. “Currently, as many as 13 local brands are collectively producing over 40 models with a total capacity of 500,000 units per annum,” stated Abdul Rehman Aizaz, Chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM). However, he noted, the significant increase in the imports of used cars is posing serious challenges to the sustainability of the local auto industry, which has invested approximately $2.5 billion and contributed around Rs400 billion in taxes in FY2022 alone. He lamented that this surge in used car imports continues to undermine the scale and potential of the local auto industry. “In FY2022, the local auto industry accounted for approximately Rs250 billion in local purchase value and generated about 2.5 million direct and indirect jobs within the country,” he added. “The import of an average of 3,000 used cars per month is currently pushing the growth of the local industry into negative territory (approximately 40%),” Aizaz explained.