Auto sector in Pakistan has around 3 million employees associated directly and indirectly and there are more than 350 registered members producing parts for the local auto industry. There is a lot of potential in the Pakistani auto parts manufacturer and if given the proper attention they can become competitive in the international market.
Auto industry has enabled about 100 Technical Agreements for the transfer of technology that helped increase productivity of workers and innovation. Recently a local parts manufacturing company announced to export Absorber FR Bumpers to Toyota Motor Vietnam, thus joining the league of global auto parts suppliers for Toyota’s international supply chain.
Localization is a main factor that will increase export in the long term. Another factor which is very essential for the economy’s growth is the growth of other sectors including capital intensive and labour intensive industries like steel, glass, rubber, asphalt, wood, gasoline, insurance, and road-construction industries etc; while auto sector grows in tandem with these sectors. If all these problems are addressed on government level the auto industry of the country can become a major competitor in the international marker.