Govt Urged To Incentivise Domestic Auto Industry

Lahore Chamber of Commerce & Industry (LCCI) Tuesday urged the government to incentivise the domestic auto industry in the upcoming Auto Policy to ensure production of high tech parts/components locally

LAHORE, (UrduPoint / Pakistan Point News - 7th Dec, 2021 ) :Lahore Chamber of Commerce & Industry (LCCI) Tuesday urged the government to incentivise the domestic auto industry in the upcoming Auto Policy to ensure production of high tech parts/components locally.

LCCI President Mian Nauman Kabir told media here that indigenization in auto sector is limited to the manufacturing of steel metal parts, interior trim, seats, rubber and plastic parts, batteries, wheel rims, tyres and lighting accessories. He said that the more sophisticated moving parts (engine, transmission, etc) that require precision engineering are all imported as they cannot be made locally up to international standards.

LCCI President said that the lack of modern technology to produce high tech parts is hampering the growth of domestic auto industry. He said that it is also pressurizing the foreign exchange reserves as most of the auto parts are being imported to assemble the vehicles.

He said that the transfer of technology in auto sector will help produce the component domestically and reduce dependence on foreign component.

The companies should increase the local value addition and should train the local human resources.

The LCCI President said that if the modern technology is adopted, it will not only help to develop the local vending industry but will also help skill development, training and job opportunities for the local human resources and will also ensure availability of vehicles on the competitive prices for the local customers. It will also generate export opportunities for the local parts and components to the other countries and will give an immense opportunities for local brands to develop.

Mian Nauman Kabir said that the government should control those factors which are hampering the growth of domestic auto industry.

He cited the example of India where the most important strength of auto industry is greater indigenization and domestic availability of raw materials. The industry has developed the capability to produce all automotive parts, ranging from engines, transmission apparatus, suspensions, brakes, and body and chassis parts.

LCCI President hoped that the government will ensure proper incentives for the domestic auto industry in the new Auto Policy in the larger interest of the economy.