Automotive Spare Parts Supplier in Pakistan
If you're looking for an automotive spare parts supplier in Pakistan, you've come to the right place. We'll look at Metaline Industries Pvt Ltd and the auto parts industry in Pakistan. We'll also discuss the importation of auto-parts and taxes and duties that apply to these imports. Hopefully, this information will help you make an informed decision. As a result, the industry will be able to compete with other auto-parts-producing nations. And don't forget to check out the links below to find a great deal!
Auto-parts industry of Pakistan
The primary business of Metaline Industries Pvt Ltd is the supply of automotive parts. Metaline products include car air conditioners, starters, and alternators. The company's sales are highly dependent on the performance of the auto industry. Increased income and availability of cheap financing for purchasing cars have helped increase the country's auto sales. The company's margins will be challenged by increasing costs associated with raw materials, however.
In order to maintain its high quality standards, Metaline has achieved ISO 9001 and TS 16949 certifications. The company is also committed to ensuring a safe working environment for its employees and fulfilling its social and environmental responsibilities. In addition to Die and Tool making companies, Metaline also manufactures electrical and electronic components for automobiles. It has a strong global presence, with a diverse product portfolio spanning from electronic components to complete engine systems.
The auto-parts industry in Pakistan has increased significantly in recent years, and is expected to continue growing. The Punjab Skills Development Program has conducted a study on the industry, and 85% of the participants predicted positive growth. The upcoming China Pakistan Economic Corridor is expected to boost the auto-parts industry of Pakistan, as it will enable the country to import auto parts from China at lower prices.
Importation of Auto-Parts in Pakistan:
The government should develop infrastructure to facilitate investment in the APMs industry. In order to increase investment in the sector, government should offer incentives and support to attract international and local investors. The ON money on cars is determined by the forces of supply and demand. Dealers charge premium for fast delivery of specific models. However, as production capacity increases, ON money gradually fades away. Once supply and demand reach an equilibrium, the ON money is no longer necessary.
The demand for auto-parts in Pakistan has increased due to the emergence of new automobile companies in the country. The new entrants can avail of the tax benefits offered by the government for the first 5 years of their operations, which will help them in establishing supply chains and competing with established players in the market. In order to develop their supply chains, auto-part manufacturers can establish joint ventures with these new entrants.
A recent study revealed that import bill of auto-parts is more than one third of that of completely knock-down and built-up units. This is a worrying development as it erodes foreign exchange reserves. However, this trend may change in the future as the country's economy grows and the demand for auto-parts increases. The government should restrict the import of auto-parts to reduce the demand for auto-parts and other auto-related products.
Localization of Auto-Parts in Pakistan
To compete in the local market, the auto industry has sought the government to abolish the anti-dumping duty (ACD) imposed on imported spare parts and accessories. The government is considering adding automotive parts to the list of free trade agreements, but auto part manufacturers have objected to this move, saying that it goes against the government's policy and would discourage future investment in the industry. The delegation urged the government to consider a centralized committee consisting of local manufacturers, automotive parts dealers and importers to discuss the matter.
The import of automotive spare parts is subject to a cumulative duty of 90 per cent, which means that it would cost almost Rs1.5 million to import a one-million-rupee car. Imports of parts and equipment for the assembly process are subject to duty of as much as 90 percent. While it is possible to bring a Rs1.5 million car within a one-million-rupee budget, it will be a difficult task. Therefore, the government must take steps to reduce the duties and taxes that affect the automotive industry.
The PM's recent announcement about tax incentives for auto parts manufacturing in Lahore is welcomed by the auto-parts industry in Pakistan. The new auto-parts industry is expected to see an upsurge in demand, as new entrants look to enter the market and compete with existing players. But these new players will have to set up supply chains in Pakistan. To compete with the existing players, the new entrants can partner with existing auto-parts manufacturers to establish their own supply chain.
Conclusion:
While it is unlikely that a nation can produce 100% of its own cars, the automotive industry in Pakistan is vital for the country's economy. There is no way that the government can afford to import engine parts, despite the large volume of demand. Therefore, it is important to increase localization of auto-parts to ensure local content. However, while this may not be possible for every part, the industry should be encouraged to transfer technology to local auto parts manufacturers.