Islamabad, 15 August 2024 (TDI): With so many enterprises, both two- and four-wheeler, trying to move forward in accordance with the auto strategy 2021–26, the automotive sector is beginning to show symptoms of becoming another source of export funds.
The auto policy 2021–2026 is the clear reason why four-wheelers are being exported; yet, a lot of analysts think that the nation’s inflationary pressures and irregular local demand are what have forced major Japanese companies to search for export markets.
A Japanese automaker official stated, “Companies have managed to localize themselves to a respectable degree, but the local demand has been declining for a few years. It puts pressure on these businesses, who have to cut back on work shifts or shut down production facilities because of low demand and excessive costs.”
“Key stakeholders believe there are prospects to establish Pakistan as a competitive exporter in both regional and international markets as the business has grown.”
Pakistan has a modest but gradually increasing amount of automobile exports in 2024. Africa, Central Asia, and the Middle East have shown heightened interest in the automobile sector, which includes both four- and two-wheelers.
With top manufacturers like United Motors and Atlas Honda making inroads into these areas, motorcycle exporters in particular have showed a lot of promise.
Furthermore, while China’s Master Changan Motors has previously exported its variations from Pakistan last year, Indus Motor has now stated that it will be exporting its cars.
As demand for inexpensive yet robust components rises worldwide, vehicle accessory exports—which include everything from custom modifications to replacement parts—are also picking up speed.
About 10,000 cars, motorcycles, and heavy-duty vehicles were exported from Pakistan in 2023. Despite being a minor portion of the worldwide automobile commerce, this marks a 20% rise from the previous year, indicating the potential of the sector.
Also read: Car Sale Increases By 58% In Pakistan in July 2024
Analyst for the auto industry Rameez Ahmad thinks Pakistan has a chance to become a major force in the global car market if the government provides the right kind of assistance and industry cooperation.
“Pakistan is in a good position to meet the huge demand for two-wheelers in developing nations. We can establish a niche for ourselves by utilizing our manufacturing capabilities and making investments in R&D,” he stated.
There is a lot of commitment, but there are several obstacles in the way of becoming a large exporter. High production costs, uneven quality control, and a lack of improved integration into global supply chains are some of the challenges facing the business.
Addressing these issues requires collaboration between the public and commercial sectors. According to a Pakistan Automotive Manufacturers Association (PAMA) official, “achieving success in international markets requires developing a strong brand reputation, guaranteeing competitive pricing, and upholding global quality standards.”
“The government should take steps to encourage this growth, such as offering incentives to companies that focus on exports and negotiating trade agreements with prospective export destinations.” He continued, “These steps, along with strategic alliances with global firms, should give the industry the necessary boost.”
