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Ladies and Gentlemen

Assalam-o-Alaikum

Pakistan has rich human resources and this offers immense potential for growth in the Automobile Sector. Our country has a vibrant Auto industry with major global OEMs setting up their assembly plants in the country and using up to 90% local parts being supplied by a network of almost 350 PAAPAM members.

I am proud of the contributions made by our members to achieve local content of up to 70% in case of Passenger Cars & LCVs, 90% in case of Motorcycles & Tractors and 45% in case of Heavy Commercial Vehicles. With the grace of Almighty Allah, we are one of the most competitive global manufacturers of Tractors & 2-Wheelers and are now gearing up for overseas export opportunities. This is only due to the high levels of localization achieved by our members.

The prospects for rapid growth are extremely bright. Countries with comparable populations, such as Brazil, are producing over 3.5 million passenger cars every year. It may take a while, but Pakistan must target similar levels of volumes over the next 10 years.

OEMs have played a major role in taking localization to new heights and vendors have lent them full support; may this partnership flourish further in the years ahead. I assure you of PAAPAM’s best efforts to work closely with the OEMs as well as the governments, to best serves our members and safeguard our industry’s interests, by contributing towards creating a conducive and growth oriented environment for the Automobile Sector.

In the face of turmoil & terror, power outages & devaluation, tsunami & earthquakes, the auto parts industry has shown both resilience & fortitude during the past decade, by achieving higher localization, technology transfers, generation of employment and import substitution, thereby saving valuable foreign exchange of our country.

Currently, local companies produce auto parts meeting global standards and local vendors are also exporting auto parts directly or through their OEM customers. The members of PAAPAM are playing an important role in the economic development of automobile and related industries, through development of engineering base in Pakistan.

We, at PAAPAM, are convinced that, given a supportive environment, the Automobile Industry has the potential to spearhead the country’s economic growth and contribute, in a major way, towards job creation and industrial investment.

I fervently hope and pray that the government will formulate policies that support the local auto industry, as this industry is the mother of all industries.

Mr. Mumshad Ali
Chairman – PAAPAM