PAAPAM Voices Concerns Over Used Car Imports

ISLAMABAD: The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) expressed significant apprehension on Tuesday regarding the ongoing import of used vehicles. They warned that this practice could devastate the local automotive industry, which produces nearly 70% of car parts and 90% of motorcycle parts, and provides employment to approximately two million individuals.

Usman Malik, chairman of PAAPAM, addressed the Auto Parts Summit organized by the association, urging the government to safeguard the domestic industry. He pointed out that developed nations are actively protecting their automotive sectors, with even the United States employing tariffs to bolster its industry.

Haroon Akhtar Khan, Special Advisor to the Prime Minister (SAPM) on the Ministry of Industries and Production, attended as the chief guest. He affirmed the government’s commitment to fostering industrial growth through strategic policies, specifically aimed at enhancing the global competitiveness of local auto parts manufacturers (APMs).

Khan stated that Pakistan is at a pivotal moment, possessing the necessary human capital, strategic geographic location, and abundant natural resources that have historically driven successful industrial revolutions. He emphasized that the current administration is committed to implementing progressive industrial policies that prioritize manufacturing, attract foreign investment, and enable Pakistani products to compete effectively within international supply chains.

He further mentioned that over 1,200 domestic auto parts manufacturers contribute 3% to the nation’s GDP while generating two million job opportunities. The SAPM conveyed that, under the Prime Minister’s directive, efforts would be made to elevate the competitiveness of the local auto parts manufacturing sector on a global scale. He encouraged industrialists to invest in cutting-edge technology and research to transform Pakistan into an automotive hub through collaborative initiatives with the government.

Usman Malik, the PAAPAM Chairman, raised concerns about the government’s inconsistent policies, noting the implementation of an environmentally conscious electric vehicle policy alongside the allowance of commercial imports of used cars with diesel and petrol engines.

“Our policymakers are inadvertently working against the interests of the local auto parts manufacturing sector, and once damaged, it will be challenging to revitalize the industry. Currently, numerous CKD operators are primarily assembling imported components, rather than genuinely supporting domestic manufacturing,” Usman stated.

The PAAPAM chairman noted that the local auto parts industry exports $200 million worth of domestically produced components annually, all of which meet international safety standards. He also highlighted that Pakistan’s Millat Tractors are being exported to the United States.