The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) is the representative body of automotive vending industry having registered memberships base of over 350 vendor companies located all over Pakistan. The vending industry is producing high quality components conforming to global standards as defined by top global vehicle assemblers including Suzuki, Toyota, Honda, Hyu
ndai, Messy Ferguson, Fiat, Hino, Nissan, Isuzu, Daewoo etc.00
The vending industry employs more than 200,000 highly skilled workforce which is around 95% of the total manpower employed in auto industry. The auto vending industry of Pakistan during the last 15 years has come a long way in terms of acquiring technologies to manufacture a wide range of hi-tech products not only for domestic market but also catering for export market to some extent. The localization level achieved so far by the vending industry is 55 – 70% for passenger cars, over 90% for motorcycles and tractors 40% in case of trucks and buses. The high local content in case of motorcycles and tractors has made Pakistan as one of the cheapest manufacturers of these vehicles worldwide because the cost of parts produced by PAAPAM members is substantially lower than cost of parts imported. Even the passenger cars produced in Pakistan are competitive in cost when compared with the imported vehicles from other regional countries. Majority of PAAPAM members are certified to meet global quality standard such as ISO 9001, QS 9000 and TS 16949. From the production level of around 40,000 units in 2001 the passenger car segment produced over 200,000 vehicles in 2007. The 500% increase in vehicle production over a small period of only 6 years, was a remarkable achievement. The motorcycle production has also touched the level of 1.7 million units in 2010-11. The indirect employment in auto sector is more than 1.2 million with an investment of rupees 98 billion and contribute around Rs.63 billion as indirect tax to the national exchequer. Moreover, auto sector remains the second largest tax payer of indirect tax after petroleum sector. In Pakistan there are 10 cars per 1000 persons which is one of the lowest in the emerging economies which itself speaks of high potential of growth in the auto sector.
