Lahore  - Despite being 27 times smaller than India, primarily due to lack of stable government policies (India produces 4.1 million automobiles per year versus 0.15 million automobiles produced by Pakistan, the Pakistan auto industry is producing vehicles that are highly competitive, both in price and quality, to Indian counterparts.

This was stated by the PAAPAM chairman Siddiq Misri while criticizing a report of central bank on auto industry, claiming that the report is devoid of ground realities and based on obsolete information and half-baked past studies of highly controversial nature.

“The local industry is shocked to notice that car prices in India (during 2012) have been indicated in SBP report without being converted to Pak Rupees at the 2012 exchange rate, which was INR 1 : PKR 1.75.”

Highlighting the reason for competitiveness between the two countries, he said that that Pakistan is not only a car assembling country. It has a total of 375 Tier-1 APMs and 1600 Tier-2 suppliers, who, despite extremely harsh policy and business environment, have excelled to competitively produce thousands of localized parts that are being used by the Suzuki, Toyota & Honda vehicles being assembled in the country. APMs manufacture 55%-70% of the parts used in local cars, resulting in huge foreign exchange savings and generate direct & indirect employment for almost 3,000,000 skilled workers, technicians, engineers and management professionals.

The quality of locally produced parts is certified by Japanese standards and approved according to specifications prescribed by the global car assemblers.