Table of contents list of acronyms
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| SMEDA (2005) has undertaken an evaluation of the performance of the Auto Parts Cluster it had helped establish in Lahore and found that about 750 units had successfully established manufacturing facilities in the cluster. 100 of these were supplying mostly to the OEMs under a franchise arrangement, 200 were catering to the OEMs and the retail market and the remainder were supplying exclusively to the replacement market. However, some also sold parts on the open market as the demand placed by the OEM concerned was below the break-even point. In addition the study estimates that about another 1,000 SMEs have also 15 established themselves using their own resources and are flourishing and catering to the demand for replacement parts. The study concludes that the principal reason for success has been the Auto Deletion Programme – whereby all OEMs were required to attain a certain level of indigenously produced parts for availing of duty concessions and other benefits. |