CHAPTER 2 THE AUTOMOTIVE SECTOR The objective of this chapter is to quantify the size of the automotive sector in terms of the number of units indifferent sub-sectors, capacity, production, sales/turnover and international trade. This is followed by estimation of the contribution of the sector to investment, value added, employment, revenue and foreign exchange savings. Wherever possible, international comparisons are made to highlight the stage of development of the automotive sector in Pakistan. 2.1. COVERAGE According to the TOR for the study the automotive sector includes the following major sub-sectors: (a) automobiles/cars, (b) motorcycles/rickshaws, (c) tractors, and (d) trucks/buses/ trailers. Within each of these there are assemblers and parts manufacturers respectively. The study does not cover repair shops and retail outlets of automobiles. The sector has both large-scale and small-scale components. OEMs mostly fall in the large-scale category whereas a large number of auto parts manufacturers fall in the small- scale/informal sector. Quantification of the size, in particular, of the latter is rendered difficult by the absence of data and different approaches have to be used to estimate their contribution. There area number of producer associations in the sector as follows
PAMA: Pakistan Automotive Manufacturers Association PAAPAM: Pakistan Association of Automotive Parts and Accessories Manufacturers APMA: Association of Pakistan Motorcycle Assemblers These associations provide basic information on their members, which is useful in the quantification exercise. In addition, the Engineering Development Board (EDB) maintains a database on the automotive sector.