Table of contents list of acronyms
Download 0.77 Mb. View original pdf
|
| Mirza and Manarvi (2011) examine the technological aspects of the auto industry in Pakistan. They state that the challenges faced by the industry include, rapid changes in models, improvement in fuel efficiency, cutting costs and enhancing user comfort without compromising quality. In the developing world these are compounded by a dearth of necessary skills at all levels and the formal/informal structure of the productive infrastructure limits the absorptive capacity to change. The objective of this research was to review the progress attained by Pakistani automobile car assemblers and vendors, during last thirty years through mutual collaboration and technology acquisition from global automobile manufacturers. The paper also focuses on the deletion of spare parts of various locally assembled automobile cars by analysing those vendors who are generating maximum revenues through production of these spare parts under foreign technical assistance, cost effectiveness of these parts compared to imported parts and the manufacture of complex parts locally to determine the level of diffusion of technology in the economy. They recommend that the industry needs to develop a strategy for increasing both productivity and quality. This should not be limited only to HRD, but should emphasize on technology infusion and diffusion. This should result in greater competitiveness through quality enhancement and user friendliness of vehicles. This should be linked to a vigorous development of the vendor market to benefit from economies of scale in output and intra- 14 vendor competitiveness. As a consequence vendor product diversification would occur and the technical skills of the engineering industry would improve generally. They conclude that while joint ventures (JVs) have inducted basic technology, these have not resulted in self-reliance and adoption of state-of-the-art technologies and that the auto- industry is technologically noncompetitive with a low threshold of technology diffusion. The CSF study [2007] examines the protection provided to the motorcycle industry in Pakistan and provides an insight into the reasons behind the rapid growth in the past 5 years and the problems being faced across the value-chain. The study found that in 2007 there were 43 OEMs of which only 6 were members of PAMA. Installed capacity was the throughput ability of 1.3 million motorcycles of which nearly 72 percent was for the low-end of the market (70 cc. The backward linkage chain includes 2,000 parts and component manufacturing units employing close to 50,000 persons. The industry has achieved critical mass which has resulted in a decline in average output prices by 30 percent in the past 5 years. The study finds that in view of the very high levels of indigenisation, non-OEM manufacturers have cloned the 70 cc Honda and are making inroads into Honda’s share, but they are also able to compete with the Chinese alternatives. Motorcycle prices ranged from a low of Rs. 32,000 to Rs. 40,000 (quality dependent) for the non-OEM domestic production to Rs. 38,000 to Rs. 40,000 fora comparable Chinese make to the high mark of the Honda CD 70 OEM at Rs. 45,000. The problems faced by the motorcycle assemblers were found to be as follows one, under-invoicing of importable inputs by Non-PAMA OEMs; two, sales tax evasion through non- declaration three, using commercially imported inputs but declared as from the local component manufacturing industry and four, fake Non-PAMA OEMs to avail of the industry- specific benefits. Compared to this the non-PAMA OEMs identified problems which included the following one, undervaluation of China-origin imports two, low quality and insufficient volume of output by the local component manufacturing industry three, harassment by the Sales Tax Department and four, absence of common die, design, tooling facilities. Download 0.77 Mb. Share with your friends:
|