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Auto assemblers gear as much as faucet export markets

by Pakistan Latest News Update

KARACHI: Bike and rickshaw assemblers have been striving to faucet African markets in addition to aiming to spice up their exports to Afghanistan after enterprise surroundings will get regular following takeover of Kabul by the Taliban.

Rickshaw makers try to interrupt the decades-old monopoly of an Indian auto large Bajaj in varied nations, particularly in African nations. The duty is gigantic, however they’re optimistic about carving out a distinct segment for themselves within the coming years.

Sazgar Engineering Works Ltd (SEWL) chief government Mian Asad Hameed instructed Daybreak from Lahore that after profitable trial of 50 models despatched 4 months again, the corporate will now export 170 extra rickshaws to Ethiopia subsequent month, which is an encouraging signal.

He stated he had additionally despatched a technical staff to Ethiopia to lure an Ethiopian counterpart for establishing an meeting line there below a three way partnership settlement.

“It is hard to break the monopoly of an Indian auto giant that reportedly sells 400,000 rickshaws all over the world every year but my target is to develop an export market by increasing volume in the coming years to various countries,” he noticed.

SEWL has exported round 2,000 rickshaws to African nations and Afghanistan together with 200-300 to Japan within the final three years at a worth of $1,500 per unit, he stated, claiming that SEWL is the primary firm to ship the auto to Japan.

He stated Sudan can be rising as a giant export marketplace for rickshaws. “Calm in Afghanistan after Taliban’s rule may open new export avenues for rickshaw exports,” he hoped.

Mr Asad stated Covid-19 has been a hurdle in sending native business officers overseas to market Pakistani rickshaws for enhancing exports. The pandemic has additionally restricted international buyers from visiting Pakistan.

Eyeing automobile assembling

SEWL will quickly be beginning automobile assembling and SUVs. “Here we have a good chance to export them especially to Afghanistan and other regional markets and African countries,” he hoped.

Engineering Growth Board chairman Almas Hyder stated the federal government is specializing in “Africa Look Policy” to spice up auto sector exports.

Massey Ferguson, the assembler of Millat tractors, has been exporting the farm automobiles for the final 10 to 15 years and the numbers have been rising. An official stated the corporate had exported 2,000 tractors in FY21 to Afghanistan, African nations, Far East, Myanmar and Malaysia at a worth of $15,000 per tractor of 85 horse energy.

“We have set an export target of 4,000 tractors for FY22 as new markets are also being explored coupled with high hopes of increasing tractor exports in Afghanistan and African countries,” he stated, including some personal events after lifting tractors are additionally exporting in low volumes.

Bike exports

Atlas Honda Restricted (AHL) has been exporting bikes (70-125cc) for the final over 10 years to Afghanistan and different international locations. An AHL official recalled that the corporate had exported 20,000 models a couple of years again, however the quantity has now dipped to 4,000-5,000 models a yr. “We are now exploring African markets where heavy bikes are in high demand,” he stated.

Japanese automobile assemblers like Honda and Suzuki didn’t reply over the question as to what number of automobiles that they had exported within the final three to 5 years or earlier than that.

Nevertheless, an government in Indus Motor Firm (IMC), the assembler of Toyota automobiles, instructed Daybreak that the corporate had exported 100 or 200 Toyota Corollas to Sri Lanka a couple of years again. He nonetheless didn’t provide any remark as to why Corolla couldn’t be additional exported in a while.

Director Mehran Industrial, Mashood Ali Khan stated the whole inhabitants of Africa is roughly 1.32 billion, ie 16.72computer of the world’s inhabitants, inhabiting 54 nations suggesting an enormous export potential however commerce volumes had remained dismal as a result of low degree of engagement with Africa.

He stated India and China have made robust marks within the African markets with their merchandise as they’ve invested in meeting strains, provide chains and aftermarket distribution networks.

Mr Mashood stated the related ministries are constructing relations with different governments in Africa to create linkages for Pakistani merchandise.

Printed in Daybreak, August 22nd, 2021

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