Baluchistan Wheels Ltd (BWL), a leading supplier of steel wheel rims to the local auto industry, announced a suspension of production activities from June 19 till the end of the Eidul Azha holidays due to a sharp decline in sales orders from the local assemblers.
The company informed the Pakistan Stock Exchange (PSX) about the temporary closure of its plant. According to BWL Chief Operating Officer Mohammad Irfan Ghani, in the face of current circumstances, the survival of local assemblers can only be ensured through higher localization of parts while failing to pursue this path would put the industry at high risk.
He urged the local assemblers to seriously consider reducing imports of completely knocked-down kits that are easily available from local vendors and can be produced using domestic resources. Localization of parts brings about a number of benefits, including low-cost production, employment opportunities, healthy competition, quality manufacturing, and preservation of valuable foreign exchange, he added.
Ghani asserted that by promoting domestic production, the assemblers can support the domestic economy and resolve issues that the car vending industry is currently experiencing. He said that making parts locally would significantly lower prices for all assemblers, whose current localization levels range between 25 to 30%. Additionally, he claimed that increasing the proportion of locally created parts in vehicles would minimize the need to import parts and accessories while simultaneously creating more jobs.
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