Auto vendors create 150,000 jobs this year

KARACHI: Around 125,000-150,000 new jobs (direct and indirect) were created by 1,600 auto vending units during the last one year after opening of jobs at local auto assembling plants of cars, light and heavy commercial vehicles and two wheelers.

Soaring demand of vehicles, excluding tractor industry, has pushed up capacity utilisation in the auto sector, thus requiring additional manpower. Vice Chairman, Pakistan Association of Automobile Parts and Accessories Manufacturers (PAAPAM), Mehmood Alam Sherani, said for each job created at the vehicle assembling units, around 80 to 100 direct and indirect jobs are generated in the entire value chain.

The industry needs to hire and retain skilled workers to ensure stable quality and performance, he said, adding, “preference is given to hire permanent workers.”

Aamir Allawala, former chairman of the association, said auto industry is currently enjoying another peak season which it witnessed in 2006-2007 when 210,000 cars were produced. The industry is now all set to produce 225,000 cars, 1.8 million motorcycles and 4,500 heavy vehicles in the current fiscal year, he added. Assemblers have purchased land and they have plans to set up new plants and to launch new models, especially in small car segment. However, everyone is waiting for the new auto policy, he said. Sales of local and used cars are increasing due to a rise in overall market size, he said.

Association’s former chairman, Munir K. Bana, said that the next two years are crucial. “If the government decides to finalise an industry-oriented auto policy, the industry can generate an investment of over $5bn over the next four to five years.

Ali Asghar Jamali, Chief Operating Officer, Indus Motor Company (IMC), said since the launch of new Corolla last year, the company has been operating at 100pc capacity to fulfill market demand and reduce delivery time. As a result, the company is producing 220 Corollas every day.

He said IMC had generated 500 new jobs and the impact is10 times more on allied industries and vendors. In 2014, the company invested $100m in technology transfer and production facility to meet rising demand for the new Corolla.

According to vendors, Pak-Suzuki Motor Company Limited (PSMCL) is reported to have inducted around 1,000 people in the last six months and the company is operating on two shifts to meet the enhanced demand of vehicles, both in the market as well to meet 50,000 orders for Bolan and Ravi for the Punjab government under Apna Rozgar Scheme.

Atlas Honda Limited has added 800-1,000 direct employees in the last six months, followed by 2,500 new jobs provided by the Honda vendors. Atlas Honda and its associated companies and parts suppliers had invested $100m to double the installed capacity of its plant to 1.2m units from 0.6m units in the next three years. The expansion will create 1,800 direct jobs and 5,000 jobs in its associated companies and part making partners. Implementation on new investment plan had already started.

Honda Atlas Cars currently has 1,160 permanent and contractual employees as compared to 1,122 in 2014.

Hinopak Motors Limited is investing Rs300m in the current fiscal year. Ghandhara Nissan Limited (GNL) had invested Rs60m in 2015. It opened 100 jobs directly and 150 indirectly. GNL would invest Rs30m in 2016.

Published in Dawn, December 16th, 2015