LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to incentivise the local auto industry in the upcoming auto policy to ensure production of high-tech parts/components locally, a statement said.

LCCI president Mian Nauman Kabir said that the localisation in the auto sector was limited to the manufacturing of steel metal, interior trim, seats, rubber and plastic parts, batteries, wheel rims, tyres and lighting accessories.

The companies were importing more sophisticated parts, including engine and transmission, he said, adding that the lack of modern technology was hampering the growth of the local auto industry.

The import of sophisticated parts for assembling vehicles was putting pressure on the foreign exchange reserves, he added.

The companies should increase the local value addition and train human resources, Kabir said, adding that it would also generate opportunities for exporting local parts and components to other countries.

He cited the example of India where the strength of the auto industry was greater indigenisation and availability of raw materials.

India has developed the capability to produce all automotive parts, ranging from engines to transmission apparatus, suspensions, brakes, and body and chassis parts, he said.

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