KARACHI: Baluchistan Wheels Ltd (BWL), a main supplier of steel wheel rims to the local auto industry, announced on Friday a suspension of production activities from June 19 till the end of Eidul Azha holidays due to a drop in sales orders from the assemblers.

In a stock filing on Friday, the company said that production activities would resume immediately after the Eid holidays.

Chief Operating Officer Mohammad Irfan Ghani said in the face of current circumstances, the survival of local assemblers can only be ensured through higher localisation of parts while failing to pursue this path would put the industry at high risk.

Localisation of parts brings forth numerous advantages, including low-cost production, employment opportunities, healthy competition, quality manufacturing, and preservation of valuable foreign exchange, he said, urging the local assemblers to seriously consider reducing imports of completely knocked down kits that are readily available from local vendors and can be manufactured using domestic resources.

Mr Ghani said by encouraging local production, the assemblers can strengthen the domestic industry and alleviate the challenges faced by the auto vending sector, which is currently under significant strain.

He said producing parts locally would effectively reduce costs for all assemblers whose current localisation levels hover between 25-30pc, while higher contents of locally made parts in vehicles would also curtail parts and accessories imports besides generating more employment.

However, in an analyst briefing held in the third week of May, Topline Securities quoted Pak Suzuki management that localisation for Suzuki Swift has reached 35pc followed by Cultus 50pc, WagonR 61pc, Bolan 71pc, Ravi 68pc and Alto 61pc.

Published in Dawn, June 17th, 2023