INTRODUCTION

Auto-parts is an industry sub-sector that dominates the automotive industry of Pakistan. Automobile parts and accessories are intricate components that make up all automobiles, allow them to run efficiently, and for a longtime. The sub-sector constitutes approximately 2,000 Small Medium Enterprises (SMEs) producing auto parts for the local industry out of which only 400 are in the formal sector. The sector has shown positive development over the years with capital inflows and agreements with renowned equipment manufacturers for technology transfer, which include components such as bumpers, radiators, mufflers, batteries, tyres, wheels, air-conditioners, wiring harnesses, instrument panels, steering wheels, sun visors, seats, carpets, interior panels, sheet metal, and plastic parts. These are produced locally by more than 400 vending companies, which employ nearly 2.2 million skilled workers directly or indirectly.