Auto Parts Sector

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Auto Parts Sector Sector Skills Study – Auto Parts Sector Submitted to: Punjab Skills Development Fund - PSDF Prepared by: Advisory Services Group Anjum Asim Shahid Rahman, Chartered Accountants Member Firm of Grant Thornton International 1-Inter Floor, Eden Centre, 43-Jail Road, Lahore ++92-42-37500672-3, ++92-42-37425485 [email protected] www.gtpak.com June 2015 Punjab Skills Development Fund Sector Skills Study – Auto Parts Sector Disclaimer This report on sector skill study has been prepared in accordance with terms of the contract signed between Punjab Skills Development Fund (PSDF) and Anjum Asim Shahid Rahman (AASR). During preparation of this report, AASR has undertaken all procedures and steps, and gathered data from all the relevant primary and secondary sources, which were considered necessary to substantiate the information and analysis presented herein. Although, due care has been exercised both during collection of information and preparation of this report, yet consultant does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, forecasts or projections contained herein or that any such information, statements, forecasts or projections remain unchanged after the date of this report. Moreover, no person is authorized to give any information or make any representation or warranty, expressed or implied, which is not contained in this report and any such information representation or warranty not contained in this report should not be relied upon. This report may include certain statements and estimates with respect to the anticipated future performance of the Auto Parts Sector. Such statements, projections, forecasts and estimates are based upon various assumptions, which may or may not prove to be correct. Analysis has been carried out and results have been drawn merely on the basis of information gathered from key stakeholders of the assignment including but not limited to Auto Parts Sector Enterprises, Training Service Providers (TSPs), Sector Experts hence no warranty, express or implied as to its accuracy and completeness can be given. The information contained in this report is to be used for the sole purposes entailed in the agreed Terms of Reference. By its receipt, the recipient agrees that the information contained in the report will be treated as confidential and shall not, without prior written consent, be disclosed, copied or reproduced by the recipient in any manner, in whole or in part, and shall not be used other than in connection with the objective for which this report has been prepared. Lastly, AASR would like to thank the management of PSDF, Auto Parts Sector Enterprises, TSPs and Sector Experts, who assisted us during execution of this assignment, for their kind cooperation and support. (i) Punjab Skills Development Fund Sector Skills Study – Auto Parts Sector List of Abbreviations and Acronyms -Acronym Description AASR Anjum Asim Shahid Rahman AIDP Auto Industry Development Plan APMA Association of Pakistan Motorcycles Assemblers CAD Computer Aided Design CAM Computer Aided Manufacturing CEO Chief Executive Officer CNC Computerized and Numeric Control DAE Diploma of Associate Engineering DFID Department for International Development EDB Engineering Development Board EFI Electronic Fuel Injection EU European Union FGDs Focus Group Discussions GDP Gross Domestic Product GoPb Government of Punjab GPB Great Britain Pound GSP Generalized System of Preferences HR Human Resource IAG Industry Advisory Groups IT Information Technology KTDMC Karachi Tools, Dies & Moulds Centre LCV Light Commercial Vehicle LED Light Emitting Diode MOU Memorandum of Understanding MPFI Multi-Port Fuel Injection NAVTTC National Vocational & Technical Training Commission NED Nadirshaw Eduljee Dinshaw NIDA National Institute of Design & Analysis NUST National University of Science & Technology NVQF National Vocational Qualification Framework OEM Original Equipment Manufacturer PAAPAM Pakistan Association of Automotive Parts and Accessories Manufacturers PAMA Pakistan Automotive Manufacturers Association PBTE Punjab Board of Technical Education PCSIR Pakistan Council of Scientific & Industrial Research PITAC Pakistan Industrial Technical Assistance Centre PKR Pakistan Rupee (ii) Punjab Skills Development Fund Sector Skills Study – Auto Parts Sector PPP Public Private Partnership PSDF Punjab Skills Development Fund PVTC Punjab Vocational Training Council QC Quality Control R&D Research and Development SBTE Sindh Board of Technical Education SKD Semi knocked down SME Small and Medium Enterprise SMEDA Small and Medium Enterprises Development Authority TBS Tariff Based Systems TEVT Technical Educational and Vocational Training TEVTA Technical Education & Vocational Training Authority TORs Terms of Reference ToT Training of Trainers TQM Total Quality Management TSPs Training Service Providers TUSDEC Technology Up-gradation and Skill Development Company VTI Vocational Training Institute UET University of Engineering and Technology USD United States Dollar (iii) Punjab Skills Development Fund Sector Skills Study – Auto Parts Sector Table of Contents 1.0 EXECUTIVE SUMMARY ......................................................................................... 1 2.0 INTRODUCTION AND BACKGROUND ............................................................... 8 2.1 Punjab Skills Development Fund (PSDF) ................................................................. 8 2.1.1 Vision of PSDF ...................................................................................................... 8 2.2 The Consultant - Anjum Asim Shahid Rahman, Chartered Accountants (AASR) ... 8 2.3 Background and Objectives of the Study................................................................... 9 3.0 STUDY OBJECTIVES AND METHODOLOGY .................................................. 10 3.1 Study Objectives ...................................................................................................... 10 3.2 Study Methodology .................................................................................................. 10 3.3 Phase - 1: The Survey .............................................................................................. 11 3.3.1 Inception Meeting and Finalization of Work Plan ............................................... 11 3.3.2 Review and Analysis of Existing Studies ............................................................ 11 3.3.3 Business Sectors Identification and Sampling Plan ............................................. 11 3.3.4 Designing of Survey Tool and Data Collection ................................................... 14 3.3.5 Survey Tools Pretest ............................................................................................ 14 3.3.6 Selection and Training of Enumerators ............................................................... 14 3.3.7 Field Surveys and Monitoring ............................................................................. 14 3.4 Phase - 2: Data Compilation, Analysis and Reporting ............................................ 14 3.4.1 Data Entry and Compilation into Unified Databases ........................................... 14 3.4.2 Data Analysis and Reporting ............................................................................... 15 3.4.3 Quality Control/Progress Monitoring of the Study .............................................. 15 4.0 AUTO PARTS SECTOR SNAPSHOT .................................................................... 16 4.1 Pakistan’s Automobile Sector – An Introduction .................................................... 16 4.1.1 History of Pakistan’s Automobile Sector ............................................................ 16 4.1.2 Overview of Pakistan’s Automobiles Sector ....................................................... 17 4.1.3 Industry Growth ................................................................................................... 21 4.1.4 Importance of Automobile Sector for Pakistan’s Economy ................................ 24 4.1.5 Industry Structure................................................................................................. 25 4.1.6 Major Products ..................................................................................................... 26 4.1.7 Production Processes ........................................................................................... 30 4.1.8 Auto Sector International Trade ........................................................................... 31 4.1.9 Study Samples ...................................................................................................... 34 5.0 AUTO PARTS SECTOR – CURRENT SCENARIO ............................................ 36 5.1 Sample Profiles ........................................................................................................ 36 5.1.1 Auto Parts Sector Enterprises Sample Profile ..................................................... 36 5.1.2 Sector Experts Profile .......................................................................................... 37 5.2 Auto Parts Sector Profile- Key Findings ................................................................. 39 5.2.1 Enterprise Size ..................................................................................................... 39 5.2.2 Legal Status .......................................................................................................... 40 5.2.3 Registration/Affiliation
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