SOCIAL CONTRIBUTION OF AUTO INDUSTRY
A leading example was set by Indus Motor Company, which organized a Flood Relief Camp for the Pasni Victims.
By Bilal Farooqi
July 18 - 24, 2005
The automobile industry of Pakistan has always been in the forefront in the social sector be it immediate relief for disaster victims, investing in the Pakistani youth through educational programs, providing employment opportunities or protecting the environment.
RELIEF TO DISASTER VICTIMS
Early this year, Pak Suzuki Motor Company contributed Rs 1 million to relief funds of Tsunami and Pasni victims. Kanichi Ayukawa, Managing Director of Pak Suzuki Motors, presented two cheques of Rs 500,000 each to Prime Minister Shaukat Aziz, one for President Musharraf's Tsunami Relief Fund and one for the rain and flood-affected people in Balochistan and the NWFP. The prime minister appreciated the gesture and said other companies should follow suit and come forward to help the government with relief operations in areas hit by heavy rains and snowfall.
A leading example was set by Indus Motor Company, which organized a Flood Relief Camp for the Pasni Victims. The Flood Relief Operation worth Rs. 1 million was organized in which food, blankets and medical assistance was provided to the flood affected villages of Salaj, Sindhi Passu, Tumpagi, Kabri, Zahrain Kahoor, Tirati, Kakri, etc., around Pasni. Medical camps were also arranged with male and female doctors for emergency assistance. Indus Motors is the only company in Pakistan to assist the flood affectees by sending its team directly to the areas disconnected by the flash floods.
In a similar gesture Indus Motor also gave Rs 0.5 million to President's Tsunami Relief Fund. The cheque was presented to Mr. Salman Shah, Advisor to the Prime Minster on Finance, on the occasion of his visit to the Indus Motor Plant.
Another contribution was made by Hinopak Motors to the President's Tsunami Relief Fund. Mian Humayun Shah, Area Manager North, Hinopak Motors Limited, visited the Aiwan-e-Sadr on behalf of his company and presented a donation of Rs. 250,000 for President's Tsunami Relief Fund
TRAINING OF YOUTH:
A technical training programme was organized by Hinopak Motors' product Support Training Centre. The program was aimed at providing the technical know how of the Hino products, to vendors and service staff.
A similar, but a larger scale program has been set up by Toyota in Karachi and Lahore. Known as the Toyota Technical Education Program (T-TEP), this program is established at Government College of Technology, Lahore, and St PatrickÝs Technical Institute, Karachi. Through this program, Toyota is assisting these institutes in enhancing the quality of technical education focusing on transferring the latest technology in automobile engineering and servicing. The TTEP program bridges the gap between the auto industry and educational institutes, creating a new breed of highly skilled auto technicians who have found ready employment within and outside Pakistan.
PROTECTING THE ENVIRONMENT:
Indus Motor Company (IMC) has launched a new environmental initiative up in the mountains in the area surrounding Lake Saiful Malook where tourism has taken its toll and is threatening to destroy the natural beauty. A new Toyota clean-up campaign has brought an environmental army into the region; the aim is to clear up the mess, and to inspire the local people and businesses into keeping it this way. IMC's environmental interests are clearly visible at its Karachi headquarters where 64,000 sq.m. (50% of factory area) has been developed into a garden zone and more than 6,000 trees have been planted and are being maintained. A wastewater treatment plant has also been installed with an investment of Rs 50 million to recycle water which is used for plantation.
IMC has also installed an incinerator facility at its plant to ensure environmentally safe solid waste disposal.
Indus Motor, an ISO 9002 and ISO 16002 certified company, is the first automobile manufacturer that started using environment friendly gas R-134a in car air-conditioners (instead of CFC-12). Additionally, regular check-up is done for plant exhaust emission and Vehicle Emissions and Noise Levels conform to international standards. For its continued efforts for the protection of the environment, IMC has received the prestigious NEFH Award, consecutively in 2004 and 2005.
The biggest contribution of the industry is that it is providing employment to over 175,000 people. The industry provides employment to people from all walks of life. From engineers, technicians, skilled workers and mechanics to chartered accountants, marketing and sales professionals, management executives and a host of professionals from different fields. In addition to this the industry has the most geographical spread of the jobs as the manufacturers, vendors, transporters, and specially the dealers, workshops and service providers are located in most urban and rural areas. From engineering perspective, the auto industry provides employment to professionals from all the fields of engineering, e.g. mechanical, metallurgical, electrical, industrial, electronics, chemicals, materials, civil, architecture and design, etc.
This is further highlighted by the fact that out of the 175,000 people employed by the industry, 5,200 persons are directly employed by the five major car manufacturers only. In the current year with all the enhanced and increased operations the figure will go up to 6,500 persons. This is an increase of over 25%. This increase is only in the car manufacturing sector. If other sectors, i.e. motorcycle manufacturers and vendors, of the industry are also included the increase in employment will be around 40%. This trend shows that in terms of employment auto industry will be the leading industry of the country in the near future.
All the major car manufacturers are planning to increase their production in next five years. With the implementation of these plans, significant investments will be made in the country. Apart from other economic benefits, there will be a sharp rise in the direct employment with this sector. The employment is expected to double in next 5 year, i.e. from 6,500 it is expected to increase to 13,300. The rapid growth in the industry is paying the benefits to every stakeholder in the economy. The trends clearly indicate that the continuous growth will provide direct employment to a big number of people. In addition it will indirectly give rise to employment to an even bigger number of people in allied vendor industry.
REVENUE TO GOP
According to data given by PAAPAM the total contribution of auto sector to the GDP is Rs. 153.81 billion which is around 4 % of total GDP of Pakistan for the year 2003-04. The total revenue collected from this sector recorded Rs. 51 billion which accounted for 7% of the total revenue received during the year 2003-04. The total employment provided by this sector is over 175,000 persons. The import substitution was recorded as US$ 2,399 million while foreign exchange saving due to the performance of this sector was US$ 1,252 million in the same period. The investment by this sector in the current year is Rs. 16.94 billion and is expected to touch $ 2 billion mark. These statistics are reflective of encouraging growth in the sector and speak of its significance in the economic growth of the country.
In order to ensure continued growth of the industry, the automobile manufacturers have been very supportive of the vendors as well. The vendors of the car manufacturers also are being provided with opportunities to equip themselves, as well as their teams, with latest technological developments. Dewan Motors arranged a seminar earlier in the year for the vendors to equip them with the knowledge of implementation of ISO standards. At the end of last year Indus Motor Company organized its 8th Vendors & Suppliers Convention. At the event the company announced a contribution of Rs1,000,000 for the vendor development program. Recently Nexus Automobiles is launching its local manufacturing operations to assemble Chevrolet vehicles. The company invited its quality control and technical staff for a training session of its vendors. The vendor convention by the company was aimed at updating the vendors on the quality systems and helps them in its implementation.