Auto Component Manufacturers Association of India (ACMA), the apex auto component industry body, has signed an MoU with Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM). The MOU was signed on August 22 in Lahore as part of ICRIER’s (Indian Council for Research on International Economic Relations) initiative on India-Pakistan trade normalisation.

The delegation from ACMA was led by Harish Lakshman, president, ACMA and MD, Rane TRW Steering Systems Ltd, while Usman Aslam Malik, chairman, PAAPAM and chairman, Kortech Auto Industries (Pvt) Ltd, led the PAAPAM side.

The meeting at Lahore brought together participants from ACMA and PAAPAM with an objective to exchange views on the potential of the auto component trade between India and Pakistan, understand the challenges of auto parts manufacturers in both countries, and develop a common understanding for the way forward, including the scope for joint initiatives.

Commenting on the signing of the MoU, Harish Lakshman said, “This is a significant development where both ACMA and PAAPAM have come together to facilitate trade and growth of the automotive industry in their respective countries. To build greater ties, there is an urgent need to develop medium and long-term investment plans on a reciprocal basis. With India having a larger global reach in the auto market, we believe Pakistan’s participation will strengthen our position in the region as also help develop Pakistan’s auto component industry.”

ACMA and PAAPAM aim to meet at least twice a year and also considering the viability of working together on skill development in Pakistan and building supply chains through the road route at Wagah.