Govt. to support local auto assembly with 30% locally made components

The Sri Lanka Automotive Component Manufacturers’ Association (SLACMA) says the government is actively seeking to promote automotive assembly with locally secured components, in order to boost the industry and create better job opportunities.

“The government has offered this industry policy as an incentive to promote the use of at least 30 percent the original components from Sri Lankan manufacturers,” SLACMA President Dimantha Jayawardena said.

The assembly of 100 vehicles will create more than 250 direct jobs and 100 indirect jobs. If 1000 vehicles are assembled, an average of 2500 direct jobs and 1000 indirect jobs will be created ensuring a solid and confident business environment for the manufacturers.

With the local vehicle assembly, component manufacturers will have a strong market to sell their products as well as improve product quality. It will also safeguard the interests of local automotive component manufacturers.

Sri Lankan component manufacturing has entered the global supply chain by the technical collaboration between Ideal Auto Seating and MSKH India, a joint venture of Magna Worldwide, the largest automotive component manufacturer in the world. Magna Worldwide has its presence in 28 countries with 169,000 employees and 338 manufacturing plants.

SLACMA has submitted a 10-year master plan to the Finance Ministry as a crucial step to take the local assembly industry and component supply to the next level, as they seek quality certification from their regional counterparts to boost growth.

Currently, the Ministry of Finance and Ministry of Industry and Supply Chain is in the process of obtaining Cabinet approval for the Standard Operating Procedure for local assembly and local auto-component manufacturing.