Automobile component manufacturing industry steams ahead with state backing

• Grants over 5,000 employment appointments over past three months
• Points out launch of SOP catalyst for local assembly of brand-new vehicles 
• Says new truck manufacturer is expected to enter market soon
• Says 10,000 locally assembled motor bikes ready to be sold by October 2021

The local automobile component manufacturers have granted over 5,000 new employment appointments in the Western province over the past few months, according to Sri Lanka Automobile Component Manufacturers’ Association (SLACMA) President 
Dimantha Jayawardena. 

Earlier this year, the Industries Ministry together with the stakeholders of the Sri Lankan automobile assembly and automobile component manufacturers industries launched a standard operating procedure (SOP) for the automobile manufacturing/assembling industry and automobile components manufacturing industry 
in Sri Lanka.

Commenting on the developments since then Jayawardena said, “The industry stakeholders have been working hard during the intervening period to make the maximum use of the new environment that has been created by the launch of the SOP. In the recent past, many have passed out of the Vocational Training Institute, with the NVQ Level 4 qualification. Many of them will be absorbed by the private sector companies involved in the manufacturing of automobile components. In the next two to three years, we expect the industry to generate around 
45,000 jobs.”

A variety of automobile components are currently being manufactured in Sri Lanka and exported to various countries. Among them are pneumatic and solid tyres, batteries, rubber components, including bushes and carpets, silencers, seats, radiators, body panels and bumpers even for racing cars, impact sensor switches for seat belts and airbags and truck trailers.

“A new truck manufacturer is expected to enter the market soon,” Jayawardena said. 

“Ten thousand locally manufactured motorcycles will be released for sale by October 1, 2021. These bikes will feature locally manufactured batteries, seats, wire harnesses, plastic and rubber items as well as tyres.”
The 2021 budget introduced in November last year included several policy initiatives to encourage the local manufacturing of automobile components. 

“Last year, the SLACMA 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,” Jayawardena said. 

“The unity within the industry and the very positive responses that we received from particularly the Finance Ministry and Industries Ministry have laid the foundation to move forward with the master plan,” Jayawardena said.
“It is very heartening to note that job creation is becoming a reality. Wire harnesses are largely manufactured by a pool of women, making the employment rate dedicated to this sector see a jump from 60-70 percent in women’s jobs. We are very confident that despite the pressures of the pandemic, we will be able to realise the objectives of improved and increased local manufacture and assembly and of a rapid increase in job creation,” he added.