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.
Dimantha Jayawardena, President of the Sri Lanka Automotive Component Manufacturers’ Association said, “Automotive components manufactured by our members are of the highest quality and conform to international standards.
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.
They are fast gaining recognition as OEM products by leading automotive manufacturers. Government has offered this industry policy as an incentive to promote the use of at least thirty-percent of the original components from Sri Lankan manufacturers.
The Memorandum of Understanding (MoU) signed between the Sri Lanka Automotive Component Manufacturers’ Association and the Automotive Component Manufacturers’ Association of India (ACMA) back in 2017.
IT has supported the SLACMA in various ways including the possibilities to enhance technical collaborations through joint ventures, receive support and guidance in policy matters, obtain assistance in finding OEM partners and knowledge sharing between both associations.
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.
Automotive components that are presently manufactured in Sri Lanka: Tyres, Batteries, Rubber Components including Bushes, Exhausts Systems, Seats and Seating Components, Radiators, Bumpers and Body Interior Panels, Center Consoles, Suspension Components, Truck Trailers, Clutch Systems, HVAC Systems, Complete Dashboard Systems, Steering Racks Including Conversion Kits, Cables, Wire Harness, Oil Filters, Air Filters, Head Light Manufacturers and Truck Bodies / Bowser / Tractor Trailers – More 300 Manufacturers.