Manufacturing

Auto Components

Overview

Auto component manufacturing industry is a rapidly developing industry in Sri Lanka. At present, around 50 companies are engaged in manufacturing high quality auto- mobile components focusing on both export market and local market. Sri Lanka exports wire harnesses, sensors, airbags, precision moulds, truck trailers, seat belts, seats and rubber components (rubber carpets, beading, mud flaps, washers, bushes, gaskets, leaf spring, centre bolts, bronze bushes, coil spring, bearings etc.)  relating to this industry to Australia, China, Japan, USA, Europe, South Korea and India.

Manufacturing auto-mobile components in Sri Lanka would be an opportunity for a company to tap into Global Value Chains in the rapidly growing automobile industry.

Key Facts Around 50 companies Over 18,000 workforce Nearly USD 200 Mn exports

Great opportunity for growth

  • Promoted in the international market by linking with the Global Value Chains (GVCs)
  • Average export growth around 7%.

 

Access to high quality talent work pool

  • Over 1,500 Engineering graduates from university per annum.
  • University of Vocational Technology (UNIVOTEC) records an output of over 800 graduates per annum in the field of Technology.
  • Vocational Training institutions generate over 10,000 skilled labourers per annum.

 

Duty free market access to under FTAs & GSP+

  • 100% duty free market access for all auto components to enter into Indian market under Indo-Lanka Free Trade Agreement (ISLFTA).
  • 100% duty free market access for 60% of the total auto components to enter into Pakistani market under Pakistan – Sri Lanka Free Trade Agreement (PSLFTA)

100% duty free market access for all auto components to EU market under GSP+ scheme.

Statistics

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    Great opportunity for growth

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    Access to high quality talent

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    Duty free access to auto components under FTAs and GSP+ scheme

Sri Lanka Exports in Electronic Sector (US$ Mn.)

Source : Sri Lanka Export Development Board

International Brands

Priority Areas of Investment in Auto Components

Wiper blades

Clutches and parts

Gear boxes

Suspension systems (Including shock absorbers)

Safety airbags with inflator system

Safety seat belts

Electrical lighting or signal equipment 

Steering wheels

Drive-axles with differential