Aug 2017 automark

Contents

August-2017

News / Event

Article / Review 18 22 24 45 49 51 57

FAW CARRIER EURO4 A Powerful mini cargo truck that offers great commercial utility Exclusive article by Murtaza Hanif Vehicle registration in the six territories doesn’t match each other Exclusive by Ali Hassan Amazing performance by Ministry of Industries and Board of Investment – Boi In Implementation of New Auto Policy 2016-21 Exclusive Article by Anwar Iqbal

17 26 30 44

Back breaking CNG rickshaws in Pakistan Exclusive article by Ali Hassan Essential Car Maintenance Tips for a Challenging Summer Season Exclusive article by Syed Sarim Raza Shell Oil Tanker Tragedy in Pakistan Exclusive by Iqbal Hashmi Suzuki launches new Swift compact car equipped with Hybrid system in Japan

Inside Dysin Automobiles Limited Launches Zhongtong Intercity Bus in Pakistan Call for integrated transport system in metropolis Premval Delivers 40 Daewoo - Golden Dragon Busses to Daewoo Express NLC holds CPEC Logistics International Forum in Islamabad

News Updates 20 27 35 36 43

Sharp jump in imports of car kits Passenger Cars & Commercial Vehicles Production Figures for Year 2016-17 (July-June) International Auto News China launches technology transfer hub in Pakistan Corporate News - Glimpses

Price List 42

Vehicles/cars price list

48

Motorcycles price List

August-2017 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 10, Issue 08

Monthly

AUTOMARK Magazine International Editor-in-Chief Muhammed Hanif Memon Technical Editor

Advisors

Imtiaz Rastgar CEO, Rastgar Group & Advertising Manager CBI External Expert, Ex-chairman EDB Tahir Siddiqui Islamabad Muhammad Shahzad

Circulation Manager Hasaan Mustafa

Graphic Designer Mustafa Hanif Salman Hanif

Web Master Murtaza Hanif

Contributors in THIS EDITION M. Owais Khan Anwar Iqbal Ahsan Mirza M. Hanif Memon Murtaza Hanif Ali Hassan Sarim Raza

M. Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi Engr. IHT Farooqui Chief Operating Officer Pak China Motors (Pvt) Ltd. Karachi

Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Tel : 021-32603371 Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815

AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon

EFFECTS OF CURRENT POLITICAL SITUATION ON BUSINESS AND INDUSTRIES OF PAKISTAN

The entire nation is anxiously awaiting the Supreme Court’s final verdict on the Panamagate case, which was brought to court by Pakistan Tehreek-e-Insaf’s Chairman, Imran Khan, alleging money laundering, corruption, and contradictory statements by Nawaz Sharif, the current Prime Minister of Pakistan, after the Panama Papers leak uncovered links between Sharif's family and eight offshore companies. The verdict case, dubbed as the ‘most publicized case in Pakistan’, was followed by a long and tense process of hearings by a Joint Investigation Team (JIT) with the Prime Minister’s family, whose verdict is still awaited. The uncertainty surrounding the Prime Minister’s future has had adverse effects on the country’s financial situation, with the Pakistan Stock Exchange (PSX) point index continuously nose-diving, forcing investors to take money out of businesses.

The economy has only recently achieved a mediocre GDP growth of a little over 4%, which is far less than what was projected, and exports and taxes still contribute as little to the kitty as they did before the present electoral cycle.

With the economy slow and the government’s survival in question, not many sharp investors are willing to invest their money in the Pakistani markets.

Needless to say, SMEs and large industries alike, including the automotive industry, are extremely worried about the situation of Pakistan, with PAAPAM Chairman, Mashood Ali Khan, reiterating the industry’s reservations with the uncertain governmental situation and the looming axe over the PM and their potential negative impact on the economy and growth of Pakistan. Automark Magazine spoke with several motorcycle assemblers and a representative of Super Power Motorcycles said that the motorcycle industry had been faced with low recoveries and decreasing sales.

Recently, a high-profile meeting of Federation of Pakistan, Chambers, Commerce, and Industry (FPCCI) took place, which was attended by Pak Suzuki’s Head of Public Relations Department, Shafiq Shaikh. Speaking to Automark, he spoke about how during the meeting the business community discussed their concerns with reference to the government. He said that the attendants discussed that the present federal government was not addressing their issues, due to which no investment is coming into Pakistan, forcing different industries to close down. The attendants agreed on requesting the government to urgently design a strategy for the issue. But one thing remains problematic – until the situation surrounding the PM does not get clear, the country’s economy, markets, and industries will continue to suffer.

Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management

Launching Ceremony - Media coverage

Monthly AutoMark International

ZHONGTONG INTERCITY BUS LAUNCHED IN LAHORE

BY DYSIN AUTOMOBILES LIMITED

The future of buses in Pakistan Dysin Automobiles Limited,one of the most rapidly growing automotive companies in Pakistan, has launched the Zhongtong Intercity Bus in a glittering ceremony held Lahore. Dysin Automobiles Limited is renowned for its value added services and successful representation of Sino Trucks in Pakistan.

The ceremony was attended by CEO Dysin Automobiles Imran Malik, COO Mir Asad Waseem, Director Sardar Jawaid Durrani, Head of Sales & Marketing Ahmed Sana Zaidi, Project Manager Rehan Raheem Bhatti, and Marketing Manager Muhammad Umar

I r s h ad . T h e C h i e f G u e s t w a s SardarQaiser Abbas Khan Magsi, Ch a irm a n St an ding Co mm it te e Transport, Punjab.

The Zhong Tong Bus has been tested extensively globally to conform to the benchmark of quality and performance of other such buses being used across the globe. Dysin Automobiles has selected two variants, Elegance and Navigator, for the Pakistani market.

The bus is a symbol of high quality, performance, style, elegance, comfort, and financial value for local business artners and also for the users.

Integrated with craftsmanship of

Chinese excellence and leverage of European technology, the bus is an ideal solution in every aspect with low cost of ownership. Dysin Automobile hopes that the product will prove to become an indispensable asset for transporters.

Zhongtong Bus is ranked in the top three best-selling buses manufactured in China, with more than 25,000 unit sales annually. The bus is manufactured in a state-of-the-art assembling facility in Jinan, with Zhongtong being a symbol of technology, performance, innovation, and economic value within China and overseas markets.

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Exclusive Article by Murtaza Hanif

FAW CARRIER EURO4 A Powerful mini cargo truck that offers great commercial utility

FAW

is a renowned Chinese automotive brand operating in Pakistan in collaboration with Al-Haj Motors since 2007. The company has gained immense popularity in the country because of the amazing variety offered to the customers in different vehicle segments. Be it the urban vehicle V2, an off-road machine in shape of Sirius Grand, the ultimate mini pickup truck in Carrier EURO4 or the classy XPV, FAW has brought a new and lively vision to the automotive industry of Pakistan that is acknowledged by an ever-growing customer base in the country.

FAW Carrier is one of the highperformance commercial vehicles of the brand, a segment in which the company has excelled significantly all over the world. The robust build quality-and efficient EURO4 engine technology stands out the FAW Carrier among its

competition and hasmade it one of the favorite commercial vehicles for the customers in Pakistan in a short span of time.

Important Features of the FAW Carrier

The Chinese automotive leader in the worldwide car market launched the allnew FAW Carrier in Pakistan that simply brought a breath of fresh air in the midsize commercial vehicles segment of the country. It offers reliable performance and unique features that fit the commercial needs of customers and offers stability and excellent road grip even in the most testing road and driving conditions.

Listed below are some of the top-of-the-line features offered in the FAW CARRIER • Front Disk Brakes • Stylish Gauge Cluster with RPM

Meter • MacPherson Strut Front Suspension • Large Deck with Enhanced loading capacity of 1 Ton • Projector Headlights for Clear Vision on the Road • 1000cc Engine with EURO4 Emission Standard These stunning performance features make the FAW Carrier one of the most advanced mini pickup trucks available in the market of Pakistan. The ideology of Al-Haj FAW Group revolves around introducing high performance vehicles in all different vehicles segments at affordable prices so that a reliable customer base can establish over a period of time.

FAW Carrier mini pickup truck is an excellent commercial vehicle that offers a massive payload capacity of 1000Kg and delivers a smooth ride with its

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Monthly AutoMark International responsive drivetrain and powerful engine specifications. With ground clearance of 156mm, the FAW Carrier makes it easy to carry heavy equipment and truck bed dimensions of 2460 x 1378 x 355 offer a sizeable cargo-carrying space.

Exterior and Interior Features

The FAW Carrier boasts a traditional mini pickup design but some fine refinements in its design have brought a modern appeal to the looks of the truck. Al-Haj FAW has managed an ideal balance of strength and utility in the design of the Carrier and while the exterior brings a commanding feel to the vehicle, the interior ensures that every ride with the Carrier remains comfortable and convenient.

With features like Mud Flaps and Left and Right outside Rear View Mirrors, wheelbase of 2550mm and approach and departure angles of 27/29, the exterior of the vehicle means business.

Inside the cabin, the high quality fabric seats can easily accommodate two people. Other important features like Heater, Sun Visors, Ashtray, Entertainment options like AM/FM Radio with USB and Glove Console make the interior purposeful and comfortable.

Engine Specifications

In order to deliver a stress-free ride even in the most challenging road and driving

something that distinguishes the Carrier from other commercial vehicles available in the Pakistan in the same segment.

conditions, FAW offers an efficient powertrain in the Carrier mini pickup truck. The small commercial vehicle is equipped with a 1000cc EURO4 engine that ensures fuel efficiency and lesser emission of harmful gases into the environment. The engine boasts a maximum power of 60hp and produces a maximum torque of 84Nm. The 5Speed Manual Transmission with Synchromesh technology is another feather in the cap of Carrier which is a key factor in maximizing the performance outputs of the vehicle.

Safety Features

FAW makes the best effort to introduce basic and advanced safety features in different segments of its vehicles. FAW Carrier is also no different as the safety of driver and passenger is an important facet of production of all FAW vehicles.

Listed below are the standard safety features offered in the FAW CARRIER • Front 3-Point Seatbelts • Front Tow Hook • Load Sensing Proportioning Valve The FAW Carrier offers an excellent performance and safety package,

FAW CARRIER is a valuable addition to automotive industry FAW Carrier is a compact, sturdy and highly efficient vehicle that aims to serve different sectors of Pakistan including pharma, cold storage, local transport and food chains. It is an excellent vehicle for carrying goods through long distanc es and deli vers r eliable performance, which is essential for a commercial mini pickup truck in Pakistan. Carrier being used in different fleets as mini dumpers, confectioners business and road advertising.

FAW Carrier can also be an ideal vehicle for commercial use on the industrial routes of CPEC (China Pakistan Economic Corridor) projects, a valuable contribution through which FAW aims to be a cornerstone in the industrial progress of Pakistan.

Price of the FAW CARRIER FAW Carrier is a high performance mini pickup truck available at a highly affordable price in Pakistan. It is available in the market in three different versions that are differently priced. The FAW Carrier Standard is priced at 749,000/- PKR, FAW Carrier Deckless has a price-tag of 729,000/- PKR and the FAW Carrier Flatbed can be bought at the price of 739,000/- PKR.

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Monthly AutoMark International

Automotive News - Update

Sharp jump in imports of car kits

The import bill of semi- and completely knocked-down kits (SKD/CKD) for locally produced heavy vehicles, cars and motorcycles crossed $1 billion in 2016-17, showing a jump of 24 per cent from last year.

The share of SKD/CKD kits for cars in

total imports was $674 million in 201617, up 30pc year-on-year.

Imports of parts and accessories for assembling heavy vehicles rose 23pc to $263m in the last fiscal year.

Imports of SKD/CKD for bike assembly fell 2pc to $92m in 2016-17, figures

Ghandhara Industries (GHNI) is planning to introduce Isuzu Dmax in Pakistan The Company is anticipated to sell 500 vehicles in the initial phase and will increase the sales upto 1,000 units.

Dmax is comparable with Toyota’s Hilux and Foton’s Tunland. GHNI is mainly involved in assembling of trucks and buses and has so far realized robust growth in both segments taking the total production numbers to 3,152 in FY17 as compared to 1,663 in FY16 (+90% YoY).

Similarly, sales numbers also increased significantly in FY17 to 2,903 from 1,566 in FY16 (+85% YoY). The main reason for growth in FY17 has been robust demand for trucks, which have seen 98% increment YoY. Reportedly, the improvement in numbers came from Pakistan Army.

Uncharted territory, challenges abound The introduction of Isuzu Dmax is a daring attempt to venture in uncharted territory for GHNI which is fraught with risks of failures as Toyota faced when they toyed with the idea of launching Vigo, which failed and saw reintroduction with Vigo Champ and further introduction of another variant Revo. Toyota’s resilience with LCV and a formidable dealer network resulted in gaining acceptance among consumers.

We have observed Isuzu Dmax receiving mixed reception in different markets such as UK and Australia and slightly n e g a t i v e v i e w s a m o ng I n d i an consumers.

Toyota, although being a major player in Pakistan’s auto market, also faced difficulty before sales took off. With increasing localization, Hilux has now been become a profitable venture and a leading brand in light commercial vehicle. Hilux was able to sell 5,923 units in FY16, which is the highest since

its launch and a resounding 5,860in FY17.

An important variable in Toyota’s success with LCV is their dealer network.

The Company boasts a network of 43 (3S) dealers nationwide. In comparison, Isuzu has 8 (3S) dealers and is not expected to provide satisfactory after sales service. Our discussions with truckers and goods transportation companies cite lack of service centers as one of the reasons behind lack of interest.

Foton has also tried luck with LCV segment by introducing Tunland, however, it has not been able to penetrate in the market. Despite being economical in price, the company was not successful to gain reasonable sale.

Most of the units are sold to public institutions including Sindh Police.

We consider introduction of Isuzu Dmax as a challenging move, which may overburden the company at present with additional costs and leverage. GHNI is facing somewhat liquidity crunch which is reflected in their latest financials whereby the Company is observed procuring high number of CKDs which is covered by external borrowing rather than an increase in trade payable. The Company will also have to incur substantial cost on account of marketing expense to publicize Isuzu Dmax and setting up dealer network. Given the operational structure and business strategy followed by GHNI so far, we believe the introduction of Isuzu Dmax will be limited to cater the demand from paramilitary forces rather than marketing the same for public, which connotes limited sales in the future.

released by the Pakistan Bureau of Statistics showed.

Rising imports of car parts give an impression that local assemblers have been missing the target for achieving higher localisation of production.

A parts maker said that Pak Suzuki introduced WagonR, Swift and new Cultus for which the localisation levels are quite low. This can be one of the main reasons for the surging import bill of kits as Pak Suzuki enjoys over 50pc market share.

New Honda Civic production and the assembly of Honda BR-V also started from April while the sales of latest Toyota Fortuner also rose to 1,375 units from 602 units a year ago.

Overall sales of cars rose slightly to 185,781 units from 181,145 units. Sales of Suzuki WagonR stood at 17,671 units versus 9,709 units in 2015-16.

A source said that Pak Suzuki has achieved 66pc localisation in Mehran, up from 17-18pc in 1990. Bolan and Ravi have 65pc and 61pc local parts, respectively, while old Cultus had 62pc localisation. New Cultus has 35-36pc local parts, followed by 50pc local content in WagonR. The parts maker said higher localisation will bring down prices, increase employment and curtail the import bill of kits. He said new entrants should review their localisation policy to benefit local parts makers and consumers.

As for the increasing import of kits for heavy vehicles, an assembler said the average localisation in heavy vehicles is 45pc now. Prior to 2006, the assemblers were bound to delete parts by 1-1.5pc every year. But they are no more bound to do so after the introduction of the tariff-based system. “The assemblers cannot achieve localisation by force.

They can achieve it at their own will,” he said.

In bikes, one assembler from Japan and China each have been breaking sales and production records for the last few months. A parts maker said that higher localisation of over 94pc achieved by a leading Japanese assembler can be the main reason for the declining trend in the import of parts and accessories.

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Monthly AutoMark International

Automotive News - Update

Auto sales Chinese investors show interest in agri sector rise

The fiscal year 2016-17 ended on a positive note with impressive sales of trucks and tractors followed by slight sales growth in cars and buses, data released by Pakistan Automotive Manufacturers Association (PAMA) showed on last month.

A total of 185,781 cars were sold in the last fiscal year as compared to 181,145 units in the preceding year. The number remained depressed due to a decline in sales of Suzuki Bolan after the conclusion of Punjab Rozgar Scheme.

A sharp increase in sales of Suzuki WagonR to 17,671 from 9,709 units followed by sales growth in Honda Civic and City to 37,004 from 25,726 units averted a major fall in overall sales.

Data also revealed sales of 52,676 units of Toyota Corolla in 2016-17 as compared to 57,452 units in 2015-16.

Suzuki Bolan sales plunged from 30,154 units to 19,245 while Suzuki Mehran sales inched up from 37,504 units to 37,933. Suzuki Cultus sales increased to 17,006 from 16,450 units.

In heavy vehicles, total truck sales swelled to 7,499 units from 5,550 units.

Hinopak remained the market leader in trucks with sales of 3,042 units as compared to 2,458 units. Nissan trucks sales fell to 702 from 804 units while Master truck sales climbed to 1,115 from 890 units. Isuzu truck sales swelled to 2,640 from 1,398 units.

In buses, Hinopak sales declined from 821 units to 709 units in 2016-17, while Master sold 158 buses as compared to 28 units. Isuzu sales rose to 263 units from 168 units. As a result, total bus sales stood at 1,130 in 2016-2017 as against 1,017 in 2015-16.

Overall sales of tractors surged to 54,992 units from 33,986 units in 2015-16 in which the share of Massey Ferguson was 34,506 as compared to 20,479 units.

Sale of Fiat tractors went up to 19,833 from 12,755 units. Orient IMT Tractor sales stood at 653 as compared to 752 units in 2015-2016.

Toyota Fortuner sales rose by over 100 per cent to 1,375 from 602 units while Suzuki Ravi sales came down to 17,944 from 29,825 units after completion of delivery under Punjab Rozgar Scheme.

Toyota Hilux sales plunged slightly to 5,860 from 5,923 units.

Chinese entrepreneurs on last week showed interest to invest in Pakistan`s agriculture sector to produce silk worms, mulberries and many other agro products.

A delegation of Chinese entrepreneurs led by Mr. Lee of China`s commerce ministry visited Islamabad Chamber of Commerce and Industry (ICCI).

Speaking on the occasion, Mr. Lee said that Chinese entrepreneurs are looking for suitable land to set up an agriculture farm in the first phase and in the second phase they would set up a factory in Pakistan to produce silk.

He said their investment was likely to create 30,000 new jobs in Pakistan. He was of the opinion that the establishment of silk factory in Pakistan would make it self-sufficient in silk production and it would not have to import silk from China.

The Chinese delegation discussed many possibilities of investment in local agriculture sector as they considered Pakistan a potential country for business

and investment in this sector.

Addressing the meeting, President ICCI Khalid Iqbal Malik said Pakistan is an agricultural country and offers huge investment opportunities to foreign investors in agriculture including crops, seeds and tree farming, livestock, dairy farming and milk processing.

He stressed that Chinese investors should bring in latest machinery and technology to help improve Pakistan`s agricultural productivity and its per acre yield. He said by investing in Pakistan, Chinese investors could export agri products to Middle East, Central Asia, Europe, Afghanistan and many other countries.

He said the Potohar Region and Chakwal district were suitable for production of many agro products including silk worms, olive oil, mulberries, grapes and others.

He assured that the ICCI would fully cooperate with Chinese investors in identifying land for agricultural investment in this region.-APP

Dutch non-profit to help auto-part makers identify issues Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has signed a three-year memorandum of understanding (MoU) with PUM Netherlands senior experts, a non-profit organisation advising businesses in developing countries and emerging markets.

Under the agreement, PUM will send a fact-finding mission of experts to Pakistan to help the auto sector identify issues, and suggest improvements.

Based upon the findings, Paapam and PUM experts will develop training programmes for auto parts manufacturers to bridge the gaps

identified in various areas.

The experts will work in collaboration with Engineering Development Board (EDB) and visit selected units of the auto sector.

Paapam chairman Mashood Ali Khan and PUM Country Coordinator Frans Friedeman signed the MoU on behalf of their organisations.

Mr Khan said the automobile sector largely consisted of small and medium industries facing issues like nonconforming parts, delayed deliveries due to skill gaps of employees, process inefficiencies and a lack of awareness of advanced manufacturing technologies.

A total of 960,105 units of Honda bikes were sold in 2016-17 as compared to 811,034 units in 2015-16 while sales of Suzuki bikes improved to 18,478 from 1 7 , 4 5 6 u n it s . Sa l e s o f H o n d a outperformed peers, posting 52pc yearon-year (YoY) growth due to successful introduction of new Civic model and introduction of new SUV variant BR-V. Indus Motors sales fell by six per cent YoY but the company focused on

production of higher margin Fortuner, which has shown stellar growth of 128pc YoY. Buyers are also postponing their purchase of Toyota Corolla waiting for the widely anticipated face lift of corolla in fiscal year 2018.

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Monthly AutoMark International

Automotive News - Update

Vehicle registration in the six territories doesn’t match each other Sabir Sheikh said a new trend is emerging of rolling out over 125cc heavy bikes based on majority of imported parts but so far the consumers have shown lukewarm response due to high prices.

The assemblers will have to improve their quality to match with Honda 150cc which was recently introduced at an attractive price Exclusive Article

by Ali Hassan In four provinces, different rules for motorcycle registration and vehicle registration exist in federal territories, Islamabad and Azad Jammu Kashmir.

Punjab excels with other provinces where vehicle registration system is operated under the most advanced system.

The authorized dealers of vehicles are authorized to register vehicles or bikes at the time of sale. The dealers have been given permission to register or submit data of vehicle and the buyer in the Punjab Excise and Taxation Department.

In contrast, dealers in Karachi have been asked to make complete application form, CNIC copy of the applicant, authority/registration letter of the

assembler in favor of the buyer and sales tax paid invoice by the dealer and by the assembler including pay order of registration charges in favor of motor registering authority of Karachi.

Due to these cumbersome and lengthy processes the buyer and the dealer will have to wait due to half day of Friday and Saturdays and Sundays being the holiday. When the dealers’ representatives or agents go to the MRA Karachi – the officials try to find loop holes and create unnecessary objections.

After greasing the palm of the officials – all the problems are solved.

“The Chief Minister of Sindh Syed Murad Ali Shah should take notice over the corruption in MRA Karachi,” chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh said.

Contrary to this, he said the Punjab government has fixed the charges or fees on issuance of golden or famous numbers to the buyers of two and four wheelers such as 1111, 5555, 0786, 0110, 6666, 9999 etc.

In Sindh, Sabir claims that the officials take bribe for issuing golden or choice numbers. These officials are misusing their powers and the higher ups in the Sindh government are watching the situation from the sidelines.

If a bike is produced by Pak Suzuki Motor Company or by Atlas Honda Limited and this bike is invoiced in up country then MRA Karachi demands Rs

Ministry of Industry Government of Pakistan

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Monthly AutoMark International

Continued article 2,000 per bike (extra money) by saying that this invoice does not belong to Karachi district.

The tax officials are cashing on soaring demand of choice or golden number from the buyers. Bike owners like to have a special or unique numbers in which golden number or number of equal digits is gaining popularity.

The opportunity of getting golden number has become a source of handsome earning for the brokers of excise and taxation department and the officials of the government departments. These officials and brokers are taking heavy bribes from the impatient customers.

Sources said numbers like 5555 and 1111 are being allotted after paying bribe of Rs 5,000 to Rs 10,000 to the brokers and officials.

They said the game of money making has been in vogue as the government has not fixed any fees or amount for obtaining golden or choice numbers, sources said adding that the brokers and excise officials are taking full advantage of non availability of any official fee or amount of choice numbers.

In the last one month some 30,000 register numbers were given to the bike buyers. There are 10,000 numbers in one series of bike and other vehicles in which nine golden identical numbers exist like 6666, 9999 etc which are being allotted to the buyers by the dealers in connivance with the excise and taxation officials, sources added.

In Karachi around 1,400 bikes are being registered daily in the government department which means that in the 22 days some 36 golden or choice numbers were issued after exchange of heavy bribe between the dealers, buyers and the government officials, sources said.

The golden or choice numbers for religious buyers are different like 0786, 0110 etc which are also in high demand as compared to other golden numbers.

Numbers in pairs like 6262-5252 are also famous on which bribe rate hovers between Rs 1,000-1,500 per buyer.

Sabir said the Sindh government in the current fiscal year has increased the fee for duplicate registration book to Rs 2,000 from Rs 500.

He said the CM Sindh Syed Murad Ali Shah should see the possibility by officially fixing a reasonable fee or amount for golden or choice numbers

so that the practice of charging illegal fee should be curbed. He said fixing a fee or amount below the bribe rate would definitely bring additional revenues to the government’s coffers besides controlling the menace of bribe.

He said the excise and taxation department was already getting more revenues due to surging registration of bikes and other vehicles. Fixing a reasonable fee for choice and golden n u m b e r s w o u l d f u r t he r b o o s t government’s earning.

Some leading brands are enjoying boom period of bike sales in which Atlas Honda Limited has beaten all the assemblers by achieving record sale of 960,105 units in the country during 2016-2017 as compared to 811,034 in 2015-2016.

CM Sindh Syed Murad Ali Shah should see the possibility by officially fixing a reasonable fee or amount for golden or choice numbers so that the practice of charging illegal fee should be curbed, Sabir Shaikh Said A Chinese bike assembler – United Motorcycle, has emerged as the second highest bike sellers, posting record sale of 326,298 units in 2016-2017 as compared to 262,773 units while Road Prince has sold 207,244 units versus 167,241 units in 2015-2016.

The new fiscal year will bring new sales laurels for Atlas Honda which aims to sell more bikes than 2016-2017 for which it has already raised its combined plant capacity to 1.3 million units per year.

Bike demand has emerged due to improving law and order situation in the country especially in Karachi and improving farm income.

According to the annual report of Atlas Honda Limited 2017, enhanced economic fundamentals, better security situation and increasing real incomes reflected in rising demand of consumers’ durables including two-wheelers. A strong consumer appetite for bikes in both urban and rural areas was the major growth driver. Low petrol prices, higher trend of urbanization and demographic shift to youth also supported the demand o f two-

wheelers.

Sabir Sheikh said another trend among young generation is the usage of heavy bikes which are being imported. Bike assemblers are also importing little quantity of heavy bikes. As a result the import bill of bike imports went up 1.5pc to three million dollars in 2016-2017 from $2.945 million in 20152016.

Local Chinese bike assemblers have started introducing heavy bikes for the last one and half years though they look like toys and cannot match with the quality of Japanese products.

Omega Industries, the assembler of Road Prince motorcycle bikes, had introduced RX-130, 250cc recently with a price tag of Rs 400,000.

Super Power had unveiled 200cc bike at a price of Rs 200,000 followed by ZXMCO 250cc price of 2,45,00 and Ravi 150cc etc.

Sabir Sheikh said a new trend is emerging of rolling out over 125cc heavy bikes based on majority of imported parts but so far the consumers have shown lukewarm response due to high prices. The assemblers will have to improve their quality to match with Honda 150cc which was recently introduced at an attractive price. Honda 150cc would give tough time to the Chinese competitors because of its quality and price, APMA chief added.

“One thing has proven so far that these 150-250cc bikes are not for low and middle income group people. A well off young generation can afford these bikes,” he said.

To encourage competition among assemblers and bringing down price of heavy bikes, Sabir said the government needs to simplify the procedure of obtaining permission for parts imports which is currently lengthy and cumbersome.

People are taking time to adjust with he av y bik es. T he y ha d s ho w n tremendous response to Suzuki 150cc but later shifted to other brands. Honda 150cc may prove a game changer in the heavy bike category, he said.

Yamaha came with a fanfare but it is now struggling for its survival. The company closes its financial year 20162017 on a depressing note with sale of 13,282 units as compared 16,109 units in 2015-2016.

Pak Suzuki bikes slightly came out from the red by recording slight jump in sales

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Cover Story by Anwar Iqbal

AMAZING PERFORMANCE BY MINISTRY OF INDUSTRIES AND BOARD OF INVESTMENT – BOI IN IMPLEMENTATION OF NEW AUTO POLICY 2016-21

Secretary MoIP highlighted that the organizations granted with Greenfield investment status would be required to go into a concurrence with Ministry of Industries and Production to guarantee consistency to the states of the ADP 2016-21 pertinent SRO's and different timetables for the culmination of the undertakings for benefiting incentives under the said arrangement

Ministry of Industries and Production and Board of Investment (BOI) have joined hands to help / resolve issues of auto sector investors who have shown an interest in establishment of

Mr. Azher Ali Choudhry Secretary, Board of Investment (BOI)

Greenfield auto assembling plants under the Automotive Development Policy 2016-21. In this connection, the second follow up meeting was held under the joint chairmanship of Secretary,

Ministry of Industries and Production (MOIP), Mr. Khizar Hayat Gondal, and Secretary, Board of Investment (BOI), Mr. Azher Ali Choudhry, in Board of Investment office Islamabad on 12th

Mr. Khizar Hayat Gondal Secretary Ministry of Industries and Production (MOIP)

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Interestingly the team of Engineering Development Board, which is supposed to be disband were also present in the meeting. Mr. Mirza NasirBaig– CEO, Mr. Ijaz Ahmed – QSC and Mr. Yasir Qurban – Manager (Auto Policy) were representing Engineering Development Board and giving proper feedback to the Secretaries and participants during the meeting.

July, 2017.The meeting was started with a positive note of Mr. Khizar Hayat Gondal that Category-A Greenfield investment status has recently been granted to four auto investors i.e Nishat Motor (Pvt) Ltd, Kia Lucky Motors Pakistan Ltd, Regal Automobiles Industries Ltd, and United Motors (Pvt) Ltd. He said the companies awarded with green field status would be required to enter into an ‘agreement’ with the ministry to ensure compliance to the conditions of the ADP 2016-21 relevant SRO’s and various timelines for completion of the projects for availing incentives under the said policy.

The total of nine companies had applied to set up new assembly plants and four had been granted permission already, whereas two had completed documents and would be given the go-ahead in a week. The remaining five entrants who have applied include Habib Rafiq Private Limited, Khalid Mushtaq Motors, PakChina Motors, Foton JW Auto Park, and Cavalier Automotive Corporation.

This is the first time in the history of Pakistan automobile industry that this kind of inter active meeting become so fruitful, all credit goes to these two gentlemen i.e Mr. Khizar Hayat Gondal and Mr. Azher Ali Choudhry.

The secretary industry gave a briefing on the progress of all the cases of Greenfield Investment under ADP 201621. He again assured the prospective investors that hindrance will not be allowed to cause delay at any level and if they face any difficulties or snags in the smooth processing of their cases, the matter may be brought into the notice of Secretary, MOIP or BOI as the case may be, directly. He also decided to hold a similar meeting in Karachi, soon.

Interestingly the team of Engineering Development Board, which is supposed to be disband were also present in the meeting. Mr. Mirza NasirBaig– CEO, Mr. Ijaz Ahmed – QSC and Mr. Yasir Qurban – Manager (Auto Policy) were representing Engineering Development Board and giving proper feedback to the Secretaries and participants during the meeting.

Different issues and inquiries of the automobile business investors were clarified on the spot by officers of EDB, BoI and MoIP. Both the government secretaries guaranteed that in near future the rest of the new entrants would likewise be granted the status of Green or Brownfield venture status in quick design.

Global auto giants like KIA and Hyundai are attracted by Pakistan's booming economy, which the International Monetary Fund predicts will grow by 4.5 per cent in the next financial year.

Investor confidence in the medium-sized economy of $232 billion has improved si nc e a ne w b u sin e s s- f r ie n dl y government led by Nawaz Sharif took power in 2013, with Karachi's stock market among the world's top 10 performers in the past year.

As indicated by a government official, one plant would require a $500 million venture, which would bring about a $2 billion spending by the separate organizations. He additionally said that 2 more organizations are joining within a week and will get their authorization for setting up an assembling plant in Pakistan. They have finished their paperwork pending endorsement from the government. This would mean an extra $1 billion investment.

Secretary MoIP highlighted that the organizations granted with Greenfield investment status would be required to go into a concurrence with Ministry of Industries and Production to guarantee consistency to the states of the ADP 2016-21 pertinent SRO's and different timetables for the culmination of the undertakings for benefiting incentives under the said arrangement.

Now it is imperative that government is completing her side of work very quickly but now big burden shifted to the shoulders of new entrant. They have to start their production and marketing activities accordingly.

It may be noted that Pakistan's car market has been dominated by Japanese automakers for decades, but a minieconomic revival looks set to attract new players from Europe, Korea and China into the mix. Despite heavy taxation on

imported vehicles, enthusiasm for owning a car in Pakistan has remained un den ted - t ha nk s i n par t to underdeveloped public transport in the country's sprawling cities, but also the social status it brings. Toyota, Suzuki and Honda car assembly plants already work around the clock in the southern port city of Karachi and eastern Lahore - yet customers can still wait for up to four months for new vehicles to be delivered.

Now demand for cars in Pakistan, being the South Asian giant of 200 million people is accelerating even more quickly, as economic growth has reached its fastest pace, while renewed investor confidence and easing inflation have spurred consumer spending. New entr ants are keen to cash this opportunity.

American and European cars dominated Pakistan's roads in the early years after it gained independence from Britain in 1947. But fuel prices made their compact, efficient Japanese rivals more popular and from the 1960s onwards manufacturers like Toyota, Suzuki and Honda gained a stronghold on the market.

Italy's Fiat made a brief foray in the 1990s, while South Korea's Kia, Hyundai as well as Daewoo-owned Chevrolet tried - and failed - to gain a foothold in the 2000s before the financial crisis forced them to exit. Even a purely local au tomo bile parts manufact ur er company tried to make / introduce a Pakistani brand car namely REVO. This car was developed and blended in China and produced in Pakistan, but it proves to be a disaster.

Hyundai Shehzore one ton loading capacity light commercial pickup was the most popular in its segment. After it closer logically this market share should go to master motor who produce same capacity Chinese origin vehicle but this share went to Suzuki who produces a relatively small vehicle. In this scenario the biggest question is how new entrants able to get the market and customer confidence!!

www.automark.pk | August-2017 | Page 25

Exclusive article by Owais Khan for AutoMark

Rise and fall of CNG sector Stakeholders blame Government

Prior to December 15, 2011 the CNG sector was flying high and stakeholders were happy looking for making more investment.

A notification banning import of kits and cylinders in December 15, 2011 sent shiver to the spine of stakeholders who had already invested billions of rupees and got frustrated over their future investment commitments.

The government took the decision of discouraging imports of kits and cylinders due to shortage of gas. The most affected of this decision was Pak Suzuki Motor Company Limited (PSMC) whose 80 per cent production and sales were CNG fitted vehicles.

The government in 2014 resumed imports of kits and cylinders but it could bring any life to the CNG sector especially in Punjab where depressed vehicle owners removed kits and cylinders which later found way into other provinces where gas was

available.

Despite opening imports of kits and cylinders the CNG industry could not revive as gas was not available in Punjab from 2013 to 2015. Even after 2015 gas shortage continued and CNG stations were closing and opening depending on gas availability. In Sindh, the CNG stations have been observing three day closure due to demand and supply of gas. Another reason was 35 per cent import duty on kits and cylinder imports which still exists thus discouraging imports.

On July 10, 2017 Pak Suzuki finally came out with a shocking notification by discontinuing booking of its iconic Mehran CNG fitted vehicles (all variants).

Mehran was the last locally assembled car that was offered with a factory-fitted CNG kit. All other models were phased out over the years as CNG shortages made the segment unviable.

To some extent, low petrol price can also be blamed for giving a tough time to CNG sector thanks to deep fall in world oil prices. As a result, the demand of CNG also went down and people shifted towards petrol. Despite running vehicles on petrol and three day closure of CNG stations, many people in Sindh have not yet removed CNG from their vehicles as they believe that running vehicle on gas still costs 30 per cent cheaper than petrol.

The increase in petrol demand is evident from its rising sales coupled with its

“Despite changes in prices of petrol and diesel – CNG is still cheaper by 30 per cent than petrol,” Ghiyas claimed while eying a revival of CNG sector in case imports of kits and cylinders are resumed after removal of 35pc import duty.

He said after government’s approval – the CNG sector has made a Universal Gas Distribution Company under which private sector can import gas. This option looks feasible for Punjab which was hit by gas shortage in previous years. www.automark.pk | August-2017 | Page 28

Ghayas Abdullah Paracha Chairman Supreme Council of All Pakistan CNG Association

Monthly AutoMark International thriving imports.

Petrol is now priced at Rs71.30 per litre, down 37pc from Rs113.24 on October 1, 2013. Last year, its price was Rs64.27 per litre.

Pak Suzuki introduced CNG versions of Mehran, Bolan and Ravi in 2001. CNGfitted Baleno, Alto and Cultus were introduced in 2002.

Chairman All Pakistan CNG Association Chairman Ghiyas Abdullah Paracha appears highly optimistic about the revival of CNG in Punjab especially.

The consumption of CNG had come down to 190mmcfd in the country out of 450mmcfd four to five years back.

When the consumption was at peak at 480mmcfd the share of Punjab used to hover between 280-300mmcfd while Sindh and K PK we re utiliz in g 130mmcfd.

“Now the usage of CNG in Punjab is just 50 mmcfd after the entry of RLNG in the gas system” he said hoping the CNG usage in Punjab would climb to 180200mmcfd in the next six months to one year as CNG gas stations have started resuming their operations after gas arrival.

Currently 1,009 gas stations in Punjab are operational and 550 are expected to resume their operations in the next six months. Total CNG stations in Punjab were 2,300. Since 2009 the big province had not seen any new set up of CNG stations but in contrast over 600 stations had either suspended their operations or become bankrupt due to non availability of gas during 2013 to 2015 in Punjab.

Due to no gas in Punjab during 20132015, many car and other vehicle owners had removed their kits and cylinders from their vehicles which found the way into other provinces where gas supply and availability was comparatively better than Punjab, he said.

Ghiyas said after opening imports of CNG kits and cylinders – the import duty of 35 per cent on these items is creating problems for which the Association has been continuously urging the government to remove the duty in order to revive the CNG industry.

He said by 2012 around 3.7 million kits and cylinders were imported into Pakistan but the imports of these items had been suspended after December 15, 2011 despite lifting of ban in 2014. The main reason of no imports is the 35pc import duty.

“Despite changes in prices of petrol and

diesel – CNG is still cheaper by 30 per cent than petrol,” Ghiyas claimed while eying a revival of CNG sector in case imports of kits and cylinders are resumed after removal of 35pc import duty.

He said after government’s approval – the CNG sector has made a Universal Gas Distribution Company under which private sector can import gas. This option looks feasible for Punjab which was hit by gas shortage in previous years.

Efforts are being made to import latest kits which are compatible with EFI cars and public transport and also light cylinders weighting 22 to 25 kgs following rising imports of used cars and increasing sale of locally assembled vehicles, he said.

Pakistanis have shown big interest in buying 660cc and hybrid vehicles due to their low fuel mileage while four new assemblers are likely to hit their vehicles in the next two years.

“We will have to import gas as the RLNG would be used in power sector by December 2018,” he said adding RLNG is also being imported and two new terminals are being built for its distribution and import.

The turbulence in CNG sectors proved disastrous for the Lendi Renzo Pakistan which started its commercial operations in 2008 in rental premises in Site industrial area Karachi. Now the company has been literally struggling for its survival.

Sources said prior to 2011, the company was making 20,000 kits per month for supply to the local car assemblers and after market. Now the production of kits has become negligible. It produces kits

as per orders.

Last year the company exported 9,000 kits to South America and this year it exported only 3,000 kits till March 2017.

Now exports have also come to a standstill since March 2017.

Due to dismal performance both at local and export ends, the company has curtailed its operation besides cutting workers strength to 34 now from 200 prior to 2011, sources said.

There were also reports that the Italian company had also transferred its technology to Pakistan after booming business and surging demand of CNG vehicles prior to 2011.

It was former Prime Minister Shaukat Aziz who visited Italy in 2005 and held a road show to lure foreign investors.

He met top executives of Landiranzo in Rome encouraging them to invest in Pakistan. Later the Italian company also displayed its products in Expo before starting production in 2008.

It is not clear how the company’s top executives are looking towards the so called revival of sale of CNG in Punjab.

Will they adopt wait and see attitude after some hope appeared from Punjab or would they prefer winding up their operations from Pakistan.

The Italian company's last hope was CNG fitted Mehran which had been discontinued now after no demand for CNG vehicle was shown by consumers according to Pak Suzuki company.

Four new players are arriving in Pakistani markets in the next one to two years but they had now shown any interest in rolling out CNG fitted vehicles as many of them have planned 660cc petrol version cars and diesel run commercial vehicles.

www.automark.pk | August-2017 | Page 29

Monthly AutoMark International

Buses Handover Ceremony

Daewoo Express received 40 ‘Golden Dragon’ Intercity Buses from Premval Pakistan

Premval Limited, a wholly owned subsidiary of VPL Limited delivered 40 Golden Dragon Buses to Daewoo Express at a ceremony held on 25th July 2017, at Royal Palm Golf & Country Club, Lahore.

The ceremony was attended by Mr. Jiang Yonghui – President Golden Dragon, Mr. Shaheryar Chisti – CEO Daewoo Express, Mr. Konoz Mohiuddin – Chairman Premval and senior management members of Daewoo Express, Golden Dragon, and Premval.

Distinguished guests include partner banks of Daewoo Express and Pmval, Daewoo Express also signed a long-term cooperation agreement with Golden Dragon and Permval for expansion of their fleet.

“We are delighted to add these new buses to our fleet, as this is the largest single order placed by Daewoo Express in the inter-city segment for quite a few years,” said Mr. Shahreyar Chisty – CEO Daewoo Express. “They look superb and will go into service straight away – operating from Lahore, Faisalabad, Multan, and Rawalpindi.”

“We aim to stand out among luxury bus providers in Pakistan by maintaining highest quality standards and meeting long term requirements for our customers,” said Mr. Jiang Yonghui – President Golden Dragon.

“This order reflects Daewoo’s confidence in Premval and we are committed to moving forward by providing continued support and quality solution to Daewoo Express,” said Mr. Waqar Asghar – CEO Pemval.

“We have worked alongside Golden Dragon for a long time that is clearly demonstrated in the quality of buses.

This is a big delivery for Golden Dragon and hopefully a platform for future growth in this segment. We will only get better from here onwards.” said Mr. Uzair Shahid, Country Manager Buses at Premval.

These buses have been specially manufactured as ‘Daewoo Dragon’ for

Daewoo Pakistan Express Bus Service, developed on a special assembly line for production of Europe-bound buses at Golden Dragon factory in Xiamen. These buses are powered by 380HP Yuchai 10.5L Euro-III compliant diesel engine and connected with ZF gearboxes from Germany. They are specially designed to achieve high reliability, excellent drivability, and low fuel consumption.

These are the first 12.7 meter buses in Pakistan with 45 seats translating into higher revenue for the operators and also allowing extra leg room to make the travel experience more comfortable.

These buses are expected to change the

perception surrounding Chinese products in Pakistan.

Golden Dragon ranks among the top players in China’s coach industry, specialized in developing, manufacturing and selling mediumlarge sized luxury buses and light vans.

Daewoo Pakistan Express Bus Service Ltd. is the leading long distance, time efficient bus service provider to all major cities within Pakistan. It operates from 57 cities covering more than 60 destinations extending almost to the entire Punjab, Sindh and Khyber Pakhtunkhwa with services soon starting in Baluchistan as well.

Premval (Pvt) Ltd, a wholly owned subsidiary of VPL Limited, is the exclusive distributor of Golden Dragon in Pakistan. VPL is a leading supplier of trucks, buses, construction & mining equipment, generators, engines, and t o o l s . T h e c o mp a n y p r o v i d e s comprehensive after-sales support through a nationwide network. VPL is the authorized distributor of world leading brands including Volvo Terex Trucks, Volvo Penta, Sandvik, Hilti, Chicago Pneumatic and Oins Visa.

www.automark.pk | August-2017 | Page 30

International Automotive Industry - Update

Monthly AutoMark

Foreign carmakers embrace China as electric car development hub Beijing Hyundai to recall 43,764 cars over defective engines Beijing Hyundai Motor will recall 43,764 vehicles over a defect that may lead to potential engine failure, according to C hin a 's to p q ua l ity w a t ch d og .

The affected vehicles are Santa Fe models with 2.4-liter Theta GDI engines produced between Nov. 29, 2012 and May 31, 2013 as well as those with 2.0liter Theta GDI engines manufactured between Nov. 29, 2012 and Nov. 30, 2013, the General Administration of Quality Supervision, Inspection and Quarantine said on its website.

T h e r ec a ll ai ms t o a d d re ss a manufacturing flaw that leaves debris in some engines, potentially restricting oil flow and causing engine failure.

The company will replace the faulty engine parts for free. The recall will start on July 31.

Beijing Hyundai Motor is a joint venture between the Republic of Korea's largest car maker Hyundai Motor and China's Beijing Automotive Industry Holding Co. Ltd.

Toyota to spend $1.3bn on US car plant upgrade International carmakers are investing heavily to localize their research and development operations in China, the world's largest automobile market.

BMW's Chi nese ventur e, BMW Brilliance Automotive Ltd, expanded its R&D center earlier this month in Shenyang, capital of northeastern Liaoning province. The facility is now BMW Group's largest outside Europe.

The new center, spanning more than 40,000 square meters, is five times that of the first phase of development, put into use in 2013.

"The new R&D center is a testimony to BMW Brilliance's commitment of 'In China, for China'. Innovation is the critical foundation of our corporate strategy, and the center is the connection between innovation and the application," said Johann Wieland, president and CEO of BMW Brilliance Automotive.

China’s crackdown on vehicle pollution will turn the world’s largest auto market into a hub for cutting edge electric car technologies previously exported from Europe and the United States, industry executives at the Shanghai motor show said.

Foreign automakers have long been building cars in China to meet surging demand in the world’s most populous nation.

But a raft of proposals to promote cleaner driving is now encouraging them to do more research in China, potentially turning the country into a world leader in a technology predicted to be a major force in the future of the industry.

“We are convinced China will become the leading market for electromobility,”

Volkswagen (VW) brand chief Herbert Diess told Reuters on the sidelines of the motor show.

That could be a big fillip for the local economy – and a blow to other major car manufacturing nations such as the United States, Germany and Japan.

Analysts at UBS say the shift from combustion toward electric cars is a 100 billion euros ($107 billion) revenue opportunity for suppliers.

In the wake of its diesel emissions scandal, VW is focusing much more on electric vehicles and software-based technologies – strategies also being pursued by its Chinese joint venture partners, which include SAIC and First Automotive Works (FAW).

China-based SAIC Motor to set up its car manufacturing unit in India SAIC Motor Corporation Ltd, one of the largest automotive companies in the world, has announced its plan to enter the Indian automobile market with a fully owned car manufacturing facility, to be set up in the country.

The $100 billion Chinese company, with core businesses spanning design, manufacturing and supply of components besides partnerships with global giants such as Volkswagen and General Motors, is expected to commence operations in India in 2019.

SAIC is expected to pick up General Motors' Halol plant in Gujarat as the American company is desperately trying to sell its assets post its announced plans to exit the Indian market. SAIC is the largest Chinese carmaker and is targeting India, which is slated to be the third-biggest auto market in the world by 2020.

The company will launch mobility solutions under the iconic MG (Morris Garages) brand. MG, which originated as an iconic British racing sports brand in 1924, has now evolved into a modernday innovation. SAIC also owns other auto brands, including Roewe and Maxus, and acquired the MG brand in 2008.

"As a new-age auto company focussed on innovation and technology, the

company offers various solutions and technological capabilities required for the development of 'New Energy Vehicles', and to cater to the changing needs of global customers and the overall ecosystem," said Rajeev Chaba, President and Managing Director of MG Motor India.

The company has also launched a bre ak thr o ug h 'In te rnet ca r' in collaboration with Alibaba in the connected car space, pegging it as a new milestone in the global automotive industry. "It was made possible by integrating premium technological resources through the company's leading world-class supplier base," the company said.

SAIC will showcase its products during the Auto Expo in February 2018, which is a mix of SUVs and hatchbacks. The company is in the process of finalising its manufacturing facility and is firming up its product strategy for the Indian market, the details of which will be announced later.

MG products are designed and engineered at its European and global design centres and conform to all global quality standards. Now its vehicles will be manufactured in India as well and will be aligned with local regulations, emission norms and driving conditions.

www.automark.pk | August-2017 | Page 35

Monthly AutoMark International

Automotive News - Update

CHINA LAUNCHES TECHNOLOGY TRANSFER HUB IN PAKISTAN

As part of its One Belt One Road (OBOR) initiative, China launched a China-South Asia Technology Transfer Centre (CSTTC) in Islamabad, Pakistan on July 08.

The CSTTC was established at the Pakistan Council of Scientific and Industrial Research (PCSIR) and was inaugurated by China’s Deputy Premier and Minister for Science and Technology Dr. Wan Gang and his counterpart in Pakistan the Minister of Defence Production and Science and Technology Rana Tanveer.

Speaking to local media, the Chairman of the PCSIR, Dr. Shahzad Alam, stated that “China would provide financial support to Pakistan [and other states] for … centres and research laboratories for technology transfer and development.”

According to a PCSIR press release, Dr. Alam said that the two sides discussed “26 joint research and development” and that memoranda-of-understanding (MoUs) were in the pipeline to begin implementing these proposals. Dr. Alam added (via APP) that energy and engineering were areas of priority.

Notes & Comments: It is unlikely that the CSTTC will serve as a direct conduit for defence technology transfer programs. Rather, such transfer-of-technology (ToT) elements are facilitated through acquisitions. The Pakistan Navy’s order for eight Hangor-class submarines from China Shipbuilding Industry Corporation (CSIC) will require CSIC to establish a production-relevant training c en tr e at K a r ac hi S h ipya r d & Engineering Works (KSEW) to enable KSEW to carry out its workshare tasks.

With the first steel-cutting ceremony scheduled for October 2020, KSEW is responsible for manufacturing four of the eight Hangor-class submarines.

However, Pakistan could utilize the CSTTC to facilitate capacity building in a re as that suppo rt ind ig eno us development and manufacturing. For example, investment in material sciences, metallurgy, electronics, programming and other such areas

Dr. Wan Gang visiting the Pakistan Council of Scientific and Industrial Research (PCSIR). Photo credit: PCSIR could help Pakistan build domestic suppliers of key inputs for military applications. In this respect, the CSTTC has the potential to partly feed the Kamra Aviation City initiative.

Besides the necessity of time, there are potential obstacles and risks. For Pakistan to assume ownership of critical and costly tasks, it will require local capacity in terms infrastructure and human resources. With the latter, several steps are being undertaken to increase the number of science, technology, engineering and math (STEM) professionals, such as Air University’s expansion campus in Kamra. However, investment is also necessary for expanding the availability – and enrollment – of primary and secondary education in STEM and other relevant fields so as to guarantee a healthy candidate pool for Air University and others.

Pakistan’s economic constraints have hampered the government’s fiscal capacities as well as the private sector’s ability and willingness to support development. Granted, insufficient policy coordination between Pakistan’s various state organs and government ministries are factors for causing delay and inefficiencies, but insufficient capital (public and private) stymies economic activities necessary for employment, wealth creation and the creation of highvalue exports. Thus, foreign capital is

generally sought to sustain these activities. If these foreign investments are connected to ToT, then the outcome of ToT may be less than optimal. For example, a foreign investor may tailor ToT to manufacturing (if not less) without necessarily investing in domestically sourcing inputs, such as composite materials.

Unfortunately, it is difficult to approach fiscal stability when significant public funds are routinely required to sustain recurring counterinsurgency campaigns (following the U.S. invasion of Afghanistan) and to repay public debt (borne from prior and future fiscal deficits deepened by debt and internal conflict). Traditional challenges, such as political instability and public corruption, compound the relatively newer challenges, thus dampening the potential stated by the PCSIR (or the PAF in the case of Kamra Aviation City).

However, if steps are taken to address these structural challenges, the CSTTC could valuably assist Pakistan in terms of education, building capacity for organic research and development and providing both talent and material means for the rise of local industry players to serve domestic needs and compete globally.

www.automark.pk | August-2017 | Page 36

International Automotive Industry - Update

Monthly AutoMark

EU car makers join others in pleading for slower electric vehicle action by China Honda and Yamaha partner for electric motorcycle mobility in Japan

Two-wheeler majors Honda and Yamaha have joined hands to begin evaluation testing towards the expansion of the use of electric motorcycles in Saitama City, Japan.

The two companies have partnered with Saitama City’s ‘E-Kizuna Project’ to promote the spread of electric vehicles.

This collaborative initiative by the three parties also aims to resolve the issues in areas which are lacking transport accessibility.

The evaluation testing will utilise Honda and Yamaha’s electric technology and Saitama City’s existing infrastructure in order to realise a low-carbon society and verify the extent of improvement in transportation convenience in areas lacking in transport accessibility.

The evaluation testing program marks the first joint initiative between a local government body (which aims for a lowcarbon society in which electric vehicles can be used in safety and comfort), and the two motorcycle manufacturers (which aim for the spread of EV motorcycles) targeted at reduction of CO2 emissions and the spread of electric motorcycles.

The European car industry may soon face a stiff challenge at home and abroad from Chinese electric vehicles. Faced with China’s unwavering plan to accelerate the introduction of electric and hybrid cars, European manufacturers have joined forces with other global producers to plead with Beijing for a ‘less ambitious’ roadmap.

China plans to set goals for electric and hybrid cars to make up at least a fifth of Chinese auto sales by 2025, with a staggered system of quotas beginning in 2018. The proposed new rules seem to dismiss an earlier ‘softer’ agreement reached by German Chancellor Angela Merkel and Chinese Premier Li Keqiang.

Beijing also sees the new policy as a means to help its own car industry compete with foreign rivals that have decades more experience in internal combustion engines.

Europe’s ACEA carmakers association confirmed to EURACTIV.com they had co-signed the letter, sent on 18 June,

which said the proposed new rules were too ambitious.

The letter was also signed by the American Automotive Policy Council, the Japan Automobile Manufacturers Association and the Korea Automobile Manufacturers Association.

A source close to the European auto industry told EURACTIV that Europe was clearly feeling the heat because “certain Chinese companies have made big progress [in electric cars], overtaking some European manufacturers”.

“It would have taken the Chinese ages to compete with, let’s say, Audi, in building sophisticated turbo engines but electric motors are simple to build, the only challe nge is the battery.”

“The Chinese can move very fast and will be able to penetrate the European market…China has a chance to start coming up with cars that fulfil European standards. I think the ‘war’ is starting,” the source said.

Hyundai Motor to begin production at fifth China factory in August South Korean automaker Hyundai Motor Co (said on last month it will begin production at its fifth factory in China in August, as it hopes to reverse a sales slump in the world's biggest auto market where a diplomatic spat has hit Korean goods.

The plant in Chongqing is part of efforts to strengthen competitiveness by making compact sedans and sport utility vehicles (SUV) tailored to Chinese tastes, the automaker said in a statement.

"The Chongqing factory will produce high-quality new models for the Chinese consumer, and make Hyundai an automaker that encompasses eastern and western China," Vice Chairman Chung Eui-sun said in the statement.

The announcement comes months after South Korea angered China by agreeing to deploy a U.S. missile defense system to counter threats from North Korea.

China objected that the system's radar would be capable of penetrating its territory, sparking a popular boycott of Korean goods and services.

Analysts said the impact has led to

fa ct o r ies bein g und er - uti l iz ed, prompting concerns of oversupply.

"Hyundai's Chinese sales weakened quite a bit," said analyst Lee Jae-il at Eugene Investment & Securities. "There is concern of oversupply, but since the target market is different, Hyundai can be expected to minimize any overlap," he said, noting the new factory was Hyundai's first in mid-western China.

Hyundai's China sales fell 64 percent in June compared with the same month a year earlier, while those at affiliate Kia Motors Corp dropped 58 percent.

The impact of the diplomatic dispute added to the pair's other problems in China. Weak brand perception and the lack of a line of SUVs - an in-vogue market segment - left Hyundai-Kia's market share at an eight-year low last year.

Hyundai's new factory will add to one in Changzhou and three in Beijing.

When completed in late August, its annual Chinese production capacity will be 1.65 million vehicles.

www.automark.pk | August-2017 | Page 42

Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR NEW CULTUS VXL BOLAN VX EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2

Ex Factory Advance Tax Price Rs. 1029,000 Rs. 25,000 Rs. 1069,000 Rs. 25,000 Rs. 650,000 Rs. 10,000 Rs. 10,000 Rs. 720,000 Rs. 773,000 Rs. 10,000 Rs. 1,327,000 Rs. 50,000 Rs. 1,463,000 Rs. 50,000 Rs. 1,250,000 Rs. 1,391,000 Rs. 725,000 Rs. 10,000 Rs. 696,000 Rs. 10,000 Rs. 667,000 Rs. 10,000

SUZUKI IMPORTED VEHICLES SUZUKI CIAZ (A/M) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol)

Rs. Rs. Rs. Rs.

1,839,000 1,699,000 2,142,000 2,418,000

TOYOTA COROLLA

Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis A/T CVT-I (1.8 ltr) GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T FORTUNER 2.7L A/T Petrol

HONDA Honda BR-V (i-VTEC) 1.5 Rs. 2,241,000 Honda BR-V (i-VTEC S) 1.5 Rs. 2,341,000 Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 25,41,000/=* Honda Civic 10th Generation 1.5L Turbo Rs. 29,11,000/=* Honda Aspire Manual 1.3L Rs. 1,663,000 Honda Aspire Manual 1.5LHYUNDAI Rs. 1,683,000 Honda City 1.3L Manual Rs. 1,553,000 Honda City 1.3L Automatic Rs. 1,674,000 Honda Civic VTI Manual 1800cc Rs. 2,053,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,285,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,174,000 Honda Civic VTI Prosmatec SR (Oriel) Rs. 2,406,000 * Ex-Factory prices, Advance income tax, freight & insurance will be added as per destination Price will be charge at the time of deliver what-so-ever

DFSK PRINCE PAKISTAN Model

Price

K01 997CC, 2300mm, A/C PS K01 997CC, 2700mm K07 997CC, 7 Seater, AC/PS C37 1500CC, 11 Seater, AC/PS

Rs. 779,000 Rs. 779,000 Rs. 9,80,000 Rs.1,550,000

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Price 1,672,500 1,817,500 1,892,500 2,047,500 2,147,500 2,272,500 2,307,500 2,457,500 5,085,500

Toyota Hilux Pickup 4x2 sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD

Rs. 2,063,000

Toyota Hilux Pickup 4x4 E

Model

Price

Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model

TOYOTA VIGO DAIHATSU

Model Model

Price Price

Rs. 3,324,500

FAW MOTORS Model

Vigo Champ-V MT Rs. 3,598,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c Vigo Champ-G AT Rs. 3,798,500 FAW Sirius S80 (WHITE ,BLACK,STRONG BLUE & SILVER) Grand 1500cc EFI Pet FAW V2 1300cc A/C EFI Petrol CBU

Monthly AutoMark Magazine - International

Price

Rs. 749,000 Rs. 849,000 Rs. 899,000 Rs. 1885,000 Rs. 1069,000

Price updated Aug- 2017

Corporate Business Event Update

Monthly AutoMark International

Mr. Stephan P. Knode Senior Commercial Officer, US Commercial Services along with team from Consulate General of United States, Lahore visited FIEDMC to discuss business opportunities at M-3 Industrial City Mr. Ariz Amin Khatri, Director Unique Group of industries receiving appreciation award from Governer Sindh Muhammed Zubair. On the occasion of oath taking ceremony of Youth Parliament 2017 at Governer House Karachi

PAAPAM celebrates 29th anniversary and Eid Milan dinner on last month, Mashood Khan Chairman Paapam along with OEM representatives www.automark.pk | August-2017 | Page 43

CPEC Logistics International Forum (CLIF)

Monthly AutoMark International

NLC holds CPEC Logistics International Forum 12-13 July-2017, Islamabad

Aiming at providing a unified platform to the relevant stakeholders of ChinaPakistan for evolving all encompassing logistics strategies to actualize ChinaPakistan Economic Corridor (CPEC), the National Logistics Cell (NLC) in collaboration with other stakeholders hold first eve r CPEC Log istics International Forum (CLIF) titled ‘CPEC Logistics, Opportunities, Challenges and Way Forward at China Pakistan Friendship Centre.

Aiming to raise public awareness of logistics and supply chain of the (CPEC).

The themes of the seminar would focus on “Trade Potential,” “Transportation and Cross Border Movement” and “Logistic Industry Cooperation” between Pakistan and China.

Speakers during first session urged the government to bring deep rooted transport sector reforms in the country to reap the real benefit of the opportunities provided by China Pakistan Economic Corridor.

Chief Executive Officer of Trans freight Company, Babar Badat said logistic industry will potentially be the biggest beneficiary of CPEC and establishment of logistics parks, international standards trucking stations, warehouses, and container terminals would boost the growth of logistics industry in the coming years. He also asked for

establishing a separate transport ministry to facilitate the private sectors saying that in the wake of enhanced t r a n s p o r t a t i o n a ct i v i t i es a f t e r completion of CPEC projects, it was desperately needed that instead of going to various ministries, all issues should be resolved under one window. He said currently the logistic sector had to deal with 7 different ministries which was a hectic activity.

Chairman Mega Movers and a CPEC expert from Balochistan, Nawabzada Zaheer Barakzai also called for bringing reforms in trucking and transport sector by establishing heavy vehicles drivers’ training centers and replacing obsolete trucks and containers with the state of the art international standard trucks and oil tankers. He informed that a training center in Balochistan was being established to provide free training to the youth of Balochistan. He said there is need to discuss changes required in existing cross border movement of cargo an d tr a nspo rt ag r eements an d conventions to facilitate and enhance the trade. National Transport Sector in Pakistan also needs to be revamped along with a new national policy to meet the future challenges of transportation, he expressed.

Earlier, addressing the forum, former Finance Advisor, Dr Ashfaq Hassan said

that in order to compete with Chinese industry, “our education institutions must produce highly competitive professionals”.

Additionally, he proposed China to establish an Asian Monetary Fund to bail out the Asian Countries which were facing the issue of balance of payment.

He said Pakistan could also face such situation and instead of going towards IMF to bail it out, it should go to the Asian Fund.

He also urged the Chinese government not to demand extra ordinary concession on their industries and investment in Pakistan as it would create a sense of discrimination among the Pakistani industrialists and investors.

President Rawalpindi Chamber of Commerce Raja Amer Iqbal termed CPEC as a game changer not only for China and Pakistan but for the entire region therefore it should not be restricted only to the two countries, however it should be open for countries.

Beside others the Forum was attended by representatives from leading logistics and shipping companies, chambers of commerce, industries, academia, think tanks, media and other stakeholders from China and Pakistan.

Courtesy: APP

www.automark.pk | August-2017 | Page 44

Exclusive Article by Ali Hassan

Back breaking CNG rickshaws in Pakistan

Motorcycle riders are asked to wear helmets while car drivers need to fasten their seat belts. Rickshaw drivers and passengers do not require any safety precautions by law. So far no law or rules have been framed Taking a ride on the CNG rickshaw is not less than a daring act for a healthy person.

The CNG three-wheeler is also being commercially used for transporting goods which certainly suits it as this vehicle should be declared unfit for human beings.

The CNG rickshaws are serious threat to the health of passengers who put their back or lumbar spine at open risk of being damage or get a severe jerk.

However, sitting with the hidden CNG cylinder is more dangerous if one thinks seriously about it. Forget it now. Who cares?

Dilapidated roads of Karachi with small to large size speed breakers are another looming threat which further makes the ride bumpier on the three-wheeler.

The usage of Kamani to support heavy load is actually not suitable to give any sort of respite to the passengers but these left and right Kamanis give hard push up to the lower body part of the passengers.

The government is responsible for giving green signal to the new investors/assemblers to roll out outdated three wheeler CNG rickshaw in which Kamanis are used. In many countries the assemblers of four wheelers have already discontinued its usage but in Pakistan the iconic decades

old Suzuki Mehran, Ravi and Bolan have these Kamanis.

The 660cc or above engine power imported used cars do not have Kamanis. Pak Suzuki is using obsolete technology for passengers’ load which is discontinued by many assemblers all over the world.

If you are a single passenger then you must be prepared for extreme lower back shocks and also on your hip bones.

We are not talking about other organs right now.

The drivers of the rickshaws do not have any tension of getting hurt by back problems. Most of them pass on the speed breakers and damaged roads at over normal speed as the passengers usually get hit instead of drivers because the drivers are basically sitting on middle of rickshaws.

Another serious issue causing problems among passengers is the absence of any official fare meter. Rickshaws are allowed to operate without any

meter.

A passenger must keep ready at least Rs 100 if he wants to travel five to six kms and for 10-12 kg then the rickshaw owners demand Rs 250-350.

This is certainly the most expensive fare or cost of travelling being charged by the rickshaw owners who are using environmental friendly cheap gas.

These rickshaws are fitted with three kg gas cylinder. After filling full cylinder they can run the rickshaws for at least 80-90 kms. Taking the gas price of Rs 75-76 per kg – the gas consumption comes to Rs 225 for total three kg

www.automark.pk | August-2017 | Page 45 continued to next page

Monthly AutoMark International cylinder.

However, the rickshaw owners demand Rs 250-350 for a 10-12 km journey which means they bring out the three kg gas cost easily from a single trip.

Many rickshaws ply on a daily Bhara (a popular jargon among rickshaw owners) or daily charges or rent hovering between Rs 300-500 per rickshaw per day which the drivers pay to the owners of rickshaw.

Putting aside daily charges the drivers at least earn Rs 1,000-1,500 per day.

Their earnings soar to new limit if they are hired by parents on monthly basis for picking/dropping of school children.

On the eve of Eid ul Fitre the rickshaw owners enjoy a field day when most people prefer rickshaws due to limited parking space around the shopping malls and markets. The charges also become double on last few days ahead of Eid ul Fitre and during three days of Eid. Rainy season also opens new business opportunity when a person gets stuck in rains and wants to reach home at any cost. Here they take full advantage of passengers’ rising anxiety.

As the population of rickshaws have hit new peak -- the fares should have come down due to intense competition and surging population of three wheelers.

Surprisingly these rickshaw owners/drivers are actually acting as a cartel to fleece the consumers. Nobody shows any mercy about the passengers’ ordeal who are bound to take the costly ride.

The government, instead of breaking the monopoly of rickshaw mafia, has given full permission to overcharge the consumers.

Under which authority the rickshaw operators have fixed Rs 100 as a benchmark to take passengers for just five to six kms when the cost of running rickshaw on CNG is much lower than running on petrol.

Consumers undergo further test of patience especially on closure of CNG stations. The rickshaw owners demand extra Rs 30-50 excusing the consumers of running rickshaw on petrol by claiming that petrol costs more than CNG. The CNG rickshaw owners get exposed when the one litre bottle filled with petrol hanged inside the rickshaw proves en oug h for 10-1 2 k m jou rne y.

The price of petrol is Rs 71 per litre but

the rickshaw owners usually agree to take the trip at price of Rs 300-350 from the consumer which is highly unjustified and must be investigated.

The plight of consumers does not end here. For instance, out of 10 CNG rickshaws – only one LPG fitted rickshaw is available that used to rule the city few years back. The CNG rickshaws have literally kicked out the LPG rickshaws which were the main bread and butter earners for Pathans.

The Sariki people and Punjabis have taken over control of CNG rickshaws.

To some extent, the charges/fares of LPG fitted rickshaw are slightly cheaper than CNG rickshaw.

One thing is the reality. The horrible LPG rickshaws offer better comfort than CNG rickshaws as it was designed by an Italian company.

The sound of LPG rickshaws have come down after running on LPG otherwise its sound on petrol sometimes was more damaging and painful for human ears than the sound of fighter planes. People used to cover their ears with the hands when petrol driven rickshaw used to pass on the roads while many people living on the main roads used to wake up on the thunderous sound of rickshaw.

Gone are the days.

The only good thing about the CNG rickshaws is its quite pleasing sound and good space, quite smart dash board with RPM meter, illuminated speedometer, and of course indicators, which was missing in old rickshaw.

However the quality of parts and accessories are mediocre.

CNG rickshaws do not offer a smooth

The drivers of the rickshaws do not have any tension of getting hurt by back problems. Most of them pass on the speed breakers and damaged roads at over normal speed as the passengers usually get hit instead of drivers because the drivers are basically sitting on middle of rickshaws.

ride. They are a sheer failure in this area.

Sometime many passengers remember old rickshaws after jumping in CNG rickshaws. Even the drivers/owners of CNG rickshaws also admit that these rickshaws are vulnerable to cause any serious back problem.

With every passing day new CNG rickshaws are being added on the roads but in reality this source of transport sometimes looks a nuisance which is proving a burden on the pockets of consumers as well as on the already congested roads rather than providing any relief to the masses.

For every one person sometimes four to five CNG rickshaws arrive simultaneously but every driver stands united on charging same fares instead of offering any relief leaving no choice for the consumers but to reach the destination at heavy cost.

Surprisingly people hardly see CNG rickshaws caught in a scuffle with the traffic police.

Qingqi type rickshaws: Another three wheeler CNG operated transport option is available which is called “Chinchi or Qingqi.” They are certainly cheap but problematic during peak hours or office timings. With the capacity of six persons and two with the drivers some rickshaw owners have extended the seats to seven to eight persons. In peak hours ladies are seen occupied the seats in larger numbers.

The fare hovers between Rs 10 to Rs 30 per person depending on the distance.

They take too much time in reaching the destination as they enter a service road along with the main roads especially facing main markets and move at a snail pace.

Person sitting with the driver gets fewer jerks but he is at full risk of losing his life in case a big vehicle hits the rickshaw.

The traffic police officials are not seen imposing any fine or making challans and even these officials also do not warn the drivers not to allow two passengers on the left and right sides.

If a person is sitting in the back seat then he is also at risk of getting shock at his back.

The investors/assemblers in rickshaw sectors have not used their brains in designing the rickshaws. Use of Kamanis has proved that neither the government nor the assemblers are serious in giving any importance to the health of consumers.

Production of three wheelers continues

www.automark.pk | August-2017 | Page 46

Monthly AutoMark International

Automotive News - Update

Foreign firm to make customised number plates for vehicles in Punjab

Chief Minister’s Strategic Reforms Unit, in collaboration with excise and taxation department, is scheduled to launch customised vehicle number plates project today (Thursday) by awarding a contract to a foreign manufacturer.

The project is aimed at legalising customised specialty number plates for vehicles in Punjab following a set of specifications.

At present a few influential people use their names in place of the number plates issued by the government, which is, according to officials, illegal.

The officials told Dawn on Wednesday that a foreign company had been selected following bidding process and Punjab Procurement Regulatory Au t h o r i t y ( P P R A) p r o c e d u r e s .

The innovative “V-Plates” will be issued under the first venture pertaining to SRU and the excise department’s collaborative reform known as “Excise 2.0”.

Officials say V-Plates will provide a legal way to the citizens to customise number plates while ensuring that all security features are kept intact.

These plates to be authorised by excise department will be camera-readable and thereby traceable.

Each V-Plate will also have a unique serial number recorded at its rear. For the initiation period, V-Plates will belong

to various categories, including corporate, personalised and those associated with different causes such as breast cancer awareness.

There will also be an option to customise number plates with national heroes (non-political nature).

Each V-Plate is to follow certain specifications for size that includes 520mm X 114mm, 372mm X 133mm.

The existing number plate size for Punjab is 302mm X 152mm. The size for the two-wheelers is (front) 202mm X 65mm and (rear) 152mm X 130mm.

Rickshaws will get 202mm X 152mm plates.

The V-Plates will carry retro-reflective material, uni-directional security marks, uniquely identified laser serial numbers, alongside embossed alphabets and numbers.

Under the revenue-sharing model of the initiative, 67 percent revenue will got to the government on purchase of each VPlate and the remaining 33pc will be pocketed by the contracting company.

To acquire V-Plates, citizens will

undergo corporate processes, including a comprehensive network ensuring timely provision of V-Plates, followed by effective customer support services.

The contracting company will use a software to manage the sales and supply of the V-Plates across Punjab, whilst officially registering them with the excise department.

It will set up kiosks and facilitation centres to streamline the plates issuance process, besides developing a userfriendly smart phone application to further allow citizens to easily customise and order V-Plates in accordance with their preference.

V-Plates will carry messages that are not offensive to any person, religion or cause.

The excise department will notify a committee in consultation with the SRU to evaluate and oversee the content requested by citizens for customising VPlates. In case of any offensive content appearing on a V-Plate, the department will have the right to expunge it.

continued from previous page to thrive but nobody is bothered about the problems being faced by the consumers relating to bumpy and costly ride. The government is happy that it is getting enough revenues due to meteoric increase in sales of three wheelers.

For example, Sazgar three wheeler sales soared to 21,109 units in 2016-2017 from 17,405 units in 2015-2016 followed jump in sales of Road Prince three wheelers to 8,938 units in 2016-2017 from 1,059 units in 2015-2016 and United Auto three wheelers to 6,043 units in 2016-2017 from 1,576 units in 20152016.

Increase in sales augurs well for the local auto industry as it opens new jobs at a time when other sectors are laying off w orker s. But some bod y in t he government should take assemblers to the task for their negligence in ensuring safety standards to the passengers.

These assemblers are cashing on demand instead of taking care of customers’ interest.

The cost of running rickshaws had increased after increase in CNG price to Rs 75-76 per kg from Rs 67.50 six months back, but on the other side, the price of petrol had declined.

CNG dealers said that CNG is still cheaper by 30 per cent than petrol after increase in its price in the last six months.

These two types of CNG rickshaws are also creating problems for the bike and car drivers as many young boys, who cannot run vehicle on the roads and even many of them do not have reached the age of getting CNIC, are driving these three vehicles without any fear of being apprehended by the traffic police. These impatient young boys dodge the bike and car owners which results into serious accidents.

www.automark.pk | August-2017 | Page 47

MADE IN PAKISTAN MOTORCYCLES Rs. 41,800/= RETAIL PRICE LIST Rs. 43,800/=

70cc Motorcycle

Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1

Retail Price Rs. 44,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 44,500/= Rs. 44,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=

125/150 cc Motorcycle No.

Brand & Model Name

Retail Price

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP Twister 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Unique UD 125cc Unique UD 150cc Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed SR-150 Infinity Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II

Rs. 105,500/= Rs. 125,000/= Rs. 106,500/= Rs. 159,000/= Rs. 70,000/= Rs. 67,000/= Rs. 108,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 115,900/= Rs. 133,900/= Rs. 129,900/= Rs. 65,000/= Rs. 71,600/=

Sr./ No. 13.

14.

15.

16.

17.

18.

19.

Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc

Ms Jaguar MS 70 Euro- II Ms Jaguar MS 70 ( DREAM)

Zxmco ZX-70 Regular

Retail Price Rs. 43,500/= Rs. 44,500/= Rs. 42,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 42,300/=

100cc/110cc Motorcycle No. 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Brand &Model Name Honda Pridor United US-100 Euro 2 Road Prince 110cc Unique UD-100 Super Power SP-100 Hi-Speed SR-100 Hi-Speed SR 100 Alpha Super Star SS-100 Crown CR-100 MS JAGUAR MS 100 Zxmco ZX-100-SS

Retail Price Rs. 86,000/= Rs. 50,000/= Rs. 48,500/= Rs. 73,000/= Rs. 60,000/= Rs. 47,500/= Rs. 77,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/=

Suzuki Motorcycle Sr./ Product & Model Name No. 1. SD110 Sprinter ECO 2. SD110 Raider 3. GS-150 SE Euro-II 4. GD 110 Euro-II 5. GD 110s Euro-II

Retail Price Rs. 98,400/= Rs. 101,400/= Rs. 158,500/= Rs. 119,000/= Rs. 131,000/=

Heavy Bikes Sr./ Product & Retail Price No. Model Name 1. Inazuma GW 250 Rs. 725,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Zxmco ZX-200cc Rs. 2,45,000/= 5. Bandit GSF650SA Rs. 1,550,000/= 6. Super Power SP 200cc Rs. 2,00,000/= www.automark.pk | July-2017 | Page 00 Price update: Aug-2017

Monthly AutoMark International

By Syed Sarim Raza

Essential Car Maintenance Tips for a Challenging Summer Season

Summer season in Pakistan can be seriously challengingfor automobiles as hot and humid conditions can make it difficult for any vehicle to deliver consistent performance. However, a well-maintained car with all its mechanical parts in good condition can easily withstand such harsh weather conditions. While cars should be properly maintained throughout the year, the importance of car maintenance increases manifolds in the summer season. Maintenance of vehicles in summer is completely different to other seasons as driving conditions become tougher in summer because roads absorb extra heat. Car owners must take extra care of their vehicles to survive a daunting season which can seriously have its toll on virtually every vehicle that hasn’t been maintained well.

Summer Season Can Be Really Challenging for Cars Mercury can touch as high as 50 Degree Celsius in Pakistan and that too at multiple times in the long summer season. May, June, and July remain the hottest months as many southern and even coastal areas of Pakistan observe intense heat in day time throughout these months. The northern belt and the associated regions remain relatively cooler, but even these areas face some seriously hot days in the summer season.

When the temperature rises in summer, the conditions for driving become seriously tough. Roads absorb extra heat and that makes poorly maintained vehicles vulnerable to car breakdowns

mainly caused by engine failure and tyre blowout incidents. Heat is not the only challenge in summer season as the monso on season also kicks off somewhere in the mid of summer andpoorly maintained vehicles cannot survive the heavy rainfall observed all over Pakistan in this season. Sandstorms and dust storms are also some other bad weather conditions that vehicles may have to withstand, which can be utterly challenging. However, the adversities of a daunting summer season can be avoided if a vehicle is regularly maintained.

Let’s explore some important car maintenance practices, which can keep all cars in their best condition throughout the summer season.

Maintenance of Engine Engine is the most vital component of a vehicle and any malfunctioning of the engine can result in a complete breakdown of the vehicle. In order to w it h sta n d t he ex tr a h e at , the maintenance of engine and all its important parts is extremely crucial. It can be ideal to get the engine of the car thoroughly checked by an expert mechanic before the start of summer season. This practice can prepare the engine to survive better in the hot and humid conditions throughout the summer season.

Regular inspection of hoses and belts of the engine for any possible wear and tear is critical. The engine coolant levels should also be checked. Coolant is the anti-freezing agent that keeps the engine cool even in the hot and humid

conditions. Any leakage in the coolant container or a significant drop from the optimal level can cause serious damages to the engine.

Engine oil change is another important practice to maintain the best health of a car’s engine. Engine oil should ideally be changed after every 4000-5000 kilometers, but this figure can vary because different types engine oil offered by different brands have different performance and mileage attributes.

Too much delay in the oil change can have a poor effect on the engine’s performance as the engine oil provides lubrication to the engine for consistent functioning.

If the engine is not maintained properly, it can cause problems like overheating of engine, engine knocking and a potential car breakdown, which is the biggest threat that can result from engine’s malfunctioning.

Maintenance of Car Tyres

Poorly maintained or old car tyres can become the biggest liability while driving in extremely hot conditions. A sudden tyre blowout can even be deadly so the maintenance of car tyres is very important throughout the summer season. Tyres should be properly inflated and the air pressure of tyres should be checked before setting off for any long road trip in summer.

Other than the proper inflation of tyres, the condition of tyre tread should also be monitored and tyres should be replaced with new ones if they grow too old or if the tyre tread weakens to an alarming extent. Tyres should be continued on next page www.automark.pk | August-2017 | Page 49

International Automotive News - Update

Monthly AutoMark International

Toyota Opens Billion-Dollar North American Headquarters in Texas What can car-buyers expect to get from Toyota’s $1 billion investment in its new headquarters complex in Plano, Texas?

Better vehicles delivered to the market faster, according to Jim Lentz, CEO of Toyota in North America. In the midst of celebrating the official opening of its innovative headquarters, Lentz told us that speed to market is becoming ever more important to vehicle manufacturers as consumer tastes shift rapidly, so the collaborative culture being established by combining quality engineering, sales, marketing, financial services, manufacturing and corporate functions can be a critical difference between success and failure.

The $1 billion headquarters facility is a key portion of Toyota’s $10 billion, fiveyear plan to invest in the United States, an effort that received kudos from President Donald J. Trump as the grand opening unfolded. Lentz said Toyota will invest $3 billion in upgrading and changed without wasting anytime if the tyre tread depth drop below 1.6mm. Tyre tread depth can be checked with the tyre tread depth gauge which is easily available in the market.

Maintain all the Fluids of the Car Filled to their Optimal Level There are different fluids that govern the functioning of different parts of a car. Maintaining these fluids to their optimal level is very important and this is one of the most significant car maintenance practices in the summer season. Poor maintenance of fluids can result in malfunctioning of different car parts, which can gradually have a negative effect on the overall functioning of your vehicle.

Listed below are some important fluids that should be maintained regularly in summer season: Engine Coolant: Keeps the engine cool Transmission Fluid: Keeps gear shifting smooth

refitting its North American manufacturing plants, while another $1 billion will be invested in U.S.-based research into artificial intelligence, a key enabler of autonomous vehicles.

Major milestone

Lentz noted that the new facility is a milestone on Toyota’s 60-year journey Power Steering Fluid: Regulates smooth movements of the steering wheel Wind Washer Fluid: Keeps the windscreen clean and clear Brake Fluid: Regulates the smooth working of hydraulic brakes Car Parking Tips to Keep the Cars Cool this summer The consistent performance of a vehicle can be ensured with regular m a i n t e n an c e b u t t o k ee p t h e temperatures down inside your car in extremely hot conditions, you should also follow some useful car parking practices.

Following car parking habits can help keeping cars cool this summer: 1. Always try to park a car in shade 2. If you cannot park the car in shade, park it in a way that the back of the car faces the sunlight directly. In this way, you can protect your dashboard, AC and other mechanical parts of your car from over-heating.

3. Push the hot air out of the car when

in the United States from a relatively obscure vehicle importer to a major U.S. manufacturer and marketer of vehicles.

Lentz told the press conference attendees the “One Toyota” initiative, begun three years ago, sprang from a desire to better serve the North American market. His vision, he said, better.” you sit in the car after few hours, while the car was parked in sunlight. Open the windows of the car and set the maximum speed for the car fan but don’t turn on the ac until all the hot air escapes. Once the temperature in car becomes normal, turn on the AC, it will help in circulating the cool air nicely throughout the car cabin.

This is how car owners can keep their cars cool even in the hot and humid summer of Pakistan. With proper maintenance, a car can survive the most challenging weather conditions and this is why car maintenance before and during the summer season should not be ignored. Car maintenance costs little money when compared to what you have to pay in the expense of ignoring regular car maintenance. In a car break down situation, multiple car parts either need ex pensiv e r epairs or c om plet e replacement, which can put a serious dent in your wallet.

www.automark.pk | August-2017 | Page 50

Exclusive by Iqbal Hashmi

Shell Oil Tanker Tragedy in Pakistan

On 25th June 2017, an oil tanker carrying 50,000 liter fuel overturned on the national highway near Safeerwala, 6km away from Ahmedpur East, Bahawalpur District, Punjab because of the sharp turn attempt of the driver causing tire burst due to which vehicle went out of control. The fuel spilled and made a shallow pool in the adjacent ground. Hundreds of men and children from nearby village, Ramzanpur Joya and many passing by cars and motorcycles rushed towards the scene of the accident. Suddenly a huge fire broke out and although cause of the tragic accident has not yet been established with certainty but it is believed that someone threw a burning cigarette butt near the tanker after taking the last puff which immediately ignited a huge and uncontrollable fireball which converted into even a fiercer blaze when the fuel tank exploded. Surviving eyewitnesses also say that the incident happened because of a spark in a vehicle which rushed towards the scene along with other vehicles. This tragedy happened at around 0645 pm, forty five minutes after

t he tr u ck overturned.

148 people were burnt alive on the spot while dozens critically injured, totaling the death toll to 219 in subsequent days whereas 34 injured patients are being treated in a nearby hospital. Some sources have claimed that total number of deaths exceeded 400. Most of them were burnt to bones and were not recognizable. 120 of such dead victims were buried in a mass grave. Prime Minister Mian Nawaz Sharif announced PKR two million for the deceased and PKR one million for the injured.

The oil tanker belonged to Marwat Enterprises – third party contractor of Shell Pakistan Limited (SPL). SPL is a subsidiary of Royal Dutch Shell. This oil tanker was going from Karachi to Lahore and the accident happened 400 Km away from Lahore. Oil and Gas Regulatory Authority (OGRA) was quick in responding to the incidence and after two weeks of the incidence when they finished the enquiry through third parties, they imposed an accumulative penalty of PKR 10 million on SPL and approximately PKR 250 million in compensation to deceased and injured.

OGRA employed third part inspectors, ENAR Petrotech and Imtech along with Chief Inspector Explosives to investigate the root causes of this momentous

www.automark.pk | August-2017 | Page 51

Monthly AutoMark International incident.

Findings of the Inspectors are as under: 1. Non-professional driving/vehicle deployed by SPL were the major causes of the incidence.

2. Specific accident could have been avoided and spill could have been contained/minimized provided lorry was compliant to safety laws/rules. The third party lorry deployed by SPL was not in compliance with various Acts and local as well as international standards.

3. SPL failed to furnish detailed report to OGRA despite the fact that they were officially asked to submit it.

4. The lorry TLJ352 was being operated in violation of Petroleum Act 1934 and Petroleum Rules 1937 i.e. it was not carrying mandatory Chief Inspector Explosives – CIE License and the word “Petroleum” was not stamped, embossed or printed on the lorry.

5. The lorry was non-compliant with the rules related to prevention of accident and prevention of escape/ leakage of petroleum.

6. The lorry was violating mandatory rules. OGRA notified about the standards to be followed in 2009.

7. SPL confirmed that lorries owned by them are as per international standards whereas hired lorries need up-gradation.

8. National Highway Safety Ordinance – 2000 specify 5 to 6 Axle for the lorries carrying 50,000 liter load whereas this lorry was of 4 Axle.

9. Motor Vehicle Fitness Certificate provided by Shell was fake. This was confirmed by Chief Minister Inspection Team of Punjab.

10. SPL failed to produce preload check list of the lorry which is their responsibility and instead produced the check list of the contractor. The lorry was thus not safe for loading.

11. SPL failed to produce Emergency Response Plan and instead produced ERP of the Third Party Contractor. This was termed as casual behavior of SPL

by OGRA. 12. Not the third party but SPL being the licensee of OGRA is solely r esp o nsi bl e f o r t he incid e nc e.

As a result of the findings OGRA imposed a fine of 10 million on SPL for

non-compliance and compensation payment of 1 million to each deceased and 0.5 million to each injured. In response to the OGRA decision, PSL responded as follows:

“Shell Pakistan Limited will pay the fine imposed by the Oil and Gas Regulatory Authority (OGRA) to comply with the regulator's directive.

However, we do so while reserving the right to contest the fine. The matter is under investigation, and we will decide on the appropriate course of action once more information is known and investigations have concluded.”

In plain words SPL has slapped back on the face of OGRA rejecting the investigation and conclusion of the regulatory body and will speak further when their “own” investigation will be concluded and also they will pay the fine but will reserve the right to contest. They ar e still silent on payment of compensation to victims. This arrogant behavior of this subsidiary of a multinational company is analogous to the situation when a criminal in violation of law says to the judge that he is accepting the decision of the judge conditionally subject to the conclusion of the findings of his own investigation of the crime committed by him.

This is not the first time that our regulatory authority has shown a very lenient attitude towards a multinational company. They are never confident and always apologetic in front of these foreign companies, no matter what the level of crime committed is. Just to give an example to clear the point, Competition Commission of Pakistan imposed a fine of PKR 150 million on Pakistan State Oil on their deceptive marketing practices and false claim of putting an additive in their petroleum

Fire Equipment

products to improve mileage and for greener environment which they discontinued to add years back. In a similar case against Reckitt Benckiser for deceptive marketing claim regarding their TV Commercial, Competition Commission of Pakistan in their own words took a very lenient view of the violations and imposed a total fine of PKR 1.25 million on five counts of violations. One may argue that cases were different but fact is that charges were same and the penalty imposed on local company was 120 times of that imposed on a multinational company.

Also when a local Oil Marketing Company runs deceptive ads (which didn’t kill anybody) they are fined a colossal sum of PKR 150 million and when a multinational Oil Marketing Company is in clear violation of rules and guilty of forged documents which caused death of 218 people and injury to many more, they are merely fined PKR 10 million and that too the MNC has accepted to pay under protest. This is actually the issue of leadership in our government organizations who are so incompetent that they are not even able to speak when the matter is to safeguard the interest of the company they have been entrusted upon.

The incidence of Ahmedpur East is one of the most tragic events in the history of Pakistan which made the Eid day a day of mourning for us. More than two hundred people were killed and many more were injured and according to the findings of OGRA report SPL was in clear violation of the rules and regulations of the country which resulted in the loss of precious lives but SPL even didn’t bother to reply to the questionnaire sent by OGRA. In August 1998, a fuel truck making a delivery to the Texaco in Biloxi, Mississippi, USA and petrol leaked from it on the highway which burnt three people. 28.2 million dollar was awarded to the family of the deceased people in the year 2000. This is approximately equivalent to PKR one billion each. In 2017, OGRA is politely asking for only 0.1% of that amount for each victim and SPL has reservation on the fine of merely 10 million Rupees and they are totally silent on payment to victims? The brutal fact is that death of a white man is a serious matter and death of Pakistani is not even worthy of consideration.

Politicians, bureaucrats, human right champions, media, Amnesty

www.automark.pk | August-2017 | Page 52

Monthly AutoMark International

Automotive News - Update

PAK SUZUKI APPOINTS NEW CEO The board of directors at the Pak Suzuki Motors Company has appointed Masafumi Harano as the new Chief Executive Officer (CEO) of the company, read a statement issued on Monday.

In his years-long association with Suzuki Motors Corporation, Harano was responsible for Suzuki’s overseas automobile marketing in Southeast Asia and North America, as well as the company’s auto product planning department in Hamamatsu, Japan, it said.

In its statement, the automobile production company said, "The appointment of the new CEO is a strategic move" in accordance with the overall automobile industry "witnessing a phase of expansion and growth".

The industry also sees a period of the high demand of cars along with increasing competition among the local

players with the onset of new entrants, it added.

The experts expect a likelihood of a shift in policy especially the investment approach and aggressive strategy of the company during the next three to five years in which the demand is expected to increase.

Pak Suzuki Company Limited (PSMC) has attained a benchmark of Rs. 1 billion quarterly profit in the first quarter of 2017.

The company had planned to invest $460 million in its expansion of productions assembly and relevant operations but the decision is reportedly under pressure due to the government’s unclear regulatory policies and taxation issues.

Outgoing CEO Appointed as Senior Advisory Director The new CEO of Pakistan Suzuki Motors

Company will replace Hirofumi Nagao, who has been appointed as the S e ni o r A d v is o r y Director in the company. The outgoing CEO will Mr. Masafumi remain on the board Harano of the company as an Executive Director.

Hirofumi Nagao has served the Pakistani market since June 2008. His term as CEO has been considered as good at Pak Suzuki as the company is making profits owing to high demand in the local market.

Moreover, the board also appointed Shigeo Takezawa as a director of the company along with Masafumi Harano.

They replaced the two directors naming Tetsuya Fujiko and Minoru Amano.

International and all NGOs are criminally silent on this tragedy.

In Bhopal incidence CEO of Union Carbide personally went to India to apologize and was kept there under house arrest. Criminal charges were filed against the company which was later dropped by the court when they agreed to pay the victims in an out of the court settlement allowed by the court.

Unfortunately, in Pakistan politicians and bureaucrats place no value for human life. They are so immune to death of innocent people that they didn’t even bother to call the Managing Director of SPL to the Ministry of Petroleum and Minerals or in front of Senate Committee for a plausible explanation.

The sam e Ministry and Senat e Committees call MD of PSO in one pretext or other every second week for explanation and grilling. In this particular case a criminal FIR should be launched against the company as is done in such incidences in rest of the world and those involved in willful negligence should appear in the court of law to provide justice to those killed and injured and their bereaved families.

OGRA gave a very easy escape route to SPL but their management lack necessary skills to take timely decision

and opted to linger on the case by declaring to investigate the matter themselves.

Negligence is on the part of our regulators as well. They are surviving on the regulations of 1936 and 1937.

They neither have ability nor willingness to make new rules and regulations and impose them with an iron hand. Laws related to third party employers and vendors need to be revisited to stop exploitation from MNCs. Automakers in Pakistan will also be able to take an easy escape route in case they launch a faulty vehicle in the market. Nobody including the management of MNCs (who are otherwise very boastful about their procedures and ethical values) care if the vehicle carrying highly flammable fuel is in accordance with the safety requirements and is operating under strictly monitored SOPs. If such conditions prevail then such accidents will happen again and again and each time our officials will turn a blind eye towards it. In this serious matter in which more than 200 lives were wasted due to negligence of operators why Supreme Court is not taking Suo Moto notice?

Just imagine what would have happened with Royal Dutch Shell if the same incidence had occurred in USA? PSL has not even accepted the responsibility of the incidence and have not apologized for this tragic incidence which happened just because of the sheer negligence on the part of the top mana g em ent. Jaw wad Ch eema, Managing Director Shell Pakistan has just put these words on the website: “We were extremely shocked and saddened to learn of the devastating road-tanker fire near Bahawalpur. Our hearts go out to the families of the victims and our prayers are with the injured.” If the MD has guts and some flare of leadership then he should come on the media, apologize to the people of Pakistan for the willful negligence causing so many deaths and injuries and announce a reasonable compensation of at least 10 million to each deceased and 5 million to injured individuals. As a matter of principle he should also resign from the position with immediate effect.

www.automark.pk | August-2017 | Page 53

China - Pakistan CPEC NEWS - Update

Monthly AutoMark International

China Calls Pakistan's CPEC Fastest and Most Effective of BRI Projects

Visiting Chinese Foreign Minister Wang Yi, right, and Pakistan's adviser on foreign affairs Sartaj Aziz, in Rawalpindi, Pakistan on June 25, 2017 C hina says its la rge econ omic collaboration program with Pakistan has entered “the stage of early harvest", making it the “fastest and most effective" among all projects in Beijing’s Belt and Road Initiative, or BRI. President Xi Jinping launched the China-Pakistan Economic Corridor, or CPEC, two years ago, during his l a nd ma r k v i s i t t o I s l a m ab a d .

Cooperation has since cemented decades-old relations between the traditionally close allies.

China is investing about $60 billion on a network of roads, railways, fiber optic cables, energy pipelines, industrial clusters and special economic zones in Pakistan.

The corridor will link China's western region of Xinjiang to the Pakistani port of Gwadar on the Arabian Sea, giving the Chinese region the shortest trade route to international markets.

China's acting ambassador to Islamabad, Lijian Zhao, says that 19 CPEC projects worth about $19 billion are either completed or in progress.

“CPEC, as a pilot and major project of BRI, is now the fastest and most effective project among all the projects under the BRI,” he told a seminar in Islamabad.

He described the cooperation as an “unprecedented undertaking” in the history of China-Pakistan relations.

Economic cooperation connected to CPEC has employed thousands of Pakistanis and officials anticipate tens of thousands more will be hired in the next few years.

Gwadar is in Pakistan's Baluchistan

province, where deadly attacks on CPEC workers have taken place in recent months.

Some critics in Pakistan have raised concerns about the viability of CPEC, while others have questioned its implications for the country. But officials dismiss the skepticism as unfounded.

“Despite (the fact) there is this criticism and noises here and there, after this four years of hard work and joint efforts of both countries, the CPEC has not been affected by those noises. I can report to you that CPEC is going on very well on the ground,” said the Chinese envoy. He did not elaborate further.

Most of the CPEC projects are in Baluchistan. Pakistani officials allege rival India’s intelligence agency is behind the militant attacks in the province in an attempt to sabotage the Chinese investment.

New Delhi denies the charge, but officials there have voiced concerns over the corridor because it passes through the Pakistan-controlled portion of Kashmir, which is divided between India and Pakistan and both claim the Himalayan region in its entirety.

Pakistan’s foreign secretary, Tehmina Janjua, while addressing the conference, explained security challenges facing her country’s project with China.

“May I point out, unfortunately, our eastern neighbor (India) has publicly announced its opposition to CPEC. The grounds they give for their opposition are baseless,” Janjua noted.

She went on to denounce India’s opposition as “appalling” for a project

that she said would bring development and prosperity to the people of Kashmir.

“China and Pakistan stand shoulder to shoulder in developing CPEC on the agreed time lines. We will continue to march ahead with complete determination, ignoring the negative voices and forcefully responding to any th re at to C P EC, ” sa id J anjua .

The Pakistani military has deployed thousands of security personnel to guard the projects and protect Chinese experts and workers.

China has also rejected reported U.S. concerns China plans to turn Gwadar into a Chinese naval base.

Major infrastructure projects being established in the Chinese-funded port of Gwadar include a Free Zone and a new international airport that will be operational by next year, officials say.

While new highways are being built and existing roads upgraded to link areas under CPEC, a coal fired power plant in the central city of Sahiwal has recently been completed, adding 1,320megawatts of electricity to Pakistan's national grid.

A second 1,320-megawatt coal fired power plant in the southern port city of Karachi is expected to be inaugurated

by November at an estimated cast of about $2 billion.

China is also focusing on upgrading Pakistan's railways, increasing average speeds to about 180 kilometers an hour from the current average of 80 kilometers an hour, said Chinese envoy Zhao.

www.automark.pk | August-2017 | Page 54

International Automotive News - Update

Monthly AutoMark International

China Is Leading The World's Boom In Electric Vehicles -- Here's Why

In 2016, almost 95 million autos were made and sold globally, nearly all powered by an internal combustion engine (ICE). For the past 100 years, internal combustion engine powered vehicles, and readily available oil supplies have dominated autos. The winds of change are blowing, however, and many believe that the $2 trillion global auto industry is about to undergo a significant transformation as allelectric vehicles (EVs) begin to replace ICE vehicles.

The brink of a revolution

While electric vehicles and plug-in hybrid electric vehicles (PHEVs) currently account for less than 1% of the cars produced annually, many believe that we are at the beginning of an “Electric Revolution.” In its recent comprehensive and authoritative report on the subject, Bernstein, a prominent Wall Street research firm, predicted that EVs could represent 40% of auto sales and 30% of the global car parc in 20 years. Likewise, UBS, a leading global financial services company, believes that a growing global electric vehicle fleet will be disruptive to gasoline demand by 2031.

There are many reasons for the growing belief that EVs represent the future of autos.

First, technology costs have declined significantly, with battery costs approximately 20% of their cost five years ago. Also, further technological innovations, as well as substantial new battery capacity coming on stream in China, bode well for further price declines.

Secondly, a charging infrastructure is now being put in place in China, the United States and other major countries

around the world. Finally, EVs have lower operating costs than ICE vehicles, even at today’s oil prices. As technology costs drive the initial price of EVs lower, price parity with ICE powered vehicles and lower operating costs will make a compelling economic case for EVs. In terms of the development of its EV industry, China has now pulled ahead of other countries, a leadership position which it is unlikely to relinquish. In 2016, 507,000 EVs and PHEVs were sold in China, a 53% increase from 2015.

Meanwhile, 222,200 EVs and PHEVs were sold in Europe, a 14% increase; and 157,130 units were sold in the United States, a 36% increase from the prior year.

China ahead of the curve

Why is China leading the way in embracing EV technology? The answer may simply be that China has no other choice. As a country, China has three fundamental paths it may follow.

- First, it can choose to live with a rapidly growing number of ICE powered vehicles on its roads, with all that implies as far as air pollution and energy independence.

- Second, the government can restrict the transportation choices of its citizens in an effort to balance environmental concerns. Or third, the country can embrace EV technologies that enable its citizens to have their cars without jeopardizing air quality in its cities.

When ICE powered vehicles came of age, the United States, with its large land mass and suburban sprawl into low-density, car-dependent communities, was the largest auto market in the world. Today, China is the world’s largest auto market and represents most of the new worldwide

demand for autos.

The reality in China is that the combination of its 1.3 billion population with rising per capita incomes is creating a demand for personal transportation that cannot be met in an environmentally sustainable way using traditional technologies. China is already the largest auto market in the world, and the 28 million vehicles produced in 2016 is expected to grow to 40 million by 2025.

History repeating

In industry after industry, the story plays out the same way in China. Due to the dynamics created by a large population, there is no such thing as a small opportunity or a small problem in the country. In China, the country’s large population means that there are only big opportunities and big problems. In this context, improving air quality, while at t he same t ime meet ing t he transportation needs of a large, growing and increasingly wealthy urban population, is a very big problem.

A global industry shaped

by Chinese needs

Over the last one hundred years, the internal combustion engine has been the technology of choice for an auto industry that has been built around consumers in the United States, a country with wide open spaces and a relatively low-density population. With consumers in a densely populated China now driving new global demand for autos, the technology of the past may n o t be as s ui t ab le t o t od ay ’ s circumstances. For this reason, China is likely to continue to lead the way in the development of the electric vehicle industry.

www.automark.pk | August-2017 | Page 55

International Automotive News - Update

Monthly AutoMark International

Toyota set to sell long-range, fast-charging electric cars in 2022

TOKYO (Reuters) - Toyota Motor Corp is working on an electric car powered by a new type of battery that significantly increases driving range and reduces charging time, aiming to begin sales in 2022, the Chunichi Shimbun daily reported on Tuesday.

Toyota's new electric car, to be built on an all-new platform, will use all-solidstate batteries, allowing it to be recharged in just a few minutes, the newspaper said, without citing sources.

By contrast, current electric vehicles (EVs), which use lithium-ion batteries, need 20-30 minutes to recharge even with fast chargers and typically have a range of just 300-400 kilometers (185250 miles).

Toyota has decided to sell the new model in Japan as early as 2022, the paper

said.

Toyota spokeswoman Kayo Doi said the company would not comment on specific product plans but added that it aimed to commercialize all-solid-state batteries by the early 2020s.

Japan's biggest automaker is looking to close the gap with EV leaders such as Nissan Motor Co and Tesla Inc as battery-powered cars gain traction around the globe as a viable emission-

free alternative to conventional cars.

Whether Toyota will be able to leapfrog its rivals remains to be seen, however, as mass production requires a far more stringent level of quality control and reliability.

Having long touted hydrogen fuel-cell vehicles and plug-in hybrids as the most sensible technology to make cars greener, Toyota last year said it wanted to add long-range EVs to its line-up, and set up a new in-house unit, headed by President Akio Toyoda, to develop and market EVs. Toyota is reportedly planning to begin mass-producing EVs in China, the world's biggest auto market, as early as in 2019, although that model would be based on the existing C-HR sport utility vehicle and use lithium-ion batteries.

Other automakers such as BMW are also working on developing all-solid-state batteries, eyeing mass production in the next 10 years.

Sol i d-sta te ba t ter ies u se soli d electrolytes rather than liquid ones, making them safer than lithium-ion batteries currently on the market.

www.automark.pk | August-2017 | Page 56

Monthly AutoMark International

Automotive News - Update

Suzuki launches new Swift compact car equipped with Hybrid system in Japan

Suzuki’s unique hybrid system installed on the new versions of Swift HYBRID SG and Swift HYBRID SL combines a Motor Generator Unit (MGU) to an Auto Gear Shift (AGS). MGU is a compact

driving motor that instantly boasts a big amount of energy, while AGS is a lightweight, compact, and efficient transmission. In addition to driving assist with its motor function, the system

Jailed Volkswagen exec to plead guilty in U.S. diesel scandal A Volkswagen official at the heart of the German automaker's wide-ranging diesel emissions cheating scandal plans to plead guilty in the case.

"Prosecutors and lawyers in the Volkswagen AG criminal case informed U.S. District Judge Sean Cox this morning that defendant Oliver Schmidt has decided to plead guilty," according to a statement from U.S. district court this morning.

The statement said the agreement was announced during a 20-minute status conference. A plea hearing was set for 9:30 a.m. August 4.

Schmidt, a German national and Volkswagen's former top emissions compliance manager for the United

State s, had been charged w ith conspiracy. He was accused of being a central figure in the VW case, which led to civil settlements worth about $17 billion for U.S. consumers and dealers who own the automaker's diesel vehicles and an additional $4.3 billion to settle criminal charges.

automatically stops the engine and switches to EV driving when the vehicle is running at a constant speed or during creeping.

The system offers two driving modes to let the driver select between brisk driving, and driving with priority on fuel efficiency by increasing the frequency of EV driving. While keeping the excellent handling of the Swift, it combines high fuel efficiency of 32.0km/L*and direct drive feel thanks to AGS and MGU. The vehicle weight is kept within 1,000kg, and it qualifies for eco-car tax breaks in Japan.

Swift HYBRID SL variant is equipped with paddle shift which lets the driver enjoy quick acceleration feel and sporty shift feel. Plus, it comes with standard equipment of advanced safety features including the Dual Sensor Brake Support (DSBS) collision-mitigating system that features a monocular camera and laser sensor to detect pedestrians and vehicles ahead, as well as SRS curtain airbags and front seat SRS side airbags.

www.automark.pk | August-2017 | Page 57