August 2011

AUTOMARK MAGAZINE

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AUTOMARK MAGAZINE

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Editorial

MONTHLY

Pa kis tan ’s Pre mi er M a gaz in e fo r Indu stry

August 2011 Vol 4, Issue 08 Editor : M. Hanif Memon Sub Editor : Dr. Raja Irfan Sabir Asst. Editor : Sumaiya Rizvi Contributing Writers : Dr. Raja Irfan Sabir Asif Masood Ali Hassan Mohammad Owais Khan Shahzad Tabish Omar Rashidi Muneeb Jaweed Advisors :

Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert Islamabad

Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center & Consultant (MME), NED University - Karachi

Syed Mansoor Ali Business Manager Case NewHolland Pakistan

J. Pereira General Manager Product Support Division Al-Haj FAW Motors (Pvt) Ltd. Karachi

Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi

Electricity Crisis in Pakistan The latest crisis that has Pakistani’s from all walks of life up in arms is the lack of electrical power throughout the country. While rolling blackouts or load shedding as its locally known has always been a staple of daily life in Pakistan, the problem has become acute in the last couple of years. In the second half of December, the situation got so bad that WAPDA & KESC (power generation entities in Pakistan) resorted to draconian levels of load shedding.

The power cuts during this time amounted to 20-22 hours a day in m ost small citi es and even cities like Karachi were seeing 18+ hours of load shedding .

Notwithstanding the systemic issues such as the failure to build new dams and previous Government’s inability to add even a single megawatt of new power to the grid during 9 years of its rule, it seems that the present crisis is a result of bad management and the lack of foresight.

The total installed capacity of WAPDA and KESC totals around 19,500 megawatts. Almost two third of this power comes from thermal power plants (fossil fuels), one third is generated by water and about 2% comes from nuclear power plants.

The demand for electricity in Pakistan during the winter months actually goes down and this winter has not been an exception. Throughout the month of December, the electricity consumption in Pakistan h overed around 11,00 0 MW, down from the peak levels of17,500 MW seen in summ er. This demand was well within the installed capacity of WAPDA & KESC yet they were only generating a meager one third (6500MW) of their maximum capacity during this period leaving a huge gap between supply and demand. Their are two main reasons for this:

M. Yakoob Gaziani CEO LORD Institute of Technology Karachi Circulation Manager : Abdul Khaliq Graphic Designer : Mustafa Hanif

Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk E-mail: magazine@automark.pk automarkpk@gmail.com Tel/Fax : 021-32218526 Mobile: 0321-2203815

1. The water flow from all major dams was halted starting mid December to allow the annual cleaning of canals in January. This action effectively took all the hydro power off line.

2. The thermal power plants were working far below their potential due to the lack of money caused by the circular debt between various government agencies reaching a staggering 400 billion Rupees.

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CONTENTS Your trust is our success

Autom oti ve,Agr icult urer, E ng ine er ing & Energy Se ctor

APMA not satisfied with DG E&T reply, says situation is same Exclusive Article by Ali Hassan

09-10

Past, present and future of auto sector Exclusive Article by M. Owais Khan

Lahore Mass Transit Project and Yellow Cab Scheme 34 Approved by Punjab cabinetPakistan Energy Crisis 37

11-12

Scope of Automotive Engineering in Pakistan Exclusive Article by Omar Rashdi

38

Indus Motor Introduces New Car Toyota Corolla ECOTEC

15

A Brief History of the Toyota Vitz in Pakistan

by Muneeb Jawed from NED University

Monthly AutoMark Magazine - Review

by Shahzad Tabish from NED

16-17

Local assembled car price list Motorcycle Price List - Updated in April-2011

39 50-51

“Engine Blow-by” - Review From NUST University - Islamabad

19

FAW conducts Training Course for Agility Logistics

20

Customer Perceptions Hybrid/Electric 21-22 Vehicles and the Chinese Automobile Industry

by Dr. Raja Irfan Sabir with co-author Mr. Luo Liguo Yamaha to set up plant in Bin Qasim News - Update

ALTERNATIVE ENERGY - EDITION

Alternate Energy An Exclusive by M. Yakoob Gaziani

42-45

Renewable Energy for Clean Environment Need of The Day Exclusive Article by Asif Masood

46-47

International Alternate Energy - News Update

48-49

28 e-magazine Issue at our website

Important Announcement The management of the monthly Automark magazine is pleased to announce that Mr. Mohammed Yakoob Gaziani ha s joined the A ut omar k’s editorial team from A ug ust-2 011.

He will no w be ad vising an d overlooking Automa rk maga zine’s k ey contents, especially about the ‘Alternative Energy’ section.

Mr. Gaziani is involved with the field of electronic since last 20+ years in different national & multinationals companies.

He did his Di ploma in Computer Studies from Can adian School of Man agement & Engineering in 1989.

He has a vast experience in Technical Management, Electronic Manufacturing Production & Control, UPS Designing & Fabric ation, PC B Designing & Fab rication, Power Tran sforme r Design ing / Repa ir / Fab ricatio n, Designing of AMF / ATS for Generators, Battery Chargers Designing & Fabrication, PLC, CNC & Industrial PCBs Repairing, Troubleshooting, AC / DC Drives Motor VVFTs repairing & Programming and Assembly Language Programming.

In the past he worked as an Industrial Relationship Officer (IRO) & Incharge Technical Coordination Department (ITCD) at Memon Industrial & Technical Institute.(MITI) project of World Memon Organization (WMO). At present also working as a Technical Adviser to MITI on volunteer basis.

Currently he is working as CEO at LORD Institute of Technology, in Karachi. After his joining at Automark as an advisor (the leading publication of the Pakistan automotive sector), he will contribute to further improve the already established quality prestigious publication. He is willing to bring more sectors in our magazine, specially 'Alternative Energy' sector related fields.

visit: www.automark.pk

The only ONLINE automotive magazine in Pakistan

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Automotive Sector - Exclusive Article

by Ali Hassan

APMA not satisfied with DG E&T reply, says situation is same Low cost bike makers propose solution to resolve lingering issues After causing a problem to the bike makers a month back regarding delaying tactics adopted by Director General Excise and Taxation Punjab issuance of registration certificate for registration of bikes in the big province, the same department has tried to rectify the motorcycle makers’ problems but the assemblers are not satisfied.

Assoc iati on of Pakistan Motorcycle Assemblers (APMA) had taken up the matter with Mr Shahbaz Sharif who took action and in the third week of last mon th th e Exc ise an d Tax ation Department of Punjab had replied through a written letter sent to APMA. It is beyond understanding as to why officers either of higher or lower posts in the government departments create bottlenecks aimed at making to get some monetary support from the industries or without any reasons as it is part of the bureaucracy’s working strategy.

APMA feels that the reply is not enough unless the E&T department removes the problems practically rather than playing lip service or sending letter to the Association.

The combine local Chinese and Japanese bike production has exceeded over 1.5 million in 2010-2011 which is higher than to around 1.4 million bikes in the last fiscal year despite floods during July-September 2010. It means that urban buying is also improving while rural buying has al ready been in forefront due to good crop earning of growers and farmer.

There is no need for creating hurdles when the industry is contributing good

Well, I am NOT satisfied. But you can pick one of these - I'm somewhere in the middle bwtween them I think. revenues to the national kitty due to its higher production but perhaps the bureaucracy and its lower staffers feel that it is the right time to make money from the growing sector when iron is hot.

The Excise and Taxation Department, in its reply, says it may be noted that there is no delay on the part of this office as this office grants permission for registration of different brands of two wheeler as well as three wheeler auto vehicles after getting verification of Certificate and CM Licence issued by the Engineering Development Board (EDB) and Pakistan Standard Quality Control Authority (PSQCA) respectively.

However, in case of three wheeler vehicles, permission fro m Pun jab Provincial Transport Authority is also required.

This procedure is strictly followed after one of the manufacturers i.e. M/s Prime Punjab, Lahore, got CM Licence from PSQCA as well as permission letter from PTA on the basis of a bogus/made up Certificate of EDB. This office after getting verification of CM Licence from PSQCA also issued permissi on for r e g is t ra t io n of a u t o v eh i cle s manufactured by M/s Prime Punjab.

However, later on it was detected that CM Licence as well as permission from PTA were issued from the respective departments on presentation of a bogus certificate of EDB by M/s Prime Punjab.

Accordingly, registration of all brands of Pr ime Pun ja b wa s s top pe d immediately.

As far as issuance of s hort t ime permission is concerned, it is submitted that this office grants permission up to the validity period of permission granted by the PTA, PSQCA or EDB, whichever is earlier. Norma ll y PTA g rant s permission in respect of three wheelers for three month only, whereas EDB grants permission up to 30th of June and PSQCA issues CM Licence on case to case basis. It may be appropriate if the matter is taken up by APMA with the respective bodies to stop practice of iss uin g in ter im a nd sh ort-t erm p e rm is s io n an d in s t e a d lo n g term/regu lar permiss ion may be granted. This will not only facilitate the genuine manufacturers, but will also

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Automotive Sector - Exclusive Article reduce the volume of work of this office.

This office is very conscious regarding issuance of permission in respect of 23 wheeler vehicles. Although no specific n a m e of t h e m a n u f a c t u r e r , company/brand has been pointed out in your e-mails on the above subject, for which such permission, statedly is pending in this office, however, please feel free to point out reference submitted by any of the manufacturer, which is pending in this office. We are ready to support and respond to the request made by each manufacturer of auto vehicles.

It may be added that in order to streamline the process of verification, this office has already taken up the matter with Dr Muhammad Zubair, GM (Tariff) EDB, Islamabad over telephone dated 08.07.2011 as well as vide this office letter No. 1-3/EDB/Tax-I. dated 08.07.2011 regarding on-line intimation of issuance of EDB certificates, however, response from EDB is awaited. This office assures prompt disposal of all cases as per policy/instructions and completion of formalities.

APMA in response to DG E&T’s reply, has informed the department that the tw o w h eele er ind us t ry is s till experiencing very challenging conditions that are reflected among other things in reduced budgets for advertisement, promotions and exhibitions.

“The Sindh based industrialists have decided to investment in Punjab and concentrate our efforts to reduce the cost of motorcycle and to manufacture a reasonable price motorcycle to meet direct cus tome rs ex pecta tion s. ” Our member companies are already in process of establishing automotive manufacturing units in Punjab where they shall assemble / manufactured the different kind of motorcycles and four stroke CNG auto rickshaws for local and export market.

APMA says the registration of locally manufactured vehicle is the main requirement of this industry to market their products to any province and the three provinces are supporting genuine industrialist in the registration of there manufactured products.

However, the industry is perturbed over delay in renewal / registration and month to month renewal of our members manufactured products by Punjab

Excise and taxation department.

The Punjab E&TD is working oppositely on the terminology of Chief Minister as he works as Khadim-e-ala Punjab.

APMA says its member companies’ representative all the time can’t bear the financial burden and time consuming exercise by coming again and again to office of the DG E&T Punjab. The Association urged the E&T DG to issue the renewal/registration long term/regular permission may be granted on priority basis. This will facilitate the genuine manufacturers and also guide to complete the other Excise and Taxation departmental formalities to investment in Punjab.

The Motor Vehicle Registration System (MVRS) is important not only for the direct functioning of the E&TD but also for other stakeholders and concern trade bodies such as APMA. The capability to access data from the system and also to interact with it enables the motorcycle registration system to be more accurate, reliable and meaningful.

Th e r ef o re , in t h e in t e g r a t e d environment, the enhanced role of Vehicle Registration Systems is not just providing vehicl e data but al so to become the channel for a proactive and two way relationships between the E&TD and External Stakehol ders.

Once the company is registered by E&T as registered by FBR then without any intimation to the said company the stoppage of registration is illegitimate even on short or long term/regular pe rm is si o n g ra n te d by E&T D. APMA urged that the department promptly ratifies to differentiate and separate the renewal /registration of motorcycle and Auto rickshaw because motorcycle is vehicle of poor common people of the coun try and local assembled Chinese motorcycle is the main source of low cost good quality motorcycle to serve the poor common people of Pakistan. Again and again ban of renewal registration order only in the province of Punjab is not in favor of the comm on p eop le an d in du s tr y.

The E&T department should call the

valid documents on any time or on expiry of documents but wi thout discontinuation of regi stration as practice in other provinces of the country. The again and again month to month ban on registration is only trend of E&TD Punjab and no stoppage of registration in practice in the other provinces but the call of valid documents

by E&TD are in practice in other three provinces as call letters is regularly issued by E&T departments on expiry of CM-li cen ses t o our esteeme d motorcycle industrialist and if any company fai l to submit the valid documents within the given time then the stoppage of registration is practicable in the province of Sindh , Balochistan and in Khyber Pukhtoon Khawah.

E&TD Punjab should support to the same system witho ut stoppage of registration of any locally manufactured motorcycle to encourage the motorcycle industry.

Individual Verification of CM-license and EDB certificates is unnecessary because the detail list of approved assembler cum manufactures is available online on PSQCA website and on EDB website or one time can be call the updated approve lists of motorcycle assemblers cum manufacturers every year by EDB & PSQCA. The entire requirement for the renewal / registration of any new products should be completed by one time and no a pplication ac cept ed by th e department without the completion of all formalities in one time by the vehicle manufacturers to avoid any deception by anyone.

The entire requirement for the renewal / registration system should be published on Punjab E&TD website and also the newly introduced website www.http://punjablaws.gov.pk/. APMA further urged that during the departmental proceedure of amendments in renewal /registration system for local manufactured chinese motorcycles by punjab E&TD as per above recommendations, we request you to please you and your department staff give priority to the issuance of Renewal / registration order of local manufactured chinese motorcycles on behalf of any long time validated documents such as PSQCA license as per previous practice of E&TD Punjab instead of month to month renewal.....

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Automotive Sector - Exclusive Article

by Mohammad Owais Khan

Past, present and future of auto sector

Mixed sales prospects for entire auto sector in 2011-2012 According to Ministry of Industries Pakistan produced its first vehicle in 1953, at the National Motors Limited, established in Karachi to assemble Bedford Trucks.

Th e a u t om o t i v e manufacturing, often dubbed as mother of a ll i n d u s t r i e s , definitely excels with other auto producing co un tri es for surviving under tough business environment lik e law and order situation, violence in many parts of t he count ry especia ll y Ka ra ch i, st r ike s, ri s i ng c o s t o f production, sh ort t erm poli cies, liberalization of import of used cars.

In cars and motorcycles a huge support comes from the rural buyers who make fresh purchases after harvesting good crops of various commodities but urban buying especially in Karachi fac e problems in view of uncertain law and order situation. However, lifting of cars by corp or ate an d mu lt in at ion al companies give much needed support to the car assemblers.

Trucks and light commercial vehicles sales are highly dependent on import and export business but industrialists say that production of many items as well as exports has been facing problems due to rising input cost.

Tractor sales rely on farmers an d growers bac k up and go od crop prospects and high support price and so far the government has tried its best to provide good support price in wheat, sugarcane, etc. but the industry is now facing difficult situation after 16 per cent GST imposition.

Satisfactory production of all vehicles is the key for survival of local vendor industry and so far the vendors have shown a growth especia lly in the motorcycle and three wheeler rickshaw segments while in car, heavy vehicles

and tractors the vending base had remained more or less same or slightly improved.

According to Ministry of Industries Pakistan produced its first vehicle in 1953, at the National Motors Limited, established in Karachi to assemble Bedford Trucks. Subsequently buses, light trucks and cars were assembled in the same plant. The industry was highly regulated until the early 1990’s. After d er e g u la t io n ma j or Ja p a n e s e manufacturers entered in the market thereby creating some competition in this sector. Assemblers of HINO Trucks, Suzuki Cars (1984), Mazda Trucks, Toyota (1993) and Honda (1994) in particular, entered once deregulation was i ntroduced.

As se mb l y of Daih at s u and Hyundai cars (1999) and various brands of LCVs and range of mini-

t r u c k s c ommen ced recently.

From 1953 to 2011 the journey of auto industry has been rough, tough an d s om e t i m e v e r y s mooth.

Car industry saw boom in 2006-2007 when sales touched record p eak of 1 80,8 34 thanks to rising car financing up to 7080 per cent by banks due to low interest rates and rising rural buying. Since then the industry has been surviving hard to reach the same sales level amid high interest rates and Yen appreciation against the rupee but high farm income is giving much support to car sales. Good crops this year will keep the car sales bris k despite inc rease in prices.

The car industry has invested over Rs 20 billion in the last four to five years to meet growing demand. The direct employment in car industry hovers be tw ee n 5, 500-6, 000 pe rs on s.

Motorcycle production hit the country’s record level of over 1.5 million units in 2010-2011 by the effort of Pervaiz Musharraf Government’s decision that opened bike market to low cost Chinese bikes.

The auto sector now employs 192,000 people directly and around 1.2 million indirectly and has Rs 98 billion of investments and contributes Rs 63 billion as indirect tax in the national exchequer.

Auto Sector remains the second largest payer of in direct tax es after t he Petroleum Sector. In Pakistan context there are 10 cars in 1,000 persons which

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Automotive Sector - Exclusive Article

After having a good years previously, bus and truck segment and tractor industries have been facing nail biting circumstances now.

Ghandara Industries, Hinopak Motors and Sind Engineering have been in the field for quite long time while Master Motors is relatively new.

Sind Engineering and Ghandara Industries have been facing sales and production hiccups due to labor union politics and bureaucratic hurdles is one of the lowest in the emerging economies which itself speaks of high potential of growth in the auto sector and more so in the car production.

Rising per capita income with changing demographi c distribution and an anticipated influx of 30 to 40 million young people in the economically active workforce in the next few years provides a stimulus to the industry to expand and grow.

The government’s strong commitment on investment in the infrastructure projects particularly the roads and hi ghways, ports and shipping and Pakistan’s unique geographical location, providing an easy ground access to Ce ntra l As ia n Republics, Ch in a, Afghanistan, Iran and India is expected to push the auto industry growth in the cars, LCVs and HCV sectors.

There are now 400 auto parts makers of Tier 1 units and 1,600 other parts makers of Tier units.

profit margin after diesel price hike followed by high lubricant and tyre prices and restriction of government for making fresh purchases. The heavy vehicle industry may remain under in the coming months owing to withdrawal o f zero -ra t ed e xe mp t ion f rom commercial vehicles (trucks, diesel and CNG buses) which has made them costlier. The price of truck chasis, which were already high ranging between Rs 1.6 to Rs eight million, has further become costlier by Rs 300,000 to Rs 1.3 million due to imposition of 16 per cent sales tax.

In tractors, Al Ghazi Tractors had already suspended its production for the last one month owing to unsold inventory at plan t and dealership network after increase in price following imposition of 16 per cent sales tax. Millat Tractors is also operating at 50 per cent.

Tractor industry is facing dearth of fresh orders after reluctance of farmers and growers sinc e tractor has become costlier.

hands which run into billion of rupees keeping in view costly prices of locally assembled cars.

Both partial reduction in price by the assemblers after the budget and recent increase in prices went unchecked as the Ministry of Industry had remained silent.

Like past pra ct ice, Indus Motor Company (IMC), makers of Toyota and Daihatsu vehicles, gave the first shock of increasing the prices on July 25 by Rs 20,000 to Rs 30,000 except Toyota Corolla Saloon 2.OD and Saloon SR. On August 4, makers of Honda Civic and City cars pushed up the rates by Rs 20,000-25,000.

Pak Suzuki Motor Company Limited (PSMCL), which was hailed as the only Japanese car assembling company to have almost fully passed on the impact of cut of one per cent general sales and removal of 2.5 per cent special excise duty (SED) in terms of price reduction to the buyers, has now disappointed many customers by increasing the price by 2.2 to 3.5 per cent.

It dropped the bomb shell on the prospective buyers o n August 1, 2011 linking the increase depreciation of Pak Rupee ag ain st a ll the currenci es especially Japanese Yen as the main reason of price hike.

As the go vernment is already least bothered on price fluctuation issues either of any commodity, it has yet to take any action or initiated any enquiry against assemblers of Toyota and Honda cars who partially passed on the impact of one per cent cut in GST and removal of 2.5 per cent SED to the consumers in shape of prices.

The industry has always taken the stand that the rupee- yen parity makes an impact on high tech parts imports and losing strength of the rupee against other currencies make their import costlier.

It appears surprising when passenger cars and light commercial vehicles below 1, 000cc has ac hieved 70 per cent indigenization followed by 55-60 per

A leading car maker has projected The three wheeler industry is production of 500,000 cars in 2011now thriving as many people 2012 if government policies remain are purchasing Rs 170,000 in favor of the industry and CNG rickshaw on cash and economic and political situation making good earning by improve. Bike production is charging higher tariff despite estimated at 1.7 million bikes using CNG. followed by Rs 225 billion investment, 5.6 per cent contribution to the GDP, Rs 190 Coming to car sector, the 3.5 per cent cut in duties and taxes in 2011-2012 billion to exchequer and 250,000 number of direct employment. budget effective from July 1, 2011, which After having a good years previously, many assemblers partially reduced the prices, proved a temporary measure as bus and truck segment and tractor industries have been facing nail biting all the assemblers gave a pre-Eid shock c ircu m st a n ce s n ow . G ha n d ar a by raising the prices on rising cost of production.

Industries, Hinopak Motors and Sind Engineering have been in the field for The government had cut the general quite long time while Master Motors is sales tax (GST) to 16 from 17 per cent followed by removal of 17 per cent relatively new. Sind Engineering and Ghandara Industries have been facing special excise duty (SED), making a sales and production hiccups due to cumulative cut of 3.5 per cent. The assemblers instead of fully giving the labor union politics and bureaucratic hurdles. benefit to the consumers of taxation Besides, transporters are reluctant to measures had slashed the rate by keeping thousands of rupees in their invest in new buses due to lowering of www.automark.pk | August-2011 | Page 12

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Automotive Sector - Update

Maximum duty to be fixed at 25pc Govt agrees to reduce customs tariff slabs The Federal government has reportedly agreed to reduce customs tariff slabs and fix the maximum slab at 25 percent, expected to be announced in the Trade Policy 2011-12, sources told press media.

There was a general agreement on the proposal that there should be fewer slabs, and the maximum tariff should be 25 percent, wi th the justifiable exceptions. This will also be the guiding principle along with the Trade Policy.

An FBR-led committee, with members from the Ministry of Industries and National Tariff Commission (NTC) would work on the recommendations, sources added.

They said Imports tariffs should be low, to be made part of protection policy principles to be announced with Trade Policy supplement 2011-12, and sectoral approaches to be preferred to rationalise the tariff structure.

On a proposal of Planning Commission non-tariff measures including import licensing should not be used to control import and export, Commerce Ministry argues that it was agreed that in fact the government was not using licensing regime. The survey-based determination of quota for availing concession can neither be called licensing nor a nontariff measure.

The Planning Commission has also proposed that specific (customs) duties be low a nd un iform. H owev er, Commerce Ministry claims that specific duties are not being used, except in case of edible oil to insulate the consumer from un us ua l vola tility in t h e international market, so urces said

On a reco mmendation of Planning Commission, Commerce Ministry has suggest ed th at reg ulatory role of Engineering Development Board (EDB) be critically reviewed by a subcommittee headed by Director General Trade Policy having members fro m Ministry of Industries, EDB and Federal Board of Revenue(FBR). Commerce Ministry, however, is of the view that such a review should be underta ken under th e mandate of ECC by the Ministry of In d u s t r ie s a n d t h e P la n n in g Commission.

Sources said that an inter-ministerial subcommittee, led by Ministry of Industries and assisted by the Ministry of Commerce, NTC and FBR will come up with comprehensive proposals on immediate cuts (to a maximum and uniform rate if say 25 percent) in all motor car tariffs and pre-announcement of further tariff cuts and o ther basic changes to auto sector policies. It will al so in cl ud e immedia te cut s in motorcycle tariffs to 15 percent or 20 percent, to be followed by further cuts maximum 10 percent.

Another s ubco mmittee, led by the Ministry of Textile Industry is also working on immediate cuts in all textile and clothing tariffs to a maximum of 10 percent.

The government will also establish some systemic process for the economic evaluation of tariff changes that at present are made outside the annual budget cycle and are published in Statutory Regulatory Orders (SROs).....

DHL provides addl control on 'green' shipping services DHL Global Forwarding, Freight, one of the leading provider of global air and ocean freight and road freight services, has launched a new service for carbon emissions tracking, the Gogreen Carbon Dashboard. Customers can choose from a variety of certified reports to better understand the main drivers of carbon emissions from the various transport modes involved including pickup and delivery emissions in their supply chain.

It helps account for and manage carbon emis si on s, in cl uding thi rd party emissions, with detailed and reliable

CO2 mapping available instantly from a web-based hub.

The new Carbon Dashboard helps our customer identify their impact in detail, so that together we can find 'greener' solutions wherever possible", says Kathrin Brost, Vice President, DHL Global Forwardi ng, Freight Green Strategy.

The Carbon Dashboard ensures a standard calculation approach and treats CO2 a s an int eg rat ed bu si ne ss parameter, putting it into relation with other supply chain parameters such as

Honda Atlas Cars to expand export of parts in future Pakistan's Automobile Industry has always played a commendable role in the field of manufacturing.

Honda Atlas Cars (Pak) Ltd., employs a staff of more than 1000 people and has achieved the mark of selling more than 180,000 units in the loc al market.

Honda has not only played a positive role in the economical stability of the country but has also contributed an amount of more than Rs 61.65 billion as taxes to the government exchequer.

The company has paid 225 percent cash dividends and 75 percent bonus shares till now to its shareholders.

It is the company's policy that the locally manufactured Honda cars be equipped with the latest technology enabling the local Honda customers to experience international standards.

Recently Honda Atlas Cars (Pak) Ltd. has accomplished a new milestone. " Pan el Me ter " f or H ond a C ity manufactured at its plant in Manga Mandi Lahore, is being exported to Malaysia and similarly "Map Light Bracket" for Honda Civic to Vietnam.

This is a great achievement for our country that countries like Malaysia and Vietnam have expressed confidence in our standards. Honda Atlas Cars (Pak) Ltd. intends to expand its parts export in future.-PR

volumes shipped, product density and trade lane efficiency. It also enables them t o dry ru n va rious ca rbon reduction scenarios using real data and explore the effectiveness of different optimization levers.-PR

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Energy & Transport Sector - Update

Sindh Govt, Chinese firm sign accord for 200 CNG buses The Government of Sindh and Chinese firm have signed a Memorandum of Understanding (MoU) under which the later will provide 2000 CNG buses to the provincial government.

The buses will be run on mass transit routes in all areas of the city. The MoU was signed here by MD of Photon Motors (buses) of Chi na, Joseph Worgess, Photon President Perry T. Bl a cken zy, Se cre ta ry Bo ar d of Investment Mohammed Younus Dhaga, Commissioner Karachi MOhammed Hussain Syed, Secretary Finance Naveed Kamran in the presence Chief Minister Sindh Syed Qaim Ali Shah, Local Bodies

Mini ster Agha Siraj Durrani , Law Minister Ayaz Soormo and others.

Speaking on the occasion, the Photocon group leaders appreciated the joint ventures of Pakistan and China and hoped that it will further grow with the passage of time.

Hydrocarbon OGDC completes study on local exploration opportunities The Oil and Gas Development Company Limited (OGDC) has completed Pakistan Basin Study (PBS) containing important information regarding hydrocarbon exploration opportunities in the country.

The report has been completed on the direction of Ministry of Petroleum and Natural Resources. Renowned UK based consultant and geosciences Services Company M/s Fugro Robertson Ltd (FRL) had conducted the study which was completed in four-year time by a large number of FRL geoscientists and OGDC counterparts.

According to an official source, the PBS Report covers all onshore and offshore sedimentary basins of Pakistan, which contains huge volume of data and information.

O G DC L h a s n o w in v it e d a ll multinational and Pakistani exploration and production companies operating in

Pakistan in this promotion campaign.

Many oil and gas companies have expressed their willingness to purchase the PBS Report.

The interested E&P companies abroad wi ll a lso be app roa ch ed to tak e advantage of this report to participate in t he h ydr oca rbon explorat ion opportunities in Pakistan.

This report will provide countrywide assessments of petroleum plays ranging in ag e from infr a- Ca mbria n to Pleistocene embodied in a series of play fairway maps accompanied by mega regional, reappraisal and re-mapping of the relevant reservoir facies and ranking of the areas on the basis of thei r petroleum prospectively, potential reserv es, econo mic via bil it y an d recommendations for future exploration strategies.

They said that President Asif Ali Zardari also had expressed his desire to further expand the bilateral relations between both the countries. Addressing the ceremony, Sindh Chief Minister said that the brotherhood and friendly and commercial ties between the two countries would grow in the coming days.

The company had designed modern buses for Pakistan with design feature to m eet s pe cific cu ltu r al a nd demographic needs of the country and with a special focus to power the buses with environment friendly fuel such as CNG, LPG and hybrid diesel and H2.....

Gas tariff hike opposed The business community here has resented the raise in gas tariff prices by 13.5 per cent and termed it an unwise move as it would further increase the cost of doing business, hit industrial pr oduct ion a nd af fect exp ort s.

In a meeting at the Islamabad Chamber of Commerce and Industry (ICCI) on August 8, the members observed that increase in the prices of gas in recent past has badly eroded Pak ista n’s competitiveness due to which country was losing attraction for investment and this situation would further destabilise economy.

Th e ICCI members sa id that t he government should consider reducing the tariffs rather than over-burdening the busi ness communi ty and t he common man....

run vehicles, will be exposed to massive hike in transport fares when the vehicles will use petrol and diesel in the winter season.

“We have been clearly told by the Get ready! There will be no gas for CNG fuels such as motor spirit (petrol) and Petroleum an d Natural Resources stations at all in the winter season, dies el, particu larly in December, Ministry that there will be zero gas mean ing that 3,180,000 CNG-run January and February. About 40-50 supply to the CNG sector,” Ghayas vehicles will be forced to use alternate million people, who daily travel on CNGParacha. www.automark.pk | August-2011 | Page 14

Zero gas supply for CNG sector in winter season

AUTOMARK MAGAZINE

New Launching - Corolla ECOTEC

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Indus Motor Introduces New Car Toyota Corolla ECOTEC

Indus Motor Company (IMC) has launched the new environmentally friendly Corolla Ecotec XLi/GLi, a factory fitted CNG variant. The new Corolla Ecotec Xli/GLi ha s been specifically developed with factory fitted dual fuel option i.e. petrol and CNG. Th is m ak es it e cono m ica l an d environment-friendly while delivering the same performance and durability as that of petrol variant.

Giving details about the new Corolla, IMC has issued the following statement: “In response to the strong consumer demand we have developed Corolla Ecotec keeping in view the local driving conditions. We thank Toyota Motor Corporat ion for their continuous support to maintain quality, durability and reliability standards during the development of Corolla Ecot ech”.

Corolla Ecotec is equipped with 1 6 - b it E C U b a s e d technology with i-spark advancer which has been sy n ch ron ize d with its VV TI Engine ECU to deli ver bet ter pe rf orm an ce .

The VV Ti Engine cylinder Head along with Rear Suspension has also been redesigned for improved durability. Additionally, Corolla Ecotec has enhanced safety features like solenoid valves, built in support and protector for Gas tank to avoid shaking and especially designed fuel shield. The price of Ecotec XLI and GLI will be Rs. 1,519,000 and 1,649,000, respectively, and will be backed by 2 years warranty as per company policy.

It is also features driving comfort as rear coil springs are reinforced to handle the additional CNG load.

ADVANCED TECHNOLOGY

performance. This variant contains a Bifuel system which gives the driver the option of driving on either petrol or gas.

SAFETY FIRST 1. Gas Inlet located near fuel inlet with especially designed rubber shield to protect fuel or other liquid from entering luggage compartment.

2. Gas Tank protector for effective use of space, good appearance and safety.

3. Gas Tank with built in support to avoid gas tank shaking and leakage.

4. Automatic Solenodial Valve to prevent gas leakage in high pressure tube.

5. Refill Valve to avoid flow back of gas for safety.

INTELLIGENT PERFORMANCE 6. Sequential Injection System to Control CNG injection by ECU to provide optimum vehicle performance.

7. Engine Cylinder Head designed by Toyota especially for CNG to improve durability.

8. Gas Tank 60 Liters made from Chromium Molybdenum Steel and is capable of receiving high pressure.

9. High Pressure Tube

"Corolla ecotec" is 16 Bit ECU based technology with i-spark advancer which mon itors VVT-I engine for better

www.automark.pk | August-2011 | Page 15

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AutoMark Magazine - Review

by Shahzad Tabish from NED University

Monthly Automark Magazine www.automark.pk Interconnecting the local Automotive, Energy, Agricultural & Engineering Sectors.

Media in the modern world is defined as the means to deliver information to the masses in a convenient & explicit manner. With the passage of time the ways in which media approaches masses has transformed & diversified. It may have started with pen & paper but now the internet is the most likely place to access global media.

As far is media is concerned, Pakistan is now flourishing in this industry. Media coverage is given to each & every event, achievement, happening, history etc.

Written media for long times have remained a fairly powerful source of information sharing; in our country it is fairly very powerful & accessible to masses. Written media takes many forms locally, including general news updates, sports magazines, fashion magazines etc. Very little or negligible people locally stood up to cover the industrial, scientific & technical research.

Automark magazine is one such effort that started way back in the year 2007.

The magazine was aimed towards the a u t om ot i v e s ec t or , p r im a r ily highlighting the local updates of the automotive industry & research on the local Automobiles, not neglecting the int ern at iona l s ect or up da tes & technological research.

The best aspect of the magazine is when

i t t o

c omes

highlighting t he student projects & research at student’s level.

Team Automark has always welcomed articles from students who intend to market their proposed project in order to attain benefits of sponsorship. Along with this articles from students relevant to automotive industry have always been welcomed, published & encouraged in order to extract the writing talent out of the students. The author to this article is one such example.

The networking of the magazine is superlative when we consider the way in which the magazine is circulated th rou gh out th e coun t ry. Ev ery aut omotive r ele van t in dus try & educational institute receives their share of the published contents on monthly

bas is . Yout h ha s al wa ys bee n t he prime priority of team Automark so all th e pr e & p os t graduate educational ins tit ut es a cros s Pak is ta n rece ive monthly copies of the magazine.

When we focus on the local media that specializes to cover the automotive sector we find no competitor in comparison to Automark’s quality. The networking & circulation of Automark magazine’s monthly issues is supreme in the local automotive sector industries & engineering universities.

The magazine has a distinction of having an advisory panel that contributes towards improvement of the magazine standards. The panel consists of people of local automotive industry that have vast, diversified & distinctive experience of local & international Automotive & related industries. Names that include Dr. Raja irfan Sabir, Imtiaz rastagar, Abdul Majeed Shaikh, Syed Mansoor Ali, J.Pereria & Engr. IHT Faarooqi are very familiar to the local automotive industry & are considered pioneers for

www.automark.pk

www.automark.pk | August-2011 | Page 16

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AutoMark Magazine - Review

The magazine has a distinction of having an advisory panel that contributes towards improvement of the magazine standards.

The panel consists of people of local automotive industry that have vast, diversified & distinctive experience of local & international Automotive & related industries.

Names that include Dr. Raja irfan Sabir, Imtiaz rastagar, bdul Majeed Shaikh, Syed Mansoor Ali, J.Pereria & Engr. IHT Faarooqi are very familiar to the local automotive industry & are considered pioneers for the establishment of various technological, technical & educational facilities in our country relevant to automotive sector. t h e e s t a blis h m en t of v a r iou s technological, technical & educational facilities in our country relevant to automotive sector.

Even when we consider the fact that none other magazines in the local automotive sector matches the standards of Automark, the team of magazine does not stagnates in satisfaction. Moving on is the order of the day for the magazine & in order to follow this trend Automark established its website www.pak-auto.com way back in the year 2007. Highly rated articles were added on a continuous basis on the website along with the, monthly E-issues which were added a month after the recirculation of the hard copy of the magazine.

These E-issues are online magazine like reading experiences of the whole Automark magazine, this is an unprecedented example never before seen in Pakistan in any publishing sector. www.automark.com is also the primary go to stop for the latest vehicles prices that are updated carefully and consistently.

In August 2010, Automark magazine’s new website www.automark.pk was launched with the ever persisting motive of development of Automark’s network.

The newly launched website kept the old pattern of articles & E-magazine updates while introducing options to share the articles on popular social n et w orkin g w eb si t es in clu din g Facebook, Twitter etc. This ensured the vast spread of the articles making limelight on the social media as well.

W ith the in creas in g followers of Automark, a fan page was created on Facebook which now has 750 fans. The increasi ng rate of popularity of the

magazine is clearly demonstrated by the facts & figures of hits for the website of the magazine currently. A pictorial representation is given as foll ows.

The facts & figures are explicit & clearly demonstrate the rate of increasing popularity of the magazine with the passage of time.

The website of the magazine has catered another dimension of E-Media which in the local governing bodies of automotive industries. Associations have recognized Automark as a proper platform of media of the automotive sector nationwide.

The websites of APMA & others have published articles of Automark relevant to thei r interest on their individual websites.

Recently, Automark signed MOUs to be the official media partner of Pakistan Auto Show 2011 and the supporting publication of Engineering Week Pakistan 2012 exhibition.

The popularity of the magazine is also

a positive sign for the current investors & sponsors who market their product using the media via Automark’s wide spread network. The ever increasing popularity of the magazine attracts the industries & businesses which are currently on a look out for the marketing & publicity of their product.

Automark has the pri vilege t o be sponsored by the top tier companies of their respective sector, these companies belong to two-wheeler, three-wheeler, four-wheeler, tractors, spare-parts manufacturing sector.

Summing up the whole discussion we can have clear evidenc e that the magazine is on a surge of improvement.

Every issue of the mag azine is an improved version of the previous one.

The magazine consists of comprehensive & commendable articles from Energy, Agriculture, Automotive & Engineering sectors. The magazine has the best networking in comparison to all its rivals thanks to its web networking through its websites & social media. We should h ope & pray for th e blossoming prosperity of the magazine. Cheers!

Highly rated articles were added on a continuous basis on the website along with the, monthly E-issues which were added a month after the recirculation of the hard copy of the magazine.

These E-issues are online magazine like reading experiences of the whole Automark magazine, this is an unprecedented example never before seen in Pakistan in any publishing sector.

www.automark.pk | August-2011 | Page 17

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Automotive Sector - Update

Smuggling, under-invoicing hurting auto-parts makers PAAPAM actively participated in all the meetings held by the Customs Valuation Department for the determination of Assessment Values for Motorcycle Parts, but “we are dismayed to note that the ruling neither recognised PAAPAM as a key stakeholder, nor did it incorporate the PAAPAM viewpoint expressed in the meetings”.

Rapidly increasing smuggling and under invoicing of auto parts and accessories is severely affecting the business of local manufacturers of spare parts besides causing losses of billions of rupees to the national exchequer, said, Aamir Alla w a la , C h a ir m a n Pa k is t a n Associ ation of Automotive Parts & Accessories Manufacturers (PAAPAM).

According to Federal Board of Revenue’s estimate, over Rs170 billion worth of goods are smuggled under the garb of Afghan transit trade, causing a loss of Rs21.5 billion to the national kitty.

Millions of rupees under invoiced parts are coming into the country from China.

Chinese motor bikes manufacturers are

importing spare parts under commercial imports through outsourcing, which is a real challenge to the local vendors.

Annually 1.8 million motor bikes are assembled in the country thanks to commercial imports of Chinese parts, he said.

“Almost all types of auto spare parts including rings, pistons, gas kits, oil filter, air filter are being imported from Thailand and Dubai in astonishing quantities and it is hard for local vendors of such parts to survive,” he added.

Pakistani markets are flooded with smuggled goods of all descriptions. The smuggling of auto spare parts like almost every other commodity is being done

Local machinery supply by importers liable to 16pc sales tax The Federal Board of Revenue (FBR) has announced that the local supply of plant and machinery by commercial importers to unregistered industrial regimes or commercial regimes shall be liable to 16 percent sales tax.

In this connection, the FBR issued SRO.727(I) /2011 on August 2, 2011.

According to the notification, the FBR has exempted sales tax on the import of plant and machinery not manufactured locally and having no compatible local substitutes. This is subject to the fulfillment of the following conditions: Firstly, the registered manufacturers or industrial importers shall submit to the customs authorities post-dated cheques equal to the amount of sales tax payable at import stage which shall be returned back on the filing of first sales tax return a fter import of the ma ch iner y.

Secondly, the commercial importers shall submit to the customs authorities go od-for-payment cheque or bank guarantee or pay order or pay in cash equal to the amount of sales tax payable at import stage, which shall be returned,

or as the case may be, refunded after providing evidence of next supply to the registered manufacturer or industrial users.

Thirdly, the local supply of plant and machinery by commercial importers to unregistered industrial regimes or commercial regimes shall be liable to tax and evidence to that effect shall be produced to the customs authorities for release of the said instrument or refund of the amount paid at import stage.

Fourthly, subsequent supply of plant and machinery imported or acquired and used by registered manufacturers or reg ist ered indust rial us ers to unregistered industrial regimes or commercial regimes whether registered or not, shall be liable to tax and the validity period of instruments furnished under this notification shall not be less than 120 days.

For the purpose of this notification, plant and machinery means such plant and machinery as is used in the manufacture or production of goods, notification added.....

through ATT under the nose of the authorities responsible to stop it and over 200 trucks loaded with smuggled goods come daily unhindered from Afghanistan, he said.

“Everyday hundreds of consignments of spare parts arrive in the country from Afghanistan, which are sent to major cities of the country.” He said that the smugglers are selling these parts at 5060 percent less rates than the parts made locally or imported through proper channels. Many dealers have started doing business with them to mint more profit.

He urged the government to maintain strict check on smuggling as it would not only help the government to increase the revenue, but would also enable legal businesses to expand, generating more re ve nu e s a n d e m pl o y me nt opportunities.

As a representative of almost 300 manufacturers of parts, PAAPAM has some serious reservations on t he contents and spirit of the valuation ruling U/s 25-a No 397 ñ Determination of Customs Values of Parts of 70cc Motorcycle of Chinese Origin imported by original equipment manufacturers (OEMs), he said.

PAAPAM actively participated in all the meetings held by the Customs Valuation Department for the determination of Assessment Values for Motorcycle Parts, but “we are dismayed to note that the ruling neither recognised PAAPAM as a key stakeholder, nor did it incorporate the PAAPAM viewpoint expressed in the meetings”.

The March 26, 2011 Valuation Ruling, has been specifically issued, for import

by OEMs, of parts for 70cc motorcycles of Chinese origin, he said. He said that due to this reason, the parts imported by commercial importers will not be covered under this ruling. “This practice is highly discriminatory and has created anomalies in the system,” said Chairman PAAPAM.....

www.automark.pk | August-2011 | Page 18

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Automotive Technology - Introduction

“Engine Blow-by” Test Your Engine Health with our Blow-by Monitoring System Blow-by occurs when the explosion that occurs in your engine’s combustion chamber causes fuel, air and moisture to be forces past the rings into the crankcase. Piston rings must maintain an excellent fit in order to contain the pressure. As rings and cylinder liners wear away they are less capable of maintaining this seal. Consequently as an engine ages the amount of blow-by occur can increase. Soot and deposits left over from incomplete combustion that collect on the rings can also inhibit t he ir s ea l w ors e ni n g blow -by .

Blow-by inhibits performance because it results in a loss of compression. When the expanding gasses slip past the rings they cannot as effectively push the piston down and as a result the engine will have less horsepower. This also results in a loss of fuel economy and the result of fuel, air and moisture slipping into the crankcase contaminates and dilutes the oil in the crankcase.

Engine Blow-by Monitoring System!

One of the most challenging parameters to measure accurately in engine testing is engine blow-by. The blow-by flow rate of engines is very low and thus is difficult to measure through conventional means.

Special techniques are used to measure such limited flow rates.

SMME designed and developed Engine Blow-by Monitoring System. It utilizes the advanced embedded system coupled with

sensitive flow system. The in-built advanced DAQ system logs the data for analysis, validates and performs signal conditioning. The data is then displayed on the screen in a user friendly manner for the test personnel to monitor and diagnose the problem on the spot.

Two portable versions have been developed: • Model RAM-BB1 is a portable plug and play system which can be connected to any laptop or computer through USB port.

• Model RAM-BB2 is a standalone system with built-in panel pc specially des ig ned for Field Applicat ions .

Blow-b y M onitori ng Sys tem Specification: Measurement of blow-by flow rate starting from 0.01 liters/sec.

Accuracy up to 0.005.* Storage temperature 85?C. USB powered, needs no additional power for operation.

Portable stand alone system available for field testing.

S c h oo l of M e c h a n i c a l a n d Manufacturing Engineering (SMME) The designing of Blow-by Monitoring System depends on a n umber of parameters including engine size, type of engine, dry/wet crankcase, amount of mist in blow-by gases etc. SMME has research groups for specific areas of in terests. Automotive Technology Research (ATR) Group at SMME has the capability to develop the right product for your Eng in e H ealt h monitoring.

Contact: Dr. Riaz Mufti Tel: +92-51-90856055 E-mail: riazmufti@smme.nust.edu.pk Mian Ashfaq Ali Lecturer Tel: +92-51-90856060 E-mail:mian.ashfaq@smme.nust.edu.pk www.smme.nust.edu.pk School of Mechanical and Manufacturing Engineering NUST Islamabad, Pakistan NUST, Sector H-12 Islamabad

www.automark.pk | August-2011 | Page 19

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Chinese Automotive - Research Report

by Dr. Raja Irfan Sabir with co-author Mr. Luo Liguo

Customer Perceptions Hybrid/Electric Vehicles and the Chinese Automobile Industry This article provides brief analyses of the perceptions of general public with regards to Automobile Industry in general (Hybrid / Electric Vehicles), and, Chinese Automobile Industry in specific. In order to get a variety of respons es with deeper in sights, a questionnaire survey was carried out and the general public was categorized into two major groups, i.e. Chinese general public , an d, Non- Chinese g ene ral p ublic li v in g in C hi na .

1. General Public-Chinese Respondents: The Chinese General Public included 111 Males; 84 Females and 5 Unknown (Unspecified) respondents, contacted within Wuhan, P.R. China.

1.1. Hybrid / Electric Vehicles: The majority of Males, Females and Un specified respondents had less knowledge of hybrid/electric vehicles.

The majority of Males and Unspecified respondents owned an electric / hybrid vehicle, while the Females did not. Out of the majority of respondents who possessed an electric / hybrid vehicle, had a Chinese brand, whereas of those whom did not own an electric / hybrid vehicle, mentioned the vehicles to be expensive as the major reason for not owning so.

Whereas the Males and Females were willing to buy a Chinese brand, the

respondents with unspecific gender opted to buy a Chinese and a European brand. This implies that overall, the majority trusted Chinese brand. Male and Female majorities considered to buy an electric / hybrid vehicle by considering Environment Protection as the most important factor, whereas respondents with unspecific gender considered Price as well as Environment Protection to be the imperative feature.

All of t h e res pon de nt s v iew ed Independent Innovation as China’s major goal of developing electric / hybrid vehicles.

1.2. Chinese Automobile Industry: The majority of all types of respondents agreed that, Chinese Vehicles have Independent Innovation, and that the Chinese Vehi cles are developed by keeping Customer Demand in view. The Males disagreed; Females were neutral; while the Unspecified agreed to the notion that the Chinese Government has a Good Poli cy towards Domestic Vehicles.

The Females and the Unspecified respondents were neutral; whereas the Males agreed that the Chinese Vehicles are oriented towards Climate Change and Alternate Energy. The majority of Mal es disagreed while those from Females and Unspecified respondents

Perceptions of Chinese respondents’ about Hybrid / Electric Vehicles

a g re ed t h a t th e Chinese Electrical / Hybrid Vehicles have sound Technological Ca pa bil ities . The maj ori ty of Unspecified respondents agreed w ith t he n otion t ha t, C hi n es e Automobile Industry has sufficient laws for t he protect ion of Intell ectua l Property Rights; whereas the Males disagreed and the Females were neutral on it. While the Females and Unspecified respondents were neutral regarding the statement that, imitation (copy) can support the Chinese Auto Industry more than Intellectual Property Rights to develop high quality electrical / hybrid ve hi cl es ; the m aj or it y of Mal es disagreed.

2. General Public-Foreign Respondents: The Foreigners respondents living in China included 111 Males; 84 Females and 5 Unknown (Unspecified) respondents, contacted within Wuhan, P.R. China.

2.1. Hybrid / Electric Vehicles: The majority of Males and Unspecified respondents had adequate, while the Femal es ha d less kno wl edg e of hybrid/electric vehicles. The majority of Males and Females did not own; whereas the Unspecified respondents owned as well as partially did not own an electric / hybrid vehicle. Out of the majority of respondents who possessed an electric / hybrid vehicle, the Males and Unspecified had a Chinese brand, whil e the Females had a Chinese, Japanese and an American brand. And, out of those who did not own an electric / hybrid vehicles; the Males expressed them to be expensive and had Other reasons, the Females mentioned them to be expensive, while the Unspecified respondents mentioned them to be of Low Technology as the major reason for not owning so.

Whereas the Males and Females were

www.automark.pk | August-2011 | Page 21

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Chinese Automotive - Research Report

Perceptions of Chinese respondents’ about Chinese Automobile Industry

the notions that, Chinese Vehicles have Independent Innovation; the Chinese Government has a Good Policy towards Domest ic V ehi cle s; th e Chi n ese Electrical / Hybrid Vehicles have sound Technological Capabilities; and that, Chi nese Aut omobile Industry has sufficient laws for the protection of Intellectual Property Rights.

Both male and the Female majority were n eu tr al , wh ile th e Uns p ecified respondents agreed, that the Chinese Vehicles are oriented towards Climate Change and Alternate Energy, and that, imitation (copy) can support the Chinese Auto Industry more than Intellectual Property Rights to develop high quality electrical / hybrid vehicles.

Continued……..

About author: Dr. Raja Irfan Sabir, Sub editor of monthly AutoMark Magazine and Assistant Professor, COMSATS Institute of Information Technology, Sahiwal, Pakistan.

Perceptions of Foreign respondents’ about Hybrid / Electric Vehicles willing to buy a Japanese brand, the respondents with Unspecific gender opted to buy a Chinese brand. This implies that overall, the majority of Foreigners did not trust Chinese brands.

Male and Female majorities considered to buy an electric / hybrid vehicle by considering Environment Protection as the most important factor, whereas respondents with unspecific gender considered Status Symbol and vehicle Design to be the imperative feature. All of the respondents viewed Independent Innovation as China’s major goal of developing electric / hybrid vehicles.

Finally, majority of Male and Female respondents viewed Environment Protection as China’s major goal of developing electric / hybrid vehicles; whil e the Unspecified respondents considered Environment Protection and Other reason.

About Co-author: Luo Liguo; PhD Researcher, Huazhong University of Science & Technology, Wuhan, P.R. China

Perceptions of Foreign respondents’ about Chinese Automobile Industry

2.2. Chinese Automobile Industry: The majority of Males agreed; Females were neutral; while the Unspecified respondent s partially agreed and partially were neutral to the statement that, the Chinese Vehicles are developed by keeping Customer Demand in view.

The Males and Females were neutral; whil e the Unspecified respondents agreed and also partially disagreed to

www.automark.pk | August-2011 | Page 22

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Automotive Sector - Update

DYL champion technical competition

Auto industry slow but sure

To st eer the industry aw ay fro m unforeseen barriers and hurdles, the local auto industry hit brakes a number of times during the last fiscal year.

Even though this considerably slowed down the industry's pace, the local car assemblers finally managed to cross the year with a single-digit growth rate.

Total car sales (cars and LCVs) stood at 146,496 units in FY11, displaying a modest jump of around three percent.

On the bright side, higher agricultural com mod it y pr ices , al on g w it h improvement in consumer confidence, s upported the dema nd for cars .

Sales were abnormally weak in the last quarter, taking a knock from supply disruption in April and May and delay in car buying in June on account of announcement of removal of special exercise duty and the reduction in sales tax that will cumulatively decrease car prices by 3.5 percent effective from 1 A t otal of 1 ,535,427 Chinese and would be enco uraged to tak e full Japanese bikes were assembled in the advantage of potential in Pakistan. July.

Pakistan Suzuki led the market, with country during the last one year while Mr Zhencheng asked the EDB to take cumulative sales of 79,941 units in FY11; car production stood at 133,972 units. part in global auto show being held in Th is w as s tat ed by Eng in eering Shanghai in September which would a marked eight percent rise over the previous year. Sales of Alto, Ravi and Development Board officials during a help EDB to interact with Chinese Bol an remained impressi ve, while presentation on Pakistan’s automobile automobile manufacturers. sector to a two-member team of Chinese The EDB chief informed the Chinese demand for Cultus fell by around 10 percent during the period. diplomats last month. team that there were opportunities for Buoyed by demand for Civic and City, It was stated that China has only 55 per setting up low-priced small car units cent share in the loc al motorcycle and tractor assembly plant in Pakistan. HCAR witnessed the strongest sales growth level of 10 percent, selling a total market, and to improve its share, the Mr Niazi offered to assist Chinese of 15,486 units in FY11. In spite of EDB official s urg ed th e Chi nese manufacturers in finding local partners automobile manufacturers to avail for them, as government was interested growth in demand for Cuore and Hilux, INDU's sales level, which had driven the investment opportunities in Pakistan. to promote competition in auto sector. industry's growth last year, remained EDB’s chief executive officer Aitezaz A. Mr Niazi said any manufacturer can Niazi informed the two-member team invest in Pakistan under Auto Industry nearly flat in FY11 as sales stood at 50,015 units. Stagnating sales for Indus of Chinese diplomats that a great Development Programme or the Tariff Motors are primarily attributable to a potential exists for increasing share in Base System. motorcycle market from the current 55 The AIDP facilitates new entrants to five percent drop in Corolla sales.

As far as FY12 is concerned, until now per cent market share. import 100 per cent CKD kits at the there is optimism in the air. The A detailed presentation on automobile leviable customs duty for a period of sector of Pakistan was given to the three years from the start of assembly slowdown in production in April and May and delay in buying in June Chinese delegation. It was informed that or manufacturing. suggests that the market will see strong Japanese car manufacturers have 100 He said the government intends to make per cent share in the local car market the existing policy regime more flexible growth in sales during 1QFY11. That sounds pollyannaish for investors that against 45 per cent in motorcycle sector. for new entrants to attract foreign would make a mint by reaping huge The Chinese team, which was led by investment and an amended policy is profits in the form of "own" money.

Zhou Zhencheng, assured the EDB that expected soon.

With the country's agriculture sector Chinese motorcycle manufacturers likely to harvest a good crop this year, the auto industry is bound to register growth. The yellow cab scheme afoot in Punjab alone would hel p PSMC to realise around 20 to 25 percent growth in sales during the current fiscal year... www.automark.pk | August-2011 | Page 27

DYL motorcycles has always focused the customer satisfaction and the same corporate philosophy is reflected in all the activities and plans.

DYL strives to deliver a high quality product to its customers with a strong backup support of after sales service.

The DYL has an association of highly skilled and professional service network across Pakistan and the DYL service department is moving ahead to make it further strong by enhancing their skills and information.

Having this target in mind DYL recently arran ged a techn ical sk il l based competition among their service netw ork w it h the n ame of DYL champion technical competition. In this

competition almost 700 service and 3S mechanics actively partici pated in different phases. The competition started from sector level and then further ahead to regional level and finally ended at national level contest in which 19 people had a strong technical fight on different areas of a mechanic like theory, practical and measurement.

The winners were awarded by foreign trips and valuable prizes along with awards of honour. In the final event Yunus Dawood (CEO), Jawaid Yaqoob (GM Marketing), M Ali Kamran (Senior Manager Services) along with all the marketing and service team appreciated the efforts of service deal ers.-PR

1.5m bikes assembled in 2010-11

The only ONLINE automotive magazine in Pakistan www.automark.pk

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Automotive Sector - Update

Yamaha to set up plant in Bin Qasim Mandviwalla informed that President of Pakistan during his visit to Japan on February 21-23 2011 also held meeting with Yamaha officials and ensured that government has framed the rules and procedure for the foreign investors in the auto sector.

Japanese auto maker Yamaha would invest US$ 150 million to establish the manufacturing plant of motorcycles in Pakistan.

This was revealed in a meeting by a visiting three-member delegation of Yamaha comprising Sumioka Ryouichi, Executive Officer, ITO Yasushi General Manager and Highuchi Yakeshi Senior Manager who called on Chairman Board of Investment, Saleem H. Mandviwalla here on Tuesday.

Later, talking to the media, chairman BoI informed that M/s. Yamaha Japan has approached Board of Investment through their mission in Japan with the propos al to manufac ture Yamaha motorcycles in Pakistan. He said that M/s Yamaha would like to invest US$ 1 50 m illi on t o e s ta blis h th eir m anu fac tu ring fac ili t y of wo rld reno wned Motorcycl e in Na tional Industrial Park, Bin Qasim, Karachi by a cquiring 50 a cres of land . The motorcycle manufacturer will have EFI engine, automatic transmission, water cool & environment friendly exhaust system, meeting European standards in this plant.

He said, "It will not only meet the demand of Pakistani market but will also enable them to export their model to various CIS countries. He informed

that keeping in view the current fuel and energy situation in Pakistan, Yahama will produce state of the art motorcycles with less fuel consumption of rupees 10 per 30min drive which covers the distance of 40-50km.

Mandviwalla informed that President of Pakistan during his visit to Japan on February 21-23 2011 also held meeting with Yamaha officials and ensured that government has framed the rules and

procedure for the foreign investors in the auto sector. The BoI is working to frame a policy on production of high technology products with environment an d consumer s atisfying features.

The Bo ard of Investment, being a facilitator of investments in the country, strongly feels that the New Entrant Policy of Automobile should focus on considerable interest of important international auto manufacturers in Pakistan market and to meet the local demand and supply gap of various sectors. Recognising that the existing assemblers/manufacturers of vehicles have over the years developed many parts and components locally and the factor that auto industry is yet heavily import dependent for various materials and components, with marginal exports, an import duty exemption of five years will support to increase the company's marginal profits in some extend till 2020, he quoted Sumioka Ryouichi.

Concl uding, he s aid that Yamaha investment in Pakistan will create 45,000 jobs for loc als and with the transfer of technology in manufacturing of motorcycle, vendor skill capability and capacity will also be developed with exclusive training institutes being run by the company.-APP

Paapam opposes reduction in auto-parts duties Pakistan Associ ation of Automotive being actively marketed by the Planning quality standard for OEMs operating in Parts and Accessories Manufacturers Commission without even sharing it Pakistan.

(Paap am) a nd its members h ave with the local industry.

In case of motorcycles and tractors, 90 strongly opposed any reduction in autoAamir said that the Automobile Industry percent parts are being locally produced, parts duties. in Pakistan is a unique example when while in case of passenger cars, the figure It is reported that Planning Commission compa red wi th ot her developin g is from 55 percent to 70 percent. Leaving is presenting its recommendations to countries. The industry has attracted aside the false propaganda made by the the Economic Co-ordination Committee major investment, not only in assembly used car lobby, the prices of vehicles (ECC) for drastic reduction in the rates of all kinds of vehicles including cars, made in Pakistan are competitive when of duties to 10 percent on import of motorcycles, tractors, trucks & buses, compared with neighbouring countries. automotive parts. In a statement here but also in manufacturing of parts In fact, the industry is producing the on Thursday, Paapam Chairman Aamir required for these vehicles within the cheapest motorcycles in the region and Allawala, expressed his disappointment country. Currently, more than 1,600 the cheapest tractors in the world.... and dismay, that a major policy shift is vendors are producing parts of global www.automark.pk | August-2011 | Page 28

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Energy Sector - Update

OGRA playing its due role

OGRA has also suspended operations of six OMCs in Azad Jammu Kashmir for failing to provide products availability at their respective outlets and not maintaining enough reserves.

Since its inc eption, Oi l an d Gas Regulatory Authority (OGRA) has been providing predictable regulatory regime to the public sector utilities and other sta keho lders —a st ep cons idered essential prior to the anticipated privatisation of the public sector utilities.

The authority has also been able to encourage competition in gas sector as the two public sector utilities namely Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeli nes Ltd. (SNGPL) no w hol d non -exclusive lic enses for the transmis sion and distribution (T&D) of natural gas. This has provided an incentive to other potential investors to set up their own T&D network.

To date, OGRA has issued fourteen licenses for T&D and sale of natural gas, 6,150 for setting up CNG stations, while 3,331 for marketing of CNG. In addition, while 244 licenses have been issued for various LPG activities, nine have been issued for oil storages and two each for setting up refinery and Oil Marketing Company (OMC). This step has been pivotal in attracting private investment of around Rs 200 bil lio n, thereby creating job opportunities for more than 150,000 people.

Expediting import of LNG: OGRA has taken a leading role in the import of

LNG to bridge the widening gap between supply and demand of natural gas in the country. In fact, efforts are being undertaken on war footing to expedite the import of LNG. Accordingly, four provision al a nd three conditional licenses to the LNG Project Proponents have been issued. Concurrently, LNG Policy and rules modifications have also been proposed for bringing LNG in Pakistan on fast track basis.

Revolutionary steps: In accordance with its key functions, OGRA has taken revolutionary measures to safeguard consumers’ interest while removing all unnecessary T&D expenditures. These measures have resulted in savings of Rs 42.9 billion on account of reduction in line losses, T&D cost and economisation of assets. OGRA has also prescribed various performance and efficiency benchmarks along with technical and service standards to ensure provision of quality services to the customers.

OGRA has also prepared and proposed a new tariff regime to the federal government for determining the rate of return of gas utilities, which will bring major transformation in the sector. This mechanism will give real rate of return on assets based linked with KIBOR in ste ad of fixed ra te of retu rn.

Compla int res olution: OGRA has

Mirza takes charge as acting OGDC MD Basharat A Mirza has assumed the charge of acting managing director of Oil and Gas Development Company (OG DC ) as As if Sa ee d S ind hu relinquished his post on Monday.

Earlier, Mirza was working as the head of supply chain management and has also worked in several other senior positions in the company over the past years.

The new head has an MBA degree from Boston University, USA. Speaking at a cere mon y , Sin dh u pr ai s ed t h e

employees’ efforts, particularly those who were working in far-flung areas in difficult conditions. He asked company officers and staff to ensure timely completion of major development projects including Uch-II, Kunnar Pasakhi and Tando Allah Yar, Sanghoro, Dakhani and drilling of Zin well-1 to address energy deficiency in the country.

He expressed hope that OGDC would progress in coming days and would be able to increase oil and gas production on a sustainable basis.....

resolved 10,671 out of 11,329 complaints relating to natural gas, CNG, LPG and dealers of petroleum products in ac corda nc e w ith th e Comp la int Resol ution Procedure Regulations (CRPR) 2003. On the intervention of OGRA, gas companies have provided relief of Rs 166 million to various consumers and provided connection to 2,206 complainants. Complaints of the masses are being resolved free of cost in a matter of few weeks.

OGRA remains committed towards safeguarding consumers’ interest through successful enforcement of its safety, quality and service standards.

Since the establishment of Enforcement Department in 2009, 417 petrol pumps of OMCs were inspected to check the prices and stocks of Petroleum, Oil and Lubricants (POL) whil e 129 LPG producers and marketing companies and 84 CNG stations were penalised for overcharging above the notified prices and for violating safety, quality and service standards.

OGRA has also suspended operations of six OMCs in Azad Jammu Kashmir for fa ili n g to p rovide prod ucts availability at their respective outlets and not maintaining enough reserves.

The other salient feature of the OGRA activities was the notification of oil technical standards pertaining to i) Oil Transportation (Pipeline) Technical Standards, ii) Technical Standards for Petroleum Industry (Retail Outlet), iii) Technical Standards for Petroleum Indus try (Dep ot s for storag e of petroleum products), iv) Technical Standards for Oil Refineries, and v) Technical Standards for Petroleum Industry (Road transport vehicles, containers and equipment used for the transportation of petroleum products).

With each concrete action, OGRA has proved that it has remained committed towards the very principles on which it was established.......

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Automotive Sector - Update

Lahore Mass Transit Project Punjab Govt, Chinese Co sign MoU A Memorandum of Understanding (MoU) is signed here today between Punj ab g ov ernment and Chi nese international company NORINCO regarding Lahore Mass Transit Project.

Under the agreement, a 27-km long railway track will be laid from Gaju Matta on Ferozpur Road to Shahdara of wh ich 7-km long portion wi ll be underground.

Chairman Lahore Transport Company Khawaja Ahmad Hasaan and VicePresident NORINCO Zhang Shipping signed the document on behalf of Punjab government and China, respectively.

Punjab Chief Minister Muhammad Shahbaz Sharif, Member Provincial Assembly Mehr Ishtiaq Ahmad, highups of Lahore Transport Company and representatives of NORINCO were also present on the occasion. Talking to media on the occasion, the Chief

Minister welcomed the agreement for Lahore mass transit project with Chinese state company NORINCO and said that s oft open ing of t he project will be made on 14th August 2011. He said that it is a unique project as the Chinese company by announcing that it will no t take even a single penny as profit proved that China is a true and sincere friend of Pakistan. He said that the project will be an invaluable gift by the Chinese government for the people of Lahore, the Punjab as well as the whole country. He said that there are deep-rooted relations between China and Pakistan and Pak-China friendship is higher than Himalayas, deeper than

oceans and sweeter than honey. He said that China has stood by Pakistan in every ho ur of need and helped Pakistan wholeheartedly. He said that friendship between the two countries is also reflected in the agreement signed with Chinese company NORINCO regarding Lahore mass tra nsit project .-PPI

Yellow Cab Scheme approved

by Punjab cabinet The Pu nja b Cabin et gave formal approval to Yellow Cab Scheme. Under the scheme around 20,000 vehicles will be dis tributed among the people.

The Punjab Cabinet met under the chairmanship of Punjab Chief Minister, Shahbaz Sharif. It also granted approval to the draft bill for amendment in Section 17(4) of Government Servants Ho u si n g Fou nda tion Act 2 004 .

The meeting was told that 40 percent quota has been allocated for south Punjab. Like other projects of Punjab government, the scheme will also be transparent. Computerized balloting for the distribution of vehicles will be held at divisional level in the presence of electronic media.

Address ing the meeting , the chief minister said the Punjab government h as la un che d a comp reh en s iv e programme for the elimin ation of poverty and unemployment from the province and solid measures have been taken in the new budget for generating

max imu m job opportunities for educated youth. "The Yellow Cab Scheme is a revolutionary step of the government, which will not only help reduce unemployment but will also promote local industry as well as provide better transport facilities to the masses, " he added.

The said that under the sc heme, 2500 vehi cl es wo uld be distributed among the winners of the draw every month and the process of distribution of 20,000 vehicles would be completed within eight months.

People with intermediate or equivalent academic qualification would be eligible to apply for the scheme. The application forms are available from all branches of Bank of Punjab as well as the website of Transport Department and Punjab Bank. The successful applicants would have to make 20 percent down payment

at the time of delivery and the remaining amount on easy monthly installments.

Loan facility at extremely low markup would also be offered from Bank of Punjab. He said the Yellow Cab Scheme w ou ld a ls o be com plet ed in a t ra n s p a re n t ma n n e r. H e s a id committees, which would also include Akhuwat representatives and students, would be formed for the scrutiny of the particulars of successful applicants, and patwaris and tehsildars would have no concern with the verification process....

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Automotive Sector - Review

by Shahzad Tabish from NED University

“Hybrid NED” A Peek Through In The Future Mobility of Pakistan In the modern era we live in, an automobile is considered as a necessity rather than a luxury. With the increment of vehicles on road, the energy required to propel the vehicle is in immense demand. As it has been for the past ce ntu ry, si n ce the inve ntion of automobile its propulsion is primarily dependent on the internal combustion engine, which is in turn dependent on gasoline to fire it up.

Growing human population & easy access to automobile due to its cheaper cost in turn means greater demand of gasoline; raising its price due to demand.

Alternate methods of propulsion of an automobile are in great demand these days due to the peaki ng oil prices.

Hybrid technology for propulsion of an automobile is rooted in the history of automobile itself, with the concept introduction of hybrids way back in the year 1900. However, mass production of hybrid vehicles started with Toyota Prius, in the year 1995.

The wo rd Hybrid when taken into consideration for motion basi cally means multiple methods for propulsion of a vehicle. The very basic example of hybrid propulsion system is an electric motor powered bicycle that can be powered by the electric motor, paddling or even both. Automobiles utilize very similar concept involving a small sized internal combustion engine & an electric motor for propulsion.

The basic mechanism of working of a hybrid drive train is very simple to understand. Conventionally the Engine or electric motor transfer the power generated to the wheels via transmission in ga s oli n e & electr ic v ehi cles res pectiv ely . Ho wev er a h ybr id comprises of a small sized engine giving an output up to 80 KW & an electric motor whose output ranges within 20 KW to drive the vehicle simultaneously from both the power sources through the transmission system.

There are three basic modes of Hybrid drive train, these include the “Series Hybrids”, the “Parallel Hybrids” & “”Power Split Hybrids”. In a vehicle

powered by series hybrid drive train, the Electric motor is solely connected to the transmission as the final drive.

This means that only electrical energy is utilized to drive the wheels, now let us not forget that we are talking here about hybrids so the component that has gone missing here is the gasoline engine. In a series hybrid the gasoline engine is utiliz ed as an electrical generator to charge up the batteries which are in turn connected to the electric motor as the energy source. The gasoline engine switches on whenever the batteries on board the vehicle start to drain out beyond a particular specified limit. The vehicles utilizing series hybrid conc ept are much quieter & more efficient in short, start-stop town transportation.

Very recently a group of ten students of NED university Automotive Engineering department took up the challenge to develop the first proper hybrid vehicle of Pakistan. The name of this group standing united for this cause is “Hybrid NED”.

As it can be clearly seen from the name itself the students are patriotic about their project as well as their educational institute.

The vehicle named “Emerald” has a proposed parallel hybrid propulsion con ce pt. It con si st s of a 250cc displacement, single cylinder gasoline engine from an ATV & a 7.5KW electric motor which can propel the vehicle at a reaso nably go od speed al ong with maintaining prime economy figures.

Along with having a hybrid drive train the vehicle also features Regenerative braking technology which recovers the braking energy losses & converts it into useful power to charge up the batteries.

Environmental friendliness is a major concern these days which prompted the students of NED University to take up the challenge of buil ding a Hybrid vehicle that helps to reduce emissions drastically as compared to a gasoline vehicle. International communities are striving hard to minimize CO, HC, NOx emissions from automobiles to prevent the depletion of ozone layer & to stop the build up of green house gases to reduce the effects of global warming.

Emissions from gasoline automobiles have no w been assigned ratings in international community.

As a mater of fact we might say that Pakistan finds itself amongst the set of these un der developed countries; however it is an encouraging sign to see a bunch of young engineers who have united to take upon the challenge of maximizing economy while not ignoring the environment for the cause. This gives a fair idea about what these students have learned in their course of study which indeed is an encouraging sign for the future of country itself.

The innovations brought along with this first complete hybrid vehicle of Pakistan are highlighting the future of Pakistani car industry. As the cost of petroleum hikes day by day, the local automobile manufacturing giants wi ll have to consider futuristic concepts like this hybrid vehicle developed by the students of NED University. Hopefully Emerald will pave th e w ay for the futu re passenger car technology in the local sector. Cheers!

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Automotive Sector - Exclusive Article For example, print media was flooded with advertisement and press release of Indus Motor Company (IMC) relating to launching the new environment friendly Corolla Ecotec XLi/GLi, a factory fitted CNG variant.

The press release said that the new Corolla Ecotec Xli/GLi has been specifically developed with factory fitted dual fuel option i.e. petrol and CNG and the advertisement gave an impression as if Toyota Motor Corporation has introduced CNG cars with specifically designed CNG engine instead of petrol engine. cent in 1,000 and above cars and LCVs then pushing up car prices on RupeeYen turbulence makes the car makers’ stand lame.

More astonishing are the high prices of Japanese made bikes which are being assembled with 85-90 per cent locally produced parts.

Despite various disadvantages with respect to lower volumes as well as rising cost of doing business in Pakistan the vendors have been able to produce high quality parts approved by the foreign assemblers operating in the country.

The cost of local parts is hi ghly competitive.

The issue of using high tech parts by the assemblers will continue thus keeping the prices of cars higher which also signals that the local deletion level is unlikely to improve in future as the government is highly non serious in boosting localization of parts in cars.

The car makers have already been demanding reduction in duties and taxes in order to lower the prices of cars but when the government has done it by reducing 3.5 per cent taxes and duties the assemblers did not lower the price at par with budgetary measures.

These assemblers had always remained clever enough to raise the prices as per exact impact of any upward movement in taxes and duties saying that they cut the taxes and duties for paying to the national kitty.

As it looks that no government exists to check the cartelization and monopoly, the car makers will continue to give more shocks in what assemblers believe that prices are being increased to maintain shrinking profit margins and offsetting rising input cost.

As se mblers clai m t o hav e been absorbing surging input cost but now they feel that they could not bear more pressures so they have increased the prices.

The government should carry out an investigation against the assemblers for

not fully passing the impact of budgetary measures to the customers besides increasing the prices on currency issue.

An enquiry is also needed to ascertain the real impact of Yen appreciation against the rupee on imported parts besides the impact of steel prices.

Furqan Punjani, Research Analyst at Top Line Securities said that being hurt by continues deprecation of Pak rupee against all major currencies especially Japanese yen (12 per cent in FY11) along with regulatory risk for relaxation in car import policy kept the auto assemblers margins under pressure during FY11.

Wi th th is , n egl igi ble gr owth in volumetric sa les wh ich was s een improving by 3.5% to 146,600 cars compared to 141,600 cars in FY10 failed to pr ovide a ny s up port to th e profitability. Although marginal, this improvement in sales was attributable by better performance by rural economy with recovery in other areas of the economy.

He said the government in budget FY12 announced the abolishment of special excise duty by 2.5 per cent and reduced the sales tax to 16 from 17 per cent. This turned out to be the blessing in disguise for the sector as the price cut by 2.5-3% was so on absorbed the assemblers strengthening their gross margins.

However, he said rising demand of Japanese yen due to reconstruction activities in Japan after earth quake would keep local assemblers’ gross margins under pressure. Furthermore in absence of consumer financing amid higher borrowin g cost alon g wi th unwavering growth in rural economy would restrict the volumes growth to sev en per cent (15 7, 000 uni ts ).

Our local industry has a habit of keeping the customers at the edge. For example, pr int m ed ia w a s f loode d w it h advertisement and press release of Indus Motor Company (IMC) relating to launching the new environment friendly Corolla Ecotec XLi/GLi, a factory fitted CNG variant.

The press release said that the new

Corolla Ecotec Xli/GLi has been specifically developed with factory fitted dual fuel option i.e. petrol and CNG and the advertisement gave an impression as if Toyota Motor Corporation has introduced CNG cars with specifically designed CNG engine instead of petrol engine.

The company took too much time when people ha d al read y inves ted by successfully installing the CNG kit and cylinder in Corolla models so what is new in the IMC statement is hard to be understood.

However the IMC said that Corolla Ecotec is equipped with 16-bit ECU based technology with i-spark advancer which has been synchronized with its VVTI Engine ECU to deliver better performance. The VVTi Engine cylinder Head along with Rear Suspension has also been redesigned for improved durability. Additionally, Corolla Ecotec has enhanced s afety features lik e solenoid valves, built in support and protector for Gas tank to avoid shaking and especially designed fuel shield. The price of Ecotec XLI and GLI will be Rs. 1,519,000 and 1,649,000, respectively, and will be backed by two years warranty as per company policy.

Coming to Pak Suzuki, the company has raised the prices four times in the calendar year.

Some market researchers believe the current price increase is to cover the cost pressures, and the current unit price hike is more than sufficient to cover four percent yen appreciation since June 11 and should improve margins from 3Q11.

Due to the unprecedented strengthening of yen by four percent against major currencies, imported CKD and even parts made by loc al vendors have become more costly. This is because most of the raw materials of vendors are also imported.

Used car dealers have lamented the price hike by the assemblers urging the government to take action again st persistent price hike in cars by the local industry.

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Automotive Sector - Exclusive Article

By Omar Rashdi Associate Engineer

Scope of Automotive Engineering in Pakistan

Automotive Engineering counts in the vast fields in the world. It has a part in various developments throughout the world. Our roads are full of automobile in various kinds of transports like passenger cars, trucks, heavy duty vehicles, sport cars, bikes and so fourth.

It also plays a big role in order to develop the economy of the country. Since 2009, China has taken the number one rank in the motor vehicle production, its production is double than Ja pan automobile production which is leading on second number. And Pakistan is on 34th number which is not good at all; we have to raise our rank and our technology in Automotive Industry.

Engineers are the backbone of every Industry who helps most in order to develop it.

Automotive field can not stop until the vehicles are moving on the road even it is the most favorite attention on which people expend their time, money and effort. Especially among youth, it counts the most favorite interest. Many people make their interest in cars and bikes, even those who are not related to this field, they want to modify their cars and get it upgrade.

Education Opportunities In Pak is ta n , s ome en g ine erin g universities offer B.E in Automotive Engineering, which make you directly an Engineer of Automobile. The other option in this field is that you can study D.A.E (Diploma of Associate Engineer), we also have some institutes and colleges which offer D.A.E in Automobile field.

D. A. E cou ld be s t u die d af t er matriculation; this is 3 years diploma program which makes you an Associate

Eng ineer. Thi s is a degree based program. After D.A.E you may attend B- tech (Bachelor of techn ology) program, B-tech program is divided into two parts, B-tech (Pass) and B-tech (Hons) which is two years program each (one year study and one year industrial training). This is international degree.

An automobile associate engineer can do B-tech in automotive or mechanical.

Pakistan engineering council accredits and registered B-tech degrees holders.

After B-tech (Hons) you can do M-Tech (master of engineering) program or there is another option that you can do MBA program just after B-tech (Pass) program.

dealerships which p rovide t rai n in g p rogr am for Associate Engineers or between Diploma p rog ra ms . O n dealership we need to apply for on job training but Indus Motor Company Limited provides students training (Toyota Technical Education Program T-TEP) in the latest automobile technology, enabling them to pursue successful careers. Indus Motor offers this program at the Government College of Technology, Lahore and the Saint Patrick's Institute of Science & Technology, Karachi. TTEP Career Days are held annually at which the graduating students are offered jobs by the auto industry including our dealerships and vendors.

There are also some other companies like Honda, Suzuki, Hino Pak etc which offer apprenticeships. Since 2010, Indus Motor has started to train students in Paint and Body shop. Now students are taking interest in Painting and Body Building works.

Job Opportunities In automobile field, there are various job opportunities for those who have good skills. Automobile companies are also has multinational levels. In Pakistan almost all companies are multination like Honda, Toyota, Suzuki, Nissan, Hyundai, Shanawaz Motors and so forth who are giving job opportunities after Diploma. Even there are many standard Workshops could provide trainings and jobs opportunities.

Quotation: God helps those who help themselves...

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Automotive Sector - Review

Composed by: Muneeb Jawed from NED Karachi

A Brief History of the Toyota Vitz in Pakistan The respite of import related taxes in Pakistan many years back resulted in a vast rise in the types of international brands attainable in the local auto industry. A substantial number of brands caught car enthusiast''s attention and soon became tremendously trendy in the following years.

The Toyota Vitz has briskly acquired a positive reputation with drivers in Pakistan by supplying constancy and comfort in the hatchback automotive segment.

The respite of import related taxes in Pakistan many years back resulted in a vast rise in the types of international brands attainable in the local auto industry. A substantial number of brands caught car enthusiast''s attention and soon became tremendously trendy in the following years. One of the most t riumphant cars, which s till continue to play a prominent part in the hatchback segment, is the highly desired Toyot a Vi t z. In s pit e of b eing significantly more pricey versus the Suzuki C ult us or Kh yber, t hes e aut omobil es so ld like h ot cak es, providing car buyers crucial options like significant gasoline saving.

Before the Vitz, the automobile business in Pakistan had almost no superb quality hatchbacks other than the fairly priced, but wanting-in-features Suzuki Swift or the Khyber as it was branded later on.

The Vitz took the Pakistani consumers by storm with its wide variety of options and high-class comfort. A highly roomy vehicle for its category, the Vitz was just about twenty to twenty five percent more costly than a similar Khyber and its spare accessories were at first extremely exorbitantly priced and arduous to

secure. It however had intriguing fuelconserving capabilities, especially taking into con sideration that it w as an automatic vehicle.

Dissimilar to the Khyber, the Vitz was built for the more class conscious and wealthy vehicle buyer. An appropriate alternative for a second car, families with lots of additional money opted for the Vitz as a second vehicle to complete ho usehol d duties like pickin g up ch ild ren from s chool. For s tatus conscious families, it was no longer okay to settle for a Suzuki when they could be cruising a Japanese made Vitz even if it wa s refurbi shed. Automobil e retailers all over Pakistan began trading the Toyota Vitz with a broad assortment in production year, rates and countless different options.

The inside of the Vitz was considerably revolutiona ry for a h atch back in Pakistan. The digital speedometer was align acutely inside the dash on top of the steering wheel and provided a threedimensional feel. In terms of safety the Vitz had many airbags, significantly more than any other model in its segment and came with a rear camera to examine backspace while reversing or parking the v ehi cl e. Th e ai r conditioning operated extremely well even in hot weather and the front seats are notably agreeable with extensive back support. The model was offered in

both three and four door variations and the rear had enough area to carry some luggage items. higher majority of the Toyota Vitz models cam e f ix ed w ith 1000cc engines with only some 1300cc variations in small supply. The Vitz had a considerably ag reea ble ride a nd the brak ing mechanism was very similar to makes like the Honda City. Many Vitz models have been s hifted to Compressed Natural Gas (CNG) with insignificant decline in efficiency. Its bigger, lowlying frame offers an even ride that copes with abrupt turns extremely effectively.

The resale price of these models has also grown somewhat with an invasion of later, pricier models further broadening the appeal for these recently established automobiles.

A gra nd car for car buyers with additional money, the Vitz is probably the top alternative purchasable in the Pakistani hatchback sector in terms of reliability and convenience. I have many buddies who possess the Vitz and thus far no mishaps.

The Toyota Vitz altered the automobile se ctor in Pa kis t an by offer ing in comp arab le depe nda bil it y an d quality....

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Car / Light Vehicle Price List

SUZUKI

HONDA

Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L DLX CULTUS Efi VXRI CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LE MT PETROL LIANA 1.3L LE (CNG) RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol BOLAN VAN VX CNG BOLAN VAN VTR PETROL BOLAN VAN VTR CNG SUZUKI VAN CARGO APV 1.5L JL SX MT (CBU) APV 1.5L JL DX MT (CBU)

Price Rs. 481,000 Rs. 533,000 Rs. 535,000 Rs. 586,000 Discontinued Discontinued Rs. 690,000 Rs. 749,000 Rs. 1,106,000 Rs. 890,000 Rs. 943,000 Rs. 1,205,000 Rs. 1,276,000 Rs. 1,175,000 Rs. 1,246,000 Rs. 508,000 Rs. 564,000 Rs. 619,000 Rs. 604,000 Rs. 620,000 Rs. 682,000 Rs. 536,000 Rs. 1,859,000 Rs. 1,934,000

Honda Honda Honda Honda Honda Honda Honda Honda

Model CRV Automatic 2400cc Japan Accord Automatic 2400cc Japan City Manual HYUNDAI City Automatic Civic VTI Manual Civic VTI Manual SR (Oriel) Civic VTI Prosmatec Civic VTI Prosmatec SR (Oriel)

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

Price 5,599,000 6,000,000 1,374,000 1,510,000 1,725,000 1,915,000

Rs. 1,845,000 Rs. 1,990,000

TOYOTA COROLLA Model Model XLi 1.6 VVT-i 1299cc Petrol GLi 1.6 VVT-i 1299cc Petrol GLi 1.6 VVT-i AT 1299cc Petrol XLi 1.6 VVT-i 1299cc ECOTEC GLi 1.6 VVT-i 1299cc ECOTEC 2.OD STD 2000cc 2.OD SALOON MT 2.OD SAL SUNROOF ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT ALTIS 1.6L Dual VVT-i AT SUNROOF

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

Price Price 1,394,000 1,524,000 1,679,000 1,519,000 1,649,000 1,524,000 1,809,000 1,914,000 1,709,000 1,799,000 1,799,000 1,889,000

CHEVROLET Model CHEVROLET JOY CNG CHEVROLET JOY Petrol

Price Rs. 569,000 Rs. 539,000

NISSAN CARS Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG

Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000

NISSAN DIESEL TRUCKS Diesel Diesel Diesel Diesel Diesel

Truck PKB 211 Truck PKD 411H Truck PKD 411E Truck PKD CD 411 Prime Mover CWM 454

Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000

Hilux Pickup 4x sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled) Standard Model

Rs. 1,509,000

Hilux Pickup 4x4 D/C Model

Price

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

DAIHATSU Model CUORE CX CX ECO (CNG) CX ECOMATIC

Rs. 2,389,000

LAND ROVER

Model Price DEFENDER Rs. 7,79,000 (90 S/WJEEP STD) Rs. 8,29,000 (110 S/W A/C) Rs. 8,90,000 (90 Soft Top) Price updated August- 2011

Price Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260

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August 2011

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Commercial Vehicle - Corporate Event

PRESS RELEASE

FAW conducts Training Course for Agility Logistics The Training Course was initiated by Mr. J. Pereira, General Manager of the Product Support Division of Al-Haj FAW Motors, while the Training Course was conducted by Mr. Imran Younus, Instructor of the Training Centre.

A group photograph of the participants of the Training Course along with the personnels of Al-Haj FAW Motors with a FAW, J5M-260HP (4x2) Prime Mover in the background.

Agility Logistics a renowned name in the field of Logistics and Transportation recently inducted the FAW, J5M-260HP (4x2) Prime Movers into their fleet for their operations.

FAW Prime Movers were very carefully selected by Agility Logistics for induction into the fleet based on the following conditions.

1. The Power of the “DEUTZ” engine of German technology us ed in the FAW Prime Movers.

2. The Heavy Duty “EATON” Clutch

having a 430 mm (17 inches) diameter.

3. The Heavy Duty 9 Forward and 1 Reverse speed “EATON” Transmission having a Crawler Gear Ratio of 12.11:1 4 . Th e H ea vy Du t y R ea r Axl e (Differential) having a gear ratio of 5.29:1 5. The remarkable Fuel Consumption, operat ion and m ain tenan ce Cost.

Recently the Product Support Division (PSD) of Al-Haj FAW Motors conducted a Training Course for the personnel of

Agility Logistics which was held at their newly established facility located along at the Super Highway.

The Training Course was initiated by Mr. J. Pereira, General Manager of the Product Support Division of Al-Haj FAW Motors, while the Training Course was conducted by Mr. Imran Younus , Instructor of the Training Centre.

The senior officials of Agility logistics namely Mr. Kamran Jalil , Product Ma n a g e r , Fle e t Ma n a g e m en t Dep ar tm en t ; Mr. Ash a r Alta f , Operations Manager, Fleet Operations Department and Mr. Asif Ahmed Khan, Vehicle Maintenance Manager, Tristar Transport also participated in the Training Course.

Al- Haj FAW Motors is paying a lot of emphases on customers education of its product range to ensure that its product gives optimum performance as is the demand of today’s cust omers .... .

Mr. J. Pereira presenting the Training Course c ertificate to Mr. Ashar Altaf and Mr. Asif Ahmed Khan, while Mr. Imran Younus giving a practical demonstration to the participants of the Training Course on the FAW, J5M-260HP (4x2) Prime M over. www.automark.pk | August-2011 | Page 20

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Alternative Energy - Exclusive Article

by Muhammad Yakoob Gaziani

Alternate Energy Common sources for renewable energy are wind power, hydroelectric power, and solar power. Some areas already have large plants that use alternative energy sources for entire communities. These may include wind energy sources where large fields are filled with large wind turbines.

Alternate energy is

the name given to any type of energy used to replace a different source of energy.

Muhammad Yakoob Gaziani

Types of Energy: 1. Coal 2. Bio-energy 3. Bio-fuel as Palm oil, ethanol, and other low carbon alternatives In the 2000s, different biomass sources were introduced as another alternative to harmful fossil fuels composed of recently deceased organic matter. Other recent sources have included zero carbon alternatives with low methane emissions, such as hydrogen and nuclear power.

Alternatives for transportation energy have been one of the most studied venues for alternative energy in the Pakistan and around the world. With

rising Petrol / Diesel prices, many options are emerging as substitutes for g a s olin e, inc lud in g p re vio us ly mentioned ethanol fuels. Other sources have included electric and hybrid vehicles, as well as fuel cells and fly wheels.

Common sources for renewable energy are wind power, hydroelectric power, and solar power. Some areas already have large plants that use alternative energy sources for entire communities.

These may include wind energy sources where large fields are filled with large wind turbines.

You may also discuss the possibility of payment options to make things more affordable. When speaking with any alternative energy companies, pay attention to how knowledgeable the person seems, how easily he answers your questions and concerns, and how accommodating he is on pricing issues and affordability.

Windmills harness the energy of the wind and convert it into mechanical energy in the movement of the turbine blades, which is then converted to electrical energy. Solar panels transform l ig h t t o e l e ct r ic it y . E n e r g y transformation can also be explained in terms of potential energy, the stored energy of a system, wh i c h c a n be co n v e r t e d i n t o kinetic energy, the energy of movement.

The transportation sector accounts for a high percentage of en er gy u s ag e in Western countries. In this sector, energy cons ervat ion management might in cl ude meas ures such as imposi ng

higher taxes on vehicles that use large amounts of fuel per mile, investing in research to create engines with greater energy efficiency, or enc ouraging c on s u m e r s t o in cr e a s e t h e ir con s ump tion of local pr odu ce.

Sources of Alternate Energy Solar Energy for heating water, generating electricity and concentrating solar energy to create fuel for your vehicles. And you will learn how to tap into rebates and tax credits offered through the government to offset the cost of the installation Biomass Energy Discover ways to use corn, corn stalks, wheat, pine cones, twigs, bark....to generate fuel to heat your home or drive your vehicle. the technology has been around for over 10 0 years. Basi cally, anything that decomposes or burns can be used to generate energy for your home or car. learn ho w to become your own bootlegger and drive on Ethanol or produce your own bio-diesel fuel or methane. Or run a vehicle on all three.

Wind Energy Another of the more popular alternative energy resources.

Though not a reliable resource for every household, it is a viable option for may depending on your location. Learn about the advantages and disadvantages of wind energy and see if it will be an asset for your energy needs.

Hydrogen You will see that this is my favorite. The must abundant element in the universe is Hydrogen. H2O. Ever think about driving your car on pure water? Apparently, it has been done.

How about generating HHO in your own electrolysis unit in your vehicle and increase your gas mileage 20 - 50%.

Solar Energy Budget According to the Energy Budget, our

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Earth is able to receive around 51% of the Sun's solar energy. The rest is either absorbed by clouds and the atmosphere or radiated back into space.

Remember the old saying, "Either use it or lose it"? It sure applies here. every day we have this 51% of the sun's rays coming down on us. For sure, it gives us sunlight and heat, but we could be getting a lot more by taking advantage of some practical resources. Basically, there are three ways to harness the Sun's energy.

Solar Energy Cells Solar energy fa ct: Solar Cell s or photovoltaic cells convert sunlight directly into electricity. When energy from the sun comes in contact with the cell, electrons in the two different semiconductors absorb the energy and use it to move around, creating an electrical current. Photovoltaic cells that are linked together to create a useful energy flow are called modules, which hold about 40 cells. About 10 of these modules can be mounted together to form a large array. Arrays can be used to generate electricity for a si ngle building or, in large numbers, for a power plant.

Sola r Energy Collectors Solar Energy Fact - Solar Collectors.

These are probably the most affordable and practical use of solar energy. solar panels on the roof that heated water pipes that were then carried through the house to heat water and to heat the house in the winter.

The energy emitted from the sun is used to heat water. Solar water heating systems for buildings have two main parts: a solar collector and a storage tank. Typically, a flat-plate collector - a thin , flat , rectan gular box wi th a

transparent cover is mounted on the roof, facing the sun.

The sun hea ts an absorber plate in the collector, which, in turn, heats the water running through tubes within the collector.

Solar Energy Concentrator Solar Energy Fact - Concentrating solar power plants produce electric power by converting the sun's energy into highte mpe rat ur e hea t u si n g mirr or config ur ation s. Th e su nl igh t is concentrated by parabolic ally curved mirrors onto a receiver pipe that runs along the inside of the curved surface.

The sun's reflected energy heats oil flowing through the pipe and the heat energ y is t hen u sed t o genera te electricity in a conventional generator.

A collector field comprises many troughs in parallel rows aligned on a north-south axis to track the sun from east to west during the day. Individual trough systems currently can generate about 80 megawatts of electricity. Some systems use thermal storage during cloudy periods or at night to continue electricity production.

Biomass Fuel - Biomass Energy You Can Be Using Today Biomass fuel refers to anything that can either burn or decompose. Other terms are biomass energy or biofuel. The prefix "bio" refers to life.

Bioenergy technologies use renewable organic resources, called biomass, to produce many energy related products including electricity, liquid, solid and gaseous fuels, heat, chemicals and other materials.

Bioenergy ranks second - to hydropower.

Biomass fuels are starting to become more popular due to the rising costs of fossil fuels. The beauty of using these biofuels is that we can develop our own fuels at home just as our forefathers did over 100 years ago.

Also utilizing the source of bioenergy reduces pollution, helps control carbon dioxide emissions ( Remember, plants take in CO2 which will offset emissions) Bioenergy is starting to become more popular due to the rising costs of fossil fuels. The beauty of using these biofuels is that we can develop our own fuels at home just as our forefathers did over 100 years ago.

Also utilizing the source of bioenergy reduces pollution, helps control carbon dioxide emissions ( Remember, plants take in CO2 which will offset emissions) Biomass resources will also help support the Pakistani farmer as well as other natural renewable resources.

Here are some basics regarding this interesting field:

Crops and Animals While crops and certain types of animals are consumed as food, they also create waste products that can be used as biomass. Process residues, dung and bagasse - sugar cane waste - can all be used in the production of bioenergy. one such biofuel is methane gas, a very efficient fuel for toda y's engines.

Feed Stock Energy crops, such as fast-growing trees

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Alternative Energy - Exclusive Article and g ras ses, are call ed bioenergy feedstock’s. Stalks, straws, treetops, branches, perennial crops and other forest waste can all be used as biomass.

With this, we can generate fuels such as ethanol by use of alcohol fuel stills and hydrogen and methane by the aid o f gasifies.

Manufacturing There are many sources of organic material that can be used to create biomass fuel. One source of materials is byproducts from manufacturing of fibers. Making pulp, paper, lumber, plywood and cotton yields process residues, black liquor, sawdust and bark that can al l be us ed as biomass

Consumers Construction and demolition wood, yard trimmings and non-recyclable organic material are all consumer waste that can be used as biomass to create energy.

It really does not take much effort once you get the equipment in place to generate your own alcohol, methane or biodiesel fuel from byproducts we dispose of every day.

Biomass Energy and Bioproducts Unlike other renewable energy sources, biomass can be converted directly into liquid fuels for our transportation needs.

The two most common biomass fuels are ethanol and biodiesel. Ethanol, an alc ohol, is made by fermenting any

biomass high in carbohydrates, like corn, through a process similar to brewing beer.

It is mostly used as a fuel additive to cut down a vehicle's carbon monoxide and oth er s mog -cau si n g em iss ion s.

Biodiesel, an ester, is made using vegetable oils, animal fats, algae, or even recycled cooking greases.

It can be used as a diesel additive to reduce vehicle emissions or in its pure form to fuel a vehicle.

Heat can be used to chemically convert biomass into a fuel oil, which can be burned lik e petroleum to generate electricity.

Biomass can also be burned directly to produce steam for electricity production or manufacturing processes.

Wind Energy Let's define Wind energy. Wind energy ranks up there with solar energy and hydropower. Wind Energy is defined as the “power generated by harnessing the wind, usually by windmills” In scientific terms, wind energy is the "force" of winds blowing across the earth’ s s urface ("Wi nd Energ y").

Wind is caused by uneven heating on the earth’s surface. The equator region receives more heat than say, Antarctica.

That heat tries to move from hotter to colder regions. Wind energy was first harvested centuries ago, when early wi n dmills w ere u s ed t o p owe r

millst on es , p um ps , an d f org es Wind energy systems generate electrical energy by harnessing the power in wind using machines called wind turbines.

Wind energy can be produced in standalone applications or can be produced centrally and distributed to the electric grid.

To define wind energy further, let's look at the wind turbines.Wind turbines, like aircraft propeller blades, turn in the moving air and power an electric generator that supplies an electric current.

Wind s peeds typi call y need to be sustained at a minimum of 10 miles per hour to turn the turbine fast enough to generate electricity. The turbines usually produce about 50 to 300 kilowatts of electricity each.

Turbines are often grouped together, also known as a wind farm, and generate bulk electrical power. Electricity from these turbines is fed into the local utility grid and distributed to customers just as it is with conventional power plants.

To further define wind energy, take a look at the following diagram and learn the function of each part.

(1) Tower Towers are made from tubular steel or steel lattice. Because wind speed is higher and less turbulent 100 feet or more above the ground, wind turbines are usually mounted on tall towers to

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Alternative Energy - Exclusive Article

capture the most energy. One of the larger machines stands 20 building stories high, and produces enough electrici ty to power 1,400 ho mes.

(2) Blade Most turbines have either two or three blades. Each blade acts much like an airplane wing. When the wind blows, a pocket of low-pressure air forms on the downwind side of the blade.

The low-pressure air pocket then pulls the blade toward it, causing the rotor to turn. This is called lift. The force of the lift is actually much stronger than the wind's force against the front side of the blade, which is called drag. The blade is connected to a shaft, which is connected to an electrical generator.

When ha rnessed, wind energy can be converted into mechanical energy for performing work such as pumping water, grinding grain, and milling lumber ("Wind Energy").

The amount of kinetic energy within Earth's atmosphere is equal to about 10 ,0 0 0 t r illi o n kilow a tt -h ou rs Wind energy is a great supplement to fossi l fuels and depending on your locality, you can utilize the wind for all your electrical needs as they do in Denmark.

But it does have it's advantages and disadvantages. But I am sure you will be see in g ma ny more of th es e aerodynamic generators as you drive through the countryside in the near future.

Hydroelectricity

(3) Generator Converts the mechanical energy of the spinn ing blades into 50-cycle AC electricity.

(4) Controller The controller starts up the machine at wind speeds of about 8 to 16 miles per hour and shuts off the machine at about 65 mils per hour. Turbines cannot operate at wind speeds above about 65 miles per hour because their generators could overheat.

(5) Nacelle The rotor attaches to the nacelle, which sits atop the tower and includes most of the working parts of the turbine. A cover protects the components inside the nacelle. Some nacelles are large enough for a technician to stand inside while working.

(6) Anemometer Measures the wind speed and transmits wind speed data to the controller.

Define Wind Energy Further

Hydroelectricity has been around for close to 100 years. Hydropower energy has been utilized for over thousands of years. In the Pakistan, hydropower energy is the primary so urce for electricity.

How does it work?

Hydropower uses flowing water to create energy that can be captured and turned into electricity. Hydropower provides the largest source of renewable energy in the World.

The most common type of hydropower plant uses a dam on a river to store water in a re s er vo ir; t h is is ca lled Impoundment hydropower. Water released from th e reservoir flows through a turbine, spinning it, which act ivat es a genera tor t o produce ele ct r icit y . T h e mo s t f am ou s hydrolelectric Dam would be Hoover Dam pictured below.

Hydropower Fundamentals Th e ma j or co mp on en t s o f a hydroelectric dam a re as follows:

1. Dam A barrier built across a watercourse to hold back the flow of water and create a reservoir. The reservoir that is formed is, in effect, stored energy.

2. Penstock A pipeline used to convey water, under pressure, from the reservoir to the turbines of a hy drop ower pla nt.

3. Turbine A machine that is turned by the force of the fast moving water pushing against its blades. Turbines convert the kinetic energy of the water to mechanical energy.

4. Generator Connects to the turbine and rotates to pr odu ce th e e lect rica l en e rg y.

5. Transformer Converts electricity from the generator to usable voltage levels.

6. Transmission Lines Conduct electricity from the hydropower plant to the electric distribution system.

Transmission line voltages are normally 132 kilovolt or larger.

Hydropower For Hom e Use Not everyone can have a Hoover Dam for their own personal use. however with new technology, there are systems available that will allow you to generate hydroelectricity from your own small, personal turbine......

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Alternative Energy - Exclusive Article

by Asif Masood

Renewable Energy for Clean Environment Need of The Day Power generation through alternate energy resources like Solar, Wind, Geothermal and Hydel are economical viable solution for Pakistan. Alternate Energy Development Board (AEDB) was set up for more than six years, but performance is still not up to the required mark. The performance is linked with National Electric Power regulatory Authority (NEPRA).

Pakistan is passing through the worst Energy Crisis, only because of poor poli cies an d wo rst plan ning . The government was fully aware of the situation from day one and yet it failed to add even s ing le Mega watt in Pakistan’s National grid. Even today half of the population in Pakistan has no reliable and affordable electricity supply.

In particular the inhabitants of about 100,000 villages in rural areas have to rely upon candles and lamps for basic energy needs. The electricity supply in urban areas is characterized by growing gap between supply and demand.

The government needs to pursue the hydel projects and build new water reservoirs for agricultural and industrial g row th a fte r buildin g Nat iona l consensus without politicizing as had being done in the past. Hydro electricity is the cheapest source of energy and by building small hydel projects in addition to mega dams; the feasibility of which already exist. We can add 50,000MW in our National Grid. It is ironic that Pakistan has fourth largest coal reserves in the world but the actual share of coal is only about 2% in energy share. The government has to enhance the share of coal in overall energy mix in order to

reduce the energy shortage in the country.

Power generation through alternate energy resources like Solar, Wind, Geothermal and Hydel are economical viable solution for Pakistan. Alternate Energy Development Board (AEDB) was set up for more than six years, but performanc e is still not up to the required mark. The performance is linked with National Electric Power regulatory Authority (NEPRA). The delay in formulation of tariff by NEPRA for wind mills and solar energy units has been discouraging for the investors.

Renewable Energy - Sources That Never Get Exhausted As the name impli es, “Renewable Energy” is that energy which can be obtained from a constant source, such as wind, sun & water. Despite the development of number of energy policies and plans, the priority accorded to renewable energy in Pakistan has r e m a i n e d v e r y lo w . W h il e a ckno w le dg eme nt of ren ew able resources as an alternative source of energy has been prominent in most of policy documents, little substantive a ct io n s h a v e b ee n t a ken f or implementation of those plans. Hardly

any specif ic inc en tives ha ve been offered to e n co u ra g e t h e nurturing of full fledged industry based on alternate technologies for energy generation.

Mr. Asif Masood

Non-Renewable sources Fossil fuels such as oil, natural gas, and coal are used around the wo rld as primary sources of energy. Because they are being used up much faster than they can be renewed, they are known as nonrenewable so urces. Nonrenewable energy sources represent about 90% of the energy used today. These sources are being depleted day by day. Since they are known to have an effect on air q u a li t y , ca u s in g h um a n a n d environmental health problems, a greater emphasis is being placed on renewable energy sources as the new frontier for energy.

Solar Energy Solar energy is the most readily available renewable source of energy. We are using the sun’s energy for billions of years. Pre-historic men magnified its

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Alternative Energy - Exclusive Article

Cost effective renewable energy will definitely improve Pakistan’s economic performance. Energy efficiency along with conservation measures can result in profitable business units. Thus, exploitation of these sources of energy can lead to poverty alleviation. and spas, as well as, to warm buildings like greenhouses. It can also be used to produce electricity through the use of a geothermal power plant. In these plants the hot water travels through turbines, which are connected to a generator.

Wind Energy

be converted to methane gas, which is the main ingredient of natural gas.

Although biomass can pollute the air and releases a greenhouse gas but it is n ot a s pollutan t as foss il f uels .

Hydro Energy Hydro energy draws on energy produced by flowing water. Waves are the result of wind interacting with the surface of the sea. This interaction produces a transfer of energy that can be extracted for power generation using turbine generators.

Geo Thermal Energy Geothermal energy is basi cally the Earth’s heat. It is drawn from hot dry rocks, magma, hot water springs and hot geysers & found inside the Earth.

Some are found deep in the earth’s surface and others are found closer to the surface. Today, this type of energy is used to heat water in swimming pools

Wind energy is a huge amount of energy.

Wind power is the kinetic energy of wind which can generate electrical energy by driving wind turbines. Wind Power became the least expensive form of new power generation, coming well below the cost per kilo Walt-hour of coal fired plant. Wind Power is growing faster than any other form of electricity generation.

In late 1990, the cost of wind power was about five to six times what it is now and that down ward trend is expected to continue as larger multi-mega watt turbines are being produced by many commercial companies.

Ocean Energy Ocean Energy is obtained from ocean waves or temperature differences in water. Wave energy is kinetic energy from the movement of water. Tidal energy entails trapping tidal waves in reservoirs behind dams. Ocean Thermal Energy Conversion uses the differences in water temperatures from the surface water to deeper down depths of water

as an energy source. In order for this to work there must be a temperature difference of 38 degrees Fahrenheit.

Conclusion Cost effective renewable energy will definitely improve Pakistan’s economic performance. Energy efficiency along with conservation measures can result in profitable business units. Thus, exploitation of these sources of energy can lead to poverty alleviation. Use of indigenous renewable resources can help Pakistan in diversifying its energy mix. This will reduce the country’s dependenc e on any s ingle so urce, particularly imported fossil fuel. Local environmental and health hazards in troduced by fossil fuel powered electricity generation plants can be largely circumvented through clean renewable energy al ternatives.... ..

Energy Saving Tips Follow these tips to save on energy costs • Install these energy-efficient measures: • Rep la ce a nd recycle y ou r old refrigerator and purchase energyefficient models. Units only 10 years old can use twice as much electricity as a new ENERGY STAR® labeled model.

• Caulk windows, doors and anywhere air leaks in or out. Do not caulk around water heater and furnace exhaust pipes.

• Weatherstrip around windows and doors.

• Wrap heating and cooling ducts with duct wrap, or use mastic sealant.

• When buying new appliances, be sure to purchase energy-efficient ENERGY STAR® labeled models.

• If your old air conditioner is on its way

out replace it with ENERGY STAR® la beled e ne rg y-eff icien t m odel.

• Use compact fluorescent lamps. You can lower your lighting bill by converting to energy-efficient low-wattage compact fluoresc ent li ghting and fixtures.

• Replace old windows with new high performance dual pa ne wi ndows.

• Set the water heater thermostat at 140 degrees or "normal." If you have a dishwasher. Otherwise, set it at 120 degrees or "low." Check your dishwasher to see if you can use 120 degree water.

Follow the manufacturer's direction on yearly maintenance to extend the life of your unit.

• Fix defective plumbing or dripping

faucets. A single dripping hot water faucet can waste 212 gallons of water a month. That not only increases water bills, but also increases the gas or electric bill for heating the water.

• Defrost refrigerators and freezers before ice buildup becomes 1/4-inch thick.

• Install shades, awnings or sunscreens on windows facing south and/or west to block summer light. In winter, open shades on sunny days to help warm rooms.

• Close the damper when the fireplace is not being used. Try not to use the fireplace and central heating system at the same time...

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Alternative Energy Sector - News

Offshore Wind Power ABB Takes Down $1 Billion North Sea Contract Swiss engineering group ABB closed the largest power transmission order in its long history, a $1 billion contract to connect planned offshore North Sea wind farms to the German electricity grid. Upon expected completion in 2015, transmission lines will deliver enough clean, renewable electrical power to s u pp ly mo re t ha n 1 . 5 million households, while avoiding more than 3 mil li on tons of carbon dioxide emissions, according to an ABB press release.

“Offshore wind power is emerging as a major source of large-scale renewable energy in Europe to help meet emission t argets and lower environment al impact,” said Peter Leupp, head of ABB’s Power Sys tems division. ”AB B is uni quely positioned wi th in-house manufacturing capability of converter stations, cables and semiconductors, the essential components of HVDC systems, and has invested significantly in these technologies.”

Dutch-German electrical power utility TenneT awarded the contract, which calls for ABB to design, engineer, supply and install the world’s largest offshore

high-voltage direct current (HVDC) system, one with a rating of more than 900 megawatts (MW) that will keep electrical losses under 1% per converter s tation. This includes an offshore p la tform , offs ho re an d ons ho re c o n v e r t e r s t a t io n s a n d t h e interconnecting land and sea cable systems.

The electricity will be coming from the 400 MW Gode Wind II, construction of which is expected to begin next year, and other offshore wind farms approved

by Germany’s Federal Agency for Marine Shipping and Hydrography.

The electricity will flow to an offshore HVDC converter station, which will t ransmit it via 135 kilo meters of underwater and underground cables to an onshore station on the German coast.

From there it will feed electricity into Germany’s mainland grid. ABB will make use of HVDC Light transmission technology, which the company says “offers environmental benefits such as neutral electromagnetic fields and compact converter stations.”

The offshore wi nd power will help Germany meet its plan to close down its

n ucl ear power sta tions by 2022.

Germany intends to double its wind power capacity by 2020. Wind power currently makes up about 8%, more than 27 gigawatts (GW) of its power supply.

New York’s Solar Power Map

New York City seems seriously intent on going solar. One of the possibilities to generate solar power in New York is using the city’s rooftops.

In order to gauge how much space there is, a website called NY Solar Map has been designed to estimate rooftop solar potential using a computer model that calculates the incoming direct and diffuse solar radiation for every square

met er of the Cit y of New York.

According to information on the website, the model is based on the position of the sun, overall atmospheric conditions, latitude and shading, which it says is the most important element in the analysis.

Shading is generated from a digital s urface model deri ved from li ght detection and ranging (called LIDAR data) , which captures the surface elevation of the ground, buildings and trees.

Usable roof area within each rooftop is estimated based on slope, roughness, available sunlight, and building shape.

When the system estimates the solar potential of an arbitrary polygon, the total area within the polygon is treated as usable. The effects of azimuth and tilt

angle are estimated using the PVWatts s olar model from th e Na tiona l Renewable Energy Laboratory (NREL).

The project assumes that in order to be usable, rooftop area needs to contain at least 10 contiguous square meters of uninterrupted surface area, either flat or with a uniform slope, and receive at least 1,030kWh of inci dent so lar radiation in a year per square meter.

There are several other assumptions explain ed in further detail on the website.

NY Solar Map is interactive and anyone can add their system to it through a form. There’s also a search engine whereby visitors can find specific addresses to estimate the solar potential of the building.

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Alternative Energy Sector - News

Twice the height of the Empire State – EnviroMission plans massive solar tower for Arizona

An ambitious solar energy project on a massive scale is about to get underway in the Arizona desert. EnviroMission is undergoing land acquisition and site-

specific engineering to build its first fullscale solar tower - and when we say fullscale, we mean it! The mammoth 800plus meter (2625 ft) tall tower will instantly become one of the world's tallest buildings. Its 200-megawatt power generation capacity will reliably feed the grid with enough power for 150,000 US homes, and once it's built, it can be expected to more or less sit there producing clean, renewable power with virtually no maintenance until it's more than 80 years old. In the video after the jump, EnviroMission CEO Roger Davey explains the solar tower technology, the Arizona project and why he couldn't get it built at home in Australia...

MIT team designs concentrated solar thermal system that could store heat in vats of molten salts

The biggest hurdle to widespread implementation of solar power is the fact that the sun doesn't shine constantly in any given place, so backup power systems are needed for nights and cloudy days. But a novel system designed by researchers at MIT could finally

overcome that problem, delivering steady power 24/7. The basic concept is one that has been the subject of much research: using a large array of mirrors to focus sunlight on a central tower. This approach delivers high temperatures to heat a substance such as molten salt, which could then heat water and turn a generating turbine. But such towerbased concentrated solar power (CSP) systems require expensive pumps and plumbing to transport molten salt and transfer heat, making them difficult to successfully commercialize — and they generally only work when the sun is shining......

UK launches free, solar-powered plug-in vehicle charging network

It’s actually the world’s first national charging network for electric cars. That may sound a bit grand, for something quite wonderfully simple – a series of charging posts installed at motorway services up and down the country.

Charging stations, for electric cars, that are easy to access and free to use (yes free). Enabling Britain’s electric car drivers to drive the length and breadth of the country – with all the convenience of simply pulling into a motorway service station to top up. We’re pretty chuffed with it, truth be told...

Electric supercars promising speed without emissions

A supercar by definition is one that is fast, expensive and for the elite. It is incongruous to think of the buyers of these cars as also being interested in the environment and zero emissions.

However, the supercars do serve another purpose, which is to push the envelope Fu els like g a so line , ba s ed o n of storage and commercial production of a ut omobile te chn ology . Th e hydrocarbon, create pollution and difficulties. There have been research innovation for speed, pick-up, styling carbon footprint. Hydrogen has been being done on renewable energy sources and luxury in today’s supercars translate into better functions and features on the claimed to be a go od alternative to like hydrogen for quite some years. replace fossil fuel since the 1970s. But Recently, breakthrough research has more every day cars of tomorrow. It is this possibility that is inspiring some hydrogen’s potential has no t been been successful in creating a new designers to work on the electric realized even partially mainly because m et ho d for st or in g h yd ro ge n . supercars. www.automark.pk | August-2011 | Page 49

Hydrogen Generation & Storage Made Easy with Nano-Technology

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MADE MADEIN INPAKISTAN PAKISTANMOTORCYCLES MOTORCYCLES PRICE LIST LIST RETAIL PRICE

70cc Motorcycle

Sr./ No. 1.

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Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Challenger BA-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70

Retail Price Rs. 42,500/= Rs. 41,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 40,000/= Rs. 49,000/= Rs. 39,000/= Rs. 45,000/= Rs. 41,000/= Rs. 41,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 65,500/= Rs. 42,000/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 44,800/= Rs. 40,000/=

Sr./ No. 24.

25.

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Product & Model Name Pak Hero PH-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Star DL-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70

www.automark.pk | August-2011 | Page 50

Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 41,000/= Rs. 41,000/= Rs. 42,500/= Rs. 41,500/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 40,500/= Rs. 40,500/= Rs. 45,000/= Rs. 41,000/= Rs. 40,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 42,000/=

Price updated July-2011

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MADE IN PAKISTAN MOTORCYCLES PRICE LIST

125cc Motorcycle No. 1.

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Brand & Model Name Habib HB-125 Sitara ST-125 Super Star SS-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II

Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 75,000/= Rs. 89,500/= Rs. 111,000/= Rs. 77,000/= Rs. 78,000/=

Yamaha Motorcycle Sr./ Product & No. Model Name 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale

Retail Price Rs. 75,900/= Rs. 72,000/= Rs. 72,900/=

100cc Motorcycle No. 1.

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Brand &Model Name Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100

Retail Price Rs. 55,500/= Rs. 55,000/= Rs. 73,900/= Rs. 55,000/= Rs. 55,000/= Rs. 55,000/= Rs. 60,000/=

Suzuki Motorcycle Sr./ No. 1.

2.

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Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-125 Suzuki GS-150 Suzuki Shogan

51 www.automark.pk | August-2011 | Page 51 51

Retail Price Rs. 67,500/= Rs. 71,000/= Rs. 82,900/= Rs. 88,500/= Rs. 79,500/=

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