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Contents
April-2018
News / Event
Article / Review 19 26 29 32 33 46
The two wheels industry looks like player of sales games only Exclusive by Zahid Malik
Vespa makes a comeback in Pakistan Exclusive Report by Automark
Rise of Agricultural Mechanization in Punjab; Establishment of High-Tech Agricultural Machinery Centers to Provide Modern Technology to Farmers on Easy Rentals Exclusive Review by Mansoor Rizvi Nissan to begin Datsun production in Pakistan with Ghandhara Nissan Exclusive Coverage by Automark
Renault to Establish Assembly Plant in M3 Industrial area Faisalabad
Inside
19 20 25 40 41 51
Do Electric Vehicles Have a Future in Pakistan? Exclusive review by Sarim Raza
PAPS show-2018 lacks presence of innovative products Exclusive Coverage By Automark Magazine
Pakistan Auto Show-2018 Lahore Exclusive Coverage - Glimpses By Automark Magazine Rolling forward to deliver performance Panther Tyres signs MOU with Total Parco
FAW Pakistan “AL-HAJ” won the “Distributor of the Year 2018” for the second consecutive year
Master Motors opens new assembly plant for Changan and IVECO vehicles in Pakistan Visit of Pak Swiss Training Centre by Automobile Industry for CSR activity Organized by PSTC-OBA & AGC By Automark Magazine
News Updates 28 34 33 42 43
Local Automoitve News Updates
Chinese company signs deal with Pakistani partner for automobile assembly plant
Passenger Cars & Commercial Vehicles Production Figures for Year 2017 (Jan-Dec) Booking commences for Daehan Shehzore Automechanika Dubai 1 - 3 May 2018 Dubai International Convention and Exhibition Centre, UAE
45
Experts call for proper Home-work to take benefit of China-Pakistan Economic Corridor (CPEC)
49
International Automotive News
54
Vehicles / Car Price List
57
Motorcycles Price LIst
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April-2018 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 04
Monthly
AUTOMARK Magazine International Editor-in-Chief Muhammed Hanif Memon Technical Editor
Advisors
Muhammad Shahzad
Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad
Advertising Manager Tahir Siddiqui
Circulation Manager Hasaan Mustafa
Graphic Designer Mustafa Hanif Salman Hanif
Anwar Iqbal Chief Executive Officer Silver Seal International Karachi
SC allows Chingqi rickshaws, What next for transportation sector? The Supreme Court (SC) has conditionally allowed Chingqi Rickshaws to be used for transportation. A driver cannot ply the rickshaw without driving license and only four persons are allowed to sit in the vehicle, SC said asking provincial governments to register rickshaws besides making compulsory of getting fitness certificate by rickshaw owners before bringing on the roads. SC had issued orders that relevant provincial officials must ensure i mp le me nt at io n o f co u r t ’s d e ci s io ns a nd i nst r uc t io ns .
The rickshaws owners are also asked to properly display route map, driving license and transport fares on the vehicle. Only those rickshaw owners would be allowed to ply their vehicles who would comply and Web Master follow all decisions and rules. Murtaza Hanif Getting fitness certificate and driving license compulsory for Chingqi rickshaws may encourage wrong practice at the local authorities’ end Contributors in where these requirements cannot be availed without greasing palm THIS EDITION Engr. IHT Farooqui of the concerned department officials. SC should take notice as how M. Owais Khan Chief Operating Officer people get driving license and Anwar Iqbal Pak China Motors (Pvt) Ltd. fitness certificate without undergoing their vehicles’ check. Mansoor Rizvi Karachi The court’s decision appears quite satisfactory for low income groups M. Hanif Memon Ali Hassan in terms of affordable fare of Rs 10-20 per person depending on the Nadeem Ahmed Salmi Syed Sarim Raza destination distance. Executive Director However, Chingqi rickshaws for many vehicle owners are nuisance as Operations their drivers are illiterate and have no traffic sense causing serious M/s. Al-Haj Faw accidents and taking precious lives of the people due to rash driving Motors (Pvt) Ltd. and mistake by the drivers. It is not clear how the traffic police would Karachi control rash driving by rickshaw drivers if other decisions of the court Active Communications are implemented. Mailling Address: The closure of Chingqi rickshaws has so far not created any big vacuum D-68, Block-9, Clifton, Karachi in traffic requirement as many old rickshaw owners and new investors Mobile: 0321-2203815 have converted their vehicle in Chingqi mode of transport thus E-mail: automarkpk@gmail.com accommodating jobless drivers of old rickshaws. website: www.automark.pk Pakistan has been facing public transport crisis for years due to Whatsapp & Wchat : +92 321 2203815 unfulfilled promises and tall claims made by the ministers of transport after coming into power. For instance, 600 buses for Karachi were still AutoMark Canada Office moving on the official papers rather arriving on the roads. Managing Editor Punjab government’s vision for transport should be appreciated where Mohammad Shahzad S.A.E. D.M.P. dynamics of mass transit is changing while other provinces are yet to 41 Jordana Drive follow the suit. Markham (Toronto) SC should take notice as to why mass transit programs had remained Canada - L3S 3N8 Phone: 905-472-8282 on the files of Sindh and other governments. Revival of Karachi’s Email: automarkcanada@gmail.com circular railway could easily shift at least 40-50 per cent of city’s road traffic. Only the SC can bring circular railway and mass transit projects AutoMark REGD: MC-1330 from the clutches of powerful transport mafia which has failed these Published every month by M. Hanif Memon public interest projects. Barring Punjab – the road network all over the country especially Karachi are in pathetic conditions. On dilapidated road conditions especially in Karachi – bike owners are at complete risk of losing their lives in a bid to avoid speed breakers and bad road conditions. Travelling on Chingqi rickshaws on poor road conditions is highly risky. All airports in Pakistan have no public transport especially buses to take and bring travelers. The government should start big buses for taking passengers directly to the airport. Public transport at airports all over the world Note: The views expressed by contributing writers and exists. comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi
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Exclusive Report by Automark
PAPS show-2018 lacks presence of innovative products Show is becoming a family gala rather than showcasing latest auto brands. Big new entrants were also absent Pakistan Auto Parts Show, the so-called prid e a nd initiative of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), has been transforming into a “family gala” rather than showcasing any innovative products. PAPS Auto Show 2018 held at Lahore Expo Centre from March 2 to 4, 2018 was more disappointing than the previous shows. The show is turning into an event in which old friends belonging to PAAPAM from various cities hug each other after one year and return home saying “I will be back” next year. This is how PAPS has been running under the monopoly of some senior PAAPAM members. The Association claims to have pulled in thousands of visitors to PAPS but it is not an achievement as shows relating to lawn exhibition, plastic, stationary, cooking, education, etc also draw huge crowd and many companies like textiles also introduce new products. Like past practice the existing three Japanese car assemblers, who had set up their stalls, had nothing new to offer. Indus Motor Company (IMC) had been taking half body frame of Toyota Corolla to every nook and corner of the country to highlight higher localization achieved by the company. IMC had also taken the same body frame at an auto workshop held at Muzzafarabad Azad Kashmir in the third week of March in which the car had imported tyres. IMC had never shown any new model or any model change in the PAPS amid reports that Corolla XLI and GLI are reportedly being replaced by Vios by 2019 which the company had been denying so far. If a big assembler like IMC had been showing old products then what one can expect from Pak Suzuki Motor Company Limited (PSMCL) however, they has been showing brand new heavy bikes which neither can be assembled nor can be imported in bulk for commercial sale. Honda Atlas Limited and Atlas Honda Limited had also nothing new to
offer. All the existing assemblers had only supported and sponsored the show otherwise their products do not create any extra enthusiasm among the visitors who daily watch them on the roads. Amid media reports regarding the brown field status given to two old players and five green field investment status awarded to new entrants by the Ministry of Industries for local assembly of cars an d LCV s but the PAPS show had only two stalls – one by Regal Automobiles and other was Foreland. People had definitely missed the stalls of upcoming a ssemblers of Kia, Hyundai, Datsun and Renault vehicles. If these vehicles had introduced in the PAPS then it would have certainly brought in bigger turnout of visitors. The makers of Ravi bikes introduced Italian made Vespa in the show which succeeded in drawing attention of buyers. Ma ny exhibitors had been s een complaining regarding higher amount taken by PAPS organizer in providing space in the show. They were also irked by low presence of media persons as well as mediocre coverage in news channels and print media owing to lack of coordination between press/media and public relation firm. Some exhibitors said the show organizer had taken double rate for providing stalls this year which was unjustified. Automark magazine had covered the auto show as per its own resources and circulated the news and videos in the social media. Many seasoned vendors were also absent from the event and even they did not set up any stall. Many Karachi-based as well as Lahore-based vendors also stayed at home. Surprisingly, Al Haj Faw Motors, who had been one of the regular exhibitors and main sponsors in previous PAPS, backed out from PAPS 2018 due to some very valid reasons. Lack of enthusiasm by the organizer was much evident as no big shot from the government was invited to inaugurate
the event. If big ministers were too busy in various engagements the state ministers should have been approached. Nobody knows why PAAPAM had not invited any ministers or state ministers to the show when PML-N government’s Auto Development Policy (ADB) 20162021 had lured $800 million investment in the auto sector for setting up new plants. PAAPAM had maintained its past tradition of holding the event from Friday to Sunday. The first day was marred by late opening ceremony held on Friday (March 2). Almost half of the day passed in opening ceremony followed by break for Juma prayer. The Saturday and Sunday were completely family days in which people came to enjoy with family and friends. The B2B meetings were quite slow than previous years. Many visitors with no knowledge about auto industry just came to collect gifts after end of the show. College and universities students also took part and got cash money on winning the competition. The slogan of the show was “Make in Pakistan” but more than 80 Chinese auto parts makers were present in the show threatening a direct competition to our local vendors. Chinese auto investors had been in forefront in investing in automobile sector of Pakistan. During three days’ event, many seminars were held with very low attendance of people. PAPAM should ponder now an d force the existing and upcoming assemblers to show their latest brands otherwise they would not be allowed to participate. However, It will be a hard decision for PAAPAM members as they will lose big orders from existing assemblers if they are denied entry in PAPS show. Imported Chinese auto products are only be allowed in the show in case the exhibitor or investor of the product is interested in setting up an assembly plant in collaboration with local partners.
www.automark.pk | April-2018 | Page 19
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PAKISTAN AUTO SHOW-2018 LAHORE 2-4 MARCH
Welcome to the Pakistan Auto Show (PAPS-2019) Maximise your trade potential at PAPS 2019
The Pakistan Auto Show came into being to provide our industry a platform from the country to showcase its capability and potential to the world. It is three day event with the entire Auto Engineering Sector assembled under one roof. You can expect Government High ups, Local and International B uy e rs an d m an u fa c tu re rs , M ac h i n e ry Manufacturers, Raw Material Providers, service providers and much more at the event.
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EXCLUSIVE MEDIA COVERAGE BY AUTOMARK MAGAZINE
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Pakistan needs uniform taxation policy for SMEs and large scale units. Time has come to remove SRO culture The government must reduce customs duties on import of Chinese goods on maximum items to over 7,000 tariff lines especially spare parts for the assembly of motorcycles, cars, commercial vehicles and all electrical and electronic goods Exclusive Article by Awais Khan Current scenario of trade in Pakistan does not favor small and medium industries especially Chinese based manufacturing and assembling in automobiles and electronics sectors. Around nine per cent devaluation of the rupee against the dollar in the last four months, finalization of import/export data exchan ge with Chinese and Pakistani governments and country political environment may shake up positive economic indicators. When one dollar was equal to Rs 60 the trade and industry people were involved in misdeclaration and under invoicing in exports and imports. At that time tax rates were same as compared to current rates of taxation. To co me o ut t h is t urm oil, th e government must reduce customs duties
on impo rt of Chinese g oods on maximum items to over 7,000 tariff lines especially spare parts for the as s em bly of mo to rc ycle s, c ar s, commercial vehicles and all electrical and electronic goods. “This is the only solution which can bring out country out any financial crisis”, said Mohammad Sabir Sheikh, Chairman Pakistan Tajir Itehad and Association of Pakistan Motorcycle Assemblers (APMA). He said the losing value of the rupee against the greenback is increasing production cost of local industries
besides triggering increase in petroleum prices, raw material prices of auto sector, electrical and electronics and raising transportation cost. Market is abuzz with rumors that the caretaker government would further devalue the rupee value before taking of power by the new government, he said. Sources said the government, which is on verge of completing its five years term, is not ready to take responsibility for depreciating the rupee value. However, the government had already done devaluation in the last four months to improve exports especially of textiles goods. Sabir said Pakistan produces 2.5 million bikes annually in which two million units are 70cc bikes. Of total 70cc bikes some 1.4 million units belong to Chinese based assemblers while Honda assembles 600,000 units of 70cc bikes. He said rupee-dollar parity does not
Ministry of Industry G ov ernment of Pakistan
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Monthly AutoMark International favor Chinese based assemblers who are already facing stiff competition. Only Honda can survive in this scenario because of its good brand image, higher volumes and no change in price of CD70cc in the last four years. However, any change in the policy, customs issues or rupee dollar parity make a big impact on Chinese bike assemblers while Honda survives the scare easily. A real challenge for Chinese based bike assemblers is coming up as Pakistan and China are all set to launch online trade verification from April 2018 to authenticate the volume of import and exports of both the countries. China is reported to have agreed to provide online certificate of origin to all its exports for Pakistan. The working for data verification between the two countries was started couple of years back in order to streamline the trade between the two countries. In this regard, both the countries under free trade agreement (FTA) have agreed to develop electronic data interchange. Pakistan Customs was ready to roll out electronic payment solution from December 31, 2017. The e-payment system had been developed with the help of State Bank of Pakistan (SBP) and 1Link – payment solution provider. Under the e-payment system importers would be able to make payments related to goods declarations (GDs) online and through ATMs. Usually banks have restricted amount transaction limit through ATM. However, there will be no limit of payment through ATMs for consignment clearance. The government has also been working on various modules to comply with trade facilitation agreement (TFA) under World Trade Organ ization (WTO).
Prime Minister has approved single window operation for trade clearance. A team had been constituted at the Federal Board of Revenue (FBR), which would complete the task in three years.
submit their certificates / verifications of their own under this programme. Currently the WeBOC system – online clearance system developed by Pakistan Customs – allowed 50 per cent import consignments for clearance through green channel. This will be increased to bring it at international standard of 90 percent. During the past ten years the customs clearance system witnessed massive changes. The automated system is facilitating the trade and it reduced the time for clearance. The Online Verification of Goods would start in Pakistan and China from April 30. Traders from both the countries are advised to provide accurate packing lists of their goods to concerned authorities. It has been further clarified that prices will be subjected to change according to changes in sales tax and customs tariff. Any extra charges imposed by custom will be paid by the customer. Last year Pakistan had suggested this measure change through various high level meetings with Chinese authorities to end over-invoicing and under-
The single window programme would facilitate the trade as importer would have to file a single page document and all the relevant departments would
invoicing menace by the traders in Pakistan, due to which actual amounts of import-export were difficult to assess by the authorities.
The Online Verification of Goods would start in Pakistan and China from April 30. Traders from both the countries are advised to provide accurate packing lists of their goods to concerned authorities. It has been further clarified that prices will be subjected to change according to changes in sales tax and customs tariff. Any extra charges imposed by custom will be paid by the customer.
Sabir said Pakistan produces 2.5 million bikes annually in which two million units are 70cc bikes. Of total 70cc bikes some 1.4 million units belong to Chinese based assemblers while Honda assembles 600,000 units of 70cc bikes. He said rupee-dollar parity does not favor Chinese based assemblers who are already facing stiff competition. Only Honda can survive in this scenario because of its good brand image, higher volumes and no change in price of CD-70cc in the last four years. www.automark.pk | April-2018 | Page 23
Chairman APMA
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Monthly AutoMark International
Article continued
Pakistan has already lost Rs 32 billion revenue because of exemptions under the first phase of FTA in 2016-17. The issue is not only related to revenue loss but also about adequate protection to the local industries. Small industries cannot compete with the mighty manufacturers in China. Pakistan will able to check misuse of Free Trade Agreement (FTA) with China from April 18 as Chinese Customs has agreed to provide certificate of origin on real-time basis. Certificate of origin would authenticate the exports from China to Pakistan. There is huge gap between figures in imported goods from China reported by Pakistan Customs and goods exported by Chinese Customs. The goods imported from China are under invoiced or mis-declared to the tune of three billion dollars. The Commerce Division has announced to sign a revised Free Trade Agreement (FTA) with China next month. Out of the total 7,120 tariff lines, the Commerce Division held out an assurance to China to reduce duties to zero per cent on 6,000 tariff lines while protection will be provided only to the remaining 1,120 tariff lines, mostly textile products. The duties will be brought down to zero in a period of 15 years in three phases. One-third of these tariff lines will be removed immediately; half of the remaining will be exempted from duties in the next five to seven years while the rest will be eliminated within 15 years. However, the Federal Board of Revenue (FBR) fears that the proposed massive tax exemptions will cause considerable revenue loss for the country and has estimated a revenue loss of around Rs100 billion per annum in case the s econd ph as e o f t he FTA is implemented. A summary has been already sent to Prime Minister Shahid Khaqan Abbasi to apprise him over the move of the Commerce Division allowing 75 per cent tariff lines on zero duty to China under the second phase of FTA. The premier has directed the Commerce Division to consult all ass ociations over the proposed move. Pakistan has already lost Rs 32 billion revenue because of exemptions under the first phase of FTA in 2016-17. The issue is not only related to revenue loss but also about adequate protection to the local industries. Small industries cannot compete with the mighty manufacturers in China. The proposed move will complete wipe out the small industries in the country. As a result of the first phase of FTA, Pakistan’s exports stood at $1.5 billion in 2016-17, while
imports from China surged to $15 billion. These massive imports are the outcome of zero duty on 35 per cent of total tariff lines. The impact in terms of imports and revenue loss will be much higher in case the exemption limit reached 75 per cent. Pakistan had imposed regulatory duties on certain tariff lines to protect local industry. There is no compulsion to go for the second phase as Pakistan has no export surplus.
FPCCI on FTA II On 15th March 2018, a meeting was held in Ministry of Commerce - Islamabad, in presence of Dr. Miftah Ismail (Advisor to PM on Finance, Revenue and Economic Affairs) and Secretary Commerce Younus Dagha, wherein presentation was made to the private sector led by Mr. Ghazanfar Bilour President FPCCI , Amir W aheed, President of Islamabad Chamber of Commerce and Industry, Zahid Latif Khan, President Rawalpindi Chamber of Commerce a nd In dus try an d others. It was informed that Pakistan will reduce Customs Duty to Zero per cent on 70 per cent tariff lines and China will do the same for Pakistani goods. FPCCI President and others demanded to place 70 per cent tariff lines on website for study of all stakeholders, w hich was denied by Comm erce Secretary. He offered to have another meeting in next 10 days with the stakeholders where they can give the details of tariff lines to concerned sectors. FPCCI is concerned that FTA Part-1 resulted in favour of China, where their exports to Pakistan are more than $15 billion and Pakistan i ex po rts to China stand around $1.5 billion in last year. Syed Mazhar Ali Nasir, Senior Vice President of FPCCI feels that 2nd round of FTA will give more advantage to Chinese exporters and resulting further closure of Pakistani industries and also significant increase in joblessness. Mazhar proposes that FTA imports be related to Pakistani exports and China must meet 25 per cent imports from Pakistan against their export value to our country, i.e. If China exports touch
$20 billion, they must import $5 billion goods from Pakistan. Otherwise there is no benefit to the Pakistani economy with the current FTA or 2nd round of FTA. While negotiating 2nd round of FTA, Pakistani existing industries must be protected as well as market gap for new potential local industry. We have high respect for China-Pakistan friendship, but we must protect the economical interest of Pakistan. If 2nd round of FTA is implemented in present manner, our import dependence will increase to 40-50 per cent from China in next five years. It is also suggested that finalization of 2nd round FTA be postponed till after elections.
Rupee-Dollar Parity The value of the US dollar hit a high of R s115.50 on March 20, 2018 in interbank trading, with currency dealers su spe ct ing the go ve rnm ent 's commitments to foreign monetary bodies being the cause behind the sudden rise. The value of greenback also rose by Rs5.40 in the open market. The State Bank of Pakistan (SBP) held rising demand for dollars responsible for the rise in the USD, adding that it is closely monitoring the situation, but forex dealers seemed reluctant to accept this line of reasoning. Foreign loan s, the government's u n a n n o u n ce d c o m m i t m en t s t o international bodies and corruption are responsible for the lower value of the rupee. Given that Pakistan is set to be placed on the Financial Action Task Force's grey list in June, it is not the right time to devalue the rupee, some currency dealers believed. Where Pak rupee devaluation against the dollar may improve revenues of Power and Oil and Gas Exploration companies, those companies which substitute imports may get benefit. However, we believe that export oriented companies will be a major beneficiary, especially textile firms. With 9 per cent Pak rupee devaluation in last 4 months and rebate of 3-7 per cent on textile exports, their revenue may significantly improve, an analyst at Sherman Securities said.
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Auto Events in Pakistan - Glimpses by Automark
At PAPS-2018 Show in Lahore
At ITIF-2018 Trade Fair in Karachi
www.automark.pk | April-2018 | Page 24
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Vespa Launched - Exclusive media coverage by Automark
RAVI & PIAGGIO Unveils VESPA Primavera in Auto Show 2018 The only silver lining of the PAPS Auto Show 2018 held at Lahore Expo Centre from March 2-4, 2018 was the unveiling of ” V E S P A P R I M AV E R A 1 50 SCOOTER” in all new style and design otherwise the show was more or less same as of previous years. People stormed the stall of Ravi Automobile Limited where the new Vespa was parked thus reminding many visitors especially those who had the experience of using Vespa in the 70s and 80s. Ravi Automobile joined hands with Piaggio of Italy in 2007. Now the company is now positioned to take the risk of bringing back Vespa in completely built up (CBU) to check consumers' response instead of directly venturing into assembling in Pakistan. Italian Ambassador along with his wife graced the occasion and visited the stall of Ravi Automobiles. The product was launched at a price tag of Rs 330,000 but till March 15, 2018 the company offered Vespa at discounted price of Rs 299,000. A senior official of the company informed AUTOMARK at the PAPS 2018 that “there is no immediate plan to start assembly of Vespa in Pakistan. Currently the company will import completely built up units for the next six months. The company has already received overwhelming response from the consumers.” “Many consumers have booked Vespa,” he said without giving any numbers of
pre-booking orders. However, it is premature to predict any robust sales of Vespa in future in a market whose dynamics are changing very fast and many consumers have shifted towards to 125-150cc bikes from the traditional 70cc bikes following introduction of locally assembled and imported new models of 125-150cc bikes. Interestingly, hardly any two wheeler Chinese assemblers had come out with a replica Vespa of Chinese origin either by impo rtin g in CBU con dition or intending for local assembling. Some Chinese assemblers dared to bring back replica of leg endary Honda 5 0c c in C BU for m o r in lo ca l manufacturing but buyers did not show any enthusiasm. The copy of 50cc bike died its own death. Ravi Automobile, started manufacturing and assembling its first motorcycle in 2004. According to company’s website, to date the company has sold over 100,000 units with the annual growth rate of 20 per cent. I n 20 11 R a vi bec am e t he fir st en g ineerin g secto r org an izat io n to be certified by the country’s Engineering Development Board to sell finished motorcycle engines in the open market. However, market pundits say that Vespa is totally a different type of two-wheeler. People especially from Lyari had been Vespa’s diehard fans and many of them still had old Vespa. Future Vespa sales
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Monthly AutoMark International depend on affordable price and petrol consumption as compared to Chinese bikes. The new Vespa Primavera 150 is fully automatic, means no gears and no clutch and no kick starter as it has one of the finest self-start system. Vespa has powerful 150cc but most efficient i-get 3 valve, 4 stroke, Euro 4, EFi engine. Vespa body is in sheet steel with welded structural reinforcements. Amazingly this Vespa comes with ABS brake system and new digital dashboard with trip
computer & USB port. It has very improved fuel consumption and reduced emissions and can give you an average of 41km/l. The increased space between the seat and handlebars, as well as the seat height that improves access to the ground, increase the interior space for driver and passenger. The wheelbase and increased length improve stability while maintaining the smooth ride and agility of every Vespa. Vespa is much more than just a scooter:
it’s t he compan ion o f cou ntles s adventures, a reflection of our own personality, a celebration of design, technology, and independence.Ravi, being an important player in the auto industry at large has surely always pioneered in bringing new technologies and setting trends, with this very aggressive move we see the landscape of the two wheeler industry changing very rapidly!
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Monthly AutoMark International
Automotive News - Update
Indus Motors' Rs4b new plant by year-end Indus Motors Company sales increased by 25 percent YoY during 2QFY18, where higher priced variants contributed more towards sales mix. According to the data, the company sold a total of 15,047 units during 2QFY18, u p by 7 pe rcen t Y o Y an d fla t sequentially. Gross profits increased 21 percent YoY while gross margins decreased by 60bps to 17.7 percent from 18.3 percent YoY in the outgoing quarter. T hi s w a s la rg ely d ue t o ru pee deprecation against Japanese Yen and US dollar, which was not fully passed on in outgoing quarter.
Experts said that in HY18 revenue of the company grew 23 percent annually (Rs63.3 billion vs. Rs51.4 billion) mainly attributable to improved turnover of both CKDs (Completely Knocked Down Kit) and CBUs (Completely Built Unit) vehicles and sales mix, while earning rose 21 percent annually to Rs7.3 billion. The experts stated that the company's new debottlenecking project is right on schedule, incurring cost of Rs4 billion on the project. The plant is currently in testing phase and it is expected the project will complete in 4QFY18.
The experts said that INDUS will pass on any impact of abrupt or sharp devaluation and will be raising its variant prices soon to pass on the impact of recent rupee depreciation against US dollar and Japanese Yen. The company expects and is prepared for some tough competition to come from Isuzu Dmax against it Hillux and might lose some market share but given its entrenched position it is capable to defend its market share to great extent.
Tractor Production Grew By 27.42% In First Half Of Current FY Tractors manufacturing in the country witnessed about 52.86 percent growth during first half of current financial year as compared the corresponding period of last year. Tractors manufacturing in the country witnessed about 52.86 percent growth during first half of current financial year as compared the corresponding period of last year. A bo u t 3 2, 614 tr ac to r s w er e manufactured locally during the period from July-December, 201 7-18 as compared the manufacturing of 21,336 tractors of same period of last year, according to the provisional quantum
in dex n u mb ers o f La rg e Sc al e Manufacturing (LSM) industries of PakistanBureau of Statistics. According to the data, the over-all output of LSMI increased by 5.55 percent for July-December, 2017-18 compared to same period of last year. During the month of December, domestic production of tractors were recorded at July-December, 2016-17. On month-on-month basis, 4,447 tractors were produced locally in month of December, 2017 as compared the manufacturing of 4,497 tractors of same month last year, the data reveled. Local trucks production during the period
Pak Suzuki Motor’s profit rises 38% to Rs3.8 billion Pak Suzuki Motor Company earned a profit of Rs3.825 billion in calendar year 2017, up 38% compared with Rs2.772 billion in the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on last month. Earnings per share (EPS) came in at Rs46.49 in 2017 compared with Rs33.69 in 2016. In the fourth quarter (Oct-Dec 2017), the company’s earnings stood at Rs726 million with EPS at Rs8.9, down 19% year-on-year. This was below expectations as its gross margins contracted, a Topline Securities’ report said. Along with the result, the company announced a final cash dividend of
Rs18.6 per share for the full year. Pak Suzuki Motor’s stock price closed at Rs511.33, up 4%, at the PSX. Overall, the KSE 100-share Index ended at 43,539, up 176 points or 0.41%. Sales of the company surged 47% yearon-year to Rs29 billion in the fourth quarter, driven by the volumetric growth that went up 34% year-on-year. Sales of Suzuki WagonR remained the most impressive with volumes reaching 8,352 units in 4Q2017, up 100% yearon-year. It was followed by Mehran (up 31%) and Cultus (up 14%) whose sales were boosted by increasing demand from online ride-hailing services and sustained low financing rates.
under review about 4,514 trucks were assembled in first half of current financial year as compared to the assembling of 3,806 trucks of same period last year. Local production of trucks was recorded at 625 in month of December, 2017, which stood at 680 trucks in the corresponding month of last yea. During first half of current financial year local production of jeeps and cars were recorded at 114,821 as against the manufacturing of 90,443 jeeps and cars of the same period of last year, it added.
Auto sector bleeds red as dollar jumps to Rs118 The massive rupee devaluation of Rs7.5, which made the dollar to jump to Rs118, has had a negative affect on the auto sector, making all stocks turn red except two on last week. However, the sector would recover as auto assemblers would be able to pass on the impact of the jacked up price of the dollar. He added that the prices of imported new and used cars would take a bigger leap since the cost incurred for importing these cars is completely paid in dollars. So, subsequently, the demand for local cars would sustain.
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An Exclusive Review by Mansoor Rizvi
Monthly AutoMark International
Rise of Agricultural Mechanization in Punjab; Establishment of High-Tech Agricultural Machinery Centers to Provide Modern Technology to Farmers on Easy Rentals
he Di rec to ra te G en er al Ag riculture (Field), Government of Punjab has launched a very commendable sc heme t o u pgra de a gricu lt ural mechanization in order to enhance crop productivity through introduction, promotion and provision of economical & efficient farm mechanization. The main objective of mechanization is to introduce implements, equipment and machine to intensify agriculture production by: a. Enhancing speed of operation to complete the cultivation and harvesting process during the fastshrinking seasonal windows of major crops and b. bring accuracy in the pre and post-harvest farm operations to increase productivity. Mechanization in Agriculture has numerous benefits embedded with mu lti fac eted o p po rtu n it ies a n d challenges. These factors require thorough review to understand the possible outcome/results of the recently la u n c h e d P u n j a b G o v er n m e n t (Agriculture) Scheme. Its purpose is to take mechanization into the next level by initiatinga Schemeaimed to promote
T
precision farming equipment to enhance agricultural productivity by establishing High Tech Mechanization Service Centers (HMSC). The gestation period of the project is 2016-17 to 2020-21. The details of the Government program are as follows: • T o e s t a b l i s h 7 2 H i g h - T ec h Mechanization Service Centers (HMSCs) in the 36 Districts (two each) of Punjab on Public-Private partnership (@50:50) basis. • The total Project cost is Rs 3830.205million. • Government Contribution: Rs 2030.205 million • Service Provider Con tribution : Rs 1800.000 million The ceiling cost of each HMSC is Rs.50.000 million with a lower limit of R s. 20 .0 00 millio n to pro cu re agricultural machines. Selection of service providers was completed in January2018 to complete the first phase (2017-18) of the program. Seven companies have been selected to establish 18 service centers in 14 districts of Punjab. Agreements have been signed between individual companies and the Punjab Government (Field wing). The salient points of the agreement are as such: • A performance security @10% of service provider share in the form of bank guarantee should be deposited by the service provider to the department for a period of 4 years.
• Service provider is bound to provide the machinery to other farmers on rental basis for minimum 4 years. • The Government has not bound the service providers on rental charges of the machinery to be offered to farmers. • The Government has given a free hand to t he service providers to buy equipment from any machinery supplier in the country. • Service providers should obtain app rova l of the m ach inery an d equipment before placing an order to the respective manufacturer from DG (Ag.) office. The process of the disbursement of subsidy amount has now been made easy compared to the initial plan where money was supposed to be released after final inspection of the machine in the country. According to the modified process 40% of the total Letter of Credit (LC) value will be released to the entrepreneurs after submitting the final copy of the confirmed LC. Ordered machinery s houldreach Pakistan preferably by end of the fiscal year (2017-
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Review - continued 2018),June 30th,but in case of imported machinery,delivery date provided by the manufacturer will be considered. The waiver will be given based on case to case assessment. Highly qualified staff was hired by the Government on a contract basis to ensure transparent execution of the project. What will the service providers do? These service providers will establish centers to offer high tech agricultural machinery on a rental basis to farmers of their area (district). These centers will select the machinery based on the ex istin g croppin g pract ice s (wheat/rice/maize-sugarcane etc.) of the respective area. The objective of the government is to provide complete range of advance agricultural machinery to the farmers of their area. The other benefit of the program is the opportunity of “learning by doing and “seeing is believing” whichwill create practical awareness among the farming community about the ben efits of mechanization. What will be the benefits of this program? It will change the entire outlook of agriculture in Punjab by enlarging the food area and bring unparalleled rise in the national income. More prominently it will overcome labor shortage created due to migration of labor to the cities and on the other hand, modify the social structure of rural areas,paving the way to commercial agriculture instead of subsistence agriculture. This will potentially address the challenges currently considered as one of the major road blocks for mechanization as majority farmers in Pakistan possess around 2 hectares of cultivable land. This shift will encourage farmers to acquire more land and capital to reap the full technological benefits.
Mo re fo od prod uctio n, reduc ed drudgery and rise in farm income will eradicate poverty. The farmers will have more access to credit which was currently denied due to their low repayment capacity. One of the reasons of the decline in agricultural output is the weak financial position of our farmers. They arestruggling to get credit to meet th eir da y-to -da y in put requirements. What is the current state of mechanization in the country? Mechanization started in Pakistan around late fifties. Bullocks were gradually replaced with tractors (0.9 million tractors plying in the country) but they were not utilized to their full capacities and capabilities due to a lack of awareness about their optimal operations and un-availability of proper equipment. As a result, present per hectare horse power availability in Pakistan is only 0.90 hp/ha as opposed to 2.31 hp/ha of India. The requirement of 1.4 hp/ha as recommended by Food and Agriculture Organization (FAO)can be achieved through manufacturing tractors in high volume. Tractor itself is a source of power at fa rm. I t rema in s in com plete if proper/specific tools are not available to use with various farming practices from sowing to harvest. It is said that Massey Ferguson started giving free (or may be on subsidized rate) cultivators with the tractors when they started selling tractors in Pakistan. Whatever may be the reason, cultivator has for the longest period and still continues to have become an integral part of a tractor and is being widely used as both a primary and secondary tillage. (Cultivator is a secondary tillage implement to prepare seedbed). It goes barely 7-8 inches deep in the soil and due to its extensive use over an extended period time, a hard mechanical pan has beencreated under
the soil surface, causing negative affect on roo t p ene tra tio n a n d w at er movement among other issues affecting yield. The other implements like MB plough, disc plow, disc harrow, chisel plow and rotavator are used but in a way less quantities than Cultivator. The seed drills and planters have seen little growth in the past ten years while rice transplanters have seen coming in recently (5 years or so). Similarly, mechanization in plant protection equipment is limited and basic. Reapers and threshers have contributed a lot in the wheat harvesting. Stationary threshers have made wheat threshing 100% mechanized. Since the past two deca des a gr icult ura l m a ch iner y suppliers in Punjab, particularly in Gujranwala, had started importing used Combine Harvesters from Europe as scrap and then refurbished in Pakistan for sale between $30-45K. This has encouraged private entrepreneurs to establish Combine Harvester rental companies. Today around 5000 selfpropelled Combine Harvesters are plying in th e co untry (90% are New Holland Combines) thus around 28. 5% a nd 57% of to tal W heat and Rice cropped area (6.9 and 1.7 million hec tares ) are ha rvest ed mechanically. There is still an untapped market of 70% & 43% for wheat and rice respectively, which could be targeted in the near future. These old Combines cause huge grain losses of up to 12%. This new scheme will provide an opportunity to the service providers to purchase new machinery. The current Government has already reduced duties from Combine Harvesters. In the past two harvesting seasons of sugarcane acute shortage of labour has been noticed by land ownersthat has created a need for a Self-propelled
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Review - continued Sugarcane Harvester in the country. Four Case New Holland Sugarcane Harvesters had already been bought by a company in Punjab. On the other hand, the situation of local implement manufacturing industry is very disorganized and has not come out of it s t rad itional bla cks mith environment. As a result, it has not make any significant progress towards the introduction of good quality, properly designed and modern agricultural implements. However, the industry was producing the implements for local consumption mostly on the basis of advance orders. It was assumed that the total implement production (Basic pr im a ry a n d s ec o n d a ry t illa g e implements) was meeting the demand and as such no demand-supply gap has ever been noticed. The government of Pakistan has initiated/executed various programs in the past four years to disburse locally produced implements under government subsidy (50-80%) schemes. It was observed that since the increase in th e diesel prices (3 7Rs/ liter98Rs/liter in 16 years) farmers have started thinking to spend more on quality implements to save on diesel co ns u mpt ion . T h e y ha ve th e understanding that poorly designed im plements crea te a hu ge draft on tractor and make it difficult to perform because of excessive fuel consumption. This has triggered the interest of farmers to purchase advance implements. Pakistan agriculture has witnessed a positive trend in the past years where small clusters of commercial agriculture have started popping up in dairy, Rhodes grass cultivation for export, maize, potatoes and mechanized collection of straw of various crops for bio-energy. The international food chains, return of foreign qualified children of traditional land lords, involvement of international machinery manufacturing companies, and transformation of our world into a global village have contributed a lot in the progress of mechanization in the country. The Government of Punjab has launched this scheme at the righttime when introduction and induction of modern precision machinery is required to improve production and reduce yield gap (Our yield is 40% less than India and other poor countries) to provide food security to the nation.
What new machines will be available to the farmers of Punjab as a result of this scheme? The Government of Pakistan has included a wide range of agricultural machinery in the list that could be imported from abroad provided meeting the criteria of “High-Tech machinery and equipment” to ensure establishment of Hi-Tech Mechanization centers in Punjab. The category of machinery and equipment included are enumerated below: Tractor 4WD above 85 HP , Soil Cultivation/tillage, Sowing and planting, s pr ay er, fer tili zer a n d ma n u re application, Harvesting and Picking, Post-harvest, Fodder and Silage, Balers and Earth Moving Machinery. The Government has also issued a negative list of equipment to negate/stop purchase of basic/local machinery and equipmentproduced locally in the country. What would be the main benefits of the introduction of modern agricultural machinery? Introduction of modern agricultural machinery will increase cropping intensity, crop yield and play a major role in minimizing the yield gap. It will also accomplish other tasks that are currently left unattended due to the unavailability of required machinery. For instance, the stubble after wheat harvest (not considering rice straw and cane trash) is mostly left uncut and later burned damaging environment and have become major cause of smog in Punjab. The amount of loss could be viewed from the below table based on the assumption that 5000 Combines are plying in Punjab and each Combine has the capability to harvest 1000 acres per season. An average of 1200 kg/acre of wheat stubble is left uncut on the ground.This has the potential to be sold at 5.35 PKR/kg (average). However, due to a lack of proper equipment, 70% of the total straw is burned and never utilized resulting in a total national loss of straw costing around $182 million USD per wheat season only. This is just one example that the introduction of modern Combines and Baler can contribute to the national exchequer. Various reports on Farm mechanizations had mentioned that there is a direct correlation between mechanization and yield. Field results have confirmed the positive contribution
of mechanization in various crops where maize’s yield was improved up to 4050% while 15-20% and 30-40% were observed in paddy and wheat (S.E Joh ns o n). An o th er res earc h on mecha nization docum en ted tha t appropriate mechanization can save 15%-20% seeds, 15%-20% fertilizers, 20%-30% working time and 20%-30% labor at the farms. Furthermore, 5%20% increase in cropping intensity and 10%-15% in crop productivity were found too. ( Current status and overview of farm mechanization in Pakistan – A review (Rehman et al., 2016)) What else is required to achieve maximum crop output? There sho uld be a cen tral body (committee) with certain powers to monitor and evaluate unanimously all segments of agriculture to immediately arrest and fix the weak areas. Mechanization without availability of quality inputs and its affordability to buy inputs keep production deficient and won’t allow the nation to reap full ben efit s of M ech an iza tion . Th e availability of water, quality seed, fertilizer and pesticides are as important as machinery and equipment. Our defective marketing process is the chief exploiter of the farmer which needs to be reviewed thoroughly and overhauled to the benefit of tillers because it didn’t let our farmers get better prices of their produce. Farm to market roads (Govt. of Punjab has already done tremendous work to link villages to cities by providing good roads.) and crop storage needs to be strengthened. The role of support prices is commendable. The alignment and synchronization of all these factors will lead to a production of bumper crops naturallystrengthen the economy and reduce yield gap. This will ensure food security for th e ever increasing population (209.97 million people) of Pakistan. Consistent monitoring, evaluation and control of the project team in the ex ec u t io n o f t h e H igh - Te ch Mechanization program will bring greater results and surely would be a game changer not only for Punjab but for the entire country as other provinces will follow the same program in the years to come to enhancecrop productivity.
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By Automark - Coverage of PR in Karachi
Monthly AutoMark International
Nissan to begin Datsun production in Pakistan with Ghandhara Nissan
Nissan Motor Co., Ltd. is entering the Pa kis tan marke t through a manufacturing and licensing agreement with automotive partner Ghandhara Nissan Ltd. for local production of Datsun models. The agreement also covers distribution, providing access to a market where demand for new vehicles has grown to more than 200,000 units a year. The move is part of Nissan’s strategy to engage with emerging automotive markets around the world, bringing brands and products tailored to meet rising consumer demand. Sales of the first locally built vehicles are expected to begin in Pakistan within the 2019 fiscal year. “T h is ent ran ce to th e P akis ta n a utomotive market represen ts a s ig nifican t step in t he o ng oin g development of local manufacturing infrastructure and economic activity,” said Peyman Kargar, Nissan senior vice president. “We are confident that, with the close collaboration and support of the Pakistani government, this will deliver sustainable benefits for the national economy, customers, partners and Nissan.” “Together with Ghandhara, we’ll be working actively with suppliers to localize and exchange technology and skills, which will provide a lasting benefit to the emergin g local component
industry,” Kargar added. Nissan’s entry will provide Pakistani customers with a fresh and desirable lineup designed and built with the most m o d er n Ja p an es e e n g in e er in g . It will also provide a significant boost to the automotive industry, which already accounts for about 4% of Pakistan’s gross domestic product. Ghandhara will invest 4.5 billion Pakistani rupees (about $41 million) over the first four years. The project and the development of a retail network will create more than 1,800 jobs. Nissan and Ghandhara will work together to develop Ghandhara’s facilities in Karachi’s Port Qasim into a world-class manufacturing plant. The p a rt n er s h a ve a lo n g -s t a n d in g relationship, bringing a wealth of local knowledge and experience. The project has qualified for brownfield category s tatus under the Governmen t of Pakistan’s Automotive Development Policy. “This agreement will introduce worldclass facilities and the best of Japanese engineering technologies,” said Ahmed Kuli Khan Khattak, CEO of Ghandhara. “By localizing the manufacture of parts a n d co m p o n en t s a n d bo o s ti n g development in the auto supplier industry, it will provide Pakistan with technical assistance and promote partnerships with Japan.
“Customers in Pakistan will benefit from more choice and enjoy engaging driving experiences with vehicles and modern features that are ideally suited to the country.” About Nissan Motor Co., Ltd. Nissan is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, INFINITI and Datsun brands. In fiscal year 2016, the company sold 5.63 million vehicles globally, generating revenues of 11.72 trillion yen. In fiscal 2017, the company embarked on Nissan M.O.V.E. to 2022, a six-year plan targeting a 30% increase in annualized revenues to 16.5 trillion yen by the end of fiscal 2022, along with cumulative free cash flow of 2.5 trillion yen. As part ofNissan M.O.V.E. to 2022, the company plans to exten d its lea d ers hip in elec tric veh ic le s, symbolized by the world’s best-selling all-electric vehicle in history, the Nissan LEAF. Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: Asia & Oceania; Africa, the Middle East & India; China; Europe; Latin America; and North America. About Ghandhara Nissan Ltd. Ghandhara Nissan Limited (GHNL), established in 1981, is part of the Bibojee Group of companies. The group is an indus trial cong lomerate with an extensive portfolio of busines ses comprising cotton spinning mills, a woolen mill, automobile assembling plants, a general insurance company, Pakistan’s largest tire manufacturing company and a construction company. GHNL provides a complete range of vehicles and services that deliver superior values to all stakeholders. Having two independent assembling facilities each for commercial and passenger vehicles, it is the country’s only automobile company with the capability of assembling a complete and diversified range of products. The company is committed to delivering high-quality products ensuring customer satisfaction while contributing to the economic growth of Pakistan.
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New Investment - Automotive Sector
Monthly AutoMark International
Renault to Establish Assembly Plant in M3 Industrial area Faisalabad In November 2017, Renault and AlFuttaim officially declared that they have signed definitive agreements for the exclusive assembly and distribution o f R en ault bra nd ed veh ic les in Pakistan. The French automaker was earlier in talks with Ghandhara Nissan Company but the deal couldn’t shape up. Later in December 2017, Al-Futtaim indicated to begin construction of their assembly plant in Karachi in 2018, while intended to sell their assembled models starting from 2019. In a recent development, the company has reportedly inked a direct investment agreement worth $150 million to construct an automobile manufacturing plant in M3 Industrial Area Faisalabad, instead of Karachi. According to sources, the Government of Punjab is offering cheaper land to French automaker to establish its plant in the province. Previously, Renault while in talks with Ghandhara, indicated to begin their
operations in Pakistan with the Duster SUV, however now that the French automaker has teamed up with AlFuttaim, we will have to wait to see which vehicles they introduce here in Pakistan. Better still, we can have a look at the possible options Renault might launch in Pakistan. Automark magazine had break this news on last week just after an agreements s ign ed betw een Al-Futta im an d management of M3 industrial zone in Faisalabad. Article published in Dawn news paper
in December-2017 on same issue, we are printing here below for readers to know what’s going on in Sindh province. Around 10 projects in the fields of automobile, auto parts, pharma and steel carrying an investment of Rs25 billion have been waiting for months to get tax exemptions and other incentives allowed in the Special Economic Zones (SEZs). Auto vendors, who asked not to be named, said, it has now been three months that the NIP Board of Directors, for unknown reasons, has not given formal approval of land allotment to AlFuttaim Motors. The sponsors, who had proceeded for the formation of AlFuttaim Motors in Pakistan based on NIP’s commitment, have held back transfer of $120m equity and may even roll back investment if the delays continue.
UD Quester heavy-duty truck will be launched in Pakistan soon UD Trucks was established in Japan in 1935, and became a part of the Volvo Group in 2007. UD Trucks has a long and proud history in Pakistan. UD Trucks (previously known as Nissan Diesel) was the first Japanese truck brand to enter the Pakistan market, and has since then continued to be one of the leading players in the country. UD Trucks Corporation is now planning to introduce their popular new heavy-
duty truck model Quester in the Pakistan market for which they have appointed VPL Limited (VPL) as their authorized importer. VPL is a leading importer of trucks, b u s es , c o n s t r u c t io n & m in in g equipment, generators and tools in Pakistan with a country wide after-sales support network. The UD Quester heavy-duty truck will be launched in the country soon. The plan is to enhance the experience and
support for UD Trucks customers in Pakistan in both the sales and after sales dimensions.
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New Investment in Automoitve Sector
Monthly AutoMark International
Chinese company signs deal with Pakistani partner for automobile assembly plant A Framework Agreement of Joint Venture for Manufacturing of World Class Buses in Pakistan was signed in Chengdu between the Commerce and Sourcing House Holdings (CASH) of Pakistan and Chengdu Bus Co. Ltd., a State-owned Company. The agreement was signed by the President of CASH Chico J. Ullah and President of Chengdu Bus Co. Ltd. Wang Rongkun at the Pakistan Consulate in Chengdu. Speaking on the occasion, Consul General Muhammad Mudassir Tipu hailed the signing of the Framework Agreement as an important step in bringing a world class bus manufacturer to Pakistan to meet the large demand for both highway and city buses. He termed the agreement as an important step in promoting collaboration in transportation sector of Pakistan and China. Both the parties con veyed their commitment in jointly developing
Pakistani market for both mid-size and large buses and jointly invest in settingup a manufacturing plant in Pakistan. According to the signatories of the ag reement, the to tal amo unt of investment is expected to exceed $10 million and plant will be set-up in Lahore. CASH is a Pakistani holding and
PAMA proposes cut in input tax rate on tractors
investment group company that covers a wide range of industries including automobile, pet feed, and smart manufacturing. Chengdu Bus Co. Ltd. manufactures and supplies buses for local and long distance transportation in Chengdu and surrounding areas catering to a population of more than 20 million.
SECP, FBR launch one-window facility for company, NTN registration
As part of Doing Business Reforms have to suffer substantial financial Pakistan Automotive Manufacturers burden due to lengthy reviewing Association (PAMA) has urged the agenda, the Securities and Exchange process of the FBR and incomplete government to reduce the rate of input Commission of Pakistan (SECP) and the documents / details submitted by small tax on tractors, which is resulting in Federal Board of Revenue (FBR) have vendors.” liquidity crunch and affecting the la un ched a o ne-w ind ow fa cilit y “As sales tax on imports is directly tractor industry, a statement said on for company and national tax number collected by the government at the last month. (NTN) registration. i mport stage and n o othe r The sales tax rate charged on tractors Zafar Abdullah, the SECP Chairman, intermediaries are involved; therefore, sale is five percent as against the and Khawaja Adnan Zahir, Member (IT) it is advisable for the authorities to components purchased locally, as well FBR, jointly inaugurated the system implement this measure; avoiding as imported required to manufacture during the launch ceremony held on hassle of refund processing,” he tractors are subject to the sales tax at W ed nes day at th e SECP’s hea d suggested. the rate of 17 percent. office which was attended by senior “We propose the sales tax should be This has resulted in accumulation of officials of SECP, FBR, BOI and PRAL. eliminated or rationalised on the legitimate refunds with the Federal Zafar Abdullah congratulated the teams pu r c ha se of i m por te d tr ac to r Board of Revenue (FBR), which of SECP, FBR and PRAL on putting in components, as there is no point of currently stands at around Rs2.4 exhaustive efforts to develop the system. c olle cti on of sale s tax b y the billion for the industry. Due to this, The SECP has undertaken a host of government at the time of import and the entire tractor industry is facing re fo rm m e a s u r es , w h ic h h a v e subsequently giving refund for the liquidity crunch, affecting the trust of same,” he said, adding that such a foreign investors / shareholders, it resulted in a robust corporate growth in change in input tax rate will eventually added. the country, leading to formalization of benefit not only the farmers but the Abdul Waheed Khan, director general the business sector and documentation entire tractor industry. of PAMA, said: “Presently, Original of economy, he added. Equipment Manufacturers (OEMs) www.automark.pk | April-2018 | Page 34
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Exclusive Review by Anwar Iqbal
Monthly AutoMark International
RICKSHAW FROM HUMAN TO MACHINE A PICTORIAL NARRATIVE The classic definition of what is a rickshaw is a cart that can seat one or two people powered by a human runner – on legs, the cabin is mounted on a pair of wheels and the runner carried two sticks used to fulcrum the rickshaw. Who invented the rickshaw is a hotly disputed issue, with Japan, the UK and the USA all claiming ownership, What we do know is that rickshaws first became popular in Japan during the 1870’s and that the word rickshaw comes from t he Ja pan ese wo rd Jin rikisha , which m ean s h uman powered vehicle. It is said to have been invented by Reverend Jonathan Scobie in Yokohama Japan by a European missionary to carry around his invalid wife. At one point the country had 21,000 licensed rickshaw drivers. By the turn of the century, the rickshaw had reached India and China, where it really took off. Tho usands w ere produced and they became the favored form of transport for the colonial elite, both to escape the sweltering heat and show off their bank balance.It was in these countries that the image of a fat colonialist being pulled around by a bent over local became infamous. The rise of the bus and other forms of public transport killed off almost all human rickshaw business by the end of
World War Two. Mao banned them completely from China as a symbol of working-class oppression in 1949, while India and most other Asian countries followed suit soon afterward. The only large scale operation of rickshaws still on the streets is in Calcutta now called Kolkata. Here ric k s h a w ru n n e rs u n io n s ha v e ferociously fought bans and an estimated 20,000 carts still ferry passengers around by the city. By contrast, Hong Kong has just three rickshaws still in operation, almost exclusively aimed at tourist. Other cities where the rickshaw still runs around include London, Dublin and LA, where they are used as tourist attractions in certain areas. Just don’t expect the bargain prices from the old days. In 1947, the inventor of the Vespa, aircraft designer Corradino D'Ascanio, came up with the idea of building a light three-wheeled commercial vehicle to power Italy's post-war economic reconstruction which is nicknamed as Tukxi. This ideahas also found favour with Enrico Piaggio, the son of the firm's founder, Rinaldo. Tukxi is an Italian Piaggio Tri-Porter, a Piaggio Ape Calessino to be accurate. Tukxi's history began at the Italian Piaggio factory in Pontedera, near the
leaning tower of Pisa. At the end of World War II, most Italians, badly affected by the war, lacked viable modes of transport, and more importantly, the financial means to acquire full-sized four-wheeled vehicles. The very first Tukxi model and the mark im m ed ia t ely f ol lo w in g it w e re mechanically a Vespa with two wheels added to the rear, with a flat-bed structure on top of the rear axle. In the early sale brochures and adverts the vehicle was referred to as the VespaCar or Tri-Vespa. By the time of the 1964 Ape D a cab was added to protect the driver from the elements.The first Apes featured 50cc, 125cc or 150cc and more recently 175cc and 422cc diesel engines. The Ape has been in continuous production since its inception and has been produced in a variety of different body styles in Italy and other parts of the globe. In Southeast Asia i.e. India and Pakistan the Piaggo Ape,started the knockdown production of the Auto Rickshaw which was introduced in 1964.
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International Achievement Awards
Monthly AutoMark International
FAW Pakistan “AL-HAJ” won the “Distributor of the Year 2018” for the second consecutive year in a Global Sales & Marketing Conference held in Hangzhou, China on last month. There were 32 FAW distributors across the globe and FAW Pakistan in 3 companies who secure this award
Rickshaw on the streets of Karachi in 1947
Human Rickshaw is still plying on the road of Kolkata India
Auto Rickshaw on the streets of Pakistan now
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Inauguration Ceremony in Karachi - Cover by Automark
Master Motors opens new assembly plant for Changan and IVECO vehicles in Pakistan Master Motors Limited has inaugurated its new plant for the assembly of Changan and IVECO products. The inauguration ceremony was held at Master Motors Limited plant, at new land in Port Qasim Area Karachi. The Master group has been operating since 1963 in different sectors including Power, Textile, an d Automotive. The plant was inaugurated by Minister of Industry & Production, Sardar
Muhammad Arshad Khan Leghari and Chief Executive Officer of Master Motors Ltd. Nadeem Malik. Master Motors, a state of the art, automobile assembling & manufacturing unit was established in the year 2002 and started assembling of Mitsubishi FUSO in 2008. Ac h ie v in g m a s s i v e s u c ce s s in establishing current brands, Master Motors is now expanding its spectrum
in the automotive sector. For the said purpose, Master Motors has ventured new contracts with the world renowned Italian Truck Brand, IVECO and leading Chinese Automobile Manufacturer of Passenger vehicles and Pickup, Changan. In order to meet the assembly line demands as well as quality standards, Master Motors is expanding and is establishing a new assembly plant at Port Qasim.
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Monthly AutoMark International
Automotive News - Update
Automation to help Pakistani firms get better growth: Japanese experts A delegation of experts of Japan International Cooperation Agency (JICA) working for various government organizations in Pakistan visited Islamabad Chamber of Commerce & Industry to discuss reforms in key sectors of the economy. Yuko Tanaka JICA Export for Board of Investment, Mei Saito JICA Expert for Trade Development Authority of Pakistan, Shunichi Uchida JICA Expert for Engineering Development Board and Hiroko Hayashi of Asia Engineering Con s ultan t Co Ltd w ere in t he delegation. The delegation members said that they were working as JICA Expert for BoI, TDAP and EDB in Pakistan and they wanted to get the input of private sector for further reforms in the key sectors of the economy. They said they were working for developing an investment guidebook for Pakistan in order to lure more local and foreign investment in the country. They said that the suggestions of business community would be given due consideration for investment guidebook. They said they wanted automation of
Pakistan's industry so that it could achieve better growth . They said the Japanese companies needed easy access to Pakistani market that would further strengthen bilateral business relations between the two countries. Both sides discussed to organize a seminar at ICCI to highlight the potential areas of cooperation b et w ee n P a k is t a n a n d J a p a n . The delegation as sured to make suggestions and input of business comm unity part of th eir recommendations for economic reforms in Pakistan. Speaking at the occasion, Sheikh Amir Waheed, President, ICCI said that TDAP should prepare feasibility studies on trade/exports promotion with various countries and upload on its websites so that private sector could take benefit of them for promoting trade and exports. He said government should provide more funds to Pakistani Commercial Counsellors in foreign countries so that they could cooperate with private sector in identifying new markets for Pakistani products. He said that to improve gender parity,
govern men t sh ould o ffer special incentives to women entrepreneurs for their economic empowerment and bringing them in the mainstream of economy. He sa id T DAP sh ould fo cus on promoting trade with regional countries that offered great potential for exports. He said BoI should come up with attractive policies and incentives for foreign investors to bring more FDI in the coun try tha t w ould h elp in industrialization, improve exports and re du c e d ep en d en c e o n f or eig n borrowing. H e sa id E DB sh o uld foc us on strengthening engineering industry to promote exports of engineering goods that had great demand in the world. Muh ammad N aveed, s en ior v ice president ICCI said that instead of making Pakis tan a trading hub, g o v e r n m e n t s h o u l d fo c u s o n industrialization. He said FTAs signed with various countries should also be revised as these FTAs have not fully benefited the private sector in promoting trade.
Booking commences for Daehan Shehzore Daehan Dew an M oto r Com pan y (DDMC), which unveiled the popular light commercial vehicle last month, has opened its doors to the customers who were anxiously waiting to own the latest model of Shehzore once again. The cus tom ers c an vis it 3 S Daeh an dealerships close to their location, mainly at Islamabad, Rawalpindi, Chakwal, Mirpur AJK, Sargodha, Faisalabad, Lahore, Multan, Hyderabad and Q uetta, to have a hands -on experience of the vehicle. Additionally, the company has established its own Daehan Display and Product Support Centre at Karachi for customer service and assistance. Dewan Farooque Motors Limited
(DFML) assembly plant has resumed production. DDMC, after the successful launch of DaehanShehzore, will enter the passenger car segment with the introduction of Sports Utility Vehicle (SUV) produced by SsangYong Motor Company (SYMC), Korea’s 4th largest automobile manufacturer.
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International Exhibition by Messe Frankfurt Middle East
Automechanika Dubai 1 - 3 May 2018 Dubai International Convention and Exhibition Centre, UAE The upcoming Dubai Expo 2020 has sparked fresh optimism in the UAE a u t o m o t i v e a f t e r m a rk e t , w it h international manufacturers gearing up fornew business opportunities as final preparations fall in place ahead of the global mega event. The Middle East’s first ever World Expo is expected to attract more than 25 million people from across the globe, while a price tag of at least US$9 billion suggests the host Emirate is pulling out all the stops to create state-of-the-art facilities and infrastructure. With US$3 billion worth of venuerelatedconstruction contracts awarded in 2017 alone, the increase ofcommercial and heavy duty vehicles along with cars is expected to effect a corresponding rise in demand for spare parts and accessories, tyres and batteries as well as a host of maintenance and upkeeprelated infrastructure and services. The business potential has injected new impetus for international players in the auto services industry, with more than 1,900from 57 countries preparingto showcase their latest products and s ervices a t t he 16t h editio n of Automechanika Dubai in 2018. Companies exhibiting at the three-day event, which takes place from 1-3 Mayat the Dubai International Convention and Exhibition Centre, are targeting largescale business growth up to, and beyond the six month global showcase. UFI Filters from Italy is a debut exhibitor at Automechanika Dubai 2018, and will shine the spotlight on its full range of air, oil, fuel, cabin, hydraulic and coolant filters for the automotive sector. Luca Betti, Group Aftermarket Business Unit Director at UFI Filters, said the company recently reinforced its Dubai office to boost customer service support as business ramps up in the UAE, and regionally. “The reinforcement of ourDubai office team will support the development of UFI Filters business in the Middle East and Africa, which is a key pillar of ourthree year plan.Renowned for its
innovation, UFI Filters meets the needs of nearly all car brands and motorcycles as well as commercial, heavy duty and agricultural vehicles,” added Betti. Autopumps from the UK is another firsttime exhibitor at Automechanika Dubai 2018, and will introduce its aftermarket commercial and industrial pumps range. But Cotton cautioned: “Unprecedented decisions on time scales relating to new and emerging technologies may result in negative reactions regionally, so more clarity must be given with realistic time frames, factoring in the building of infrastructure.” South African exhibitor Supreme Springs is a prominent manufacturer of coils, leaf springs, torsion and stabilizer bars for the OEM sector, and will be at Automechanika Dubai 2018 to expand its aftermarket business. Gino Singh, Supreme Springs’ aftermarket sales managerhas followed the Expo 2020 closely since it was announced to take place in Dubai. “At this point, we’re of the opinion that the Dubai Expo 2020 will certainly grow the volume of production in the auto afterm arket as there’ll be more companies willing to enter the market,” said Singh. “The presentation that I’ve seen is very positive and I have been following the project.” Organised by Messe Frankfurt Middle East, Automechanika Dubai is the Middle East and Africa’s largest ex h ib it io n fo r t h e a u t o m o t iv e aftermarket and services industry. Long-time exhibitor ALCO Filters from Cyprus has generated US$10 million of new business revenue since it started ex hibiting at the show in 2006. LoizosLouca, ALCO Filters’ Managing Director said with the advent of the Dubai Expo 2020, business will only likely improve. “The Dubai Expo 2020 will obviously create an infrastructure boom that will drive the construction industry and thus the heavy duty filter industry upwards,” said Louca. “Also this will have a ripple
effect into the automotive aftermarket in the GCC region.” Automechanika Dubai 2018 spreads over six product sections of Parts & Components; Electronics & Systems; Accessories & Customising; Repair & Mainten ance; Car W ash, Care & Reconditioning; and Tyres & Batteries. Ahmed P auw els , CEO of Mes se Frankfurt Middle East, said: “Mega events such as the Dubai Expo 2020 do have a multi-sectoral impact on the region with the increase in expenditure for new infrastructure, support systems, logistics and commercial facilities. “The impact is reflected a mong exhibitors at Automechanika Dubai 2018, many of whom are anticipating an injection of aftermarket products and services demand, with the expected rise of vehicle parc. It may also favourably impact Dubai’s totalauto parts trade in the coming years, which in 2016, was worth US$10.6 billion,” Pauwels added. Automechanika Dubai’s global influence is highlighted by the presence of 25 country pavilions and 36 international trade associations, while 90 per cent of exhibitors, and 52 per cent of the 30,000-plus visitors are expected to come from outside of the UAE. The annual showpiece will return with its popular Truck Competence initiative, where more than 1,500 exhibitors will showcase their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repairs and care. It w ill a ls o feature the popular Automechanika Academy – a series of seminars, presentations, and workshops about key issues and regulations that affect the automotive aftermarket, and th e Afr ica n Bu yer- Seller M eet , connecting suppliers with buyers from the world’s second largest continent. More information about is available at: www.automechanikadubai.com
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Milestone by Automotive Industry - Update
Monthly AutoMark International
Inauguration Ceremony of PUMA Energy first OGRA compliant, Isuzu FVZ HD Euro3 Primemovers (340 and 360 hp) delivered by DTOD logistics, another milestone by Ghandhara Industries Ltd - Isuzu trucks
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Monthly AutoMark International
Automotive News - Update
Experts call for proper Home-work to take benefit of China-Pakistan Economic Corridor (CPEC) Senior professionals of the engineering community at an interactive-technical session held here on Saturday called for doing proper home-work to take benefit of China-Pakistan Economic Corridor (CPEC). Senior professionals of the engineering community at an interactive-technical session held on last month called for doing proper home-work to take benefit of China-Pakistan Economic Corridor (CPEC). It is imperative to properly conceive, plan and negotiate the CPEC to ensure its trickle-down impact on the life of a common man, said Engr. Zamir Ahmed Awan, who worked as diplomat in Pakistani embassy in Beijing and had a long working experience with Chinese officials and enterprises. The event was arranged by Institution of Engineers Pakistan, RawalpindiIslamabad Center (IEP-RIC) to sensitize the young engineers about various aspects of the on-going Sino-Pak socioeconomic partnership.
Engr. Zamir who has recently set up a Chinese Studies Center of Excellence here at the National University of Science and Technology gave a detailed pr es en ta t io n o n o p po r tu n it ie s , challenges and way-forward in special reference to CPEC. The session was part of the series of events, being arranged by the IEP-RIC on regular basis for professional dev elo pm ent o f th e you ng engineers,bling them to play their productive role in the country's socioeconomic development. The session was presided over by the Chairman IEP-RIC Engr. Hafiz M. Eh s a n ul Ha q Q az i. Th o se w h o participated in the talks included the Center's Vice President Engr. Dr Atta Ullah Shah, Secretary Engr. Sh a fi qu r R eh m a n a n d e v e n t 's coordinator Engr. Najamuddin. They emphasized that the all the work relating to CPEC should be made transparent, and the main stake-holders should be invo lved in its implement ation .
Customs Warn Traders to Show Correct data of imports from China UNDER-INVOICING, MISDECLARATION TO CREATE PROBLEM The Clearing Agents in Karachi have alerted all the traders that Pakistan and China customs are going to share data from 1st April 2018. This will allow Pakistan customs to check quantity and price of origin (which will be shown by the shipper on origin). Any under invoicing or misdeclaration will be easily caught. Please avoid any discrepancy in documents so later we may not face problem. It may be mentioned here that ‘National Courier’ had published a news item on March 11 about Online Verification of Goods being started between Pakistan and China from April 30. Traders from both the countries were advised to provide accurate packing lists of their goods to concerned authorities.
All goods being imported from China will be verified online by custom in China and Pakistan. Therefore, the importers were advised to provide accurate packing list (Quantity, Size, Type etc.) of their goods. It will be sole responsibility of the customer if any kind of discrepancy is found in verification of goods. It may be mentioned here that last year government of Pakistan had suggested this measure change through various high level meetings with Chinese authorities to end over-invoicing and under-invoicing menace by the traders in Pakistan, due to which actual amounts of import-export were difficult to assess by concerned authorities.
It was noted that the leadership of the two countries attached high importance to their economic partnership and wished that the CPEC that is a huge regional connectivity plan should be made successful. To China, the resource person Engr. Zamir said the CPEC is a role-model for its rest of corridor projects in the region, as well as the Belt and Road Initiative. CPEC, he said is a huge opportunity for economic prosperity, and it is now up to the Pakistani side to benefit from it by understanding its various dynamics with due sincerity and commitment. Th e CPE C, he added ha s given confidence to Pakistan to overcome its various socio-economic issues. Engr. Zamir further said China's influence in the region will have a very positive impact on achieving the targets of peace and stability. About the background of the CPEC, he said the idea of this connectivity plan was conceived years before to have China's access to Arabian Sea through Pakistan. About the China's rapid growth, he said it was due to visionary and sincere leadership of China. China, he added, is a hard-working and disciplined nation that brought miracles in their development process. Today, the country has emerged as World's second largest economy and it is moving fast to play leadership role in all sectors of economy world over.
Auto Policy 2016-21 The auto policy statement justifies the introduction of these incentives as: “A new manufacturer under Automotive De v el o p m en t P o li cy ( 2 0 1 6 -2 1 ) establishing a maiden assembly facility will invariably need separate treatment and greater incentives in the early years to enable it to introduce its brand, develop a market niche and share, create a distribution and after-sales service n et w o r ks , a n d d e ve lo p a pa r t manufacturer base.”
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Exclusive Article by Syed Sarim Raza
Monthly AutoMark International
Do Electric Vehicles Have a Future in Pakistan? major problem is the lack of awareness among common car buyers about advantages of EVs over the combustion engine vehicles. Some of the consumers in Pakistan don’t even know the absolute difference between the two, which is mainly because of the unfriendly government policiesto promote the sales of EVs.
Here are some major challenges that electric vehicles face in Pakistan:
The Electric-Car Boom has taken over the world in recent years as the global drive towards finding eco-friendly commuting options has pushed famous automakers to produce more Electric Vehicles (EVs) than ever before. The demand for electric vehicles is increasing by the day, thanks to the effectiveness of EVs in improving the air quality by reducing the carbon footprint. Electric vehicles generate power from electric batteries, hence th ey completely diminish the need for conventional fuel, which on combustion in petrol and diesel vehicles, adds to the air pollution. The acceptance of electric cars is growing steadily across the world as the sales figures of electric cars have continued to grow over the last few years.
Future of Electric Vehicles in Pakistan The sales of electric cars surged past the 3 million mark last year, which clearly highlights the growing demand for electric cars worldwide. Despite the global demand for electric vehicles increasing with every passing day, Pakistan is amongst the countries that have made little or no effort in taking initiatives to promote sales of electric vehicles. The new Automotive Policy 2016 does provide an opportunity to global electric car makers to launch their vehicles in
P a kis t a n , bu t be ca us e o f po or infrastructure and lack of awareness amongst consumers, the future of electric vehicles in Pakistan doesn’t look promising at all.
What are the Challenges? The industry of electric vehicles faces serious challenges in Pakistan. The
• The automotive industry’s giants will simply not let the Electric-Car Boom take over Pakistanas none of Pakistan’s three most famous automakers i.e. H on da, Toyota an d Suzukiin vest heavilyin electric vehicles. If the demand of electric vehicles rises in Pakistan, it will affect the sales of these three automakers, which doesn’t seem like happening, considering their current stakes in Pakistan’s auto industry. • The shortfall of electricity and lack of infrastructure are the major reasons why the Pakistan’s government is not even taking baby steps towards boosting the scope of electric vehicles in the country as suggested by Mashood Ali Khan, the former chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam). • Charging time required by the electric vehicles and the driving range that they offerare considered to be the negative factors that discourage the local consumers from buying EVs. The acceptance of electric cars has only grown in countries that offer the cons umers facilities s uch as the widespread network of thelow-cost charging stations for EVs. Countries like the United Arab Emirates are even offering free charging stations for EVs. Unless such facilities are also offered in Pakistan, the electric vehicles cannot attract the attention of consumers. A cc o rd in g t o a lo c a l in d u s t ry spokesperson, bringing electric cars to Pakistan will be waste of an effort in the current scenario and Pakistan should wait for the technology to grow globally before it is offered to Pakistan’s car buyers. He said the EVs can be a viable
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Monthly AutoMark International
Auto Show in Pakistan
Plastech Autosafe participate in Pakistan Show 2018 at Lahore Expo Center
Plastech Autosafe team being presented with participation award by PAAPAM Chairman at PAPS show 2018
Automark team visiting Plastech Autosafe stall at PAPS show 2018
Plastech Autosafe is a exclusive partner for Autoliv in Pakistan stall on display at PAPS show 2018
option in Pakistan only if they offer a driving range of 700km per charge as offered by a conventional vehicle’s fuel tank. • Lack of resolve in government’s strategies to promote the sales of electric v e h ic le s . P a k is ta n ’s t w o g i a n t neighbors,India and China, are investing heavily in the electric car industry and a im to re pla ce t h e t ra dit io n a l combustion engine vehicles with renewable energy based transport by 2040 in order to improve the air quality. Pakistan, on the other hand, is set to witness a serious increase in pollution levels as the demand for combustion eng in e veh icles is increa sin g by the day.
energ y and offer a fuel-efficient commuting option as compared to con ventiona l combus tion engin e vehicles. Fuel prices have continued to fluctuate in the global markets and in the last few months, fuel prices have increased significantly in Pakistan. In this current scenario, shifting from a traditional vehicle to an electric vehicle could be an ideal choice for motorists o n a tig h t bu dg et in Pa kis tan . Besides their effectiveness as a low-cost commuting option, EVs also offer an e co -fr ien d ly a lt ern a t iv e to t h e combustion engine vehicles. With more EVs on the road, the air quality in Pakistan can improve significantly over a period of time.
How are EVs better than Combustion Engine Vehicles?
Are there any Opportunities for Electric Vehicles in Pakistan?
Electric vehicles are a clean source of
No matter, how good the EVs may be in comparison to the conventional vehicles, the industry of electric cars cannot grow in Pakistan before the electricity outages in the country are reduced and the government sets a long-term plan to improve the air quality in Pakistan. The China Pakistan Economic Corridor (CPEC)has brought into perspective some new projects that focus on Chinese companies producing electric vehicles in Pakistan,however, these projects are expected to mature only after four to five years or even more. With electric outages expected to reduce in coming years by meansof energy-based projects that are part of the CPEC, there is a huge possibilitythat Pakistan will start to offer more relaxation in its policies to electric car makers to grow the scope of opportunities in the electric car industry.
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Corporate Business Event Update
Monthly AutoMark International
Mr. Kashif Qaseem, Director Crown Group at Pakistan Auto Show-2018 in Lahore
Chairman Crown Group Mr. Farhan Hanif with Chairman PAAPAM Iftikhar Ahmed, team members of Crown and other guests during Pakistan Auto Show-18 in Lahore on last month
MOU signing click with Head of Consumer and Team of Meezan Bank Ltd at Karachi on Date16 March 2018. Now Super Power & Power Motorcycles shall be available on easy installment with Meezan Bank's Bike Ijarah
Japanese MD of Pak Suzuki, Japanese Senior Advisory Director and PAAPAM office bearers at Pakistan Auto Show 2018 at Lahore
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International Automotive Industry - Update
Monthly AutoMark
HONDA RECALLS 255,000 ODYSSEY MINIVANS FOR SEATBACK PROBLEMS Big switch: Electric cars put China on automobile map The rise of electric cars heralds not only a major technology switch but also promises massive disruption to today's auto giants as Tesla and a group of powerful Chinese rivals take over the fast lane. The rise of electric carsheralds not only a major technology switch but also promises massive disruption to today's auto giants as Tesla and a group of powerful Chinese rivals take over the fast lane. The diesel scandal in 2015 in which Volkswagen admitted manipulating 11 million diesel vehicles worldwide to fool pollution tests only briefly dented the firm's profits. However industry insiders say it may have spurred the shift away from conventional internal combustion engines. The switch to electric motors threatens to eliminate an advantage that today's carmakers enjoy. They invested billions in research into developin g and refining intern al combustion engines, both to provide the perfomance drivers expect but also to meet increasingly demanding pollution regulations. Experts said this constituted a virtually insurmountable "market barrier to entry" for new competitors. With around 75,000 cars sold, Tesla, which started mass producing cars only a decade ago, is keeping pace with the Renault-Nissan alliance, according to figures from automotive industry r ea s ea rc h f irm Ja t o Dy n a m ic s However it was China's BAIC that stormed to first place with 78,000 sales for its EC series. The only other traditional carmaker in the top ten is US carmaker Chevrolet (part of General Motors) thanks to the Chevy Bolt.
SAFETY FIRST
Honda Odyssey minivans recalled after 354 warranty claims about seatbacks that won't lock. Honda is rec alling nearly 255,000 Odyssey minivans in the U.S. to repair second-row seatbacks that may fail to lock into place securely. The 2014-2016 Odyssey outboard second-row seats have levers used to fold the seatbacks and slide the seats forward to allow occupants into the third-row seats. Honda says the seatback can stay unlocked or unlock without warning if the release lever is used to fold a reclined left outboard seatback forward. Honda says it has received 354 warranty claims about the seats, but the first
claims started rollin g in between February and December 2015 when owners complained about seatbacks that wouldn't lock into place. However, engineers couldn't determine what was caus ing the p ro blem, s o H on da continued to monitor the field. Engineers tried replicating the problems but had difficulty because the returned parts were damaged, but in November 2016 Honda was able to reproduce the problem by using undamaged parts provided by the supplier. It was determined seatback recliner failures were caused by the pawls in the seat recliner discs separating from the guide plates, preventing the seatbacks from locking.
Toyota Builds First-Ever Flexible-Fuel Hybrid Vehicle Toyota has introduced a prototype for the world’s first hybrid flexible-fuel vehicle (FFV) in Brazil. Appearing for the first time at an event in São Paulo, Brazil, the prototype, built by Toyota subsidiary Toyota do Brasil, is based on the Prius platform, capable of running on both gas and ethanol. “The invention demonstrates our journey in providing a new mobility society,” said Steve St. Angelo, CEO for Toyota Latin America. “I am very proud of our Toyota do Brasil engineers that worked closely with our engineers in Japan to develop the world’s cleanest hybrid vehicle that uses ethanol for our Brazilian customers.” The prototype , pa rt of it s “En viron mental Challen ge 2050” initiative, marks Toyotas goal to reduce vehicle CO2 emissions by 90 percent,
using 2010 as a benchmark, with an additional goal of eliminating CO2 emissions from the manufacturing process. Ethanol (E100) is a plant-based fuel that 100-percent renewable, generating less C02 emissions than traditional gas and gas-electric hybrids. The next step for Toyota ’s hybrid flexible-fuel vehicle is to conduct realworld tests in Brazil, taking advantage of its pole position as second leading producer of ethanol in the world, where its government has provided support on biofuel-based initiatives. A go-to-market date is scheduled within the next one to two years. It is not yet known of the automaker plans to test it in other countries, such as the U.S., the number one ethanol producing country in the world.
Toyota revs engine development Raising efficiency even as EV era nears Toyota Motor Corp. will introduce a sweeping powertrain portfolio starting this spring as part of a five-year overhaul to make its vehicles more fuel-efficient but sportier to drive. The engine wave begins with a cleaner, more powerful 2.0-liter that will appear first in the redesigned Auris hatchback, which is to debut at the Geneva auto show. The Auris is the European and Japanese version of the Corolla iM sold in the U.S. By 2023, new engines and transmissions
will power 80 percent of new Toyota vehicles. The powertrain blueprint is Toyota's clear signal that it sees big potential for im pr o v i n g o ld - s c h o o l in t er n a l combustion technology, even in the dawning age of electrification. While Toyota expects half its nameplates to be electrified by 2030, some 90 percent of its vehicles will continue to rely on fuel-burning powerplants, said Mitsumasa Yamagata, Toyota's chief engineer for powertrain planning, in laying out the plans.
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Monthly AutoMark International
Automotive Event - Coverage
Visit of Pak Swiss Training Centre by Automobile Industry for CSR activity Organized by PSTC-OBA & AGC PSTCOBA has arranged one industrial gathering along with Ashraf Group of Companies with the cooperation of Pak Swiss Training Center Management towards Re-build PSTC through CSR activities. In this grand program more than 50 nos of Auto Industry Related companies and h ig h o ffi cia l p er s on al it ies h a s
participated in cludin g PAAPAM, Member Tech, Suzuki, Honda, Yamaha and Many other Respectful Industrial representatives. Who are willing to improve this institute and enhance their technological facilities with the help of CEC and PSTCOBA. Global General Manager & General M an ag er Sout h Eas t Asia Sales
Marketing PANASONIC Japan was also Attended this grand event specially from Japan. Electronic media ARY News , Abb Tak TV channels and AutoMark magazine team was covered this event for their appreciation on this national and global cause.
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Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR NEW CULTUS VXL NEW CULTUS AGS BOLAN VX EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2
SUZUKI MEGA CARRY SUZUKI CIAZ (A/M) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol)
Ex Factory Advance Tax Price Rs. 1029,000 Rs. 25,000 Rs. 1069,000 Rs. 25,000 Rs. 650,000 Rs. 10,000 Rs. 10,000 Rs. 720,000 Rs. 10,000 Rs. 773,000 Rs. 1,327,000 Rs. 50,000 Rs. 1,463,000 Rs. 50,000 Rs. 1,250,000 Rs. 1,391,000 Rs. 1,528,000 Rs. 725,000 Rs. 10,000 Rs. 696,000 Rs. 10,000 Rs. 10,000 Rs. 667,000 Rs. 1,499,000 Rs. 1,839,000 Rs. 1,699,000 Rs. 2,142,000 Rs. 2,418,000
HONDA Model
Price
Honda BR-V i-VTEC 1500cc Honda BR-V i-VTEC S 1500cc Model Honda Civic iTEC 1.8L Honda Civic Oriel 1.8L Honda City 1.3L Manual Honda City 1.3L Automatic HYUNDAI Honda City 1.5L Manual Honda City 1.5L Automatic Honda Aspire Manual 1.5L Honda Aspire Prosmatec 1.5L
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
2,243,000 2,343,000 Price 24,13,000 25,63,000 1,613,000 1,753,000 1,789,000 1,799,000 1,803,000 1,943,000
TOYOTA COROLLA Model XLI VVT-i 1.3L M/T Rs. GLI VVT-i 1.3L M/T Rs. GLI VVT-i 1.3 A/T Rs. ALTIS 1.6L Dual VVT-i A/T Rs. ALTIS 1.8L Dual VVT-i A/T Rs. Corolla Altis A/T SR 1.8L (Grande CVT) Rs. Corolla Altis A/T SR 1.8L (Grande CVT) Rs. FORTUNER A/T New
Toyota Hilux Pickup 4x2 sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Rs. 2,474,500
Toyota Hilux Pickup 4x4 E Model
PRINCE DFSK PAKISTAN Model
Price
Rs. 849,000 K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS/PW Rs.1,049,000 C37 1500CC, 11 Seater,AC/PS/PW Rs.1,599,000
Price 1,824,000 1,954,000 2,029,000 2,204,000 2,269,000 2,594,000 2,594,000
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
TOYOTA REVO DAIHATSU Model & Price
Vigo Champ-V MT Revo G M/T 1GD-FTV 2755cc 4,324,000 Revo V A/T 1GD-FTV 2755cc Vigo Champ-G AT 4,949,000 Revo G A/T 1GD-FTV 2755cc 4,5949,000
Rs. 3,805,000
FAW MOTORS Price
Model
FAW Carrier 1000cc FAW Carrier 1000cc (Flat Bed) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c FAW V2 1300cc M/T Monthly AutoMark Magazine - International Local Assembled
Rs. 819,000 Rs. Rs. Rs. Rs.
809,000 919,000 969,000 1,154,000
Price updated April- 2018
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International Automotive Industry - Update
Monthly AutoMark
2020 Toyota Corolla Rendered With New Auris Influences Volkswagen announces Chinese SUV offensive Volkswagen has confirmed it plans to offer 12 SUV models in China by the end of 2020 on the back of fast-rising demand for SUVs in its single largest market. The ambitious new model push was announced by its chairman Herbert Diess at the launch of the thirdgeneration Touareg. Joining the new Touareg in a lavish media presentation held in Beijing over the weekend was a trio of new Chinese SUVs, including the domesticallyproduced T-Roc and two lightly-veiled concepts – the so-called Advanced MidSize SUV to be produced by joint venture partner First Automobile Works (FAW) and the Powerful Family SUV to be pr od uc ed Sh a ng h a i Aut om ot ive Industry. Although the T-Roc is a development of the model introduced to European markets earlier this year and also planned to reach Australian dealerships in 2019, both the Advanced Mid-Size SUV and Powerful Family SUV have been conceived specifically production and sale in China. Based around Volkswagen’s versatile MQB platform, they will slot into the German car maker’s above the secondgen eration Tiguan but below the Teramont – a left-hand drive only SUV model which is also produced and sold in North America.
Like the Auris, the next-gen Corolla will move to a new platform set to bring improvements on all fronts. The undisputed best-selling car in the world and at the same time one of the oldest nameplates in the business is getting ready for its twelfth generation. Spy shots (like the ones attached at the end) have shown Toyota is hard at work prepping the all-new Corolla, which will be more than just a subtle evolution of the current model taking into account it will ride on the Toyota New Global Architecture. The prototypes that have been spotted so far by the spy camera were all wearing a significant amount of camouflage, so we still don’t know how the new one will end up looking. Maybe like a downsized Camry, maybe like a sedan Auris – your guess is as good as ours. It’s a similar story with the interior since it hasn’t
been caught on camera at all, while the Auris unveiled in Geneva had all the windows blacked-out to hide the cabin. Beyond the styling, the aforementioned TNGA underpinnings should bring improvements on all fronts. If the Auris is any indication (and it probably is), the Corolla will be offered with hybridized 1.8- and 2.0-liter gasoline engin es. A conventional 1.2-liter turbocharged mill powers the base Auris, but it seems highly unlikely such a small engine will be offered in the U.S.spec Corolla. By the way, the latter is set to be built at a new $1.6-billion factory in Huntsville, Alabama as part of a tieup with Mazda. Considering the new Corolla is expected to arrive for the 2020 model year, logic tells us we will get to see the next generation in production metal at some point in 2019.
Daimler launches new DENZA electric vehicle for the Chinese market Daimler and BYD Automotive Industry Co., Ltd. today launched the new DENZA 500 battery electric vehicle from their joint venture, Shenzhen DENZA New Energy Automotive Co., Ltd. Engineered and produced in and for China, the new DENZA 500 offers Chinese customers a comprehensive upgrade through a refreshed exterior design and extended electric range. The DENZA model combines Daimler’s vehicle architecture expertise and advanced safety engineering with BYD’s l ea d in g a d v a n t a g es i n b a t te ry
t echn ology. T hrough contin uous i n ve st m en t in DE NZ A pr o du ct development, Daimler is dedicated to contributing to the further development of electric mobility in China. The DENZA 500 adopts a refreshed and unique exterior design, featuring “tiger eye” LED headlights and rippling LED taillights, while inside sees a larger 9inch touchscreen. Upgraded connectivity services include charging solutions and the DENZA smartphone application.
India overtakes UK in automotive sales to emerge as fifth largest in the world Closing last calendar year at 3.61 million units with a growth of 8.8 percent, India’s domestic automobile sales were the fifth largest in the world. India’s automotive sales surged the second fastest in the world in 2017, with total numbers trumping developed markets like UK and France and coming within striking distance of Germany. Closing the last calendar year at 3.61 million units with a growth of 8.8 percent, India’s domestic automobile sales were the fifth highest in the world behind China (25.8 million), the United States (17.23 million), Japan (5.16 million) and Germany (3.71 million).
Auto sales in the UK were at 2.9 million units, and in France were at 2.54 million units. Brazil was the world’s fastest growing automobile market, registering a 9.4 percent year-on-year rise in volumes to 2.16 million units, according to data shared by London-headquartered business intelligence group JATO Dynamics. From a gap of 378,000 units between itself and Germany in 2015, India is now just 96,000 units behind the European country in terms of annual automobile sales. Market estimates expect India to overtake Germany by end of this year
on the back of sustained demand for compact hatchbacks and sports utility vehicles (SUVs). However, on value terms India ranks far behind developed markets, including Germany. Compact cars (under 4 meters) make up 75 percent of India’s passenger vehicle demand, which is more than most other developing and developed markets in the world. These small cars from Maruti Suzuki, Hyundai and Tata Motors, whose average ticket price is Rs 4.5 lakh, dominate India’s domestic passenger vehicle market.
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Rs. 41,800/= Rs. 43,800/= Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1
Retail Price Rs. 63,500/= Rs. 67,500/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 45,000/= Rs. 44,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=
125/150/200cc Motorcycle No.
Brand & Model Name
Retail Price
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.
Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP Twister 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Super Power SP 200cc Unique UD 125cc Unique UD 150cc Crazer Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II Zxmco ZX-200cc
Rs. 107,500/= Rs. 126,500/= Rs. 106,900/= Rs. 162,000/= Rs. 70,000/= Rs. 67,000/= Rs. 108,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 2,00,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 115,900/= Rs. 133,900/= Rs. 129,900/= Rs. 65,000/= Rs. 71,600/= Rs. 2,45,000/=
Sr./ No. 13. 14. 15. 16. 17. 18. 19. 20.
Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Ms Jaguar MS 70 Euro- II Ms Jaguar MS 70
( DREAM)
Zxmco ZX-70 Regular Leader LD-70
Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 42,300/= Rs. 44,000/=
100cc/110cc Motorcycle No. Brand &Model Name 1. Honda Pridor 2. United US-100 Euro 2 3. Road Prince 110cc 4. Unique UD-100 5. Super Power SP-100 6. Hi-Speed Classic SR-100 7. Hi-Speed Alpha SR 100 8. Super Star SS-100 9. Crown CR-100 10. MS JAGUAR MS 100 11. Zxmco ZX-100-SS 12. Leader Classic LD-100
Retail Price Rs. 86,000/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 82,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/= Rs. 52,900/=
Suzuki Motorcycle Sr./ Product & Retail Price No. Model Name Rs. 111,400/= 1. SD110 Sprinter ECO Rs. 163,500/= 2. GS-150 SE Euro-II Rs. 136,000/= 3. GD 110s Euro-II Rs. 143,500/= 4. GS-150 Rs. 219,000/= 5. GR-150 Heavy Bikes Product & Sr./ Retail Price Model Name No. 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Bandit GSF650SA Rs. 15,50,000/= 5. Honda ADA CB250F Rs. 6,40,000/=
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