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Editorial
MONTHLY
The Magazine for Pakistan Automotive Sector
April 2011 Vol 4, Issue 04 Editor :
M. Hanif Memon
Sub Editor : Dr. Raja Irfan Sabir Contribution Writers : Syed Mansoor Ali Shahzad Tabish Ali Hassan Mohammad Owais Khan Omar Rashdi S.M. Ashraf Muneeb Jawed Syed Haider Mehdi Advisor :
Japanese tsunami to hit Pakistan auto industry Japanese earth quake accompanied by the worst ever Tsunami ravages since World War II may potentially carry implications for global currencies, commodity markets and auto industries in the developing world including Pakistan. One of the major impacts of Japanese tsunami on auto industry due to possible disruption of supplies of parts may consequently result in further increase in car prices in the domestic market.
Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert Islamabad
Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center, & Consultant (MME), NED University - Karachi
Syed Mansoor Ali Business Manager Case NewHolland Pakistan
Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi
Though details of the losses from the worst earthquake in Japan’s history are yet to be calculated, though the Japanese PM has called it the worst disaster to hitting Japan since 1945. Initial reports and analysis suggest the impact on GDP to be lower than the 1995 Kobe earthquake as the affected areas are neither densely populated not highly industrialized. However, Japanese being the third-largest economy and net savers of 23.1% of GDP are expected to impact both global currency and commodities markets. While weaker initial demand should negatively affect commodities prices, Japanese repatriating investments to use in relief/reconstruction activities should cause Yen appreciation.
J. Pereira General Manager Product Support Division Al-Haj FAW Motors (Pvt) Ltd. Karachi Circulation Manager : Abdul Khaliq Designed By : Mustafa Hanif
Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk E-mail: magazine@automark.pk automarkpk@gmail.com Tel/Fax : 021-32218526 Mobile: 0321-2203815
It may be noted that the Japanese yen appreciated by 20% post Kobe Earthquake. And the current trend can affect autos by disruption in parts supplies despite inventory holdings for 35-45 days on average with a view to help in smooth local production in the short-term. Yet another impact of the Japanese disaster could be Yen appreciation consequently raising parts and CKD costs. However on positive side, Completely Built Units (CBUs) i.e. cars becoming more expensive will limit in flow of used cars in the local market. As far as impact on currencies was concerned the estimates have yet to come up with possible Yen appreciation, yet it is being assessed that every 5% Yen appreciation will affect earnings of Japanese automobile stakeholders in the domestic market...
AUTOMARK MAGAZINE
CONTENTS The Mo nthly Magazine for Pakistan Automotive Sector
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Your trust is our success
Chinese bike makers in stress ahead of new budget Exclusive Article on Motorcycle Sector by Ali Hassan
08-09
Fertilizer being the key agricultural input Cover Story Exclusive Article by Syed Mansoor Ali
10-12
Tractor makers, vendors and farmers reject RGST Special Report by M. Owais Khan
13-14
Government must initiate new schemes to promote agricultural mechanization causing huge revenue losses Exclusive Article by Syed Mansoor Ali
15-16
Winmark team participating in Shell Eco Marathon 2011
17
Get OES Power! by Orient - Product Review
20-21
Cam Shaft and Valve Train Exclusive Article by Omar Rashdi
22
Car Keys Playing a Bigger Role by Muneeb Jawed from NED University
23
Local Automobile Production Stats 2010 Focusing the ups & Downs by Shahzad Tabish from NED University
42-43
Al-Haj FAW Motors achieved the brake through in the corporate sectors by J. Pereira
44-45
Local assembled car price list
46
Toyota has been dominating the auto industry in Pakistan by Syed Haider Mehdi from NED University
47
Motorcycle Price List - Updated in April-2011
50-51
The only ONLINE automotive magazine in Pakistan
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Automotive - Exclusive Article
by Ali Hassan
Chinese bike makers in stress ahead of new budget In the last ten years Pakistan is one of the few countries which is not only producing motorcycles but is also exporting bikes to many countries. Instead of providing any relief to the bike assemblers the EDB is taking dictation from a leading Japanese bike maker to create bottleneck for low cost bike makers. The Finance Ministry’s officials have put their heads down for making new 2011-2012 budget. The manufacturing sector has already started sending their pre-budget proposals. Many industrialists are not hopeful of getting any big relief from the revenuestarved government in view of a pre budget shock by announcing various taxation measures in a mini budget announced in the third week of March that some decisions may become a regular feature for the next fiscal year. Some are hopeful that the government after recovering billions of rupees from the recent budgetary measures till June 2011 may think of providing some incentives and relief to the industries. After hue and cry the government has rectified the grievances of five main textile sectors by maintaining zero rating of tax but it is not clear as to what alternative taxation measures will be taken to tax the textile sector in the coming budget.
When all the big units falling under the organized trade and industry bodies are putting up maximum efforts to get their proposals accepted at any cost – a large number of small and medium sized Chinese bike makers have been burdened with some bureaucratic and official hurdles ahead of new budget announcement. Some government departments looking after the bike sector have speeded up their efforts to create hurdles for the low cost bike makers. As everything has been going well after the July-September 2010 floods and
its negative impact on the economy followed by some measures taking recently in the mini budget different government departments do not want the Chin ese bike makers to work smoothly. Due to ris in g farm in co me af te r harvesting bumper wheat crop last year and good prospects of 25 million tons wheat crop this year followed by good cotton, rice and sugarcane and minor crops, the growers are playing a main role in boosting the sales of bikes irrespective of the price hike made by the assemblers after every three months. However, many salaried class people who salaries are intact for the last few years are not freely buying the two wheelers owing to its rising prices.
Despite huge growers’ support to buy bikes and less sales on account of salaries and low income group the bike industr y h as performed well as compared to other manufacturing sectors. Like past experience the Chinese bike makers again hold responsible some Japanese bike makers who enjoy good r a pp or t w i th t h e g ov ern men t departments and they encourage government officials to disturb small and medium sized bike makers. A leading Japanese bike maker still excels in terms of sales and production of its bikes in rural areas mainly as compared to its Chinese counterparts in 70cc segment. However the leading player has been trying hard to give a tough time to Chinese bike makers and to capture a big market share in urban areas especially in Karachi where Chinese bikes virtually dominate. The Japanese bike is a favorite target of snatching at gun point and jacking up at various places in Karachi and this is the main reason of Honda 70cc’s laggard sales in Karachi which now enjoys only 10 per cent market share. For example, the Federal Board of Revenue’s department of Director General Valuation has again issued valuation advice for Chinese origin 70cc motorcycle parts for assemblers on the higher side. Pakistan Standard Quality Control Authority is also creating hurdles for assemblers for issuance of CM license. The Motor Registration Authorities is reported to have stopped registration of man y assembl ers du e to non submission of PSQCA and EDB licenses The Engineering Development Board
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Automotive - Exclusive Article (EDB) h as eme rge d as a useless department for motorcycle sector of Pakistan. In the last ten years Pakistan is one of the few countries which is not only producing motorcycles but is also exporting bikes to many countries. Instead of providing any relief to the bike assemblers the EDB is taking dictation from a leading Japanese bike maker to create bottleneck for low cost bike makers. On the request of EDB, the FBR has issued higher side valuation advise for OEM' s wh ich is set to h it the productivity of motorcycle industries besides affecting the export of bike to various countries. Chairman Association of Pakistan Motorcycle Assemblers Mohammad Sabir Shaikh says that the EDB should play a neutral role by giving level playing field to all the assemblers instead of working under an influence of some leading bike makers. He said that the local industry will make every efforts to get some incentives from the government in the new budget so that industry could flourish further from the record production volume of 1.4 million bike sold in 2009-2010. He added that competitive price of Chinese bikes lure the low income group to have a bike otherwise consumers cannot afford to buy costly 70cc bike of Japanese origin. Meanwhile, according to a leading print media report published recently, a leading Japanese bike maker has informed the Finance Ministry that the growth of bikes in the organized sector is suffering from fairness and rule of law. When the government is trying every effort to raise revenue, many low quality bike makers are engaged in tax evasion. Th e m otor cy cle sec tor in t he unorganized sector evades customs duty and sales tax Rs 20,000-25,000 for each low cost quality bike. Despite a number of enquiries no satisfactory result has emerged so far. The leading assembler informed the finance ministry that the organized sector is losing hope which is paying tax honestly. The government should ensure a level playing field. On March 26, 2011 the Director General Customs Valuation has issued a ruling to determine customs value of parts of
70cc bikes of Chinese origin by assemblers. With reference to the cases of the provisional assessment from the Model Customs Collectorate , Hyderabad, the DG Valuation determined value of 70cc bike parts vide valuation advice dated 1.4.2010.The said valuation advice was ch alleng ed before Fed eral T ax Ombudsman by D.S. Motors, Razzy Motors and S.S. Motors. The FTO in its findings/recommendations dated 24.12.2010 held that said valuation advice was discriminatory and directed th e Director Valuation to issue valuation rulin g concerning the motorcycle parts of OEM brands in accordance with law in compliance of the FTO’s orders. A fresh meeting for determination of value of the motorcycle parts of the Chinese origin was convened on 26.02.2011 with al l stakeholders. In the said meeting representatives of Atlas Honda and Suzuki stated that the parts imported by the Chinese bike makers/importers are highly under invoiced and are being cleared by custo ms authorities without any uniform criteria. It was also suggested that the prices of the raw materials are continuously increasing whereas the values of these parts are stagnant. Finally Atlas Honda
presented a comparative chart for the val ues of the other Chinese parts determined vide Valuation Advice dated 1.04.2010 vis-à-vis their genuine parts and stressed that the value so determined are still on the lower side wh ich needed to be enhanced. D.S. Motors and Razzy Motors also presented their proposal s for the valuation of these goods. The import data from China for imports of relevant period i.e. 90 days was
scrutinized which showed that the most of clearance are being made on weight basis which also is th e unit of measurement as per tariff. However in order to ascertain the actual w eigh t of th ese p arts ph ysic al weighment was carried out in presence of the representatives of D.S. Motors. The values which are apparently grossly under invoiced could not be relied upon however there are instances where rather fair values have been assessed by customs and have accordingly been accepted by the importers. Such reliabl e import values were further worked upon by adopting actual weight of each item, physically obtained from the market as referred above. Further in order to take into account the actual market prices, survey in terms of section 25(7) of Customs Act 1969 was also carried out which indicated that there are various types of parts i.e. OEM, replacement and genuine etc however due to market distortions, reliable prices except for few items could not be obtained. Similarly, motorcycle parts are high precision items and there is no reliable information available on record for c onsti tu ent m at eri als not any manufacturer or assembler has ever provided such information required for assessment of these items in terms of section 25(8) hence the said method could not be approved in instant value determination. In view of the above, the valuation of th e follow ing motorcycle pa rts imported by the assembl ers after necessary adjustments h as been determined in terms of Section 25(9) of the Customs Act 1969. The DG Customs Valuation has pointed out that the custom values determined under this valuation ruling shall be a p p li ca b le c u st om s va lu e for assessment of the relevant goods until and unless revised or rescinded by the competent authority. Revision petition/review application against this valuation ruling may be filed before the director general of valuation under Section 25(D) of the Customs Act 1969 within 30 days from the date of issuing of this ruling. According to Sabir Shaikh there are around 51 parts (being imported from China) on which the valuation rates have been fixed on the higher side to satisfy the Japanese assemblers. ……
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Exclusive Article on Fertilizer sector should be 2 : 1 : 0.5. While the ratio of nitrogen is exceeding to a great extent as in the year 2009-10 it was 4: 1: 0.03. The reasons of this imbalanced use are as such: a) Lack of support at state level visĂ -vis pricing. Fertilizer market is deregulated in Pakistan, where as subsidies exist in many developing and developed countries to support farmers in the farm inputs. India, for instance, gives huge subsidies on fertilizers and as a result change in international prices have minimum i m pact on farme rs. Rece nt ly Government of Pakistan (GOP) has applied General Sales Tax (GST) @ 17% on fertilizers that is deemed as discouragement for farmers. The GST application is projected to decrease DAP usage by 20%, potash 30% and urea consumption by 2%. This will further aggravate the situation and reduced and unbalanced fertilizer usage will enhance than previous. As a result it will adversely affect farm economics that will hurt national agricultural output. b) Sin ce GST is cal culat ed as percentage of product price hence its impact in absolute value will be more on expensive fertilizers like DAP and Potash. So price disparity between Urea and DAP /Potash will increase, that will further deteriorate the N: P: K ratio at farm level and enhance imbalanced fertilizer use.
2. Farmers ignorance on the benefits of balanced fertilization. Vast majority of farmers does not use fertilizer at recommended rates neither they go for soil analysis. 3. Quality control: Problems like fake fertilizers and short weight bags do exist in market.
4. Use of counterfeit bags: Bags of premium brands a re us ed to se ll fak e fertilizer or product whose quality is not known. These b ags ar e fou nd sh ort weight as well. The issue is worst with DAP fertilizer being most expensive. Such practices are affecting the goodwill and farmer's trust. The field studies revealed that farmers depend solely on the advice and knowledge of the fertilizer sellers to decide on quantity and type of fertilizer. The Di-ammonium Phosphate (DAP) which is mainly used for wheat crop is commonly replaced by urea incase of the shortage of money. The scarcity of water is another factor subside the efficacy of fertilizer. The recent price increase by 10 to 20 percent will further discourage the farmers towards the use of DAP and other expensive but crop specific fertilizers. The scarcity of water is another factor subside the efficacy of fertilizer. The recent price increase by 10 to 20 percent will further discourage the farmers towards the use of DAP and other expensive but crop specific fertilizers. A fertilizer seller in Okara gave me an example to explain as how the financial position of the farmer affects the purchase decision and made them to compromise for options that are harmful instead of bringing any benefit.In the below example the difference of Rs. 2880 forced the farmer to pick an option completely off setting the required chemical composition to applied.
by Syed Mansoor Ali Considering the ground reality the above narrated situation is nothing as there is a good percentage of small farmers who cannot afford to apply the prescribed fertilizer dose. The another dilemma is the absence of agricultural extension services that provides space to quacks to prescribe whatever beneficial to them ignoring the actual requirements of the soil deficiency/requirement in terms of nu tr ients a nd org anic ma tter . Once for an agricultural project in Sindh, I had a chance to work closely with the field advisory staff of Engro Fertilizers Limited to take their advice on soil analysis/composition and water quality of the entire project area comprising of 14,000 acres. They acted promptly and took more than 50 soil samples along with few water samples to advice on the selection of fertilizer for the project. The service was highly professional and totally free of charge. The foreigners involved in the project were impressed with quality of service and the standard of soil testing lab. It was brought to my knowledge and subsequently confirmed in the field that this service is available free of charge to the farmers irrespective of their land size holding or financial position with no pressure of buying the fertilizer from Engro fertilizers Ltd. To improve/better th e fertil izer situation in Pakistan, the government should revive the subsidy on fertilizer for farmers, make extension services available to the farmers' doorstep, take stern actions against fake fertilizer comp anies (recently th e Crim e Investigation Agency (CIA) Islamabad unearthed a fake fertilizer company secretly operating in suburb of Federal Capital .Huge quantity of raw material and machinery being used to prepare urea fertilizers and pesticides were seized), stop gas load shedding and provide required feed gas to fertilizer sector, continue subsidy on feed gas, review the imposition of general sales tax on agricultural inputs that will result in unachieved production targets of wheat and other Rabi crops and keep check on the uncontrolled increase in pr ices of ur ea fertilizer by th e manufacturing companies. These steps, for sure, will bring sub stantial improvement in the crop yield......
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Agriculture Sector - Exclusive Article
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by Mohammad Owais Khan
Tractor makers, vendors and farmers reject RGST It is not clear whether the government will ask the assemblers to again make arrangement for delivery of tractors to the farmers and growers or it will rely on import of used tractors. The imposition of 17 per cent general sales tax on tractors, pesticides, fertilizer, seeds and other agriculture inputs has caused a stir among the smal l and medium sized farmers especially who cannot afford to pay high price for these items. Consumers already under severe pressure of surging food prices and utility bills will now have to pay more as tax on agriculture inputs will inflate prices of eatables making life of people more miserable. Farmers say that they annually use 130 million bags of urea and 30 million bags of DAP seed worth Rs 100 billion and pesticides worth Rs 25 billion besides spending Rs 50 billion on agri machinery which are already high priced in the country. This RGST would further increase the cost of inputs by 17 per cent thus making them beyond the reach of farmers of average and small holding. The av erage price of tractor has increased by Rs 100,000 after GST imposition but small and medium sized growers cannot afford it. Tractor makers hav e already been frustrated by 50 per cent decline in
agriculture landlords and big growers but it does not mean to impose tax on tractors, pesticides, fertilizer, seeds and agriculture inputs whose direct impact will be borne by the end users in shape of price in edible items. their sales and one of the small tractor makers said that he had sold only two tracto rs in the last fifteen days. Farmers said that the cumulative impact of hike in tractor price coupled with rise in agriculture input cost will cause a drop of 20-25 per cent in future production of various cash crops like cotton, sugar and rice. They said that they have reduced their tractor buying by 50 per cent after increase in prices of tractors while other farmers are waiting for removal of sales tax.
One of leading coalition partners of the government has been asking the government to tax the
Perhaps the big growers having big lands producing area and connections in the government circles may not suffer heavily from the recent levy of RGST. The small and medium sized growers having limited land availability will be the main victims as some three to five growers usually jointly purchase one or two tractor to work on the ground for better yield from various crops depending on th eir tu rn s. It is also feared that many farmers unable to bear the extra cost for tractors and inputs may indulge in wrong practices by usin g sub stan dard pesticides, seeds and fertilizers. The farmers have strongly asked the government and members of the parliament to immediately take action
Euro-F
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Agriculture Sector - Exclusive Article
The farmers have strongly asked the government and members of the parliament to immediately take action and direct the Federal Board of Revenue to withdraw these SROs forthwith to save the farmers, people and frail economy of Pakistan from severe damage failing which the farming community as a whole would be forced to take extreme measures in order to redress the grievances. an d direct the Federal Board of Revenue to withdraw these SROs forthwith to save the farmers, people and frail economy of Pakistan from severe damage failing which the farming community as a whole would be forced to take extreme measures in order to redress th e grievan ces.
The increase in prices of tractors after the imposition of 17 per cent sales tax has hit the sales of tractors as farmers and growers have become reluctant whether to buy the farm machinery or wait for the removal of sales tax. Farmers and tractor industry have said when the government can rescue the five main textile sectors by maintaining the zero rated tax despite taking firm decision on March 15 then it should also treat the same to the main sectors of the agriculture sector whose negative impact would be more severe than the textile sector. Farmers said very few growers are buying tractors while others have adopted wait and see attitude. The concerned bodies of the farmers’ community have been trying to meet the higher ups of Finance Ministry and Federal Board of Revenue on issue of sales tax on tractors. Soon after the imposition of 17 per cent sales tax on tractors in the third week of March, the tractor industry faced an instant shock when farmers had completely suspended the purchase. A leading tractor maker said the buying of tractors by farmers has slightly improved but it is still 50 per cent less as compared to 175-200 units a day ahead of mini budget. The industry had already asked the government to impose sales tax in phases like seven to eight per cent in first phase and let the industry and growers to absorb this impact but the government had straight away imposed 17 per cent. Many growers who are in need for
tractors are buying tractors while others are w aiting in a hope that the government would lower the GST by 5 0 per cent or may remove it completely. Pakistani tractors were competing with Indian tractors in various markets due to competitive price factor but now situation had changed. Sales of tractors had been severely hit after 17 per cent GST and situation in tractor market is highly uncertain these days. Tractor parts makers have suggested the government to impose sales tax at eight to 10 per cent in first phase and then increase the rate by 2.5 per cent every year. Meanwhile a tractor vendor said that a leading tractor maker in the last m onth h ad g iven fir m h ig her production schedule for April and after imposition of 17 per cent sales tax the company advised their vendors by telephone to stop all parts supplies immediately. Whenever it will require parts then it would call the vendors for supplying requ ired components. Market reports said that tractor exports had also become suspended after imposition of 17 per cent sales tax. The local industry does not export tractors since the government has restricted its export. However, some market people used to lift the tractors from the markets and export it to Afghanistan mainly and few units to Sri Lanka. Total tractor sales (Fiat and Massey Ferguson) during July-February 20102011 stood at 45,519 units as compared to 45,523 units in the same period of last fiscal year. The federal government has directed the Zari Taraqiati Bank Limited to work out delivery of 10,000 tractors in the second phase of federal government’s subsidized Benazir Tractor Scheme. It is not clear whether the government will ask the assemblers to again make arrangement for delivery of tractors to the farmers and growers or it will rely on import of used tractors. Farmers will get a subsidy of Rs 200,000 on
each tractor under th e scheme. There are media reports quoting a report of Auditor General of Pakistan that relevant rules and regulators were blatantl y violated in Pu njab in accommodation to blue eyed boys by doling out tractors under the Green Tractor Scheme causing a loss of Rs two billion to the national kitty . However, the tractor and vendors are worried over the reports that the government is considering allowing used tractors import when the industry is already battling for its survival after tough decisions taken in the mini budget. The Commerce Ministry is reported to hav e recommended the Economic Coordination Committee (ECC) to allow the import of five-year-old used buses, tractors, trucks and vans under gift and baggage schemes. However, the ECC meeting on Thursday did not take up the matter. Vendors said that when the industry is fully meeting the requirement of the farmers and growers then why the government is considering allowing used tractors as this decision will result in closure of two main manufacturers and their vendors besides causing many people to lose their jobs either directly or indirectly. They said due to localization of 90 per cent parts Pakistani tractors are the cheapest in the world and these are exported indirectly to Afghanistan and other countries. Market people fear that in order to provide benefits and facilitate the political workers and friends the PPP government can do any thing to hurt the feeling of the main stakeholders thus putting on stake thousands of people jobs. Farmers have said that they will chalk out their future strategy in case the government does not re verse the decision on RGST on tractors and other agriculture inputs while the tractor industry and vendors are also taking u p the issue with the r elevant ministries…..
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Agriculture Sector - Report
by Syed Mansoor Ali
Government must initiate new schemes to promote agricultural mechanization through the disbursement of quality implements to its farmers The success of this project encourages me to appeal to the Prime Minister to initiate and subsidize other similar schemes throughout the country in order to enhance mechanization through the allocation of quality implements with proper training for the farmers.
The Government of Punjab, agriculture department, deserves commendation on running a successful campaign to d eliver q ua lity im plements on subsidized rates to local farmers of Punjab. Pakistan is striving hard to achieve a certain level of mechanization to enhance productivity and to feed its population, being the sixth largest in t h e w or l d . T h e e ffo rt s seem inconclusive and less effective because the implement industry did not come out of its traditional black smith environment. As a result, it did not make any significant progress towards
Chief Minister of Punjab Mr.Shahbaz Sharif
the introduction of good qual ity, p roperly designed and m od ern agricultural equipments covering the entire process of agriculture right from land preparation to harvest until storage. Therefore, it is appropriate to say that implement manufacturing industry maintained the status-quo and kept manufacturing the same old 7 or 11 tine cultivator, rear blade and tractor trolley. Many years back Farm Machinery Institute, NARC designed and developed Axial flow thresher and Reaper, which was later on introduced to the local manufacturers to be engaged in mass production. This was a great step as it indicated that the nation will be able to produce variety of equipments that will be useful for the different stages of cropping and that they were to be locally developed a nd p rod u ced in th e cou ntr y. Unfor tu nately, du e t o var iou s constraints, which are quite common in government institutes/departments, repetition of such endeavors was not seen.
Minister of Agriculture Punjab Mr. Malik Ahmad Ali Aulakh
A recent visit to the F ed er a l Ca p i ta l Territory allowed me to meet my colleagues from the Agriculture U nive rs ity , Faisalabad. During a conversation with Mr. Mohammad Aamir, assistant a g r i c u l t u r a l en g i n e er (F i e l d Operations), Rawalpindi, I inquired about the workings of his department and asked h im to shed light on significant milestone achievements made in the field of agricultural mechanization. It was brought to my attention that they recently completed a campaign to deliver 364 implements in the Rawalpindi division on a 50% subsidy to the local farmers. This project, titled “Farm Mechanization for Food Security , 2009-2010,” was initiated by the Honorabl e Chie f Minister of Punjab, Mr. Shahbaz Sharif for the province of Punjab. Finally, under the fraternity of the Honorable
Secretary Agriculture Punjab Mr. Arif Nadeem
Automark Magazine | April-2011 15
D.G. Field, Punjab Dr. Muhammad Yasin
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Agriculture Sector - Report Minister of Agriculture, Punjab (Mr. Malik Ahmad Ali Aulakh) a practical shape was given to the program by Secretary A griculture (Mr. Arif Nadeem) and Director General Field, Punjab, Lahore (Dr. Muhammad Yasin ). This accomplishment has encouraged me to further explore the details of the program and determine whether the said benefits of the initiative actually benefited and reached to the grass root levels or if it fell short as usual. To sati sfy my cu riosity, I fur th er questioned my friend, Mr. Mohammad Aamir and was quite satisfied by his response, that has strengthened my decision to share information about this endeavors, set forth by government officials, with my readers. I want to commend the various government officials for a job well done and also to encourage society-oriented schemes, which seem to be getting scarce in our society.
The criteria set forth for the local farmers to participate in the program were as such:
by Syed Mansoor Ali
listed who were exploiting the customers due to there being so few options for the farmers to choose from. 4. Drawings and the list of selected i mp l em e nt s a s pe r th e requirements of that specific agricultural cluster were provided to the manufacturers. 5. Prices were fixed according to the prevailing market prices of similar equipments. 6. The equipments were offered on 50% subsidized rate to the farmers. The remaining 50% were paid to the manufacturer by the D G field Punjab after confirming the delivery of the said equipment to the farmer. The remainder was paid to the manufacturer through a pay order in the name of the manufacturer whom they selected to get the implements from. T h e eq u ip m e nt s se le ct ed f or Rawalpindi division were carefully selected after taking into account the
1. Should hold 5-50 acres of land. 2. Should posses a minimum 50Hp tractor. 3. Should submit duly filled-in application form. The criteria established by Agricultural Department to ensure transparency and ease of operations (usu al ly complicacies give way to corruption) were as such:
1. Applications were scrutinized by Deputy District Revenue Officer. 2. Computer draw was avoided to eliminate doubts of any preprogramming to benefit specific farmers. Manual draw was condu cte d i n f ront of t he participants and names were annou nced then and there. 3. Agricultural Department have s e le ct ed 1 18 i mp le m en t m anu fact u ri ng comp ani e s, m e et i ng t he i r cri te ri a, to manufacture the implements as per the list given. In the past, there were only 3-5 companies
fact that the major portion of this division, which is commonly called as Potohar Plateau, is a typical arid landscape with denuded and broken terrain characterized by undulations and irregularities compared to the plains of Punjab. T h e i m p l e m e nt s a n d t h e controlled prices for this project were presented in the given table. Vigilant eyes were kep t by th e concerned officers to arrest any type of malfunctioning in the system. Farmers who got the implements were provided training on the use of equipments. The program was highly appreciated by th e farmers and th e positive responses made it possible for the Chief Minister, Punjab, to cut down the duration of the project from three to
two years. Engr. Mohammad Aamir, w hose responsibility was to monitor and evaluate the field execution of the program said that this scheme has cont ri bu ted i mm ensely in t h e promotion of mechanization of this area which is under-developed and less privileged than the plain areas of Punjab. The success of this project encourages me to appeal to the Prime Minister to initiate and subsidize other similar schemes throughout the country in order to enhance me chan iz ation th ro ugh the allocation of quality implements with proper training for the farmers. Th is will provid e substantial help to the farmers of Pakistan to try out new modern implements as per specific job requireme nts to understand th e importance of using right equipment for the right job instead of using cultivator for every job ruining the soil structure. This will be the first step to start building the understanding of the farmers towards advancement made in the field of Agricultural mechanizations w ith th e i nvent ion of m oder n implements and equipments bringing efficiency and effic acy in crop management. This will attract foreign companies to initiate joint ventures and li censi ng ag reem ent s to s tar t manufacturing quality equipments in Pakistan. Logically speaking it is the right time to focus on this area as in the past decade several tractor subsidy schemes w ere lau nc hed by th e government that helped the country re-enforce a nd str eng th en th e availability of the source of power at the farm without which nothing could be done at the farm. The farmers are already upset with the increase in special excise duty from one percent to 2.5 percent and th e withdrawal of GST exemption on tractors. This ordinance has hit the farmers below the belt. They know that it is not the only increase they have to bear but its implications in the shape of reduction of the profit, recent 2 percent increase in power tariff, and 9% increase in POL will make them i nc r ea se t h e p r ic e s of t h es e co mmodities (tractors, fertilizers, pesticides and implements) pretty soon, which will be a huge disadvantage and drawback for agriculture in Pakistan.
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Student Corner - Review
by S. M. Ashraf from NED University - Karachi
Winmark team participating in Shell Eco Marathon 2011 The team leader, Haris Rehman says, “It has been a remarkable journey; from my drawing board to the formula1 track of Malaysia. When I raised the Pakistani flag with my car over there, my heart brimmed with pride. I have a firm conviction that this will materialize into a novel Pakistani creation.” The talent of our nation has always been undermin ed but it rises to occasion whenever challenged. And such a success story has just come up. Recently, a group of talented Pakistani stud ents have embarked on th e development of a car called Uzba which targets to run 200 km in one liter of fuel! Now that is an amazing talent. The ambitious students call themselves ‘WINMARK’. The purpose of designing this vehicle is to represent Pakistan in the global car design competition, Shell Eco Marathon. The Shell Eco Marathon challenges students from worldwide to design, buil d and compete their energy efficient vehicles. The car with that runs the most number of miles using least amount of fuel wins. The tournament is held separately for Europe, Americas and Asia. The Asian chapter takes place at the official Formula1 track – Sepang International Circuit, Kuala Lumpur, Malaysia.
Accepting this challenge, a group of hardwork ing students from NED University of Eng ineer ing and Technology joined together and Winmark came into being. These students belong to Mechanical and Electrical Engineering departments. The car “Uzba” was made back in 2010 when it offered an appreciative mileage of 80 km per liter of petrol. The car represented Pakistan in the 2010 Shell Eco Marathon and won the hearts of many engineers and scientists there. Last year sponsors of this car were Elfy Corporation, Habib Bank Ltd and Orient Energy Systems. Once again, the team is planning to hit the 2011 Eco Marathon. The car model is under rigorous optimization to reach 2 00 km p er li t er o f p e t ro l. Mo difications include bette r fuel consumption mechanism, power management and substantial weight reduction. The team leader, Haris Rehman says,
“I t h a s b een a remarkable journey; fro m my drawing b oa r d t o th e formula1 track of Malaysia. When I raised the Pakistani flag with my car over there, my heart brimmed with pride. I have a firm conviction that this will materialize into a novel Pakistani creation.” Team Winmark’s Marketing & Tech Coordinator, S. M. Ashraf says, “This year, we highly anticipate to win. The car project is an excellent opportunity for companies and venture capitalists to boost their brand pow er and establish themselves as tech-friendly companies. And by the grace of Allah, we have been receiving great response.” The Shell Eco Marathon is definitely a fruitful arena for corporations to create marketing hype. More than 6000 people, 300 representatives from supporting organizations and media from 20 countries will be attending the grand event. Uzba has also received great feedback in the public displays at Creek Club, Park Towers, Pearl Continental Hotel, Expo Center and other places. A highly motivatin g promo of the team is uploaded at YouTube, ‘Car made by Team Winmark’. The team also runs a Facebook group/page with the title Team Winmark. With such great efforts and the well wish es of the Pakistanis, Team Winmark is very optimistic about 2011 and is working day and night to accomplish its objective. Uzba is all set to rock the Shell Eco Marathon 2011.
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Power & Energy - Product Review
Don’t Let Your Life Come to a Standstill When the Power Goes Out – Get OES Power! Orient Energy Systems (Pvt.) Limited (OES), one of the most revered and fastest growing companies in Pakistan is a leader in delivering conventional and novel industrial engineering solutions not only in Pakistan, but also in Bangladesh, Middle East and a growing network in other Asian countries. Starting its operations in the year 1996, the Company has served private, public and government sector and won several national and international accolades over the years. T h u nd er st or m s, m o n s o o n s , cyclones, floods and oth er natural disasters severely damage electrical systems, causin g power outage. As our lives beco me more and mo re dependent on the electricity a power breakdown can cause a standstill. Even a short spell becomes unsettling. People use flashlights and candles to manage some of their chores, hoping that the power will be restored soon. Today, as power breakdown becomes a norm of a typical day in Pakistan, surviving
w ithout a power b ackup seems unimaginable. One cannot bring their life to a halt waiting for power to be resumed. Power outages affect more than our sens e of w ell-b eing . A po wer breakdown can mean disaster! Not only does the food in the refrigerator gets spoilt, but inadequate cooling can also cause heat stroke or heat exhaustion especially in children and the elderly. In such a situation, backup home generators come as a saviour! They are the only reliable protection to beat the summer heat and endure the power crisis. Portable generators are affordable and
available in different ratings depending on your power requ irement and definitely fuel economics. Possessing less knowledge can easily tempt you to purchase a genset from companies never heard of or a UPS system which
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Power & Energy - Product Review
The team comprises of qualified engineers, business professionals and highly experienced technicians and field staff who are equipped with the spirit of keeping the customer satisfaction at top priority. Be it large scale power generation requirement or standby portable generators, Orient Energy Systems has a solution for all your power needs. cannot run heavy domestic appliances. For a power backup system to deliver results as expected, you need to purchase the right sized generator. First, you need to determine your p er sona l r equ i r eme nts. S ma ll generators deliver enough energy to run a few lights and fans which can keep you comfortable for a short period. Or you can al so install a bigger generator, if you wish to run a few more things other than lights and fans. Next, you need to consider how much you can spend. The money you invest directly affects the quality of backup power supply that you will receive. Do you want to shell out money for a generator which runs refrigerator for a few minutes, or for several hours? Being Pakistan’s one of the leading multinational engineering company, Ori ent knows w h at y ou need ! Orient Energy Systems (Pvt.) Limited (OES), one of the most revered and fastest growing companies in Pakistan is a leader in delivering conventional and novel industrial engineering solutions not only in Pakistan, but also in Bangladesh, Middle East and a growing network in other Asian countries. Starting its operations in the year 1996, the Company has served private, public and government sector and won several nat ional and international accolades over the years. Serving valued clients one after another OES, a firmly established name in the power sector now introduces OES Power; your portabl e emergency backup system that promises a package of superio r quality product with exceptional features and service s deliverin g you convenience an d operational excellence.
Salient Features of OES Power: • A u t o m a t i c ‘ l o w- o i l shutdow n’ p revent overheating and engine damage • Auto mat ic Vol tage Regulation (AVR) provides consistent stable power labels. • Spark arrester to reduce the risk of fire. • Circuit breaker protection to provide generator and user greatest degree of protection. • Dual-element air cleaner to protect engine in dusty conditions. • Digital data display to help you see the total running hours, per session running time, voltage & frequency. • Exceptional quality & reliability. • Designed to run smoothly for longer hours. • 100% copper winding. • 24/7 helpline. • D o o r s t e p s e rv i c e s . Kee p in g i n v i ew t h e m ar k et requirements, OES Power comes in seven ratings each manufactured to carry a different power load. Purchasing a small generator that cannot carry the load it has been acquired for is worthless. Similarly, buying a large
generator when your requirement is rela tively smal l forc es you to unnece ssarily increase your fuel expense. Below is a load chart that can help you determine your requirement. With the help of Orient’s trained dealers you can mix and match various appliances to evaluate which genset might be best suitable for your power needs. • NOT E: Wattages are only an approximate, for exact wattage please check the data plate or operator’s manual of the item you wish to power. Portable generators are safe, affordable and can keep you mod era tely co mfortable. Take some time to consider your needs and prepare for the hot summer days now. Preparing now will give you and your family one less thing to worry about. With OES Power you don’t have to worry about operational tribulations as OES is a symbol of top quality not only in terms of products , but also the people associated with it. The team comprises of qualified engineers, bu siness professionals and highly experienced technicians and field staff who are equipped with the spirit of keeping the customer satisfaction at top priority. Be it large scale power generation re quirement or standby portable generators, Orient Energy Systems has a solution for all your power needs. OES Power is the intelligent choice! For Comments & Feedback contact:
Corporate Communications Department Orient Energy Systems (Pvt.) Limited 021-111-507-507
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Automotive Sector - Exclusive Article
by Omar Rashdi from St. Patrick’s Technical Institute
Cam Shaft and Valve Train If crankshaft is the heart of an engine, then the camshaft and valve train have to be the brains of the operation. Timing the opening, closing, lift, and duration of each valve event are central to increasing power and torque.
One of the main component in engine, camshaft takes the main attention in working because it has very important work to do. Camshaft is a device which changes its rotary motion into valve’s linear motion. It has valve train of engine which operates the timing of valves according to the engine strokes. There are two types of valve which it has i.e. Intake and Exhaust valves. The rocker arms which push the valve by the force of cam loop. The Valve returns spring which returns the valve after pushing by means of spring stress. In old engines, push rod was being used, that had the side camshaft system but in past years that is totally transferred to over head camshaft. All new valve timing technologies depend upon the working of camshaft; they all are varying the timing of valve with the help of camshaft. It plays a colossus role for enhancing the new technologies in engine; it also used to exaggerate the power of engine by varying the valve timing operations. The new technologies like vvt, vvt-I, Vti, Vtec, i-Vtec etc. have found the way of changing valves durations in order to make better production of power at high speed. The key parts of any camshaft are the lobes. As the camshaft spins, the lobes open and close the intake and exhaust valves in time with the motion of the piston. It turns out that there is a direct relationship between the shape of the cam lobes and the way the engine performs in different speed ranges. To understand why this is the case, imagine running an engine extremely slowly at just 10 or 20 revolutions per minute (RPM) so that it takes the piston
a couple of seconds to complete a cycle. To actually run an engine this slow would be impossible, but let's imagine that we could. At this slow speed, we would want cam lobes shaped so that just as the piston starts moving downward in the intake stroke, the intake valve would open. The intake valve would then close right as the piston reaches the bottom and the exhaust valve would then open right at the end of the combustion stroke and would close as the piston completes the exhaust stroke. This kind of setup would work really well for the engine as long as it ran at th is very slow speed. No w what happens if you increase the RPM? When you increase the RPM, the 10 to 20 RPM configuration for the camshaft will not work very well. Just say if the engine is running at 4,000 RPM, the valves are opening and closing 2,000 times every minute, or 33 times every second. At these speeds, the piston is moving very quickly, so the air and fuel mixture rushing into the cylinder will also be moving at a very quick rate. When the piston starts its intake stroke and the intake valve opens, the air/fuel mixture in the intake runner starts to accelerate into the cylinder. By the time the piston reaches the bottom of its intake stroke, the air/fuel mixture is moving at a pretty high speed. If you were to slam the intake valve shut, all of that air/fuel mixture would come to a halt and will not enter the cylinder. By leaving the intake valve open a little longer; the momentum of the fastmoving air/fuel mixture continues to force air and fuel into the cylinder as the compression stroke is started by the piston. In theory the faster the engine goes, the faster the air/fuel mixture flows and the longer we would want the intake valve to stay open. We would also want the valve to open wider at higher speeds. Also affecting the cams performance is lift, the duration, overlap and timing.
Lift Lift refers to maximum valve lift. This
is how much the valve is "lifted" off its seat at the cam lobe's highest point. Th e inta ke a nd exhaust valves need to be open to let air / fu el in a nd exhaust out of the cylinders. Generally, opening the valves quicker and further will increase engine output. Increasing valve lift, without increasing duration, can yield more power without much change to the nature of the power curve. However, an increase in valve lift almost always is accompanied by an in crease in duration. This is because ramps are limited in their shape which is directly related to the type of lifters being used, such as flat or roller.
Duration Duration is the angle in crankshaft degrees that the valve stays off its seat during the lifting cycle of the cam lobe. Increasing duration keeps the valve open longer, and can increase highrpm power. Doing so increases the RPM range that the engine produces power. By increasing duration without a change in lobe separation angle will result in increased valve overlap.
Overlap Overlap is the angle in crankshaft degrees that bo th the intak e and exhaust valves are open. This occurs at the end of the exhaust stroke and the beginning of th e intake str oke. Increasing lift du ration and /or decreasing lobe separation increases overlap. At high engine speeds, overlap allows the rush of exhaust gasses out the exhaust valve to help pull the fresh air/fuel mixture into the cylinder through the intake valve. Increased engine speed enhances the effect. Therefore increasing overlap, increases top-end power and reduces low-speed power and idle quality.
Quotation: Impossible is not a fact, it’s an opinion. – Muhammad Ali
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Exclusive Article
Composed by: Muneeb Jawed Automotive Engineering NED Uuniversity
Car Keys Playing a Bigger Role than Simply Starting the Engine Another new car key technology is giving parents of teenage driver’s added peace of mind. This type of car key allows parents to add all types of remote supervisory features to a new car. Each key can be programmed to limit top speed, add extra seat belt warnings, and limit the volume of the car stereo and more If you believe that your cell phone is only capable of making a phone call, then you also likely believe that your car key is only able to start your vehicle’s engine. The fact is, much as your cell phone has evolved into a multitasking communications device, your car key has undergone quite an evolution since the simple brass key that turned the engine of the Model. Motivated by sophisticated technology, customer convenience and industry efforts to reduce auto theft, automotive manufacturers are introducing hightech car keys that do more than just unlock your door and start your car. It started innocently enough when key fob technology first emerged in the 1980s...a convenient device to remotely lock and unlock doors, open the trunk or activate car alarms. Vehicle secu rity took on added importance in the 1990s when vehicle thefts were costing car owners billions of dollars a year, thus spawning the development of anti-theft ignition immobilizers. Ignition immobilizers consist of an electronic chip in the key that communicates with an on-board vehicle computer. When the key is inserted in the ignition, its chip performs an encrypted communication with the car' s computer, askin g it if an al gorithmic code? A number with billions of combinations is correct? If the code is correct, the computer starts the car. The code is reset with a different series of numbers ea ch time the key is used. Due to successful advancements in aut omotive engineering, that's now ancient technology. Today's new key technology has progressed far beyond ignition immobilization. In some new systems, you don't even need a key! One of the new systems on the market allows the owner to activate the locking and starting systems by simply having a keyless fob in a pocket or purse within a few feet. Imagine struggling
with an armload of groceries. Upon reaching your car, instead of fumbling for car keys, you simply pull open the door, unload your packages, jump in, hit the engine "start" button and drive off. How does it do that? When the owner approaches and touches the car, antennas pick up the signal and validate the key code. Inside, another antenna validates the keyless fob's presence, allowing the owner to simply press the start button and drive off. Another new car key technology is giving parents of teenage driver’s added peace of mind. This type of car key allows parents to add all types of remote supervisory features to a new car. Each key can be programmed to limit top speed, add extra seat belt warnings, and limit the volume of the car stereo and more. For example, the seat belt-reminder featur e can be progr ammed to continuously alert the driver to buckle up rather than shutting off after a few minutes. And it can shut down the audio system and add a reminder on the display that lets the occupants know that buckling up will un mute the stereo. Additional programming can include an early low-fuel warning that can be set to go off at 75 miles to empty instead of 50, and limits can be placed on the vehicle's top speed. As with all new technology, these new advanced keys take some getting used to. For one, today's keys, with all their electronics, can be expensive to replace. Keys and key fobs can cost from $50 to $300 to replace, which includes the
ha r dw ar e an d r ep r o g r a m m i n g costs. a learning curve when it comes to getting acclimated to these advanced keys, especially the sophisticated keyless systems. For example, users of keyless systems have to remember to turn off the engine after exiting the car and remind themselves to give the fob to val et parking attendants. So where is the future of the "key" heading ? How about using your car key as a replacement for your credit card? The idea beh in d this developin g key technology combines a high-tech microchip system with a vehicle's key fob to produce a secure contactless payment system and key in one package, ready to pay for everything from parking, tolls and maintenance, to groceries and clothing. Such integration of devices into a single unit, especially disparate technologies like keys and credit cards, functions to simultaneously downsize the growing amount of "stuff" we have to tote for everyday survival while bonding its users into that particular system...a strong loyalty mar ket ing p loy. Experts believe the next evolution will probably be biometrics...recognizing fingerprints, an iris or speech. Much research and development remains as biometrics entails an order of difficulty that is much higher, particularly since it's hard to recognize bios systems accurately and quickly. But make no mistake, like everything else on our cars, vans, SUVs and trucks, key and key fob technology will continue to gain in sophistication. Delphi Corporation is poised to apply its expertise and know-how to provide vehicle manufacturers and consumers with in-vehicle entertainment and connectivity....
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Automotive Sector - Update
Adhering to AIDP's vision of indigenisation EDB takes exception to local manufacturers' failure The sources said that the EDP top brass had urged car manufacturers to purchase local parts instead of importing to support the local vendor industry. The Engineering Development Board (EDB) has reportedly taken strong exception to the fail ure of local manufacturers in adhering to the vision of the Auto Industry Development Programme (AIDP) of indigenisation, well informed sources told to leading news paper. At a recent meeting of auto industry's stakeh olders , the EDB to p brass accused them of being responsible for failure of AIDP 2006-07 and urged for indigenisation of high tech parts by 2011-12. "The car manufacturers have not f oll ow e d th e A IDP v isi on of indigenisation of alternator, starter motor, water pump, fuel pump, fuel filter, seat recliner, air cleaner assembly, p o w er st ee r in g , e ng i nes a nd transmissions," the sources quoted Chairman EDB Aitzaz Niazi as saying in the meeting. However, the EDB chairman also faced criticis m from the OEMs for not supporting the local industry in letter and spirit. The government replaced the deletion programmes for the automotive sector with the Tariff Based System (TBS) from July 2006 to make auto sector compliant with the Trade Related Investment Measures (TRIMS) under the World Trade Organisation (WTO) regime.
TBS has the following main objectives: (i) preservation and promotion of technologies that have been developed in the country;(ii) protection to the present job structure in the auto sector;(iii) promote job
Commercial Vehicles (HCVs) exceeding five tons: 20 per cent concession on non-localised parts and 50 per cent on localised parts. Buses (non CNG): five per cent incentives on non localised parts and 35 per cent on localised parts. Buses (CNG): zero per cent concession on non-localised an d 35 per cent localised parts and similar concession for tractors.
creation;(iv) protect the existing and planned investment by the OEMs and vendors;(v) promote new investment; and (vi) expand the consumer base to create economies of scale. Incentives and protection available to auto sector under TBS are as follows: cars are enjoyin g 32.5 p er cent concession in duty on non localised parts and 50 per cent localised parts (protection), light commercial vehicles not exceeding 20 per cent concession on non localised parts and 45 per cent on localised parts. Motorcycles: 15 per cent concession on non-local and 47.5 per cent on localised parts. Auto rickshaw: 20 per cent incentives on non-localised parts and 5 0 p er cent loc al ised . H eav y
Total investment of vendor i ndu stry is Rs82 bi ll ion . Investment was made on the targets set in AID P for producing 500,000 cars by 2012. However, auto industry production declined significantly during last two years. The sources said that the vendor industry was not operating at full capacity due to reduced demand from OEMs thus affecting their return on invest ment. How ev er, v end or s contention was that OEMs were not allowing corresponding increase in price of components/parts and OEMs had gone into in-house production of pa rts, th e sou rces mai nta ined . According to sources, OEMs were importing parts being produced by vendors due to TBS-tariff differential of 17.5 per cent. The sources said that the EDP top brass had urged car manufacturers to pur chase local parts instead of importing to support the local vendor industry. The government has recently increased the age limit of used cars from three to five years to compel local auto industry from over charging consumers.....
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Engineering Sector - Update
EDB to focus on larger economy scale of interest Meeting with Aitaza A Niazi CEO of EDB, he pointed out there was general perception in the business and industrial community that EDB has focused its entire vigor on the automobile sector
Advancement in engineering, science and technology is the dire need of the country to enhance the exports of this sector, which helps to boost economy. Engineering Development Board (EDB) should also extend his focus in a larger economy scale of interest, said Junaid Esmail Mak da, Vice Pre sident of Karachi Chamber of Commerce and Industry (KCCI). Meeting with Aitaza A Niazi CEO of EDB, he pointed out there was general perception in the business and industrial community that EDB has focu sed its entir e vigor on th e automobile sector. He pointed out the
related issues and highlighted the budgetary proposal issue, which was being in the process of formulation under the EDB and also shared KCCI point of view in this regard. He said that presently, our economy was facing a set of internal and external problems that have impeded the growth of our industrial sector. Niazi said EDB was working on different projects for promoting them at large scale of economy. About budgetary proposal he said, we have formed a sectoral committee which comprises 15 sectors such as automotive, steel, refectories and ceramics, home appliance, surgical, electrical machinery, fans, pumps and motors, heavy engineering, consumer electronics, casting, farm machinery, wires and cables, paper products and chemical plastic and minerals based products. A zh ar Wa sim P ur i , Ch ai rm an
Engineering Science and Technology Sub-Committee KCCI said Pakistan has a huge potential in engineering sector engaged more than 378 engineering industry exhibit the importance of this crucial sector of the fast developing industrial bases. He pr op osed th e str ateg y for engineering sector in order to get more shares in the world market, which is wor th $6 tr ill ion p er annu m. He impl ored it was mandatory for sustained economic grow th that government should focus this sector and help to enhance the exports and facilitate business community in this regard. He highlighted the areas with great exp or t p otenti al, li ke sur gic al instruments, fans, auto-parts, heavy engineering (like vessels), ceramics, moles and dyes, steel sector items and electrical capital goods.
EDB demands cut in WHT on engineering industry exports
The Engineering Development Board (EDB) has stro ngly proposed the Federal Board of Revenue (FBR) to amend the Income Tax Ordinance, 2001 to reduce the rate of withholding tax from one percent to 0.5 percent on export of the engineering industry. Section 154 of the Income Tax ordinance, 2001 deals with withholding income tax on exports which is to be deducted by the authorized dealers in foreign exch an ge at the time of
realization of for eign exch ange proceeds on account of export of goods at the rates specified in Division IV of Part III of the First Schedule to the Ordinance. As per the Schedule, the rate at which tax so deducted is 1 percent of the export proceeds. This deduction is co nsidered payment towards final liability of income tax. Since this deduction is mandatory and considered final payment, the exporters of engineering products have to bear it even if they are exporting on marginal profits of making a loss. Such situations of marginal profits or making arise especially in cases where market entry barriers are to be overcome through reduced first cost offers as a marketing tool or through
sunk investments in marketing and creating after sale service set-ups. Even otherwise, if exports of products of engineering industry are to be encour aged a nd pr om ot ed , the government needs to extend all possible fiscal incentives in this regard. The Reduction in rate of withholding income tax out of realization of foreign exchange proceeds of engineering industry exports would be a desirable step in the direction. It is, therefore, proposed that Division IV of Part III of the First Schedule to the Ordinance, 2001 may be suitably amended to reduce the rate of withholding income tax to 0.5 percent on exports of engineering industry.
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Automotive Sector - Update
Planning Commission consultant suggests duty reductions The Planning C om m i s si o n i s formulating an auto policy, envisaging the government to abolish the regulatory duties and reduce customs duty on import of auto parts from zero to 10 percent An Australian consultant of PC in a meeting held on March 31 proposed to bring down tariff rates in Pakistan at unified level of 10 percent across the board . The consultan t proposed immediate cuts in motorcycle tariffs to 15 percent or 20 percent to be followed by further cuts to a maximum of 10 percent. The objective of this meeting was to reach consensus on rationalisation of the present tariff in the auto sector w hich would eventually help in reducing the prices of local industry's
products, and give way to new entrants showing interest to come to Pakistan, in CBU or in SKD or CKD shape. It was pr oposed that non-tariff measures should not be used to control import and export, specific duties should not be used, and tariffs should be low and uniform. Uniformity means that tariffs on individual products should be the same for all importers, including trader-importers, says a paper, available w ith The News. The PC suggested that all concessionary tariffs should be available to all import licensing at present being administered by the Engineering Development Board and by various line ministries. The Commission has demanded immediate cuts (to a maximum and uniform rate of say 25 percent in all motor car tariffs and pre-announcement of further tariff cuts and other basic changes to auto sector polices. He also proposed establishment of
some process for the evaluation of tariff changes made outside annual budget cycle and which are published in SRO. It was suggested that the Ministry of Commerce publicise the reasons for a do p ti on o r r ej ec ti on o f th e recommendations of NTC. Si mi lar ly, NT C sh ou ld ensu r e publication of its past tariff enquiries and all future tariff enquiry reports before they are passed on to the ministry and these publications should be put on the website of Federal Board of Revenue. In the past, National Tariff Commission has been bypassed by EDB and ministry of industries in many cases. The meeting was attended by officials of ministry of industries, ministry of commer ce, ministry of finance, economic affairs division, EDB, FBR and NTC....
Automobile sales up 12% Sales of locally assembled cars have contin ued to ris e despite recent relaxations in limitations again st imported cars, data shows. Cumulative automobile sales, including cars, light commercial vehicles and pickups, touched 96,100 units in the first eight months of the current fiscal year, representing an increase of 11.8 p e r c ent c om p a r ed w i t h t h e corresponding period of the preceding year. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), car sales touched 84,225 units, up by around 12 per cent when compared with the previous fiscal year, but sales went down nine per cent in February compared with January. While sales of 1,300cc cars edged down in February, production of smaller cars stepped up. Suzuki Alto production stood at 1,292 units compared to just 5 84 units in January. Similarly, production and sales of Daihatsu Cuore rose by close to 30 per cent each. Local assemblers have put up strong
resistance against the government’s decision to ease restrictions on imported cars. PAMA argued that the move will put in jeopardy the local car industry and threaten thousands of jobs, but so far car sales have not taken a significant hit despite the easy terms for foreign competition. However, there appears to be a general consensus amo ng local assemblers that this scenario may change in coming months. Industry analysts point out that the real threat will be faced by cars in the 1,300cc and above categories, while sales of smaller, more economical cars w ill not be affec ted as mu ch . Motorcycles an d three-wheelers Sales of motorcycles and three-wheelers were recorded at 526,509 units in the eight months, up from sales of 470,499 units in fiscal 2010. However, monthon-month sales showed a slight decline of six per cent to 66,914 u nits . Hero motorcycles have clung to the top slot in terms of sales, followed closely by Suzuki and Habib. Dealers attribute
the popularity of these brands to their r ela ti vel y c h eap er p r ic es a nd widespread availability compared with competitors. Sales continue to rise Toyota Hilu x continued to gain popularity, as both production and sales of th e mod el poste d successive increases in r ecent month s. In February, 325 units of the pickup were sold. When compared with average sales of just 81 units per month during the last fiscal year, it becomes apparent that the model is gain ing signif icant patronage. “Another version of this pickup has been localised and now double-cabin is being manufactured in Pakistan,” said Indus Motor Marketing Director Reza Ansari. Citing the resultant lower price tag on the model, Ansari co mme nted, “Part of th e increase in sales for Hilux has been due to this version.” He added that Hilux has gained momentum, as appeal for the pickup has strengthened over time......
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Automotive Sector - Update
Press Release
J. Pereira appointed GM of Al-Haj FAW Motors
J. Pereira has taken over charge as General Manager of the Product Support Division of Al-Haj FAW Motors (Pvt) Ltd. with effect from January 01, 2011. Pereira is a highly qual ified engin eer in the field of Automotive Engineering, Logistics, Transportation and Supply Chain Management. He has over 25 years of rich experience with the distributors of global brands in Pakistan. Pereira studied at St. Patrick’s High School in Karachi. Later he did his DAE (Diploma of Associate Engineer) in the Automotive Technology from the Government College of Technology, Karachi, wh ere h e secured First Position in the province of Sindh. Subsequently he did his B. Tech (Bachelor of Technology) Pass and Honors in Mechanical Engineering f r om th e N ED U ni ve r sit y of E ng i nee ri ng a nd T ec h n olo g y. He is a Chartered Member of the Chartered Institute of Logistics and Transport of UK and is also a Member of the Society of Automotive Engineers of Japan. Besides these, he is also an Associate Member of the Institute of the Motor Industry of UK and the Institute of Road Transport Engineers of UK. He is also an Affiliate of the Society of Automotive Engineers of USA. Pereira did his Diploma in Logistics and Transport and Transportation Management from the Chartered Institute of Logistics and Transport and the Pakistan Institute of Management r espec tiv el y. He qu ali fi ed in International Trade from the Business Management Association of UK. Later
he did his PCCM (Programme for Cross Cultural Management) at the AOTS (Association for Overseas Technical Scholarship) in Japan. Pereira spent his initial career in the teaching profession at St. Patrick’s Technical School. Subsequently he served the distributors of global brands in Pakistan namely, Detroit Diesel Allison and AC Delco, Divisions of General Motors Corporation of USA, including Mercedes Benz of Germany and Hino of Japan. He was al so eng ag ed i n th e Log ist ic s and Transportation of the bulk liquid, transport carrier fleet at Cosmopolitan Develop ment Company Limited. He last served Hinopak Motors Limited as Deputy General Manager of the Product Support Division where he received num erous awar ds and recognitions including the Gold Medal of Excellence for three consecutive years (2004-2006) for achieving the highest level of customer satisfaction in Pakistan. At Hinopak Motors he set up a state of the art Training Centre and also served a dual charge as Principal of the Training Centre which was registered with the Sindh Board of Technical Education. He is also the Founder Member who established the Central Calibration A uth orit y (CCA) in compliance to the requirements of ISO9001. Pereira is an active member of the faculty of the Chartered Institute of Logistics and Transport where he delivers lectures at the Diploma Course in Logistics and Transport and the Diploma Course in Supply Chain Management (SCM). His field of specialization is T ranspor tation Management. During a short span of four years AlHaj FAW Motors has already sold over a thousand units of commercial vehicles in the Pakistan market. Thus, keeping in view the rapidly growing demand of FAW Prime Movers, Rigid Trucks and Dump Trucks in Pakistan, Pereira is in the process of developing a Master Plan for the establishment of the Product Support Division for the company. Through the Product Support Division
the company will be establishing a strong dealership network comprising of 3S (Sales, Service and Spares), 2S (Service and Sp ares), 1S (Service Centres), 1S (Sp ar es / P ar ts Dealerships), DFIP (Diesel Fuel Injection Pump) Laboratories and A/C (Air-conditioning) Service Centres across the country. The compan y is focused towards providing prompt and efficient After Sales Service backup to its valued customers. At the same time the company is also striving to ensure readily available Spares through its dealership network across the country. Special emphasis is also being paid on the right pricing of spares to ensure that the operation and maintenance cost of the FAW commercial vehicle is well within the acceptable limits of the customer. The company has a Mobile Workshop which attends to customers complaints on the spot. With the passage of time the company will be adding on to its fleet of Mobile Workshops across the country to provide prompt and efficient After Sales Service backup to customers at their door step. Simultaneously, the company will also be establ ishing a state of the art Training Centre at its Head Office located at Zulfiqarabad along the main National Highway in Karachi. The Training Centre will cater to a wide range of Training Courses for its valued customers and fleet operators across the country. The courses will include Technical Training Courses for the technicians of the FAW dealers and customers, including Drivers Training Courses for the drivers operating FAW trucks. The Product Support Division is being established with the intention of providing Total Customer Satisfaction to its valued customers across the country even at the re motest of locations.
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Agriculture Sector - Update
Minfa dept violated rules in fertiliser procurement The matter was also referred to National Accountability Bureau (NAB) in 2003 but the owner of company succeeded in out of court plea bargain. Fertil is er Import Department (FID), a s ub sid ia ry of Min istry of Food and Agriculture, has been accu sed of violating fertiliser procurement gu ide line s in relation to a fertiliser deal. Ministry of Food and Agriculture will hold a fresh inquiry to fix the responsibility and find out irregular credit of Rs.1.469 billion to M/ s National Fertilizer and Marketing Limited for purchase of imported fertilizer.
During 1993-94, the FID irregularly delivered imported fertilizer on credit to a private party-National Fertilizer and Marketing Limited on 164 occasions the cost of which was worked out Rs 1.469 billion. The cost was recovered from the party after one year, resulting in increase of interest charges taken on equal amount of loans from the bank for running the
state trading scheme. Despite, clear direction to director FID Karachi in 1994, not to deliver any fertilizer to any distributing agency without advance payment, the credit was given. An internal inquiry was carried out by the department which fixed responsibility on two junior officers. Special Public Accounts Committee (PAC) on Thursday declared the inquiry report faulty as junior officers were not invited to explain their position. Committe e fu rther directed the Additional Secretary Ministry of Food and Agriculture Khizer Hayyat to hold a fresh in quiry within 15 days. Audit's interpretation of rules says that the cost of fertilizer was to be paid by the private party either through a letter of credit opened in favour of the audit office in a scheduled bank or through bank draft immediately on allocation of the share of fertilizer from a vessel and before getting delivery of cargo from the department. The prescribed procedure was not adopted. The amount of interest on the delayed payment at the authorized bank rate of 18 percent per annum worked out to Rs 50,898,175 which was not recovered from the party.
In another case, the director general of food placed a freight contract on a firm (M/s Riha Maritime Pvt. Ltd.) for shipment of 98,000 metric tons of wheat from Turkey to Port Qasim in February 1993 at $20.16 per metric tons.
contract to another firm at $26.50 without carrying charges at the risk and cost of the original firm. The risk and cost amounting of $916,604 is still recoverable from the firm at fault. The firm's bank guarantee was also not encashed. Director General Federal Audit said the r ole of Secu rity and Exch ange Commission of Pakistan (SECP) in this particular case was very poor. The commission intimated on December 5, 2007 that th e company w as not register ed w ith them. Again on December 25, they informed the audit that the company had been dissolved in 2003. The matter was also referred to National Accountability Bureau (NAB) in 2003 but the owner of company succeeded in out of court plea bargain. Ministry of agriculture informed that the matter was pending due to tussle between National Investment Bank and ministry and assu red th e bank guarantee would be cashed. The special committee of PAC was shocked over revelation of billions of rupee irregularities and expressed their concern over the ro sy affairs of ministry. The committee was chaired by Riaz Ahmed Pirzada.
On failure of the firm to provide the ship, the department awarded the
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Agriculture Sector - Update
Sales tax on agriculture sector Experts fear decline in GDP growth The imposition of 17 percent sales tax on agricultural inputs will add to the troubles of the government as the overall contribution of agricul ture sector in GDP growth may decline by 2-3 percent. Sources told Business Recorder that the growers would suffer R s 70 -80 b ill ion losse s as a consequence of the government’s decision to impose 17 percent sales tax on agricultural inputs which would jack up the prices of a number of agricultural inputs. According to agricultural experts the tax would affect the overall agricultural productivity of Pakistan. The 17 percent sales tax on agricultural in puts including fertiliser, pesticides, tractors and other inputs would cost the poor growers heavily, analysts maintain. While talking to media, Chairman AgriForum Pakistan, Ibrahim Mughal, said th at the decision will force the agricultural sector to pay a heavy price for the government’s flawed policies. “The government has decided to impose 17 percent sales tax on fertilisers, tractors and pesticides which is inexplicable. The present leadership of Pakistan has put the country on a path of destruction and starvation”. While giving detailed information about how the agriculture sector will suffer, he said “About 80,000 tractors are being purchased by the growers per annum and after the imposition of sales tax, they will have to pay Rs 8 billion annually more than before. An amount of Rs 300 billion was being spent to purchase fertilisers each year but imposition of tax will make the growers pay additional Rs 50-55 billion for the
purchase of fertilisers. For pesticides, an additional amount of Rs 7-8 billion will be spent after the imposition of tax. This would also reduce Pakistan’s exports.” He lamented, “the contribution of the agriculture sector to GDP growth is 24 percent that may decline to 19-20 percent after this tax is imposed”. Mughal said that with this additional burden of Rs 70-80 billion on the agriculture sector, the total number of people living below the poverty line would increase from 80 million to 110 million. The after affects of the imposition of sales tax on agricultural inputs may include an increase in the price of flour from Rs 32 per kg to Rs 40/kg, rice from Rs 95/kg to Rs 150/kg, eggs from Rs 62 per dozen to Rs 100 per dozen, goat meat from Rs 500/kg to Rs 600kg, beef from Rs 250/kg to Rs 300 per kg, chicken from Rs 240 per kg to Rs 300/kg. He explained that it would hav e multiple negative impacts on the fragile economy of Pakistan with an overall decline in agricultural productivity that w ou ld lea d to an i ncr ease i n unemployment. “Almost 5 million
tenants may be unemployed in the long run”, Mughal stated. He urged the government should increase the wheat support price from Rs 950/40kg to Rs 1500/40 kg with immediate effect. He added that in case the government does not increase support price farmers may be unable to sell their wheat crop this year as the commodity is being sold at $321 per ton in the international market. Feudals reign supreme in the country that is why instead of imposing farm tax on income mode the government has decided to impose tax on agricultural inputs that would hit the poor farming community, he added. When asked Sartaj Aziz, former finance minister, about the 17 percent sales tax on agricultural inputs, he said, “it is true that the government is forced to take this step due to the delayed bailout package under the Stan d-By Arrangement programme but approval should have been soug ht from parliament. Instead of imposing tax on agricultural inputs, there should have been farm tax on income mode through legislation”, Aziz further stated. Dr Ashfaque Khan, former economic advisor of finance ministry concurred with Sartaj Aziz’s proposal to tax farm income. But he added that cotton growers earned over Rs 300 billions due to increased commodity prices from Rs 6,000 per maund to Rs 12,000 in international market. So what is the big deal if they pay 17 percent tax on agri cultur al inp uts, he queried rhetorically.
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Agriculture Sector - Update
Round table Discussion on Agriculture and Water in Pakistan
Agriculture growth should be 4pc Investment in agricultural sector is essential to enhance productivity, which also protect produce from pest attacks and consequently improve the living standards of rural masses. Agriculture growth is vital to overall economic growth in Pakistan and annually it should be 4 percent, which needs new growth strategy, said World Bank's senior official Dr Mark Cackler last week. He said this while speaking at a twoday "Round table Discussio n on Agriculture and Water in Pakistan" which was jointly organised by the Planning Commission of Pakistan, the World Bank, Food and Agriculture Organiz ation (FAO) of the United Nations and USAID. Dr Mark said that Pakistan should focus on followin g areas ; impro ve and enhance agricultural productivity; use of suitable technology in agriculture should be encouraged, improved means of communication for marketing be used; incentives should be provided to the small farmers, growers be educated abo ut th e efficient use of water, agriculture marketing be improved, he said. He a dd ed th a t inv estm ent i n agricultural secto r is essential to enhance productiv ity, which also protect produce from pest attacks and consequently improve the liv ing stan dards of rural masses. Mark Cackler asked for adopting the better market managements, encouraging the private sector in livestock and fisheries sector. He also asked for technological up gr ad atio n , bio t ec hn o lo g y, communications and incentives for imp roving th e existing system . T alki ng ab ou t t he key is sue s confronting Pakistan agriculture sector he said that it needs better water management practices, private sector should be encouraged to take part in agriculture development project, innovations in the livestock & fisheries
sector, improving market practices, climate change and in this regard the government has to play an important role. Speaking on the occasion Dr Mushtaq Gill of South As ian Conservation Agriculture Network (SACAN) said that over the time Pakistan has become a water deficient country and there a dire need to use available water efficiently He said that implementation of water management mega projects has shown immediate returns in terms of water savings and productivity enhancement being cost affective, non controversial and well accepted by the farming community; The execution of on going projects is stalled due to severe financial crunch, while the World Bank, USAID and others lending agencies may provide immediate funding (Bridge financing) for continuity of th ese projects. He said that Pakistan could bring around 28 million acres of land under cultivation by following the Alien models (UAE), Sanai (Israel/Egypt), Ghobi (China) and Rajasthan (India), which is equal to the total cultivated lands of Punjab. Like Egypt's new areas, Pressurized Irrigation System should be encouraged in Thal, Thar, Cholis tan, Ch aghi (Kharan) and others rain-fed areas. For sustainable development, emphasis should go beyond provision of water man age ment services to in clude productivity and profitability per unit of water, he concluded. Addressing the seminar, Chairman Indus River System Authority (IRSA) Rao Irshad Ali Khan urged for building more water reservoirs to enhance the water storage capacity in the country for agriculture use and generating hydel-power to counter ongoing energy
crisis. He informed that about 160 million acre feet (MAF) flood water was wasted due to low storage capacity in the country, adding only 8 million acre feet of water could be saved from wasting. He further said that liv e storage capacity of the dams like Terbela, Mangla and Chashma were 11.5 MAF adding that the capacity would be enhanced up to 14.5 where as the current requirement was 122 MAF per annum. He informed that Egypt has 1,000-day carryover capacity, US 900 days India 500 days while Pakistan has only 30 days carryover capacity. Pakistan was heading towards water scarcity in terms of per capita water availability adding that in the year 1951 it had 56,00 cubic meter (CM), in 2007 it reduced to 12,00 CM and it reached 1000 CM during the current year, while in next 15 years it would be reduced to 800 CM. IRSA head said that government has initiated some mega projects in water sector including Mangla Dam uprising which would add the live storage capacity 2.88 MAF, Mirini dam, 0.152 MAF Satpara dam 0.053 MAF, while Gom al Za m d am 0.89 2 MA F. Besides, he said that prospective storage of the under progress projects incl ud ing Di amer B ash a da m, Kalabagh, Akhori, Munda and Kurran Tangi would further increase the live storage capacity up to 22.27 MAF. The main objective of the event was to share the international best practices for efficient use of water resources and addressing the challenges to enhance the output of crops to achieve food security in the country....
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Engineering Sector - Event update
by our correspondent
Pakistan Participation at Hannover Dwindles to JUST 4 Exhibitors H a n n o v e r M es s e w a s launched last night at the Ha nnover To w n Hal l . German Chancellor Angela Merkel was joined by Prime Minist er of t he Fr ench Republic H.E. Francois Fillon at the HANNOVER MESSE with France as Partner Country this year. Besides the 8th HERME S A WA R D pr iz e- g i vi ng ceremony in honor of some of this year’s most promising breakthroughs in industrial technology was presented as well as the Republic of France as this year's Partner Country. For Pakistan, however, the quality of leadership was showing. From very high showing of Pakistani firms at this show for four years, this year's showing is a dismal four firms located obscurely in a corner in hall 4, with no hospitality stand, no rep from th e Pakistan Embassy or the TDAP. The dynamic leadership of ex Minister of Industries, Jehangir Khan Tareen was instrumental in motivating and launching a revolution by bringing large numbers of exhibitors (35-72) each year along with hundreds of trade visitors from Pakistan bet ween the years 20052008. This resulted in creating a large number of engineering sector SME exporters of engineer in g goods. However, Tareen's successors have not been able to look after the future growth of the engineering industry in an equally able manner. The TDAP, which seems to have no strategy other than to look after some traditional export sectors does not seem to have a vision to grow exports of engineering goods and services. Hannover Fair has proved the launch pad of many nations' engineering goods industry, including Japan, Korea, Taiwan, China and India. This was realized by the Ministry of Industries during Mr. Tareen's tenure and good use was made of this opportunity and
the Ministry as well as the Engineering Development Board worked closely with the Private Sector as well as the Dutch CBI for training and launching P ak ist ani S MEs int o ex p or ts. With increasing raw material and energy prices, lightweight construction systems are particularly popular at present. This theme park and Solutions Area at hangover Messe will be exhibiting a host of products, systems a nd c ur rent trend s rel ated to lightweight construction. Aluminum, composites and paper that are as light as can be will be shown.Lightweight materials and constructions are hugely importan t in sav ing energy and materials. Lightweight construction thus acts as a central theme throughout Hannover Messe 2011, which is focused on “Smart Efficiency”. Visitors with an interest in lightweight construction will be particularly drawn to two areas in Industrial Supply, hall 6. The Light Weight Construction Theme Park is exhibiting products and systems made of lightweight materials, new technologies and solutions for a wide range of sectors, such as the automotive industry, air and space travel, ship building, machine building, system construction and regenerative energy. The Solutions Area represents the heart of the theme park and features practical solutions, major visionary exhibits and eng ag ing l ive dem onstr at ions. Alongside experts from companies, the
solutions area will also be home to representatives of various associations, who will be availabl e for individual discussions and presentations. Ad va nc ed t ec h no lo g y characterizes the electric boat produced by AT Technologies, which features lightweight carbon fiber co nstruction. KSM Castings is exhibiting its ski lls in al um inum and m ag n esi u m a u t om o ti v e ligh tweight constr uction. SHEET CAST Technologies will be presenting its award-winning composite brake discs, while Metawell will be showing its new light-directing systems for solar power plants. Finally, Jacob Composites will be focusing on its specialism of mass produced carbon fiber products. One particularly eyecatching feature within the Solutions Area will be a bridge made of paper. The structure exhibited by SWAP (Sachsen) GmbH will show just how much stability can be provided by composite paper materials. SWAP produces honeycomb panels out of recycled paper, which are then employed for packaging, furniture, and even rear spoilers! The dail y live production demonstration (1 p.m., H6, A26) should also prove particularly intriguing. This will be staged by the Euro RTM Group, a working group that is part of th e AVK com posites association. The Lightweight ceramic/lightweight construction, light alloys, modern highstrength steels, composite materials and joining technology. The program is made up of more than 40 half-hour presentations, organized according to materials. Representatives of major businesses are here to discuss the latest issues, al ong with speakers from l ead ing r esear ch insti tu tes.....
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International Automotive - Update
Guangzhou Auto plans A share listing
Foreign groups told to make Chinese cars Foreign carmakers wishing to build new plants or add capacity in China’s burgeoning car market are being told by the government that if they wish to expand, they must develop a low-cost local car brand. While Beijing has spoken of promoting local car brands, no central government ruling or written policy is known to exist on the subject. However, automakers confirm that the i ssue is c rop pi ng up i n th eir negotiations to expand existing plants or build new ones. French producer PSA Peugeot Citroën, which is pushing its cars upmarket globally and, until recently, rejected the notion of producing low-cost cars, confirms that it is now studying the possibilities. Phil ippe Varin, the group’s chief executive, recently told the Financial Times India that developing a local brand was “part of the deal” in its new joint venture with Chongqing-based
producer Chang’an, which is installing capacity to produce up to 200,000 cars a year from 2012 in Sh enzh en. Volkswagen, which is seeking to build a new 300,000-vehicle plant in Foshan, southern China, confirms that it is in talks with its Chinese partners FAW and SAIC to develop local brands. “I believe there are changes to the policy comin g,” said the head of Ch ina operations of one foreign carmaker, who asked not to be named. “Foreigners want more capacity; China is saying: ‘We want more own brands’.” From China’s perspective, co-operation with foreign carmakers has yielded little in terms of development of local brands or transfer of intellectual property. “We made this decision a number of years ago that it made sense to play in this area of the market,” said Kevin Wale, head of GM in China. However, the carmaker said that the dis cussion is at an “early stage”.
Guangzhou Automobile Group, the Chinese partner of Japanese car giants Toyota and Honda, plans to sell A shares in mainland China through a merger with GAC Changfeng Motor, the Guangzhou-based automaker said last week. Guangzhou Auto will issue 1.6 new A shares or pay 12.65 yuan in cash for each existing Ch angfeng share. Mitsubishi Motors Corp, Guangzhou Auto's Japan ese partn er, said it accepted the cash offer and is expected to receive 961.4 million yuan for its 14.59-percent stake in Changfeng. In total, Guangzhou Auto will issue no more than 470.11 million new A shares at 9.09 yuan per share. The share swap ratio represents a premium of 15 percent over Changfeng's average share price of the last 20 trading days, or a 29.56-percent premium over its average share price of the last three months before trading suspended on Oct. 28, 2010....
Japan auto parts makers may move plants to China, official says Japan's auto parts makers, faced with continuing production interruptions after the March 11 earthquake, may relocate more factories to China as a result of the disaster, according to a Ch in es e go v er nm e nt o ff ic i a l. About 70 percent of car parts in China are supplied by local co mponent makers and foreign companies with plants in the country, according to the nation's Association of Automobile Manufacturers. Yet some parts used for engines and electronic components are mainly imported from Japan and
other countries, Cheng Xiaodong, an official with the National Development and Reform Commission, said. "Companies were not motivated to localize production of key components in China and the quake may change that if they face rising difficulties in the following months in supplying to their China assemblers," said Cheng, who is in ch arg e of th e vehi cle p rice monitoring arm of the state planning agency. "China is the world’s biggest vehicle market and producer and it makes sense for them to do so."
Nissan Motor Co.'s Chief Executive Officer Carlos Ghosn said about 40 component suppliers in Japan remain i n d iffi cu lt y a fter th e q u ake, complicating automakers’ efforts to restart production. Denso Corp., Aisin Seiki Co., Hitachi Ltd., and others parts makers suspended most or some of their production afte r the quake. Japanese automakers accounted for 23 percent of car deliveries in China last year, according to the auto association.
Nissan to Monitor Vehicles for Radioactivity Testing will continue 'until we are c o n f i d e n t t h a t a ny r i sk o f contamination is completely removed,' Nissan said. Nissan Motor said on March 18 that it would monitor all its vehicles made in J ap an for r ad ioa ct ivi ty , a mi d international concern over efforts to avert a nuclear catastrophe at a stricken atomic plant. "We will continue to implement all appropriate measures to reassure the public that all products from our company remain within global ly accepted safety standard s," th e
company. The testing will continue "until we are c o n f i d e n t t h a t a n y r i s k of contamination is completely removed," the automaker said. Attempts are being made by Japan's Self-Defense Forces to douse fuel rods and prevent a calamitous radiation release at the Fukushima No. 1 power station. Levels of radiation there have fluctuated wildly after the plant 55 miles northeast of Tokyo suffered critical damage from Japan's biggest ever earthquake last week and the devastating tsunami it
unleashed. The government has set a 20-kilometer exclusion zone and told those living between it and 30 kilometers from the plant to stay indoors as hourly radiation levels in the some nearby areas spike. The twin disasters knocked out the cooling systems, sparking a series of explosions and fires. Authorities have since raced to keep the fuel rods inside reactors an d containment p ools submerged under water. If they are exposed to air, they could degrade further and emit even more dangerous radioactive material.
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International Automotive Industry - Update
Toyota, Honda, Nissan, Subaru shut plants after Japan earthquake Toyota is one of the few Japanese automakers with a large manufacturing presence in northern Japan, a region it wants to make a center for small car production. Toyota Motor Corp., Honda Motor Co., Nissan M otor Co. and Sub aru suspended production at plants in Japan and were assessing damage after an 8.9-magnitude earthquake struck off the coast, triggering a tsunami and shaking buildings as far away as Tokyo. The shutdown could affect exports to the United States of such cars as the Toyota Yaris sedan, Scion XB and Scion XD, as well as t he Honda Fit subcompact, Accord sedan and CR-V crossover. The temblor also affected production of the Acura and Infiniti lineups. Toyota, the world's largest carmaker, said it evacuated workers from several factories in the quake zone. Toyota has two parts plants in northern Japan and two affiliates, Kanto Auto Works Ltd. and Central Motors Co., that assemble small cars in the region. Spotty phone coverage in the quake zone made it difficult for companies to get a clear picture of the extent of the damage. Authorities in northern Japan were beginning to sift through the region's wreckage and tally the death toll when darkness fell. Toyota is one of the few Japanese automakers with a large manufacturing presence in northern Japan, a region it wants to make a center for small car production. In January, its Central Motors affiliate opened an assembly plant just an hour's drive from Sendai. That plant, with a capacity of 120,000 vehicles, makes the Yaris small car for export to the United States. Toyota's Kanto Auto Works affiliate has anoth er assembly p lant in t he neighboring prefecture of Iwate. That plant also makes small cars, including the Yaris sedan, Scion xB and Scion xD. The Toyota parent company also has tw o p arts plants in the region. Toyota spokesman Mike Michels said
it is not clear yet if U.S.-bound Scions ar e i mpacted by the situati on. Toyota plants near the company's headquarters in Toyota City, in central Japan, had resumed normal production after brief shutdowns, Corbett said. There were no reports of injuries from those factories. Possible damage was still being assessed. It sends the Fit small car, Accord sedan and the CR-V crossover to the United States, as well as the Acura RL and Acura TSX, Yamamoto said. Th e company was unsure when production would resume. But Honda would close its R&D center and the Sayama and Suzuka factories at least through next week, Yamamoto said. Nissan Motor Co. also suspended operations at factories throughout eastern Japan. Small fires broke out at two assembly plants, including the factory producing the Infiniti M sedan and GT-R sports car. They were quickly extinguished , the company said.
The company also evacuated employees from its technology center south of Tokyo after the power was cut off there. Fuji Heavy Industries Ltd., the maker of Subaru cars, closed five factories, said Kenta Matsumoto, a spokesman for th e Tokyo-based comp any. Truck maker Volvo AB was also among those worst hit as its main production operation in Japan was forced to suspend output. The Swedish company, among the world's leading truck makers, said damage to its UD Trucks facilities in Ageo in southeastern Japan was mainly superficial. But it will be days before the company can do a full assessment, Volvo Trucks said. Volvo employs 10,000 people in Japan, and another 3,000 work at UD Trucks' dealerships. Volvo said the dealership at Sendai, close to the earthquake's epicenter, had been seriously damaged, and it couldn't yet say how other dealerships had been affected , Dow J ones rep orted .
Japan quake closes ports, threatens to disrupt auto shipments All major ports in Japan were shut d ow n a ft er th e 8.9 mag ni tud e earthquake and tsunami. If po rts remain shut for an extended period, exports of Japanese automobiles to North Ame rica could be delayed, analysts said. "It's a very bad situation," said Dennis Virag, president of the Automotive Consulting Group. "Japan has excellent ports but they're going to be the focus of rescue efforts. I don't know how much (non-relief shipping) is going to be going out for while," he said.....
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Exclusive Article on Automotive
by Shahzad Tabish from NED University
Local Automobile Production Stats 2010 Focusing the ups & Downs & The Ultimate Achievers & losers In a recent visit to IMC, I came across a pi-chart that clearly demonstrated the immense demand of Toyota corolla in the local sector in comparison to i nt e rn at i ona l ma r ke t. I n accordance to that particular chart; Pakistan is currently the leader in the sub continent for the sale of Toyota Corolla. In the last year only a total of 1.5 million, (1,50,1558) motorbike units to be precise were produced in total. These include a total of 654074 units from the Japanese brands which constitutes a share of only 43.55% while the remaining motorbike units were produced by various Chinese technology oriented industries which constitutes a total share of over 56%. Not so long ago, Pakistan’s automobile production was confined to very few industries dedicated to two & four wheeler production. With the passage of time investors fro m different countries came to exploit the emerging sector of automobile production & its immense need in the local market. Some survived & flourished while others were drained out due to ill trust & lack of interest shown by the consumer for their product. The car industry was at its peak back in the years 2006 & 2007 as far as production is concerned. In the
year 2007 alone Pak-Suzuki
Motor Company (PSMC) produced around 120,000 units & was at the top of the local car production shares with 62% NVS, with In dus Motor Compa ny (IMC) following it with 24% NVS. That golden era came to its end with the increment of markup from leasing agencies & due to a sudden oil crisis globally which resulted in a hike in of petroleum products. Very recently the production stats of
last year have been announced by PAMA. PSMC produced a total of 71998 automobil es last year while IMC produced a staggering 50557 vehicles enjoying the second place after IMC. IMC is a brand name known to produce quality product for the consumer who is willing to pay for it, where as PSMC has grown into a local leader of au t om ob il e m a nu fa ct u r ing by developing & manufacturing products that are affordable to the general public. With the increasing value of Japanese Yen in comparison to the weakening value of Pakistani rupee, the cause of PSMC has suffered a great setback. The prime version of Suzuki Mehran, which was available for Rs. 375,000 around five years ago, is now on sale at 568,000 pkr. This difference in cost, which constitutes over 51% increment in a matter of five years, is evident on all the variants within the range of PSMC. With reference to another article that
I wrote earlier; “People’s car of Pakistan, Suzuki Mehran” published in May 2010 edition of Automark, Suzuki Mehran was the car that had enjoyed unmatched production stats since its introduction way back from the year 1990, due to its affordability, but the tables have
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Exclusive Article on Automotive
There was a time when Japanese were a dominant force in the two wheeler sector locally, but with the involvement of Chinese oriented industries the scenario has now changed, due to the increasing cost of Japanese motorbikes in comparison to those having Chinese origin which cost around 12000-15000 less than the Japanese counter parts. overturned now. Due to the increased price the affordability factor of Mehran has now been eliminated. In the last year only, the sale of Mehran is 22710 units which is almost the double of any other counterpart from PSMC, but the car which has made this production figure look humble is the Toyota Corolla. Astonished? Yes, over 43000 units of Toyota Corolla were sold in the last year only. Do we have a new people’s car emerging? In a recent visit to IMC, I came across a pi-chart that clearly demonstrated the immense demand of Toyota corolla in the local sector in comparison to international market. In accordance to that particular chart; Pakistan is currently the leader in the sub continent for the sale of Toyota Corolla. Sadly the fact behind these facts & figures cl early represent the class difference widening in our country. As we all know, the brand name Corolla in Pakistan is only associated to the higher class of people who can afford for the luxury it offers. One might think that the sale of Corolla indicates the prospering nation, but in reality it doesn’t. The depletion in the sale of the cheapest available locally assembled car, Suzuki Mehran clearly indicates that the middle class is now unable to purchase the car. Summing up in simple words, the poor is becoming even poorer & the rich are able to cumulate their wealth with the passage of time. So, what a common man turns to in order to fulfill his transportation needs
after facing such dilemma? Surely there has to be another way out. We have discussed earlier about the peaking of car production in Pakistan, the very last year i.e 2010 has seen the peaking of motorbike production. A common man, who is now unable to purchase a four wheeler in order to fulfill his transportation requirement, has now turned towards the much cheaper two wheeler. As far as the two w heelers are concerned, they basically belong either from Japanese or Chinese origins. Chinese involvement in local two wheeler sector has now been around for a decade. In the very beginning only one or two brands came in to produce the reverse engineered design of local 70cc motorbike for a much cheaper cost, over whelming response from public for their product has encouraged more & more investors to establish other such industries, producing the two wheeler. Considering the present scenario there are around 67 brands in total; producing motorbikes for the masses. There was a time when Japanese were a dominant force in the two wheeler sector locally, but with the involvement of Chinese oriented industries the scenario has now changed, due to the increasing cost of Japanese motorbikes in comparison to those having Chinese origin which cost around 12000-15000 less than the Japanese counter parts. In the last year only a total of 1.5 million, 1,50,1558 motorbike units to be precise were produced in total. These include a total of 654074 units from the Japanese brands which constitutes a share of only 43.55% whil e the remaining moto rbike units were
p r od u ce d b y v ar i ou s C h ine se technology oriented industries which constitutes a total share of over 56%. These stats clearly demonstrate the immense demand of the two wheeler in the local market. The cost has proved to be a decisive factor in the sale of the motorbike units. The market share of Chinese based manufacturers is on a continuous hike due to the cheaper price tag in comparison to the Japanese variants. The quality standards are not as high in comparison to the Japanese manufacturers but due to the immense d em a n d t h e C h i ne s e b a s e d m anu fa ct ur er s h av e now al so established state of the art facilities for the production of two wheeler, locally. Uncompromised quality standards have been set in certain industries wh ich have flourished as far as production is concerned, maintaining the cost levels to a minimal. After this brief analysis we can conclude t h a t t h e ne ed o f i n d i vi d u al transportation remains a top priority amongst the masses. To counter this necessity the individuals have to search for the best available option in terms o f a ff o r d a b i l i t y , r e l i a b i l i t y , serviceability, maintenance & running costs involved. In the past when the car proved to be an affordable & accessible m ed iu m , its pr odu ct ion h iked drastically. Looking at the present, the economy inflation has made the car a dream for the middle class which has now turned over its attention to the motorbike arena, which is clearly ob serv ab le by th e su bst ant ial production figures achieved in the last twelve months only. Knowing that no one is listening, still; it has to be said that it is the responsibility of the government to introduce a four wheeler locally that could bring the car back to the affordable category for the masses, considering the example of Tata nano from th e neigh boring countr y. Government has turned a deaf ear to all that is said, still; where there is a will, there is always a way. Cheers!
Automark Magazine | April-2011 43
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Automotive Sector - Company Review
by J. Pereira
Al-Haj FAW Motors achieved the brake through in the corporate sectors It is worth mentioning that in year 2010 FAW has been the second highest truck seller in the market as compared to Japanese & Korean makes by gaining 23% of market share with within four years. This is first time in the last 30 years or so that Japanese truck manufacturers have been threaten by one of reputed Chinese automobile company FAW Motors, it is eminent that is has taken away their domin ant role in the Pakistan truck market. FAW through it distributor AlHaj FAW Motors has been able to make its presence felt with the transporters all over country. This is reason that in 2010 AlHaj FAW Motors achieved the brake through in the corporate sectors customers which resulted in selling 80 units to Bilal Associates, 20 units to Mega Logistics, 20 units to Unique Enterprise & 40 units to Adnan Carriage. It is worth mentioning that in year 2010 FAW has been the second highest truck seller in the market as compared to Japanese & Korean makes by gaining 23% of market shar e w ith with in fou r years.Within 4 years, AlHaj FAW Motors has been able to attract the steadfast transporters operating the Japanese trucks in the last 30 years as it is really an incredible achievement. AlHaj FAW Motors launched first model of FAW prime mover model J5P330 in the market. As usual there was lu ke w ar m r esp o nse f r om th e transporters but with aggressive sales campaign under competent Managing Dir ec tor , M r . Bi lal Kh a n th e transporters started about the FAW Prime Movers and induct in their fleet. No doubt the prices of FAW catches the attention of the transporters as model J5P-330 (6x4) introduced with price of Rs.2,800,000 as compared Rs.3,600,000 of Hino model FM2P. Actually the lower price was one of the factor but the transporters after having operated FAW prime movers, have found out that FAW Model J5P-330 performance, weight carriage capacity
of 60 tons (Some carried upto 8090tons), low on fuel consumption because 330 horse po wer engine o per at ing a t low R PM & low displacement capacity, moreover it has been successfully operating on all terrains (flat, hills & rough roads) in the country. After the success acceptance of the FAW Model J5P330 AlHaj FAW introduced in the market Models J5M-240, J5M2 6 0 & J5 K-2 0 0 to ca ter th e requirement of transports who are carrying load between 20 tons to 50 tons special providing contained service & oil Tankers AlHajFAW has been working very closely with the customer. Adnan Carriage has been one of the biggest FAW fleet owner also one of main contractor of Shell Pakistan. Shell expressed its requirement to operate Oil tankers with 48,000 liter capacity which must be coupled with at least 400 horse power prime mover. Engine With 400 horse power prime mover was not avail able in the country. Adnan Contractor communicated same to AlHaj FAW who took up the Shell requirement with FAW Motors, China.
FAW Motors has prime mover fitted with 420 Hp in their product range. AlHaj FAW arranged meeting of Shell regional office management with FAW Motors in China and after having inspected, FAW model J5P-420 the shell management decided to allow global-wise its contractors to induct FAW model J5P- 420 in their fleet to carry 48,000 litre oil tanker. Having received the shell approval, Adnan Carriage had placed order for 40 units of J5P-420 Horsepower which are now operating successful to the satisfaction of Shell & Adnan Carriage. FAW model J5P-420 has giving fuel consumption 3.1 km per liter which is absolutely fabulous for the Adnan Carriage to have in their fleet with low cost running Prime Mover carrying very heavy duty tanker with 48,000 litre capacity. FA W vehic les have g ained th e confidence of transporters also because AlHaj FAW has taken utmost care to meet after sales requirements under very customer-caring and vigilant Chief Executive Mr.Hilal Khan Afridi. We h ave w ell managed sp are parts workhouse at National Highway beside AlHaj FAW show room & workshop.
Automark Magazine | April-2011 44
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Agriculture Sector - Update
Agri profit grows over 100pc; tax ratio below 1pc Experts are of the view that continuous rise in fertilizer prices as well as recently imposed taxation on agriculture inputs are cited as potential drawbacks for agriculture sector. The agriculture sector contributes over 23 percent to the country’s Gross Domestic Production and yet accounts for less than 1 per cent of th e government revenues. The gross profitability for agriculture products such as cotton, sugar and wheat have increased by 100, 63 and 52 percent respectively during the last two years but tax collection from the sector remains minimal despite the fact that it continues to enjoy subsidized inputs and freedom to charge prices above international prices, experts said. “Since 2008, gross profit earned on all major crops has improved considerably, -cotton 4.5x growth, sugarcane 63 percent, wheat 52 percent and rice 21 percent- whilst taking into account increases in costs, they said. They observed that the taxation on agriculture sector has always been negligible and the share of federal tax collection from agriculture sector has been only 0.12 percent of GDP in 20032004. Noted economist Dr Ashfaq Hassan Khan pointed out that the low share indicated that the entire valueadded chain in the agriculture sector We have over 300 on-line items and we are constantly improving to increase the line items. We also store & sell spare parts from our Shershah outlet for the convenience of Hawksbay to Sheeren Jinnah Transports. We have appointed parts jobbers in Garden, Plaza and Hawksbay area. Simil ar, w e have w ell equipped workshop and skil l fully trained technical man power to meet our customers’ maintenance and repair requirements. We have already appointed dealers in Sadiqabad, Mehmood Khot, Lahore to offer service and spare parts. We are in process to extend the dealer network to other citie s such as Multan, Faisalabad, Islamabad and Peshawar. AlHaj FAW motors has entered in the automobile market with a vision that
is nearly tax-exempted. He argued that although agriculture’s share in national income exceeds 23 percent, revenue raised from the sector is negligible. With limited tax potential of many subsistence farmers, the land revenue system needs to be replace d by agricultu ral inco me tax for any significant increase in revenues from this sector. Experts are of the view that continuous rise in fertilizer prices as well as recently imposed taxation on agriculture inputs are cited as potential drawbacks for agriculture sector. However it is
of our chairman Shahji Gul Afridi to offer vehicles at affordable low price with high standard of performance, durability and reliability also low oil co nsumptio n as be ing low RPM engines. We have not neglect the light duty truck segments. We plan to 10 tons light duty cargo truck by April, 2011. Similarly, we have plan to launch va n a n d p i ck u p w i t h b et t e r specifications than Japanese available in the market.
important to understand that over the last 3 years, crop prices have rallied significantly, resulting in improved farm payrolls of late while Further, certain crops such as sugarcane have been known to trade above the notified support price. For example currently it is rumoured that sugarcane prices demanded by farmers is around Rs200 per maund instead of the defined Rs100/maund. Thus while the rising crop prices is beneficial for inducing modern farming techniques, taxation of some inputs is unlikely to cause any significant dent in crop feasibilities. Furthermore, current price trends indicate that the input-output gap continues to widen which be gs the question whether agriculture should continue to enjoy tax benefits and significant subsidies. Given this framework, the recently announced imposition of GST on tractors, fertil iz er and pe sticides appears to be a step in the right direction –however it is late step, Dr Ashfaq said.
To make these vehicles available, we plan to locally manufacturing / Assembly in our state-of-art plant, with capacity to produce 10,000 units per year which will be into production by early April, 2011 under the expert plant management and one of the most experienced in the automobile industry, Director-Operation, Nadeem A.Salmi . This will enable AlHaj FAW to produce the vehicles according to customers demand at less lead time with high standard of quality. AlHaj FAW has unique distinction rather only automobile company which has Head Office, show room, spar e par ts warehouse and workshop located at same place for their customers convenience....
Automark Magazine | April-2011 45
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Car / Light Vehicle Price List
SUZUKI
HONDA
Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L PETROL CULTUS Efi VXRI CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LE MT PETROL LIANA 1.3L LE (CNG) RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol BOLAN VAN VX CNG BOLAN VAN VTR PETROL BOLAN VAN VTR CNG SUZUKI VAN CARGO APV 1.5L GLX MT (CBU) APV 1.5L GLX CNG (CBU)
Price Rs. 470,000 Rs. 523,000 Rs. 516,000 Rs. 568,000 Discontinued Discontinued Rs. 680,000 Rs. 730,000 Rs. 1002,500 Rs. 876,000 Rs. 918,000 Rs. 1,184,000 Rs. 1,255,000 Rs. 1,175,000 Rs. 1,246,000 Rs. 495,000 Rs. 546,000 Rs. 551,000 Rs. 604,000 Rs. 612,000 Rs. 666,000 Rs. 526,000 Rs. 1,840,000 Rs. 1,915,000
Model ACCORD ACCORD CR-V CITY I-VETC MT CITY I-VETC AT CIVIC VTI Mt CIVIC VTI Mt Oriel CIVIC VTI Pt CIVIC VTI Pt Oriel
TOYOTA COROLLA Model XLi 1.3 VVT-i GLI 1.3 VVT-i 2.OD STD 2000cc 2.OD SALOON M/T 2.OD SAL SUNROOF ALTIS 1.8 VVTi M/T ALTIS 1.8 VVTi A/T
Price Rs. 1,357,000 Rs. 1,482,000 Rs. 1,459,000 Rs. 1,794,000 Rs. 1,884,000 Rs. 1,730,000 Rs. 1,815,000
Hilux Pickup 4x2 Model
Price
Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled) Standard Model
Rs. 1,519,000
Hilux Pickup 4x4 D/C
CHEVROLET Model CHEVROLET JOY CNG CHEVROLET JOY Petrol
HYUNDAI
Price Rs. 5,866,000 Rs. 5,316,000 Rs. 1,324,000 Rs. 1,454,000 Rs. 1,659,000 Rs. 1,834,000 Rs. 1,779,000 Rs. 1,909,000
Price Rs. 569,000 Rs. 539,000
Model
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin
Rs. 2,404,000
NISSAN CARS Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG
Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000
NISSAN DIESEL TRUCKS Diesel Truck PKB 211 Diesel Truck PKD 411H Diesel Truck PKD 411E Diesel Truck PKD CD 411 Diesel Prime Mover CWM 454
Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000
CHERY QQ Model CHERY QQ Petrol CHERY QQ CNG
DAIHATSU Model CUORE CX CX ECO (CNG) CX AUTOMATIC
Price Rs. 588,000 Rs. 628,000
LAND ROVER
Model Price DEFENDER Rs. 7,59,000 (90 S/WJEEP STD) Rs. 8,09,000 (110 S/W A/C) Rs. 8,70,000 (90 Soft Top) Price updated April- 2011
Price Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260
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Automotive - Exclusive Article
by Syed Haider Mehdi Automotive Engineering, NED University
Toyota has been dominating the auto industry in Pakistan for decades despite cars launched by other Western countries The Honda Civic is a close challenger for the top place but in spite of several years in Pakistan, it still ranks second. On the other hand Suzuki has a couple of considerably important brands in the hatchback and coupe class by the name of Khyber and Mehran, respectively.
A substantial number of years ago coming across a large spectrum of vehicles in Pakistan was not likely, with Toyota as th e most imp ortant automotive maker. However, the last m any year s h a ve w i tnessed a remarkable rise in the type of makes for drivers to choose from. Partly because of home operations being built and growth in second hand imports, a more assorted collection of vehicles can be seen on city routes. Toyota is still the major automotive maker in Pakistan with well-liked brands like the Corolla outselling all other makes. Toyota has gained a height of surety all through the numerous decades of its market presence here and as a consequence, enables traders to gain top resale rate in the second hand automotive sector. Though not prized for its style Corolla has lost sizeabl e market share to sportier, finer looking models like the Honda Civic. The Honda Civic is a close challenger for the top place but in spite of several
years in Pakistan, it still ranks second. Accepted for its style and leisure, the Civic has become somewhat of a status icon for the Pakistani elite. It has launched heaps of brands in Pakistan with each one being more victorious than th e preced in g one. Honda automobiles also secure top resale price in the second hand automotive industry and are frequently attainable in papers and online classifieds. On the other hand Suzuki has a couple of considerably important brands in the hatchback and coupe class by the name of Khy ber and Meh ra n, respectively. These automobiles are very reasonably priced and satisfy working folks with tight budgets. They are also enormously affordable to get and manage, with brand new and utilized spare parts easily found in the market. Though they do not sell the same brilliant quality offered by Toyota and Honda, these automobiles are sturdy and are significant cas h savers.
Some other makes th a t h a ve a ls o become reasonably established include an expansive line of Toyota models as well as different makes like Ki a. Desp i te bei ng offered in a more limited range and imported from other regions, these mak es have become a lot more establ ished in the last few years. It is obvious that Pakistan's automotive sector is predominantly controlled by Asian automotive co mpanies and though a h an dful of European, American and Korean makes have been there for a few years, there is a massive lag between them and the large r vehicles made by companies like Toyota and Suzuki. Though Honda suddenly secured market share a only some decades ago, the condition were substan tially different then and for International aut omotive companies to obtain a serious portion of the business will be a su bst ant ia lly m or e di ffic u lt mission.The workings of the auto industry in Pakistan have changed a great d ea l i n th e la st d ecade.
Automark Magazine | April-2011 47
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Automotive Sector - Event Update
8th ITIF Asia 2011 Int’l Exhibition & Conference at Karachi Expo Centre
Automark Magazine | April-2011 48
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Industry Event Corner - Update
Guard Auto Zones at motorway Guard Group, Daewoo sign MoU Guard Group and Daewoo Pakistan have entered in to an agreement to establish G uard Auto Zones at motorway on the facilities of Daewoo facilitation centres. Sheryar Ali Malik said concept of Guard Auto Zones is unique and the first in Pakistan. Guard Group has 50-year experience in the filter manufacturing and Guard Fil ters are OEM on Toyota/Suzuki/Honda/Hino and Millat Tractors etc, he added. Sheryar further informed the visitors
that Guard Auto Zones are already present on Metro and Makro Cash n Carry chains of stores all over Pakistan, which is a landmark for the products of Guard products and reflect the confidence of world class stores of the world. H. J. Kim Chief Executive Daewoo and his delegation visited the Guard filter factory and signed the MoU on behalf of Daewoo, while Sheryar Ali Malik inked the document on behalf of Guard Group.
Fateh Group signs contract with Chinese group Fateh Group Hyderabad has signed a contract with China Yongxing Boiler Group for the Purchase of a coal fired Boiler for 16 MW capacity power plant at a cost of US $7.5 Million. The Contract was signed by Yongxing Wang, Chairman Yongxing Boil er Group, China in the presence of Guanghui Tang Country Mayor representing China and Gohar Ullah, Chairman Fateh Group Hyderabad. The Boiler will be shipped to Pakistan within 100 days and will be installed by the Engineers of China Yongxing Boiler Group. This will reduce the load shedding in Hyderabad.
Case New Holland and Orient Energy Systems Discuss Business Prospects and Activities Syed Mansoor Ali Rzivi, Business Manager Case New Holland, Pakistan visited OES Islamabad and had a meeting with Dr. Tehseen Aslam, GM Projects Orient Energy Systems (OES) Islamabad. Case New Holland is a world leader in the agricultural and construction equipment business. During the meeting, business activities and different services that Orient offers to its clients were discussed...
In the picture, Syed Mansoor Ali Rizvi, Business Manager Case New Holland can be seen looking around facilities and talking to OES staff. Dr. Tehseen Aslam, GM Projects can be seen standing next to him Automark Magazine | April-2011 49
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MADE MADEIN INPAKISTAN PAKISTANMOTORCYCLES MOTORCYCLES PRICE LIST LIST RETAIL PRICE
70cc Motorcycle
Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.
Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Challenger BA-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70
Retail Price Rs. 42,500/= Rs. 41,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 40,000/= Rs. 49,000/= Rs. 39,000/= Rs. 45,000/= Rs. 41,000/= Rs. 41,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 65,500/= Rs. 42,000/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 42,900/= Rs. 40,000/=
Sr./ No. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.
Product & Model Name Pak Hero PH-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Star DL-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70
Automark Magazine | April-2011 50
Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 41,000/= Rs. 41,000/= Rs. 42,500/= Rs. 41,500/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 40,500/= Rs. 40,500/= Rs. 45,000/= Rs. 41,000/= Rs. 40,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 42,000/=
Price updated April-2011
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MADE IN PAKISTAN MOTORCYCLES PRICE LIST
125cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand & Model Name Habib HB-125 Sitara ST-125 Super Star SS-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II
Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 75,000/= Rs. 89,500/= Rs. 111,000/= Rs. 55,500/= Rs. 78,000/=
Yamaha Motorcycle Product & Sr./ Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale
Retail Price Rs. 75,900/= Rs. 72,000/= Rs. 72,900/=
100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7.
Brand &Model Name Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100
Retail Price Rs. 55,500/= Rs. 55,000/= Rs. 73,900/= Rs. 55,000/= Rs. 45,000/= Rs. 55,000/= Rs. 60,000/=
Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5.
Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-125 Suzuki GS-150 Suzuki Shogan
Automark Magazine | April-2011 51
Retail Price Rs. 69,000/= Rs. 72,000/= Rs. 82,900/= Rs. 89,100/= Rs. 79,500/=
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