Automark aug 2016 by Mustafa Hanif

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Contents

August-2016

Company Article / Review Profile 14

38 43 45

Honda Bike Prices raised Car sales surge 19% to 180,000 units in FY-2015-16 Duty on auto parts increased by one percent Exclusive Article by AM Team Why farm Tractors are not included in the Automotive Development Plan (ADP) 2016-21 Exclusive article by IHT Farooqui

Campaign against One Wheeling & Racing, call it against Young Deaths Exclusive article by Team PBC

Hydropower Project in Pakistan by the courtesy of IFC Exclusive article on Energy Sector by Asif Masood Will Pakistan consumers see a smaller car by Toyota? Automotive Sector - Interview

Price List 40

Vehicle price list

Motorcyclcle Prince List

Only accredited automotive magazine from Pakistan for automechanika Frankfurt 2016 from 13-17 September-2016

Inside News / Event

19 22 36 46

Honda creates new era with the launch of New Civic 2016 in Pakistan PAAPAM to host 13th PAPS 2017 show in March Soft launching coverage - PAPS2017

We Have Made The History Drive to Turkey by Team-Nayyer

Corporate News - Glimpse

News Updates 17 18 23 24 25 39

Passenger Cars & Commercial Vehicles Production Figures for Year 2015-16 (July-June) Volkswagen to set foot in Automobile Industry in Pakistan Pakistani Automotive A growing sector Industrial research to boost innovations for better growth MVRDE achieves milestone in self-reliance International Atuo News

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August-2016 edition Pakistanâ&#x20AC;&#x2122;s premier magazine on automotive, engineering & energy sector Volume 09, Issue 08

Monthly

AUTOMARK International Government urged to Editor-in-chief review agriculture Muhammed Hanif Memon sector-related policies Advisors Technical Editor Imtiaz Rastgar CEO, Rastgar Group & Advertising Manager CBI External Expert, Ex-chairman EDB Tahir Siddiqui Islamabad Muhammad Shahzad

Food security could become one of the biggest challenges in near future therefore the government should review the agriculture sector related policies without any delay. If steps are not taken on war footing, food security Circulation Manager would shatter the economic structure as country Engr. IHT Farooqui Shahzad Raza Chief Operating Officer would be compelled to spend billions dollars on Karakoram Motors (pvt) Ltd. imports to feed its huge population. Graphic Designer Karachi If we stayed where we are today in terms of Mustafa Hanif cropped area and yield per hectare, we will have Salman Hanif Muhammad Yousuf Shaikh 30 percent less food available per capita in next Founder & Chairman Pakistan China Motorcycle Web Master two decades. Industry Council Murtaza Hanif Pakistan's almost 43 percent labour force was Karachi dependent upon agriculture, the yield gap in the CONTRIBUTING IN four major crops of Pakistan was three times from Syed Mansoor Rizvi THIS ISSUE the best producers in the world such as China and Principal Officer Engr. IHT Farooqui Egypt. M/s. CNH Services (Pvt) Ltd. M. Zahid Malik The low yield has contributed to the poverty in Karachi Asif Masood rural areas besides forcing country to import Razi Nayyer Nadeem Ahmed Salmi agriculture produces to feed its population. Mohammad Laman Executive Director Operations The fact should be an eye opener that China M. Hanif Memon M/s. Al-Haj Faw Motors (Pvt) Ltd. produces two times more cotton and wheat per Karachi hectare and Egypt produces around three times more rice and sugarcane per hectare as compared to Pakistan. Factors that are recommended to improve the yield are through large scale introduction of hybrid Active Communications seeds and mechanized farming, efficient irrigation Mailling Address: systems such as drip irrigation and reduction in D-68, Block-9, Clifton, Karachi was tage of crop through introd uction of Tel : 021-32603371 Mobile: 0321-2203815 privately owned storage facilities and cold storage E-mail: automarkpk@gmail.com facilities. website: www.automark.pk 21st century belongs to Biotechnology and Pakistan AutoMark Canada Office has tr emendous p ot ent ial to em erge as Managing Editor Biotechnology leader but to achieve the goal private Mohammad Shahzad S.A.E. D.M.P. sector, scientists, researchers and government 41 Jordana Drive would have to work hand in hand. Markham (Toronto) Pakistan's agriculture sector is losing heavily due Canada to insufficient utilization of biotechnology as the L3S 3N8 magic progress of agriculture sector is only due Phone: 905-472-8282 to genetically modified crops. The agriculture Email: automarkcanada@gmail.com sector in Pakistan has a huge potential as it AutoMark REGD: MC-1330 continues to be the single largest and dominant Published every month by M. Hanif Memon driving force for growth as well as the main source The views expressed by contributing of livelihood for 66 percent of Pakistan's population. writers and comments do not But it has always faced two major problems: first, necessarily reflect the views and productions per acre are lower than many countries. policies of the Monthly AutoMark Secondly, around 40 percent of production is magazine's management wasted in the form of post-harvest losses due to insufficient utilization of biotechnology.

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Exclusive Review on Automotive Industry by AM

Honda Bike Prices raised Car sales surge 19% to 180,000 units in FY-2015-16 Duty on auto parts increased by one percent

Atlas Honda Limited (AHL) has increased the price on its four models CG-125, Prider, CG-125 Dream and CG125 Deluxe by Rs500 in the first week of July 2016. This is third increase in prices of Honda bikes in last FY-201516. According to a dealers of Honda, the company has not given any reason for pushing up the rates. However, the price of CD-70 and CD-70 Dream has been unchanged for more than a year at Rs63,500 and Rs67,500. Market sources said that CG-125 has been facing severe shortage owing to huge demand and the company has been unable to cope with it. Taking advantage of the situation, some market dealers were seen charging premium on CG-125 up to Rs10,000 including registration papers even though the company’s price

to 810,539 from 652,593 units in 201415. Over all sale of bikes showed mixed performance. A total of 811,034 units of Honda bikes were sold in FY-2015-16 as compared to 653,193 units in FY2014-15. This is the highest sales of Atlas Honda Ltd’s history of fifty years in Pakistan. Sale of DYL motorcycles went up to 8,183 units in FY-2015-16 from 7,172 in FY-2014-15. Sale of Pak Suzuki Motor Co. Ltd’s bikes declined to 17,456 units in FY-2015-16 from 22,703 units in FY2014-15. A newcomer Yamaha Motors Pakistan Ltd. managed to sell 16,109 units in FY2015-16. In Chinese Assemblers Pakistan’s largest Chinese bike maker United sold 262,773 units in FY-2015-16 as compared to 230,999 units in FY-2014-15. The 2nd

“EDB sources said, EDB has written a letter to the FBR, saying that "we have gone through the wordings of amended SROs 655(1)/2006, 656(1)/2006 and 693(1) 2006 and observed some deviation in customs duties approved by the ECC in ADP.” is Rs105,000. The Chairman Association of Pakistan Moto rcycle Assemblers – APMA, Muhammad Sabir Shaikh said that the overall production of Honda bikes in June 2016 fell to 62,200 units from 73,000 in May 2016. The overall production in 2015-16, however, swelled

largest Chinese bike seller Road Prince sold 167,241 units in FY-2015-16 as compared to 134,562 in FY-2014-15. Other largest producing players from Sindh province of Ch in ese group including UNIQUE motorcycle, SUPER POWE R motorcycl e al so in good position and produced more than one lac units by each assemblers in FY-2015-

16. From Chinese Group some assemblers joined club of Japanese assemblers which includes HABIB motorcycle, M ET RO (IM T IA Z) m otor c yc le, SOHRAB motorcycle , which sale plunged sharply to 1,991 units from 5,776, while FTEH HERO motorcycle and RAVI motorcycle sales dropped to 2,958 and 20,837 units from 8,593 and 23,794 units and some of PAMA Chinese members closed their units.

Locally-assembled car sales surged 19 per cent to 180,079 units during FY-2015-16 compared to 151,134 units in FY-2014-15. In 1,300cc and above category, sales of Toyota Corolla soared to 57,452 units in FY-2015-16 as compared to 51,398 units in FY-2014-15 while combined sales of Honda Civic and Honda City increased to 25,726 from 23,622 units. Suzuki Swift sales rose to 4,080 units in FY-2015-16 from 3,490 units in FY2014-15 while there was no production and sales of Suzuki Liana in the outgoing fiscal year as com pared to zero production and 23 units sale in FY-20142015. In 1,000cc category, Suzuki Cultus and Wagon R sales rose to 16,093 units FY-2015-16 and 9,482 units in FY-201516 as compared to 13,837 and 5,246 units in FY-2014-15. In 800cc and below, Suzuki Mehran and Suzuki Bolan sales peaked to 37,223 and 30,016 as compared to 29,886 and 23,582 units in 2014-2015. Heavy vehicle segment also posted

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Monthly AutoMark International

The major difference has been recorded in cars, auto rickshaws and cargo loaders whereas other CKD is at the same rate. However, CKD on prime movers up to 280hp has been reduced from 10 percent to 5 percent whereas duty on 280hp above has been increased from zero to five percent. "Now the FBR has imposed one percent additional duty on the locally-manufactured components from 45 percent to 46 percent," Sabir Shaikh added. Likewise, the accumulative affect of 35 percent duty is 36 percent. positive growth with sale of trucks rising to 5,550 units from 4,111 while total bus sales went up to 1,017 from 569 units. Sale of Toyota Fortuner and Sigma Defender fell to 602 and 173 units in FY-2015-16 as compared to 722 and 441 u nit s i n FY -20 14 -15 . Pa kis ta n Automotive Manufacturers Association did not provide any production of Sigma Defender from January 2016 to June 2016. The sale of Suzuki Ravi, which was also a main beneficiary of Punjab Taxi Scheme, reached 29,780 units from 22,815 units, while a total of 5,923 units of Toyota Hilux were sold as compared to 4,823 units. According to Sabir Shaikh, increase in car sales to Punjab Government’s Apna Rozgar Scheme of 50,000 units, full year impact of higher Corolla sales in addition to growing income levels and easy car financing by the commercial banks. He said rising economic activity and easing financing have also revived Heavy Commercial Vehicles. Though low interest rates, growing economic activity and r isi ng consu mer dema nd / purchasing power would keep providing support, he expected about 9% lower car sales next year due to absence of any subsidy on cars. Margins scenario has al so be co me to ugh due to recent Japanese yen appreciation and feared rupee depreciation. Pak Suzuki Motor Company Ltd. also going to change its credit policy with sales dealers from 1st

Sabir Shaikh argue that if the government starts intervening in the auto policy from day one, the fate of new auto policy will not be different from the previous policy and new investors will stay away from Pakistan. "I feel imposition of one per cent additional duty on auto sector components is an attempt to discourage new investment in this sector," said Muhammad Sabir Shaikh.

M.Sabir Shaikh Chairman APMA

Sabir said besides Punjab’s Taxi Scheme for Suzuki Bolan and Suzuki Ravi -improving law and order situat ion, macroeconomic growth and monetary easing leading to record low interest rates contributed towards growth in car segment. Sales of Pak Suzuki Motor Company (PSMC) went up by 28% YoY in fiscal year 2016 to 126,674 units due to taxi scheme. The said scheme culminated earlier this year and it is unlikely to be introduced in FY17. Therefore, sales of PSMC are expected to decline next year due to no taxi scheme in Punjab and changing in credit sales policy by Pak Suzuki, he added. He said, Indus Motors sold 63,977 units in fiscal year 2016, up 12%YoY. Sales surpassed its last year’s record and the

“Federal Board of Revenue (FBR) has increased duty on auto parts by one percent over and above the duty structure approved in the Auto Development Policy (ADP) 2016-2021, sources in Ministry of Industries and Production (MoI&P) told Monthly AutoMark that 1% increased in Custom Duty will implement from July 2016 under SRO 693/2006.” August 2016, which also hurt sale of Suzuki cars an d bikes in current financial year. He said higher tractor sales are expected due to government’s focus towards agriculture and reviving tractor exports by Millat Tractors.

company was able to achieve this by debottlenecking of its paint shop to meet the increased demand. Honda Cars (HCAR) sold 25,726 units in fiscal year 2016 registering 9pc YoY growth. Sales remained in check as buyers delayed purchases in anticipation

www.automark.pk | August-2016 | Page 15

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Exclusive Review on Automotive Industry by AM

Monthly AutoMark International

In Chinese Assemblers Pakistan’s largest Chinese bike maker United sold 262,773 units in FY-2015-16 as compared to 230,999 units in FY-2014-15. The 2nd largest Chinese bike seller Road Prince sold 167,241 units in FY-2015-16 as compared to 134,562 in FY-2014-15. Other largest producing players from Sindh province of Chinese group including UNIQUE motorcycle, SUPER POWER motorcycle also in good position and produced more than one lac units by each assemblers in FY-2015-16. of company’s new model. Sabir Shaikh said Honda City is the main contributor to Honda Atlas Cars sales growth and volumes of current model of Honda Civic are expected to dry out now. Buyers are likely to prefer the new model of Civic which is introduced by the Honda Atlas Car in Pakistan Market on July 22, 2016. Pre-booking for the same has already begu n and the company alread y launched the model. As per our channel checks. Channel checks also reveal that bulk of the pre-booking has been done for 1.5 litre turbocharged variant, which is priced at Rs2.8m.

He said farmers had resumed regular purchases due to uncertainty in subsidy scheme. This year’s budget is full of incentives to the agriculture sector, including reduction in urea prices and financing rates. This should help improve liquidity with farmers resulting in better off-take of tractors, he added. Federal Board of Revenue (FBR) has increased duty on auto parts by one percent over an d above the duty struct ure appr oved in th e Au to Development Policy (ADP) 2016-2021, sources in Ministry of Industries and Production (MoI&P) told Monthly AutoMark that 1% increased in Custom Duty will implement from July 2016 under SRO 693/2006.

T h e go v er n m en t h a d approved a comp lete t ariff structure for each component including parts and CBU in the ADP 2016-21. Duty

on locally manufactured parts was reduced from 50 percent to 45 percent whereas 35 percent duty on parts remained unchanged. Duty on non-local parts was reduced in accordance with vehicle's category and 15-30 Regulatory Duty (RD) is already imposed on steel c om p o ne nt s u s ed i n ve h i c le s manufacturing. The major difference has been recorded in cars, auto rickshaws and cargo loaders whereas other CKD is at the same rate. However, CKD on prime movers up to 280hp has been reduced from 10 percent to 5 percent whereas duty on 280 hp above has been increased from zero to five percent. "Now the FBR has imposed one percent additional duty on the locally-manufactured components from 45 percent to 46 percent," Sabir S h a i k h a d d e d . L i ke w i s e, t h e accumulative affect of 35 percent duty is 36 percent. Engineering Development Board (EDB), sources said, EDB has written a letter to the FBR, saying that "we have gone through the wordings of amended SROs 655(1)/2006, 656(1)/2006 and 693(1) 2006 and observed some deviation in customs duties approved by the ECC in ADP. EDB, h as opp osed one p er cent additional customs duty on the items approved under ADP (2016-21). EDB maintains that the proviso added to SROs reveal that category-A " Greenfield Investment" is applicable for five years for all vehicles but as per ADP( 201621) it will only be applied in case of cars

and LCVs whereas for other vehicles i.e. trucks, buses and prime movers the Greenfield facility is for three years. Accordingly, EDB submitted wording of revised proviso which is as follows: "provided further that in line with ADP 2016-21 approved by the ECC on March 8, 2016 duly notified by the Ministry of Industries and Production on June 2, 2016, the additional customs duty livable under the notification shal l not be charged on sub-components and components, imported under category A " Greenfield Investment" for a period of five years for cars and LCVs and three years for prime-movers, buses and tricks and under category-B" Brownfield Investment " for a period of three years for assembly or manufacturing of the vehicles excluding agriculture tractors,4stroke auto rickshaws, 3-wheelers cargo loader, vehicles of PCT heading 87.11 (except motorcycle rickshaw of PCT heading 87.3020 and motorcycle rickshaw of PCT heading 87 11.3020). Sab ir Sh aikh a rgu e t hat if th e government starts intervening in the auto policy from day one, the fate of new auto policy will not be different from the previous policy and new investors will stay away from Pakistan. "I feel imposition of one per cent additional duty on auto sector components is an attempt to discourage new investment in this sector," said Muhammad Sabir Shaikh.

Suzuki Swift sales rose to 4,080 units in FY-2015-16 from 3,490 units in FY-201415 while there was no production and sales of Suzuki Liana in the outgoing fiscal year as compared to zero production and 23 units sale in FY-2014-2015. In 1,000cc category, Suzuki Cultus and Wagon R sales rose to 16,093 units FY-2015-16 and 9,482 units in FY-2015-16 as compared to 13,837 and 5,246 units in FY-2014-15. In 800cc and below, Suzuki Mehran and Suzuki Bolan sales peaked to 37,223 and 30,016 as compared to 29,886 and 23,582 units in 2014-2015. www.automark.pk | August-2016 | Page 16

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Monthly AutoMark International

Automotive News - Update

Volkswagen to set foot in Automobile Industry in Pakistan

Th e second lar gest aut omobi le m a n u fa c t u r er s of t h e w o r l d , Volkswagen, is now ready to hit the Pakistani market. Undeniably, Volkswagen is one of the top-of-the-mind corporate brands. After Toyota, Volkswagen is the world’s second largest automobile manufacturer in terms of market share. On last month, Dr Cyrill Nunn, German Ambassador to Pakistan announced the “highly important” visit of a 14-members business delegation from Germany to

Pakistan in order to look after the proceedings of this deal. The news of the arrival of Volkswagen in Pakistan has endangered the decades’ old monopoly of existing international auto manufacturers. It’s worth noting that, the nonexistence of competition within the automobile industry of Pakistan for almost a decade has led to over pricing of the locallyassembled car by Rs 500,000 on average. Whil e talking to press, Mr. Miftah

Chinese company to set up plant in Pakistan for producing cheap cars China is already the all-time friend of our country, producing a lot of electronic products for Pakistan. Now, to supply ch ea p c ar s i n Paki sta n, a c ar manufacturing company in China has planned to establish a plant in our country. As per details, JAC Motors, a Chinese state-owned automobile and commercial veh icle manufacturer is busy in manufacturing ten different types of small and heavy vehicles. According to the company, some of these cars have the abil ity to run on the battery. For creating this kin d of cars, the company takes the assistance of the robots as well. After successfully producing the beautiful vehicles on the modern plants, this company is also

developing the hybrid cars which will be introduced in the market very soon. The said company has the plan for establ is hin g a facility in Gwadar, Pakistan for producing the cheap cars in the country. The work has already been initiated on this project. According to the market analysts, Pakistan will prove to be a gigantic and important market for the selling of these cheap cars. Presentl y, only three international vehicle brands are manufacturing their cars in Pakistan. Japan has a significant influence over Pakistani automotive market. Japanese vehicle manufacturing companies, Toyota, Honda, and Suzuki are leading the automotive industry in Pakistan.

Ismail, BoI chairman stated that in the next two years, the government will try to introduce at least one European brand – German or Italian. He also warmly welcomed the German delegation, holding high hopes for strengthening bilateral economic ties between these two countries. What will be the fate of Volkswagen in Pakistan and what will the automobile industry of Pakistan look like in the future? The industry now paves its way to a very interesting new route.

Honda Bike prices raised in Pakistan Atlas Honda Lim ited (AHL) h as increased the price on its four models CG-125, Prider, CG-125 Dream and CG125 Deluxe by Rs500 in the first week of this month. According to a dealer, the company has not given any reason for pushing up the rates. However, the price of CD-70 and CD-70 Dream has been unchanged for more than a year at Rs. 63,500 and Rs. 67,500 Market sources said that CG-125 has been facing severe shortage owing to huge demand and the company has been unable to cope with it. Taking advantage of the situation, some market dealers were seen charging premium on CG-125 up to Rs. 10,000 including registration papers even though the company’s price is Rs. 105,000. A dealer said that the overall production of Honda bikes in June 2016 fell to 62,200 units from 73,000 in May 2016. The overall production in 2015-16, however, swelled to 810,539 from 652,593 units in 2014-15.

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Introduce new model by Honda Atlas

Monthly AutoMark International

Honda creates new era with the launch of New Civic 2016

Honda Atlas Cars Pakistan Limited has unleashed its most anticipated Honda Civic model. The All-New Civic was launched in Lahore at Faletti’s Hotel. The 10th Generation Civic isavailable in 3 grades1.8L i-VTEC,1.8L i-VTEC Oriel and 1.8L VTEC TURBO. Noriaki Abe, Chief Operating Officer, Regional Operations (Asia & Oceania), Honda Motor Co., Ltd. expressed his view s saying th at th e Pa ki st an automobile market has tremendous potential to grow. He confidently said that all-new Civic ‘made in Pakistan’ will attract Pakistani customers with its innovative, elegant design and high performance. Takao Kimura, Civic Development Project Leader of Asia & Oceania, explained in detail the tech nic al specifications and design concept of all new Civic. Nadeem Azam, GM Sales & Marketing introduced the new model and gave an overview of the car and highlighted the features of all three variants. Push Start, Continuously Variabl e

Transmission (CVT), Electric Parking Brake (EPB), Auto Break Hold (ABH), SRS airbags, Vehicle Stability Assist (VSA), Hill Start Assist (HSA), AntiLock Braking System (ABS), Emergency Stop Signal (ESS), Immobilizer, Auto Cl im at e Con tr ol Sy stem , R ear Entertainment system and Navigation

System are some of the stand out featu res of th e all new Honda Civic.VTEC Turbo engine is being intr odu ced for th e first time in Pakistanwith advance features such as Remote Engine Starter. Add ressing the gathering Toichi Ishiyama, President & CEO Honda Atlas Cars (Pakistan) Limited talked about the legacy of Honda and its contribution in the automobile industry. He said that Civic, since its introduction in Pakistan in 1994 had become a household name. It was the outcome of the joint efforts of 1200 dedicated associates working at Honda Atlas Cars (Pakistan) Limited. He also said that Pakistani car user’s expectations of a sedan would never be the same again after the introduction of the all new Civic 2016, a car that will be ‘Creating New Era’. The all new Honda Civic has set a new benchmark with its innovative features and futuristic design. The car will leave a lasting impression on the automobile industry of Pakistan.

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Exclusive article by IHT Farooqui

New Auto Policy and Tractor Sector of Pakistan

Why farm Tractors are not included in the Automotive Development Plan (ADP) 2016-21 Tractors are required by the Farmers, Construction Companies, and Land Developers. Government of Pakistan is also working on large number of projects and requires large number of tractors.

he long awaited Automotive Development Plan is now announced previous month after a lapse of almost five years. The plan provides lucrative incentives for almost all segments of Automobiles which includes Passenger Cars, Light Commercial Vehicles, Buses, T rucks and Prime Movers. T wo categorie s are developed for the investors in this Plan which includes Green Field Project and another one is Brown Field Project. In Green Field Project the incentive is given mainly to the new investors in

Passenger Cars segments with strict condition of in troduction of new “MAKE” rather than new “MODEL”. According to this scheme only those investors who will invest in purchasing o f la n d a n d d e ve l op m e nt of infrastructure and will introduce only those MAKES wh ich are not yet previously assembled in Pakistan will be given incentives in the shape of imports of 100 units of CBUs of that particular Make at 50% of prevailing rate of custom duty, One time duty free impo rts of Plant Equipments and Machines and five years relaxation on

imp orts of 100% CKD at the rate of 10% Custo m Duty for Passenger Cars only and for three year s for Bu ses, Trucks an d Prime M ov er s onl y to import 100% CKD at prevailing rate of custom duty for non localize parts. In Brown Field Scheme those assembly plants which are closed since 2013 are given a chance to re start their operations by importing 100% CKD at

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Monthly AutoMark International the rate of prevailing rate of custom duty for non localize parts for three years for buses, trucks and Prime Movers only. Pakistan is basically an agricultural country and our main source of food is Agriculture Farming. Tractors and agricultural equipments plays a major role in mechanized farming. Due to shortage of water resources, unstable input prices of agricultural seeds and fertilizers, lack of research and d evelopment and h av ing no advisory services to farmers in Pakistan, the total land utilization could not be significantly increased. In 1991 it was 21.35MHa and till 2010-2011 it was 23.40MHa out of 79.61 MHa land, despite the fact that tractor population

in production. The accumulated annual production of all three active units are around 45,000 to 50,000 where as the estimated demand of tractors are more than 70,000 tractors. To fulfill this Demand and Supply Gap, since last ten years imports of CBU were allowed at Zero rate of custom duty, however from the fiscal budget 2014-15 15% custom duty and 10 percent Sales tax is imposed on CBU to support the local tractor industry which is now further reduce to only 5% in fiscal budget 2016-17. Tractors are required by the Farmers, Construction Companies, and Land Developers. Government of Pakistan is also working on large number of projects and requires large number of tractors.

has been increased over the last 23 years, which is approximately 700,000 units today which according to experts should be more than one million. The present per hectare horsepower (HP) availability in Pakistan is only 0.90 HP per hectare as opposed to 2.31 HP in India. The requirement of 1.4HP per hectare Pakistan is recommended by FAO which can be achieved through high volumes of tractor manufacturing industry. In Pakistan there are six tractor assembly plants however only three are

An in-depth study of last twelve years local production and sales of tractors revealed that the industry is not able to meet the increasing demand of tractors while calculating AAGR the industry shown growth of only 2.16% over the last 12 years. There may be different reasons behind this shortfall such as withdrawal of Government Green Tractor Schemes , failure of local parts supplies , old equipments, conventional type of production lines or other managing problems, therefore the Government is forced to allow imports

of CBU tractors to meet the farmers demands. Pakistan needs more tractor plants to support its farmers and to provide food to its people. Inspite of all these knowing facts ,in the coming new ADP 2016-21 this important sector is totally ignored no incentives in shape of Green or Brown Field is allowed to this important sectors the reasons for this ignorance best known to the high ups of BOI,EDB and other Government Sectors.

“Pakistani people needs foods at affordable price not new Make of lucrative European cars, this important ignorance from a very important Government Ministry leaves many questions. “

Any one can go to the Pakistani Court and can quash this policy at any time similar to the tractor scheme announced in Gen Pervaiz Musharaf era which was totally quashed by the Sind High Court therefore

“The concern ministry should immediately review the announced policy and gives similar incentives to this important sector as given to New Passenger Cars.”

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Soft launching coverage - PAPS2017

Monthly AutoMark International

PAAPAM to host 13th PAPS 2017 show in March PAPS 2017 is being organised by the Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM), held a soft launch at The Mövenpick Hotel for its upcoming 13th Pakistan Auto Show (PAPS), which will be held at Karachi Expo Center from 3rd to 5th March, 2017. Chairman PAPS 2017, Mashood Ali Khan gave a detailed presentation and briefing on the highlights of the event an d its importan ce for Pakistan’s economy. As the economy of Pakistan is growing rapidly, the importance of such shows becomes greater, as PAPS will be geared to invite both local and international investors, who are showing keen interest in working with Pakistan. A large number of guests from the automotive industry of Pakistan attended the launchin g ceremony yesterday and expressed their keen interest in participating in the upcoming event. A delegation of PAAPAM members have specially visited various countries in the recent months to carry out road shows for inviting potential exhibitors to participate in the PAPS 2017 Show at Karach i, wh ich w ill exhi bit th e tremendous potential of the automotive

and allied industries in Pakistan. This delegation has already visited United States of America, Germany, China, Turkey, Korea and Italy so far, and the response has be en most positive. The response from the local industries to one of the biggest Auto Shows in Pakistan has been most encouraging, and it has received 35% online stall bookings within 5 hours of its launch. It is expected that leading machine and raw m ater ial sup plier s ar e also participating in the auto show. Buying house companies from Africa, Taiwan,

Dubai, Turkey and Kuwait are also expected in this show. The PAPS 2017 will attract assemblers (OEMs), auto parts manufacturers (APMs), allied Industries, automobile financing companies, raw material suppliers, engineering experts and regulators. The main target of the PAPS show is to benefit Pakistan, through boosting its industries, promoting import substitution, enhancing exports and growth in the economy.

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Monthly AutoMark International

Automotive Review - Update

Pakistani Automotive A growing sector As demand and interest in cars piques however, the sector should be wary of challenges. Used cars despite commercial restriction and substantial fixed duties imposed by the government are still coming in bulks and will likely continue to do so. These used cars are relatively small engine cheaper varieties that do not have locally manufactured alternatives as yet. There is a gap in the market that needs to be filled Auto sales are a compelling sign of a growing economy. The growth may be linear in nature and may not be well distributed but a flourishing auto sector is never bad news; and n at urally, great n ews for l ocal assemblers. The sector closed off FY16 with the highest ever sales of passenger cars with 181,145 units sold throughout the fiscal, a growth of 20 percent from FY15’s 151,134 unit sales, overtaking the boom of 2007 when car sales stood at 180,834 units, according to PAMA data. There are some local automakers that PAMA’s database does not include (such as FAW cars) in its reporting but the overall picture for the sector is highly encouraging. As has been the case for several years, local automakers are more successful at selling high engine cars than smaller cars given there is also little variety in the latter category. Having said that, due to the Punjab Apni Rozgar Scheme that provided easy financing facility to unemployed youth, in the first half of FY 16, Suzuki Bolan of Pak Suzuki Motors (PSMC) saw a huge jump in sales that slowed down by March since the scheme ended in February. Suzuki was able to sell twice the number of Bolan cars during July 2015 to Feb 2016, than in the same time period last fiscal. In essence, until January of FY16 Bolan sales averaged at 3,000 cars while monthly car sales thereafter for the fiscal stood at 1,570 cars. The scheme was welcomed albeit temporary. Pakistan Suzuki’s other smaller car variant Mehran saw a 25 percent bump in year-on-year growth. Suzuki also brought a limited edition Cultus in January that lived up to its hype, selling on average 1,600 cars since March against a much lower average of 1,200 cars in FY15. Cultus sales grew by 19 percent in year-onyear growth. Sales for Suzuki Ravi that was also part of the Rozgar Scheme grew by

31 percent and had similar success as Bolan. In the coming fiscal, consumers will see substantial changes in Suzuki’s fleet; Suzuki Mehran and Cultus could be replaced by Alto 7th Generation and Celerio, both small cars and much needed for a market that is hungry for better, smaller cars. Honda Atlas Cars (HCAR ) has had a moderate ye ar. Demand for civic had dwindled since FY15 and the company is no longer reporting individual figures for civic and city to PAMA. Combined sales grew by 9 percent selling 27,726 units in FY16 while HCAR has the capacity of manufacturing 50,000 cars. Month-on-month growth shows a prolonged downward trend—from selling about 3,000 units in Jan of 2016 down to 1,900 units in the close of this fiscal. However, next fiscal will be another story since the company is introducing two models for Civic (10th generation): 1.8L Oriel Prosmatec and 1.5L Turbo, both with a higher tagline but much anticipated. Pre-booking for the cars has already started and the models will be launched sometime at the start of FY17. Indus Motor Company (INDU) sold about 6,000 more units of its flagship variant Corolla in FY16, ending the year with a 12 percent growth which is one of the highest growths since 2000. Corolla sales have had very minor ups and downs with average cars sold in FY16 were 4,787 units against 4,283 in FY15. As company that enjoys the highest margins of the top three automakers, INDU is secure in its place as far as profitability goes. Unlike its peers, the company has not announced any plans for new models. In commercial vehicles front, trucks & buses grew by 39 percent in year-on-year growth selling about 6,500 units in FY16 to 4,700 units in FY15; mainly Hino. Ghandara Nissan’s Isuzu combined sales reached 1,566 units in FY16 against 1,020 units in

FY15. Tractors on the other hand have been taking a beating for quite some time with a negative growth of 26 percent driven mainly by a fall in sales in Millat’s Massey. The tractor subsidy scheme announced in the budget FY17 is delayed which will put a dampener on further tractor sales. Outlook for the sector remains strong amidst incidental factors that could play out unfavourably. The yen appreciation against the dollar and its trickle down affect to the rupee could suppress margins for local automakers that earlier enjoying high margins when yen depreciated in 2014. It’s a waiting game as to whether Bank of Japan will take any measures to stabilize its currency, and a fair warning to local automakers here at home who might see their margins drop. As demand and interest in cars piques however, the sector should be wary of challenges. Used cars despite commercial restriction and substantial fixed duties imposed by the government are still coming in bulks and will likely continue to do so. These used cars are relatively small engine cheaper var ieties that do not have locally manufactured alternatives as yet. There is a gap in the market that needs to be filled. The new auto policy did no favours to existing automakers focused on gaining investments from European car makers so consumers could be seeing new high end models in the market, but not in the immediate future. Investors have remained confident in the indu st ry’s st oc ks where the sector outperformed the benchmark index after a rough start to the year. Growth trends show that the sector is well placed for the future, some challenges notwithstanding, and will be bolstered by the promises of this growing economy.

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Research and Innovations - Review

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Industrial research to boost innovations for better growth Engineering board engages 992 scientists in 308 fields to address technical issues of product design, development Engineering Development Board (EDB) has engaged a team of 992 scientists in 308 fields under an Industrial Research Programme (IRP), launched to address the technical issues pertaining to product design and development. The team includes professors, scientists, technologists and researchers (PhD and MPh il ) to conduct research and develop ment (R&D) activities in different fields which cover almost all the products related to engineering, applied physics and applied chemistry. Industries and Production Division’s sources on Tuesday said that different industries including sugar, steel rerolling, surgical, cutlery, fan, automotive vendor, HVACR, and electric fittings are availing research and development facilities under the IRP. “Th ese services are pr ovided on competitive basis funded purely by the recipients,” the sources said. According to the sources, the IRP has been initiated by EDB to boost the much-needed

innovation in industries to for better effectiveness. Highlighting the other step taken to increase the industrial production, the sources said that the government has decided to exempt all industrial feeders fr om el ectr ici ty load -sh ed di ng. Uninterrupted supply of electricity to industrial sector would not only help boost the economy but also the production of the industrial sector. The State Bank of Pakistan reduced the lending rate to 6% from 9.5% to increase both the industrial and the economic growth. Moreover, the sources said that the government has also approved a new

entrant policy for the motorcycle industry that paved the way for new investments. “ Und er th is policy the Y amah a Motorcycle Industry has been declared as a new entrant and this Industry is making an investment of US $ 150 million within the next 5 years,” sources said. With this step, other motorcycle ind ustr y m anufact ur er s w ill be encouraged to make investments in the sector, said the sources. Similarly, the Automotive Development Policy (2016) has been also approved. A new manufacturer under the said policy, establishing maiden assembly facility will invariably need a separate treatment and greater incentives in the early years to enable it to introduce its brand, develop a market niche, create d istribu tions, after-sales service net w orks a nd dev elop a p ar tmanufacturer base.

Pakistan among emerging markets of the future, new report says BMI Research, a financial mark et analysis firm, has recently identified 10 emerging markets from the Asia and Africa region that are set to become new drivers of economic growth over the next ten years. The report says that construction and manufacturing will play an important role in driving the economies of these countr ie s. Pakistan, Bangladesh, and Myanmar will specifically see a strong growth in the manufacturing industry. All countries are set to see the construction sector thrive, particularly to assist u rban gr ow th and the manufacturing industry. Mining and Gas industry will play a far smaller role than it has in the past years. While the comm od ity-d riven m od el i s not

expected to make a comeback. Pakistan, whose current primary sector is agribusiness with textile and rice being the key exports, is expected to become a manufacturing hub in the coming years. In the beginning of BMI’s forecast period the textile and automotive sector presented a faster growth. The domestic manufacturing investment is expected to be boosted considering the lower energy prices and an improved domestic energy supply. Bangladesh’s GDP growth in the last year was higher than Pakistan and their unemployment rate was 4.9% compared to our 6.5%. Their export-oriented industrial sector has contributed a great deal to their GDP and the BMI research predicts that it is all set to become a manufacturing hub in the coming years.

Here’s a detailed look at all the countries: Pakistan Primary secto r: Agribu siness, oil Key exports: Textiles, rice 2015 GDP growth: 4.2% Unemployment rate: 6.5% Exchange rate: 104.85 Pakistani rupees per dollar “Pakistan will develop as a manufacturing hub over the coming years, with the textile and automotiv e sectors posting the fastest growth at the beginning of our forecast period. Domestic manufacturing investment will be boosted by the windfall from lower energy prices compared to the last decade, and improved domestic energy supply.”

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Research and Development

MVRDE achieves milestone in self-reliance The Military Vehicles Research and Development Establishment (MVRDE) has achieved a milestone in self-reliance as it saved about Rs 10 billion through indi genous production of militar y vehicles, mobility, bridging, aircraft support equipments – an initiative which can go a long way in boosting the defence production sector. Talking to Business Recorder exclusively after a meeting of National Assembly standing committee on Defence Production, Director General MVRDE Major General Muhammad Moazzam Ali said that MVRDE declared the move a st ep forwar d towards complete self-reliance of the defence production sector. He said that MVRDE has played an important role to make Pakistan fully capable through indigenous production which not only helped in saving billions of rupees but boosted the confidence that we can rely on our own industry instead of going for import to fulfill the needs. However, he said that if the same products and equipments would have been purchased from abroad, MVRDE

could have hardly met its budget rather it would have been insufficient, as the equipment which it produced itself cost billions of rupees. The budget approved for MVRDE is a small fraction of total defence budget ie Rs 50-Rs70 million, which he described is based on the requirement, making it impossible to import all the equipments if there had not been any indigenous production. A s far as the nam e MVR DE is concerned, it portrays a very limited s cop e d ue to i ts na me , wh ile recommending, he said: “In Pakistan all research and development efforts should be centralized and a new organization – Defence Research and Development should be made”. “At pres ent, SPD (Strategic Plans Division) is conducting its own research and developm ent while defence production has its own research wing, which should be merged in order to make joint efforts so that we can compete with countries which are technologically advanced,” he added. Earlier, the meeting presided over by MNA Khawaja Sohail Mansoor was

Pakistan’s Weapons Manufacturing Industry – An example of Self reliance Self reliance in weapons manufacturing is the backbone of an y country to maintain its sovereignty and freedom an d strong defense against their enemies, all the threats whether it is foreign or domestic. Weapon man uf acturing is also an industry which can grow country’s economy on a vast scale. Pakistan is listed in those few Muslim countries which have the abil ity to produce their own defense equipments and weapons. Pakistan has achieved many milestones in the development of modern weaponry systems including Missiles, Battle Ships, Submarines, Fighter and Training

Aircrafts, Arms and Ammunition and Heavy Artillery. Pakistan is the first Muslim country, accepted globally as seventh nuclear power of the world. This was like a dream come true and it became possible by our engineers and scientists hard work, efforts, dedication, self confidence, patriotism and all of the above by the grace of God. Pakistan became nuclear power in such a worst eco nomic condition of the country and there were also the international pressure against Pakistan’s nuclear program due to which we were sanctioned many times internationally.

briefed about the creation of MVRDE and its role pertaining to the defence sector. He said that MVRDE was created in 1972, when the foreign ai d was withdrawn and the sanction was imposed on the import of products and equipments in 1971 after the war. MVRDE was formed to mobilize, orientate and facilitate efforts for technology diffusion to meet the general and specialist equipment needs of defence forces. Moreover, it was briefed that MVRDE is capable of conducting applied research and development pertaining to defence relat ed equipment systems. The infrastructure encompasses essential facilities duly augmented by resources available in the public and private domain. T he comm ittee appreciated the working/functioning of MVRDE and recommended that MVRDE officers and officials should be given opportunity for visiting aboard in connection with the intern atio nal defenc e exhibition /seminars. The committee recommended that salaries for engineering degrees holder in Pakistan Army, Navy and Air force should be enhanced according to their qualification. During visit to the working and display center of M VRDE, the chairman suggested DG MVRDE to write letter to the Ministry of Interior to make the G3 weapon compulsory for all security companies so that its production can be enhanced and a viable profit can be generated through its sale, adding that the Ministry Of Defence Production (M oDP ) will en dorse th e sam e stance. M e eti ng wa s at ten de d b y M r. Muhammad Khan Daha, Chaudhary Hamid Hameed, Muhammad Moeen Wattoo, Ms. Amra Khan, Iffat Liaqat, Asyia nasir, Rana Muhammad Qasim Noon, MNAs and besides the senior officers of MoDP and MVRDE. Curtsey: Business Recorder

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Automotive News - Update

Dewan Farooque Motors distances itself as share price surges over 100% The share price of Dewan Farooque Motors Limited had almost doubled within the last five months, giving over a 100% return in a very short period of time. It caught attention. Since the company did not disseminate any information to the stock exchange, the massive surge was based on speculation, rumours over unconfirmed reports of investment plans as trading volumes went higher. The automotiv e po licy, which was announced by the government in March, came with incentives for new entrants as well as those players that had gone out of business. That provided the first boost. But the company did not react.

Afte r the Securities and Exchange Commission of Pakistan noticed the gains and high volumes, it sent a letter to the company on May 24 – the day when the DFML share ended at Rs17.32, up al most 100% Rs8.8 from a few months ago – asking it to explain the cause behind the surge. The company’s management has now reacted – it has no clue why. On Wednesday, the company’s share price closed at Rs14.55, lower by Rs0.15, even though the benchmark-100 index gained around 2%. “ You a re aw ar e th at m any stakeholders/traders, for their personal b enefits, c irculate ru mou rs and

Dewan to Re- launch Shehzore in Pakistan

It has been reported from sources that Dewan Farooque Motors Limited is about to relaunch its very famous and successful Medium sized truck Shehzore with a different name. During its prime days more than a decade ago, Shehzore was a formidable competitor in its class and had won the trust of all its customers due to its rugged construction, unmatched reliability and performance. The remaining Shehzore’s today are found mostl y in bad shape due to unavailability of spares and absence

appropriate maintenance. According market sources, this will be assembled by Dewan in same plant at Sajawal, it will be domestic brand with or without Hyundai logo, power train Korea, engine transmission and axel rest will be local. Price tag will be around 1.5m. However the news of the comeback would surely bring a sigh of relief to the businessmen relying on LCV’s as still in this category there is a big void which Shehzore left and none of its competitors could fill up since.

speculation in the market over which we have no control,” wrote the company to the SECP on Wednesday. “Furthermore, we hereby confirm that we have nothing to do with the trading volume in Dewan Farooque Motors Limited (DFML) shares,” it added. DFML is closed and out of production, but analysts say the increase in its share price is primarily driven by expectations that it would soon resume assembling cars. The company was reported to have been in talks with Nissan and Renault for a joint venture. The impre ssio n got credence when the new auto policy gave incentives to brown field projects – to encourage companies that had stopped production in the past to resume operations. part from giving incentives to new car makers to enter into Pakistan, the new auto policy was also aimed at the revival of sick automobile units – and that is where DFML was expected to benefit. “Another factor that helped its share price to jump was the expectations of major restructuring in DFML, but again, there is still no official announcement from the co mpany on both these developments,” he added. In Pakistan, where the auto industry has always been dominated by Japanese players, DFML partnered with Korean brands like Hyundai and Kia to produce its first car on January 15, 2000. The company received an extraordinary response especially for its Hyundai Santro and Hyundai Shahzore; a oneton truck. After a gap of three years, DFML produced a few hundred cars in fiscal year 2014 and 2015 based on its old inventory. However, the company is in desperate need for a partner with whom the company plans to resume full-scale vehicle production.

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China Visit News - Update

Shahbaz leading a high-profile delegation to China from 24th

Punjab Chief Minister Muhamm ad Shahbaz Sharif is proceeding to China on a six-day visit, leading a high-profile delegation in a bid to explore more avenues of mutual cooperation with China in different sectors. T h e d e le g a ti o n wi l l c o m p r is e businessmen and senior officials which will hold meetings with their Chinese counterparts to explore cooperation b etw ee n C hin a an d t he Pun jab government. The delegation would also attend a Business Moot in a Chinese province. It is expected that MoUs would also be signed and would explore opportunities in trade and in ves tment, ene rgy, infrastructure, textiles, agriculture, r en ewable e ne rgy, privatisatio n, e n g i n e e r i n g , in f o r ma t i o n a n d Communication technologies and mining sectors. The delegation would return on July 29. This year Pakistan-China Business Friendship Conference was organised by t h e Mi n is tr y o f C o mm e rc e i n co llabo ration with the Bo ard of Investment (BoI) and Trade Development Authority of Pakistan (TDAP) in which a 1 00-me mber Ch ine s e de le gatio n participated.

The first leg of the conference was held in Islamabad on 18th and 19th January from where the delegates travelled to Lahore for a day where business-tobusiness (B2B) sessions with prominent CEOs and senior executives of top companies headquartered in Punjab were held. At the last leg of the visit, the delegation proceeded to Karachi, where Pakistan Business Council (PBC), with support of Government of Sindh and TDAP, hosted an event, where B2B sessions with premier Karachi based businesses were held on 21st and 22nd January 2016. As per statistics, China is Pakistanâ&#x20AC;&#x2122;s major trading partner with volume of trade reaching an all-time high of $12.299 billion in 2014-15. The two countries signed the China-Pakistan Free Trade Agreement (CPFTA) on 24th November 2006, which became operational from 1st July 2007. Later, a Free Trade Agreement on trade in services was also signed on 21 February 2009 and is operational since 10 th October 2009. Prior to signing of CPFTA the volume of trade between the two countries was in vicinity of $4 billion out of exports from Pakistan were $575 million.

Over the years the trade volume has leapfrogged to $12 billion with Pakistan exports bourgeoning to $2.1 billion in 2014-15, a more than three and a half times increase. The Lahore Orange Line Metro Train project is a splendid gift of China for people of Pakistan and hundred per cent investment in this project has been made by China. It may also be recalled that the Punjab Chief Minister Muhammad Shahbaz Sharif and Shandong Vice Governor Xia Geng this year signed the agreements. U nder the frame wo rk agreeme nt, Shandong province will cooperate in setting up an industrial park in Punjab. Under the agreements, cooperation will be enhanced in agriculture, livestock and dairy, energy, mining, infrastructure, h e a lth , e du ca ti o n, i nf o r ma ti o n technology, manufacturing, economic and industrial zone development, trade of goods and services, tourism, banking and financial sectors. Private sector will also be encouraged to increase investment and expanding trade relations. Besides, trade seminars will be held and trade delegations will be exchanged.

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Transportation and Communications - Update

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25-km dilapidated portion of National Highway causes nuisance to traders A rapid increase in street crimes like car and mobile snatching, and robberies of cash and valuables from commuters stuck in traffic is another consequence of the severe traffic blockades. The traffic jams also lead to pollution resulting in the increased probability of lung diseases for commuters due to dust and exposure to pollutants. The dilapidated condition of a 25-km long portion of the National Highway that connects Karachi to the rest of Pakistan is a cause of serious concern for commuters and businessmen. The negligence of the National Highway Authority (NHA) with regard to this road poses serious questions about integrity of the authorities. The road is consistently used by heavy and light vehicles carrying labourers and goods to Port Qasim, industries in the Export Processin g Zone Authority (EPZA), Pakistan Steel Mills, Landhi Industrial A rea and many other important business hubs. The strategic importance of the road essentially used for cargo transport from Karachi to the rest of the country cannot be emphasised m o r e w h i ch need s im m ed i a te reconstruction. The daily movement of commuters, industrialists and labourers demand smooth flow of traffic to the connecting areas and industrial zones on the National Highway. Hardships are not only faced by the industries located in the industrial areas of Landhi and Korangi but also important institutions and government departments like the Civil Aviation Authority (CAA), Karachi Airport, Malir City Court, Pakistan Telecommunication Company (PTCL) substations and the Bin Qasim Power Station of K-Electric, which are facing grave issues concerning their employees. Workers, residents and the commercial cargo transporters are all severely affected because of the disintegrating condition of the National Highway. The road also plays a pivotal role in providing public commuting and goods transportation to adjacent residential areas like Korangi, Landhi, Model Colony, Shah Faisal Colony, Quaidabad and Gulshan-e-Hadeed. Because of the d eplorabl e condition of the road

junction, the residents of these areas are seriously affected as they face constant t ransp or tation issues, inclu ding severe traffic jams and frequent road accidents. A rapid increase in street crimes like car and mobile snatching, and robberies of cash and valuables from commuters stuck in traffic is another consequence of the severe traffic blockades. The traffic jams also lead to pollution resulting in the increased probability of lung diseases for commuters due to dust and exposure to pollutants. The paradox of the situation is absence of a n alternative r oute for the commuters and businesses of the affected areas across this vast expanse of 25 km long section of the National Highway. Adding to this, the minimal repair work that is underway is only hampering the traffic flow. The almost nonexistent repair work and the negligence of the National Highway Authority (NHA) has caused Landhi Association of Trade and Industry (LATI) representatives, along with the general public, to raise concerns many times on this grave situation but all their efforts seem to have been made in vain. Talking to Pakistan Today, LATI General

Secretary Mobeen said that dilapidated condition of the National Highway c aused nega tive imp act on t he production of industries. He claimed that robberies and cell-phone snatching h ad increased manifold on this dilapidated portion of the National Highway. Mobeen maintained that the association had raised this issue with the authorities concerned, but it hadn’t received positive response as yet. “Bursts in sewage lines on the route in recent rains worsened the condition further,” he added. Bin Qasim Association of Trade and Industry (BQATI) General Secretary Abdul Rehman told this scribe that the association invited former Karachi commissioner Asif Hyder Shah and Karachi Administrator Laeeq Ahmed and they visited this portion of the National Highway. Rehman claimed that the administrator informed them that the Sindh government had allocated funds for the repair of the seven kilometre damaged portion of National Highway from Star Gate to Quaidabad while Japan International Cooperation Agency had promised to rebuild the rest of the highway.

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Automotive News - Update

PCB buys bulletproof buses to improve security

The PCB has bou ght fou r b u l l et p r o of buses as part of its effort to pr ovi de t he "best possible

arrangements" in terms of security for players visiting the country. The board hopes the additional measure, first proposed during the chairmanship of Zaka Ashraf in 2012 and sanctioned last year, will help in convincing overseas players and teams to tour Pakistan. Barring Zimbabwe's limited-overs tour in May 2015, Pakistan have not hosted an international game since the attacks

on the touring Sri Lankan team in Lahore in March 2009. In that incident, gunmen shot at the team bus near Gaddafi Stadium, injuring five cricketers and killing six security personnel and two civilians. The PCB has since struggled to convince teams to tour the country and Pakistan have had to play their "home" matches at neutral venues, mostly in the UAE, which has been their base for the past several years. "We have bought these four Coaster buses as part of our efforts to revive international cricket in the country," a PCB spokesman told ESPN cricinfo. "There will be high expectations from teams willing to visit Pakistan and we want to ensure that we provide them with the best possible arrangements. Having these bulletproof vehicles would play a major part in convincing teams [about secur ity arrangements]."

T h e P CB r elies heavi ly on t he government for security arrangements for visiting teams and the bulletproof buses will be an additional saf ety measure for teams travelling within the city. The buses were initially sanctioned at a PCB governing board meeting in 2012, but with the change of leadership the purchase was delayed. The matter was taken up again by PCB executive committee head Najam Sethi last year. "We are actually planning to host the PSL final in Lahore, but this requires us to convince overseas players to come," the PCB spokesman said. "We have to have discussions with the players about their safety and security and I think this new addition in our security facilities will definitely give us an edge. Our ultimate goal is to revive international cricket, and we are doing our best to make sure we can."

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Automotive News - Update

European Union and Government of Pakistan signs two Financing Agreements worth €59 million euros F in anc i ng Agreements of the Bal och istan R u r a l Development a n d Community Empowerment Programme and the International Labour and Environment Standards programme were signed today between the European Union and the Government of Pakistan. Mr. Tariq Bajwa, Secretary Economic Affairs Division, Government of Pakistan signed the Agreements on behalf of the GoP while Mr. Stefano Gatto, Chargé d'Affaire s signed on EU's behalf. The EU and the Government of Balochistan have jointly designed a six year programme to which the EU will contribute €45 million (5 billion Pak Rupees approximately) to support community-led local development and local governance. The Balochistan Rural Dev e lo p m en t a nd C om m u n it y Empowerment Programme will help

communities as well as provincial and local authorities to partner in reducing th e negative impact of economic depr ivation, poverty a nd social inequality, environmental degradation and climate change. It aims to build and empower resilie nt co mmunities in identifying and implementing socioeconomic development activities on a sustainable basis in partnership with local authorities. The programme objectives are twofold: to enable communities to implement community-driven socio -economic develop ment inter ventions a nd capability to influence public policy decision making for quality service delivery, and to cap acitate local authorities to manage and involve communities in the local public sector planning, financing and implementation process. The Programme will also assist the Government of Bal ochistan in formulation of a Policy Framework to institutionalise and sustain communityled local development approaches, and to improve Public Finance Management

“Pakistani youth can make anything” NED students build Formula One racer Governor Sindh Dr. Ishrat ul Ebad Khan has said that Pakistani youth are blessed with great talent and could compete with anyone in the world. He said this while honoring the students of NED University of Engineering & Technology, who unveiled a purposebuilt Formula One SAE Car on Tuesday. Congratulating the students involved in the project, the governor said that Pakis tani students had performed wonders in all walks of life through their

hard work and dedication. Vice Chancellor NED Dr. Afzal Haq and Municipal Commissioner KMC Sami Uddin Siddiqui were also present at the occasion. The Formula One car designed by students of NED and sponsored by KElectric will be part of an international competition scheduled for July in Italy. Students of more than 250 universities from all over the world will participate in the event.

in the Province. Chargé d'Affaires Mr. Stefano Gatto also thanked the Ministry of Overs eas Pakistanis and Human Resource Development, the Ministry of Climate Change, ILO and WWF on the occasion of the signature of th e financing agreement of the EU funded project International Labour and Environment Standards (ILES) in Pakistan. Mr. Gatto said at the occasion that the EU firmly believes in the importance of rule of law as a key factor for inclusive growth and devel opm ent, ap p lied t o ev ery dimension of law, and in particular labour law. The project will not only help the competitiveness of Pakistani products if they are labelled "fair trade" but will also help Pakistan to improve the use of international standards in terms of environment. Furthermore, the respect of international environmental standards will allow Pakistan to use the label of "green" products, which will increase competitiveness of Pakistan, he added. Th is €12. 6 mil lio n Euros project International Labour and Environment Standards (ILES) will promote the enforcement, impleme ntation an d compliance with ILES by public and pr ivat e sector inst itu tions a nd orga nizat ions in Pa kistan. T he programme objectives are twofold: 1) to assist public sector institutions (Federal and p rovinc ial) to imp rove the enforcement of existing legislation and compliance with ILES in Pakistan, as well as define new laws where necessary and 2) to assist the textile and leather sectors’ small and medium enterprises to institutionalise the implementation ILES legislation through their active engagement. This six year programme should start later this year. The EU has al lo c at ed 6 5 3 M € to fi na n ce development projects in Pakistan during the 2014-20 20 period, focusing principal ly on rural development, education and vocational training, as well as on governance, human rights and rule of law.

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Corporate Event - Media Coverage

Monthly AutoMark International

Eid Milan Party and Products display by Master Motors in Karachi

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Exclusive Article by Motor Club of Pakistan

WE HAVE MADE THE HISTORY DRIVE TO TURKEY “LOVE PAKISTAN”

Who doesn't love long scenic drives? But what if you had the chance to drive your own car through the most beautiful terrains, twisted roads, mountainous regions, meadows & lakes? Motor Club of Pakistan accomplished a journey that ac cu m u la ted a g ra nd t ot al of 12,000kilometersfrom Karachi to all the way to Istanbul, Turkey and back.It took the group of explorers approximately 38 days to complete this exciting journey. The aim of this epic road trip was to project a “PositiveImage” of Pakistan. According to Razi Nayyer, the president of Motor Club of Pakistan “tourism in Pakistan is almostdied due to upheavals over the past 16 years. Before the terrorism and subsequentl y war on terrorism,our country used to be a paradise for foreigners but now this tourism industry has come to halt.” ‘Drive to Turkey’ was a 5,500 km long drive from Pakistan, through the rugged

land of Iran and from the Asian side of Turkey to the European end. The pit stops during this expe dition were exquisite locations namely, Mashhad, Qom, Yazd, Tehran, Tabriz in Iran and Erzurum, Cappadocia, Ankara in Turkey before th e group of automotive ent hu siasts r each ed t heir final destination, Istanbul. “We had to look at almost all aspects in minute detail; booking hotels, charting out road networks and diversions, identifying fuelling points, managing expenses for food were just a few to name among other phases. Coordination was very difficult,” says Abdul Basit Khan, Director Marketing of Motor Club of Pakistan. Despite extensive organization and planning, the drive was not without i nc i d e n t s. F a c ed w er e so m e te c h no l og i c al b r ea k d ow n s, as well as mechanical issues alongside extreme weather conditions where the

driv ers had to even drive through conditions of zero visibility. But the group remained on course to make history for Pakistan. “During the 38 days of driving, we experienced the varying temperatures between 26C in Karachi to -24C in Dogubeyazit, Turkey”, comments Saqib Malik, Lead Art & Design Direction at Motor Club of Pakistan. With five cars; vintage and modern and two bikes carrying around 30 individuals including women and children, the group spent over a month on the road with severe weather constrains and experienced rain, snow and blizzard but never lost was the sight and focus to reach their destination. “The Drive to Turkey or to the gate of Europe was a great opportunity for all motoring devotees to have joined the Motor Club convoy and I’m sure that this opportunity has come again in the form of Drive to Italy which will again

www.automark.pk | August-2016 | Page 36

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carve a story of this aspiring voyage” claims Ahmed Nayyer, Director HR & Safety at Motor Club of Pakistan. After the successful and triumph-worthy

“Drive to Turkey”, Motor Club of Pakistan plans their next excursion in the face of “Drive to Italy”

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Exclusive Article by Team PBC

Monthly AutoMark International

Campaign against One Wheeling & Racing, call it against Young Deaths

It is a mission with Pakistan Bikers Club to play its in promoting safe riding. It has been our dream to have and enjoy Safer Riding experiences. We have been working hard from day one to use every kind of effort at all forums to promote Safe Riding. Unfortunately we did not see any helping hand in this regard from any sector of the country, except the step taken by Pakistan Army in the form of Motocross Track to bring street racers and one wheeler at a safer place. Working since 2007, we have noted different incidents that have damaged someone or even killed someone. But, this year during Eid Holidays in Jul 2016 everyone has noted around 1000 plus accidents all over Pakistan and several deaths in all the major cities. This much loss for youth of the country must have pushed many of us to think about it, so that it’s not too late. A few months ago we presented a proposal to a media (news channel) officer. She might have been thinking

about it. But hundreds of accidents atthe occasion of Eid in July 2016 pushed her to take it seriously. Her call to Pakistan Bikers Club on 12/7/2016 for said issue turned out into a strong and effective report/documentary. Mr. Zahid Malik (Founder & Head of Safer Riding – Road Safety Dept.) discussed different issues with Mr. Imran Bhatti (Head of Technicals Dept.), Mr. Talal Malik (Head of Legal Dept), Mr. Umair Zia (Head of I. T. Dept.) and Mr. Rashid Malik (a famous mechanic in Lahore) and considering all those discussions and his experiences while working for Safe Riding – Road Safety compiled a report. This report along w ith m a ny p ro ves i n for m of photographs were shared with Ms. SamraAfzal of SAMAA TV. We would like to mention here that in many cases we have noted that the theme of reports or issues are altered by media, as a result we are unable to convey core message to society. But in this case, Ms. Samra did a great job and has been successful in sharing the message with society specially the families of the children. The main points in the report were: 1Riders & mechanics change engine parts of common bikes of 70cc & 125cc class, which give a boom of 20% to 60%, 2Riders & mechanics change complete engines of 70cc & 125cc class, which give a boom of 50% to 100%, resulting in making these small bikes into death machines during Street Racing & One Wheeling. Though we have witnessed many losses to our youth during recent Eid, but we hope that this Eid would also act as a change factor for many. We shall be able to strengthen our campaign against the bad acts of Street Racing & One Wheeling with this report. We request other stake holders also to come out and help us, our youth needs us.

A joint report by: Mr. Zahid Malik, Umair Zia, Imran Bhatti, Talal Malik (Pakistan Bikers Club) and Ms. Samra Afzal (SAMAA TV).

www.automark.pk | August-2016 | Page 38

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International Automotive Industry - Update

Hero Announces New Strategy to counter Honda

Monthly AutoMark

3 million Toyota car recall includes UAE Affected vehicles include Lexus, Toyota models built between 2010 and 2014 A car dis tributor in the UAE has confirmed that it is recalling some Toyota vehicles in the country following the manufacturer’s announcement of a massive recall involving more than 3 milli on c ars ar ound the world . Toyota said on Wednesday that it is recalling 3.37 million vehicles globally over some issues with the airbags and fuel tanks. The recall in the UAE includes luxury Lexus units and Toyota models bu il t b etw een 2 010 and 2014 . In a statement sent to Gulf News, AlFu tt ai m M otor s, th e exc lu si ve distributor of Toyota and Lexus in the UAE, said it has launched a “special ser vic e c am pa ign” and st ar ted contacting customers with the affected models. Models recalled The vehicles being recalled in the UAE are 430 Toyota Zelas MY 2010, 2011, 2013 and 2014, and 190 Lexus CT 200h, MY 2010 to 20 14 in the UAE. The said vehicles are equipped with a fuel vapour canister assembled to the fuel tank.

Intense competition from Honda has compelled Hero MotoCorp to take the aggressive front as the company plans to launch around a dozen new products and variants over the next nine months. The array of new products will include an all-new scooter in the 125cc segment to finish the company's absence in this segment. Honda already has a strong hold in the scooter segment and offers a popular 125cc model in the market as well. Sources in the company said that as the market sentiments are bullish on the back of the monsoon and seventh pay panel recommendations, Hero MotoCorp plans to revamp its portfolio. On the sidelines of the launch of the new Splendor iSmart 110, Pawan Munjal, chairman of Hero MotoCorp said,"After almost two years, the monsoons are going well. For the last couple of years, the twowheeler market took a hit as demands were low in rural markets due to poor rains. Munjal said that the predictions for the healthy monsoon are going to impart confidence among the buyers. The dip in demand is not the only challenge that exists for Hero. The manufacturer has to confront with the rise of Honda as the Activa has recorded the highest sales number in the last six months, surpassing Hero's best-selling Splendor. Honda Activa, India’s most popular scooter, can now also claim to be its Yamaha YZF-R15 V3 is most popular two-wheeler. all set to launch in The bike completed six months as India’s highest selling two-wheeler in early 2017 in India As per latest news Yamaha is planning June — a feat that was unthinkable for to launch the Yamaha YZF-R15 Version a scooter 5 years ago. 3.0 the in coming year 201 7. It is For the last 17 years, the No. 1 position expected that Yamaha YZF-R15 Version used to be taken up by bikes like Hero 3.0 is going to generate more power and Splendor. to rque, it will ge t all digital light However, partly due to Activa’s rising instrument console, dual projector popularity an d partl y due to th e headlamps like Pulsar Rs200 plus and fragmentation of the motorcycle market, with more comfortable pillion with rider the scooter is now India’s undisputed seat. It is also being speculated that two-wheeler king. Yamaha may also launch an ABS version Hero, a former partner for Honda in of R15 V3. The next generation of YZF- India, has seen the popularity of its R15 expected to pick a few technologies Splendor brand of commuter bike from the latest M-Slaz 150, which was decline in recent years as a host of new recently launchedÊin Thailand, The models from rivals including Honda expected ex-showroom price of Yamaha have attacked its turf. R15 Version 3.0 is INR 1.20-1.25 lakhs Activa’s domestic sales stood at 1,34 mln in the first half of 2016 compared to 1.23 approximately.

“There is a possibility that a crack could develop on the edge of the resin channel for the emission gas flow due to an improper shape of the channel edge at that location,” Al-Futtaim Motors said. “Over time, the crack could expand and may eventually cause fuel leakage when th e veh icle’s fu el tank is fu ll.” For units with defective airbags, the affected units are 130 Lexus CT200h MY 2010 to 2012. “The subject vehicles are equipped with curtain shield air bags located in the left and right side roof rails, which use an inflator that contains compressed gas in one chamber and propellant in another; these chambers are welded together,” Al-Futtaim Motors said.| “Some inflators could have a small crack in the weld area, which could propagate over time, especially if the vehicle is parked and unoccupied for a period of time, causing the inflator to separate.” “If this happens, the curtain shield air bag could partially deploy, and, in exceptional circumstances, one or both sections of the inflator could be ejected from the roof rail into the interior of the vehicle.”

Honda Activa completes 6 months as India’s No. 1 two-wheeler mln in the same period of 201 5. The scooter segment was left for dead about 8-10 years ago, when scootermakers like Bajaj Auto and LML left the field. Bajaj, for example, felt Indians would not be interested in scooters if they could afford a motorcycle. Sales of Activa rose exponentially from 55,000 units in its debut year (FY’200102) to over 2.46 million units in last FY’2015-16. Every second automatic scooter purchased in India today is a Honda Activa. Activa sales alone contributes 15% to the domestic 2Wheeler industry – which is more than entire 125cc motorcycle segment sales put together. Encouraged by Honda’s success, others such as Suzuki, Vespa and Yamaha have also launched their scooter models in India. Yamaha, another Japanese brand, is among the fastest growing scooter brands in the country.

www.automark.pk | August-2016 | Page 39

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Car / Light Vehicle Price List SUZUKI Model Model

Ex Factory Price

Advance Tax

WAGON-R VX 1000cc Euro II WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc

Rs. 864,000 Rs. 906,000 Rs. 1109,000 Rs. 630,000 Rs. 700,000 Rs. 683,000

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

25,000 25,000 25,000 10,000 10,000 10,000

SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II CULTUS EFI VXR CNG LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX 800cc E2 BOLAN VAN VX 800ccm (M)E2 SUZUKI VAN CARGO Euro II RAVI PICK-UP STD 800cc E2 APV 1.5L GLX MT (Petrol)

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

Rs. Rs. Rs. Rs.

50,000 50,000 25,000 25,000

Rs. Rs. Rs. Rs.

10,000 10,000 10,000 10,000

1,297,000 1,433,000 1,044,000 1,119,000 1,365,000 1,444,000 700,000

Rs. 671,000 Rs. 642,000 Rs. 2,418,000

HONDA Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 25,41,000/=* Honda Civic 10th Generation 1.5L Turbo Rs. 29,11,000/=* Honda Aspire Manual 1.3L Rs. 1,687,000 HYUNDAI Rs. 1,809,000 Honda Aspire Prosmatec 1.3L Honda City Manual 1300cc Rs. 1,537,000 Honda City Prosmatec 1300cc Rs. 1,678,000 Rs. 2,053,000 Honda Civic VTI Manual 1800cc Rs. 2,285,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,174,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,406,000 Honda Civic VTI Prosmatec SR (Oriel) * Ex-Factory prices, Advance income tax, freight & insurance will be added as per destination Price will be charge at the time of deliver what-so-ever

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

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

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

Toyota Hilux Pickup 4x2 sc Model

Price

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

Rs. 2,063,000

Toyota Hilux Pickup 4x4 E Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,324,500

FAW MOTORS Model

Price

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

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

744,000 849,000 899,000 1705,000 1885,000

Rs. 1049,000

Price updated aug- 2016

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International Automotive Industry - Update

BMW plans electric car battery factory in Thailand "Hybrid vehicles are still expensive now but once there is a factory established and batteries are available this will make it affordable for consumers." German carmaker BMW Group is considering building a new plug-in hybrid vehicle battery facto ry in Thailand, the country's industry minister said on last week. Construction was likely to start in the middle of next year with an investment of 2 billion baht ($57 million), Industry Minister Atchaka Sibunruang said, adding that the factory would make hybrid vehicles more affordable for Thai consumers. "Hybrid vehicles are still expensive now but once there is a factory established and batteries are available this will make it affordable for consumers," Atchaka told reporters. A spokesman for BMW in Thailand said the company was not immediately able to comment on the investment but would issue a statement on Monday. Atchaka said the Thai government was working w ith BMW to offer tax incentives in order to make the country a centre for plug-in hybrid vehicles. Thailand is a regional production and export h ub for th e world 's top carmakers, and the sector accounts for around 10 percent of the country's gross domestic product.

Yamaha recalls 900 motorcycles in Korea Japanese motorcycle manufacturer Yamaha is carrying out a recall for over 900 motorcycles in Korea to rectify a clutch malfunction. The recalled motorcycles are 761 units of YZF-R3 RH07 manufactured Dec. 6, 2015, to April 4, 2016, and 161 units of MT-03 RH07, from March 16 to April 4 in 2016. The motorcycles have been identified as being affected by the defect in clutch pressure plate, causing the engine to stall. Bike owners can get their motorcycles fixed at the Hankook Motor Trading, the importer of the motorcycle, starting July 18 free of charge.

Monthly AutoMark

Hero Moto plans a dozen launches to counter Honda At a time of heightened competition from erstwhile partner Honda, Hero MotoCorp plans to launch a dozen new models and variants over the next nine months. The launches would include an all-new scooter in the 125cc segment, perhaps aimed at countering Honda's strong grip on th e fast-g row ing category. Sources in the company said that the new launches are being planned as part of a "revamp and upgrade" of the company's portfolio, especially as the two-wheeler market is expected to pick pace on the back of a healthy monsoon and positives such as the pay panel recomme ndatio ns for go vernment employees. "The company will be going aggressive on new product introductions. There will be new brand introductions and major upgrades as we go forward into the year," a source said. Pawan Munjal , chairman of Hero MotoCorp, said that the outlook remains positive for two-wheeler players due to a number of favourables. "After almost two years, the monsoons are going well. This will be very positiv e for sales, although a full effect of this will come only towards the later half of the year," he said after launching a 110cc variant of the company's best-seller Splendor

which is equipped with a start-stop feature. The motorcycle segment has been under pressure due to the slowdown in the critical rural markets where numbers have been dismal on the back of poor rains in the last two years. Munjal said that he exp ects the situation to change now as the monsoon rains bring confidence back amongst the buyers. Hero has had to battle not just lowering demands but the rise of Honda. Honda's Activa has become the largest-selling two-wheeler in the country for six straight months in a row, edging past old warhorse - the Hero Splendor motorcycle. Munjal said scooter remains a "key focus" for the company and pointed out to the two new recent launches that the company has had in the category. Hero Moto currently has three scooters Pleasure, Maestro and Duet, and is now looking to make the range even better. "We will gradually consolidate our presence in the scooter segment. We currently have a 16.5% share in the ca tegor y, and th is w ill see a n improvement of around 2-3% by the end of the fiscal," he said.

Toyota donates nearly $1.5M to Michigan Science Center Japanese automaker Toyota has donated nearly $1.5 million to the Michigan Science Center in Detroit to help u pg ra de it s t hea ter a nd boost educational offerings. The company says the donation announced Thursday is the latest of its efforts to promote and expand education in the Science, Technology, Engineering and Math fields, known as STEM. Toyota says is sees that there's a shortage of professionals in such fields.

The donation will be used to transform and upgrade the Toyota Engineering Theatre. The company says it will be used to upgrade the theater's technology, including a new h igh-definition projection system with 3D viewing capabilities and enhanced lighting. The funding will also help the Michigan Scie nce Cente r expand its STEM education programming for teachers and students.

SAFETY FIRST

www.automark.pk | August-2016 | Page 41

MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ Product & Model Name No. 1. Crown CR-70 2. Hero RF-70 Model 2015 3. Hero Plus 90, 90cc 4. Honda CD-70 5. Honda CD Dream 6. Hi-Speed SR-70 7. Metro Premier+ 70cc 8. MS JAGUAR MS 70 Euro- II 9. MS JAGUAR MS 70 ( DREAM) 10. Ravi Premium R1 11. Road Prince bullet 12. Road Prince 70cc 13. United US 70 14. United Extreme 70

Retail Price Rs. 42,000/= Rs. 46,000/= Rs. 48,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 46,950/= Rs. 43,500/= Rs. 41,500/= Rs. 42,000/= Rs 44,500/=

125/150 cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Brand & Model Name Crown CR-125 Hero Prince 125 Honda CG-125 std Euro II Honda CG-125 DX Metro MR-125 Regular Ravi Piaggio Storm 125 Road Prince Twister 125cc Road Prince WEGO 150cc

Super Star SS-125 Super Star SS-125 DLX United US-125 Euro 2 Unique US 125cc

Yamaha YBR-125cc

Retail Price Rs. 65,000/= Rs. 96,000/= Rs. 103,400/= Rs. 124,500/= Rs. 68,800/= Rs. 112,000/= Rs. 195,000/= Rs. 116,000/= Rs. 59,000/= Rs. 67,000/= Rs. 70,000/= Rs. 70,000/= Rs. 129,400/=

Sr./ No. 15. 16. 17. 18. 19. 20. 21.

Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70 Bionic AS-70

Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,500/= Rs. 44,500/=

100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Brand &Model Name Crown CR-100 Hero Splander Model 2015 Honda Pridor MS JAGUAR MS 100 Super Star SS-100 Super Power SP-100 Road Price 110cc United US-100 Euro 2 Unique UD-100

Retail Price Rs. 52,000/= Rs. 56,000/= Rs. 86,000/= Rs. 48,800/= Rs. 57,000/= Rs. 60,000/= Rs. 52,000/= Rs. 50,000/= Rs. 75,000/=

Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5.

Product & Model Name SD110 Sprinter ECO SD110 Raider GS-150 Euro-II GD 110 Euro-II GD 110s Euro-II

Retail Price Rs. 98,400/= Rs. 101,400/= Rs. 133,500/= Rs. 119,000/= Rs. 131,000/=

Suzuki Motorcycle (Heavy Bikes) Sr./ No. 1. 2. 3. 4.

Product & Model Name Inazuma GW 250 Intruder M800 Hayasuba GSX1300R Bandit GSF650SA

Retail Price Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/=

www.automark.pk | Aug-2016 | Page 42

Price update: Aug-2016

by Asif Masood - Energy Sector

Monthly AutoMark International

Hydropower Project in Pakistan by the courtesy of IFC Pakistan is a water rich co untry bu t, unfo rt unat ely, Pakistan ’s energy market investment in h y d e l p o w e r generation has been ca ught u p in Asif Masood c o n f u s i o n a n d paradoxes for more than a decade, and no significant progress has been achieved so far. On the other hand, the Government is trying to facilitate private investors to promote hydel power generation in the country. Hydropower is a primary domestic source of energy. Pakistan is endowed with a hydel potential of approximately 41722 MW, most of which lies in the North West Frontier Province, Northern Areas, Azad Jammu and Kashmir and Punjab. The International Finance Corporation (IFC), a member of the World Bank Group, promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people’s lives. In addition to its investment work, IFC executes a major donor-funded program of private sector advisory services in South East Asia. Within IFC Advisory Services in the region, the Sustainable Business Advisory business line (SBA) anchors the Corporation’s objective to improve the performance and competitiveness of local enterprises by equipping them with market intelligence and new skills and tools, enabling them to access finance and meet changing market needs and increased competition in the

local, regional, and international economies. As part of its global mandate, IFC is supporting activities to address climate change by promoting renewable energy and energy efficiency investments in emerging markets. The Hydro project is part of IFC’s efforts to launch its Renewable Energy business in the region. In most of the project financin g, envi ronmental and soc ial ri sks traditionally have been managed one at a time. IFC is changing the dynamics by considering and addressing the impact of project on the entire region and inter connected ec osy stems a nd communities by bringing together the private and public sector, civil society and local communities on one platform. To meet future energy challenges, governments of energy scarce countries in the region are planning new investments for energy generation while developing and implementing plans for gradually removing high level energy subsidies to reduce budget deficits. S im u lt a n eo u sl y , t h e P a ki s t an government is setting ambitious targets for 2020 for meeting their energy demand fro m abundant renewable energy (RE) sources. The Jhelum-Poonch basin is a vast source of hydropower in Pakistan. More than 50 power plants are located along the two rivers, in various stages of operation and development. Six of them are being financed by IFC. They are expected to bring up to 4,000 megawatts of additional power to Pakistan, where daily blackouts last for up to minimum

of eight to twelve hours for the last so many years. IFC has taken on the challenge to help develop Pakistan's rich hydro resources and save the people from load shedding. IFC's Environmental and Social Performance Standards, integral to our business model require that projects financed by IFC will also have positive outcome on biodiversity. To design the first comprehensive biodiversity strategy for the entire basin, the financer has brou gh t togeth er clients, oth er develope rs, inves tors, an d repr esenta tives fr om acad emia, governments and envir onmental organizations. The strategy incorporates a set of common guidelines for all hydropower plants operating in the region. IFC continues to w or k w ith all stakeholders to address additional environmental and social challenges including those related to safety, labor conditions, community relations and effective grievance mechanisms. IFC hydropower portfolio projects in the Jh elum -P oonc h Wa tersh ed ar e: • New Bong Escape: 84 MW • Star Hydro: 150 MW • Gulpur: 102 MW • Karot: 720 MW • China Three Gorges South Asia

Investment Limited (CSAIL): Two proje cts totaling 2,400 MW Cost effective renewable energy will definitely improve Pakistan’s economic performance. Energy efficiency along with conservation measures can result in profitable business units. Thus, exploitation of these sources of energy can lead to poverty alleviation. Use of indigenous renewable resources can help Pakistan in diversifying its energy mix. This wil l reduce the country’s de pe ndence on any single source, particularly imported fossil fuel. Local environmental and heal th haz ards introduced by fossil fuel po wered electricity generation plants can be largely circumvented through clean renewable energy alternatives.

www.automark.pk | August-2016 | Page 43

TRIBUTE TO

MAULANA ABDUL SATTAR EDHI (1928 – 2016)

NO RELIGION IS HIGHER THAN HUMANITY

www.automark.pk | August-2016 | Page 00

Automotive Sector - Interview

Monthly AutoMark International

Will Pakistan consumers see a smaller car by Toyota? “If a million motorcycles are sold [in a year], it shows that there is a need for a smaller car since that is the natural progression for these buyers,” said Ghias. “Unfortunately, Toyota does not have a car in the economy segment. Daihatsu had it [Cuore] before it took a strategic decision, which was not specific to Pakistan, to end production since it felt the product had ended its life cycle.

Indus Motor Company (IMC) CEO Parvez Ghias said Toyota Japan’s move to buy out its subsidiary Daihatsu augurs well for Pakistan, a hint that the country could see the introduction of a smaller car, but stopped short of givin g a timeframe an d div ulging detail s. Toyota Motors – the Japanese carmaker – had announced earlier this year that Daihatsu will now become its fullyowned subsidiary by way of a shareexchange which is expected to be completed by August 2016. The purpose of the deal is to give Toyota an upper hand in the small car segment – in which Daihatsu specialises – that would enable it to focus on emerging economies where the sale of vehicles is expected to speed up in the wake of falling oil prices, reduced inflation and lower cost of car financing. Analysts at the time said the deal – worth about $3 billion – was part of Toyota’s strategy to strengthen its push into the compact cars’ segment for emerging markets. In an exclusive interview with The Express Tribune, Ghias said there is a

huge requirement in the economy segment of passenger vehicles when asked if IMC – the compan y that manufactures and markets Toyota brand vehicles in Pakistan – would introduce a smaller car. “If a million motorcycles are sold [in a year], it shows that there is a need for a smaller car since that is the natural progression for these buy ers,” said Ghias. “Unfortunately, Toyota does not have a car in the economy segment. Daihatsu had it [Cuore] before it took a strate gic decisio n, which was not specific to Pakistan, to end production since it felt the product had ended its life cycle. “It decided to co ncentrate on its domestic market, but since then it has increased its focus in Indonesia and Malaysia. Going forward, I hope there is a change of heart on Pakistan. There’s nothing concrete enough for me to say that Daihatsu is coming to Pakistan. However, Toyota Japan has increased its holding in Daihatsu and that means greater control over it. As a result, to what extent will there be a greater opportunity? Time will tell. “But it augurs well for the country. We are in dialogue with the principal company that we need another model. There’s a time for everything and when it happens we will announce it. At this point, nothing can be said. “What I can say that we are in constant talks with Toyota J apan a nd a consideration is always there. But timing is the key in such a decision.” Ghias added that an effort was made to introduce a vehicle in the smaller car segment when Cuore was discontinued,

but nothing looked feasible at the time. “At the end of the day, you have to be able to make money out of it. If you can’t, there’s no point.” The CEO, who has been at the helm since 2005, al so advocated greater ch oice for a c ust om er. “I f t he government th inks a Eur opean manufacturer is the way to go, that’s great. “There is definitely space for more players. Some players [in the auto industry] are currently not up to their full capacity, but the recent growth has been impressive. The import of used cars shows there is room in the market.” Addressing criticism that consumers often face delays in vehicle delivery, Ghias said the process has been simplified by a ‘car availability’ feature, stressin g that the time period is restricted to two to three months. Meanwhile, commenting on the auto policy, in which the government is looking to encourage the entry of new players, Ghias said the policy could have been introduced four years ago, which by now would have reaped benefits for consumers. But while he stressed that the policy was delayed, Ghias said it would hopefully have a positive impact on the Pakistani market. “Growth lies in this region. Europe is going through an economic slowdown and Japan has introduced negative interest rates. “Hence, the future lies in India, Pakistan, Vietnam etc. There is a need to have the right policy framework in place and I hope the government realises this since the outside world does.”

www.automark.pk | August-2016 | Page 45 Curtsey: Express Tribune

Monthly AutoMark International

Corporate News - Glimpse

Inauguration of New Marketing & 3-Wheeler Department Office by Zia Ullah Ch (Director Marketing & Sales)

GPCCI announces Ms. Ines Chabbi as the first Secretary General of the first European bilateral Chamber of Commerce in Pakistan. Picture: Mr. Ashraf Bawany, Chairman PGBF, Mr. Qazi Sajid Ali, Chairman GPCCI, Ms. Ines Chabbi, Secretary General and Mr. Nadeem Kazmi, Senior Vice Chairman.

During visit at Team-NAYYER office, with Razi Nayyer Founder, Chairman, CEO at Team-NAYYER, Ebdullah Khan Marketing Director at Motor Club of Pakistan, Director of Sales Marketing and Turkish visitor Mr. Bülent Esin

Visited AMANTECH on last week and meet with Mr. Rizwan Ahmed, Senior Manager, Student relations & Career Services. In pictuer Mr. Mahboobur Rehman, Senior instructor of Automobile Department

www.automark.pk | August-2016 | Page 46