Monthly Automark Magazine December 2018

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Contents

December-2018

News / Event

Article / Review 21 22 23 26 27 28 30 37 40

1st United Bravo car roll out in Pakistan Roll out Ceremony Abdul Razak Dawood Advisor to PM Inaugurate of Ceremony for celebration of 2 million Vehicles at Pak Suzuki

FBR harassing taxpayers, time to revive sick units of SMEs Exclusive Report by Ali Hassan

Higher localization fails to provide relief to consumers

By Owais Khan

Suzuki seeks Greenfield status to bring $450 million investment in Pakistan

by Aqsa Mirza 5 Best Cargo Pickups and Trucks in Pakistan “JW Forland is #1”

by Aqsa Mirza New auto players (OEM`s) will face the challenges of skilled manpower Exclusive Article by Nadeem Aftab The Cult of Vespa Seventy Two Years of Industrial Mythology Exclusive article by Anwar Iqbal

20 25 34 39 41 43

Ghandhara launched Isuzu D-Max pickup for Pakistani market Report by Hanif Memon Inaugural Ceremony of Forland Sahiwal Motors Autohoised 3S dealership Ghandhara Nissan Launches Renault Trucks In Pakistan

Sinotruk Road Show and Service Camp by Dysin Automobiles Limited

Honda Atlas Cars (Pakistan) Ltd. Vendor Conference, 2018 Industrial Advisory Board NED University of Engineering & Technology

News Updates 31 42 44

Automobile Review - Honda BR-V Exclusive by Ahmed Sana Zaidi

45 49 54 Buy JwForland Truck online

Inside

55

Ghandhara Industries becomes Forbes Asia "Best Under A Billion" Company for the second consecutive year

Vehicles / Car Price List

Heavy truck sales plunge, demand for buses edges up

German Volkswagen’s commercial vehicles will soon be manufactured/produced in Pakistan

Motorcycles Price LIst Corporate News - Glimpses

International Automotive News

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December-2018 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 12

Monthly

AUTOMARK Magazine International Editor-in-Chief

Technical Editor

Muhammed Hanif Memon

Muhammad Shahzad

Anwar Iqbal - Chief Correspondent COO, Khalid Mushtaq Motors (Pvt) Ltd.,

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad

Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi

Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi

Engr. IHT Farooqui Chief Operating Officer Pak China Motors Karachi

Farhan Hafiz Director Marketing & Sales M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi

Ghulam Faroq Executive Officer & Functional HeadSupply Chain Pak Suzuki Motors Karachi

Advertising Manager

Graphic Designer

Tahir Siddiqui

Salman Hanif

Circulation Manager Hasaan Mustafa

Web Master Mustafa Hanif Murtaza Hanif

Contributors in THIS EDITION Anwar Iqbal Ahmed Sana Zaidi Aqsa Mirza M. Owais Khan M. Hanif Memon Ali Hassan

Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815

E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815 AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management

Ministry orders to formulate standards for cars being assembled in Pakistan The Ministry of Science and Technology (MoST) for the first time, has announced to formulate the standards for the vehicles being manufactured in Pakistan.

The issue about the standards of cars being assembled and manufactured as well as parts manufactured in Pakistan was highlighted by the Competition Commission of Pakistan (CCP) in a recent report. The Competition Commission of Pakistan (CCP) suggested in a report that the government must establish national standards/safety authority for the auto sector of the country.

According press media reported, MoST has written to the PSQCA saying that the aforementioned issue highlighted by the CCP, stressing that there is a dire need to bring about legal and regulatory changes in the auto sector of Pakistan to establish a separate, independent and empowered vehicle standards and safety authority at the national level to handle technical and consumer aspects in the automobile sector.

Currently, the PSQCA has over 100 items on the compulsory list, including three-wheeler auto-rickshaws, motorcycles, and tractor parts, that have been put under its domain this year.

An official of the PSQCA said that the authority is testing laboratories in Lahore and Karachi for motorcycles and auto rickshaws, while the establishment of facilities for tractors is underway.

On the other hand, auto-part manufacturers assume that formulating standards for cars and parts was technically difficult but the implementation of these standards was a serious issue.

“There were too many authorities in the country. For example, the Engineering Development Board is under the Ministry of Industries and Production that regulates the sector and the PSQCA is under MoST,” said a vendor member of PAAPAM. He explained that currently, all car assemblers in Pakistan were famous international brands and they have legal frameworks and standards that are recognised at the international level.

However, it is a high time that government and concerned authorities think about the issue and formulate policies that improve the auto sector of Pakistan. One thing is clear formulating standards for vehicles would increase the competition among automakers which would, in turn, improve the overall quality of the cars manufactured by the companies already present in Pakistan.

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Report by Aqsa Mirza / Hanif Memon

Monthly AutoMark International

Ghandhara launched Isuzu D-Max pickup for Pakistani market Ghandhara Industries Limited (GIL) has introduced the Isuzu D-Max pickup and as per our sources, the vehicle is available for booking. The company has dispatched the units to auto dealerships for booking. Ghandhara Industries Limit ed is a local aut omobi le manufacturer based in Karachi.

Ghandhara Industries Limited (GIL) has introduced the Isuzu D-Max pickup and as per our sources, the vehicle is available for booking. The company has send the units to auto dealerships for display and booking. Ghandhara Industries Limited is a local automobile manufacturer based in Karachi.

Base Version The D-Max pickup is available in two versions. The base version is called the Hi-Spark, powered by a 2.5-liter intercooler turbo engine and it is a single cabin 4×2 pickup. It is available in two trims, the Hi-Spark deckless version cost PKR 24.25 lac, whereas that with deck has a price tag of PKR 26.25 lac.

Hi-Lander Version The second version is Isuzu D-Max HiLander that has an engine powered by 2.5-litre intercooler turbo. These consist of 4×4 vehicles. It is available in both a single cabin and double cabin options.

The Hi-Lander 4×4 single cabin is priced at PKR 37.25 lac and the double cabin is priced at PKR 39.75 lac.

V-Cross Version The V-Cross comes with a double cabin 4×4 powered by a 3.0-liter intercooler turbo engine. Its manual transmission version is priced at cost PKR 44.5 lac while the automatic version cost PKR 46.75 lac.

Feature of D-Max The D-Max V-Cross equipped with features such as Airbags, ABS with EBD, power steering/ windows, electronic drive mode selector, smart entry system, electrically adjustable seats, touchscreen infotainment system and multi-function steering wheel and many more.

The company has made a Technical Assistance Agreement with Isuzu Motors Limited (Thailand). The Isuzu D-MAX belongs to the world’s toughest, most reliable trucks line up.

www.automark.pk | December-2018 | Page 20

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Corporate Event

Monthly AutoMark International

Honorable Mr. Abdul Razak Dawood Advisor to Prime Minister Commerce, Textile, Investment, Industries & Production For Inauguration of Ceremony for celebration of The Landmark occasion of 2 million Vehicles line-off at plant of Pak Suzuki Motor Company Ltd. Honorable Mr. Abdul Razak Dawood, A dv iso r to Pri me Mi nist er on Commerce, Textile, Investment, Industries & Production inaugurated the ceremony for celebration of the landmark occasion of 2 million vehicles line-off at the plant of Pak Suzuki Motor Co. Ltd. on 26th November, 2018.

Mr. Masafumi Harano, MD and CEO Pak Suzuki welcomed the guests and thanked the present government, especially the Honorable Advisor to PM for his dedication, hard work and sincerity for the development of auto sector in Pakistan.

He further informed that this year Pak Suzukiwill be producing around 144,000 units in line with the market demand.

In next couple of years, we will be touching the production capacity of our plant of 150,000 vehicles per year.

Mr. Osamu Suzuki, Chairman, Suzuki Motor Corporation (SMC) – Japan said that he is really grateful to Pak Suzuki staff, vendors, dealers and support of the Government, without which 2 million vehicles production could not have been possible. He further said thatPak Suzuki was the first to enter in Pakistanautomobile industry and hope that Suzuki will contribute more to the development of Pakistan auto industry, as there was a past background, and with that background we will keep contributing in the development of Pakistan auto industry.

Mr. Abdul Razak Dawood, Advisor to

PM appreciated the efforts of Pak Suzuki for the development of auto industry in Pakistan and said that it is a historical and remarkable achievement by Pak Suzuki to produce 2 million vehicles in Pakistan.

He said it is time to take Pakistan auto industry to a new level and emphasized that its global supply network of Suzuki Motor Corporation that can make it happen. He said that Suzuki is planning

to invest USD 460 million for putting up a brandnew plant. He assured that the government of Pakistan will make sure that Pak Suzuki will get all the incentives and benefits which it reallydeserves.

Prime Minister Imran Khan said the government was committed to private sector development, investment promotion, improving ease of doing business and growth of manufacturing sector.

He was talking to delegation of Suzuki Motors Corp. that called on him here at the Prime Minister’s Office.

The delegation included Osamu Suzuki, Global Chairman Suzuki, Kinji Saito, Masafumi Harano, Shigeo Takezawa, Yusuke Katto and Shafiq A Shaikh.

Ambassador of Japan Takashi Kurai was also present during the meeting, PM Office media wing in a press release said.

The delegation briefed the Prime Minister about the existing investment of Suzuki Motors Corp. and the future investment plans in the country.

The Prime Minister was also apprised about the plan for construction of second plant by the company to manufacture additional 100,000 vehicles per year.

The Prime Minister appreciated the contribution of Suzuki Motors in the automobile sector and assured the delegation of continued support of the government in availing the existing business opportunities in the country...

www.automark.pk | December-2018 | Page 22

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Exclusive Article by Ali Hassan

Monthly AutoMark International

FBR harassing taxpayers, Time to revive sick units of SMEs The federal government under the direction of Prime Minister Imran Khan has set up a citizens’ portal urging general consumers to lodge their complaints or suggestions on any issue.

It looks like a very positive step.

However, Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh looks unhappy. “I have posted five different suggestions on citizens’ portal of the Federal Government on October 29, 2018 on taxation issues but so far no response has arrived.”

This lack of interest by the operators of cit izens’ portal shows that the government has either taken initiative to show how much it cares about the consumers’ grievances or it is just a routine exercise after coming into power which bears no results in future.

Sabir is also not satisfied over tall promises of PTI in its manifesto to revive manufacturing and facilitate rapid growth of the SMEs. The PTI government has issued 100 days report on “Naya Pakistan Promises” showing the details of initiatives with status (complete, partially complete, in progress and not started).

The status regarding revival of manufacturing and facilitate rapid growth of the SMEs falls in the category of (in progress initiative).

The PTI, in its manifesto, states that it is "committed to delivering an industrial strategy that contributes to growth and employment, and encourages SMEs to scale up and move toward value-added exports".

To fulfill this promise, the party says it will establish “pilot SME Incubators across Pakistan" besides launching a ten-year tax incentive plan, PTI states in its report of 100 days.

Unlike previous governments, PTI is committed to delivering an industrial strategy that contributes to growth and employment, and encourages SMEs to scale up and move toward value-added exports.

Pakistan’s manufacturing sector is incompetitive in the region and lacks the requisite infrastructure to sustain growth and explore new avenues. Not only is doing business-as-usual difficult but the energy cost is high, tax policy is detrimental, monetary policy is sub optimal, technology is obsolete and our human capital skill level is low which contributes to low productivity, lesser innovation and a slower growth rate.

PTI will establish Pilot SME Incubators across Pakistan with improved access to funding, advanced technology to facilitate innovation, efficient transport and warehousing facilities, partners for Joint Ventures, cost sharing solutions and technical assistance on tax, legal and regulatory compliance.

PTI will launch a ten-year incentive plan for rapid growth of the SME sector i nclu d in g tax hol id ay on n ew investments for the first 3 years and 50 per cent tax rate in next 7 years, and a withdrawal of minimum tax on turnover

Sabir said FBR had been issuing notices to the SMEs for recovery of millions of rupees penalties imposed. After showing huge amount for recovery – the amount is estimated at Rs 10,000 per month which comes to Rs 120,000 a year

for the first 3 years and then tax at half the rate for the following 2 years. PTI will transform export processing zones with leaner processes and upgraded infrastructure. PTI will ensure that export oriented sectors and allied industries will be 100 per cent zero rated and install a mechanism for faster refunds on income and sales tax. PTI will facilitate imports of manufacturing inputs (e.g. synthetic fibre) at low tariffs.

PTI will encourage higher value-added exports in Sunshine sectors (agriculture, garments, light engineering). PTI will introduce cascading tariffs on raw materials, intermediates and finished goods to move production towards value-added exports.

“All the above promises and plans sound so good in the 100 days’ reports based on PTI’s pre-election party’s manifesto but nothing practical has been done in first 100 days thus putting revival of SME sector still in (in progress) status,” Sabir said angrily.

Another alarming initiative by the FBR relates to issuance of fines and penalties notices to the business community especially SMEs sector on late filing of income tax returns or withholding tax statements, he said.

A number of industries have been closed due to law and order situation in Karachi and all over Pakistan in the last five years. Though the WHT statements become irrelevant or nil due to zero business activities, while many SMEs could not file their statements of WHT via on line.

Sabir said FBR had been issuing notices to the SMEs for recovery of millions of rupees penalties imposed. After showing huge amount for recovery – the amount is estimated at Rs 10,000 per month which comes to Rs 120,000 a year.

Under rising cost of production on account of rising utility prices and ailing financial health -- many SMEs cannot afford this Rs 10,000 per month penalty.

These notices are just creating harassment among small businessmen.

www.automark.pk | December-2018 | Page 23

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Monthly AutoMark International He claimed that the tax consultants are not ready to cooperate with the SMEs sector as they demand heavy fees to deal with the FBR. The government cannot change the rules and regulations of taxation as per stakeholders’ demand and requirements because of IMF pressure. However, the situation is quite reverse. If the government takes guidelines from the businessmen on taxation issues it will definitely resolve many issues of taxes without any hassle.

Giving an example of bike industry – APMA chief Sabir said around 100 units of bike assemblers have become sick followed by more than 300 their vendors (parts makers) due to lack of uniform policies by the Federal government.

In an effort to revive these 100 units – the government should come out with new policy guidelines so that revival of these units could help improve exports also, he urged.

In a bid to boost revenue collection on the pressure of PTI government, this is not fair on the part of FBR to harass those people who are already in the tax net or could not file statements of withholding tax even nil, APMA chief said.

FBR has served audit notices to a number of companies and individuals but later also offered them to pay nominal penalty.

According to a leading English newspaper, Dawn’s editorial, the most egregious example of this is the announcement that one million individuals who filed their returns late in the last three years have been automatically selected for audit, and that they can pay Rs 20,000 for ‘closure of audit’.

No doubt somebody in the bowels of the tax bureaucracy worked on a calculator to determine that such an exercise could yield up to Rs 20 billion in revenue — not a bad step towards plugging a reported hole of Rs100 billion in the first quarter’s tax collection target. But the exercise looks just like a racket, and a rather insidious one at that, considering it is unfolding while return filing season is in full swing, and the government is trying hard to get more people to file their returns. In fact, it is sending out, in parallel, the wrong message that filing your returns makes you vulnerable to the arbitrary whims of the taxman. Perhaps, a million taxpaying parties are contemplating that

they were better off not filing those returns in the previous years, the newspaper says.

The story is similar when it comes to companies. Stockbrokers, for instance, have had to get a delegation together and pay a visit to the tax authorities in Karachi and Islamabad after receiving a flurry of new notices. The tobacco and sugar industries are finding out that they seem to have been identified as lowhanging fruit in a ramped-up effort to squeeze more tax out of compliant parties, as enforcement actions against them are similarly increased. Examples are now proliferating of tax-enforcement actions that are thinly disguised shakedowns of those who have honestly filed their returns.

According to the newspaper, it was never a great idea to use tax enforcement as the main driver for increasing revenues.

The enforcement function is better used to promote a culture of compliance. For increasing revenues, tax reform is the path, or a vision for reform of the schedule of incentives so that potential taxpayers — i.e. those who are non compliant at the moment — face the right mix of incentives and penalties to change their behavior and consider becoming compliant. Shaking down salaried individuals who have filed their returns, and whose deductions are made at source in any case, is not the way, because it serves as an example for those outside the net to remain where they are. The racket should end, compliant taxpayers should be left alone, and the government should hurry up and reveal its vision for tax reform and the broadening of the tax base.

On the contrary, the FBR has tried to clear the dust by denying the news reports appearing in a section of media accusing tax authorities of subjecting late filers to harassment, especially the salaried individuals.

The Board said that the government has facilitated the taxpayers by providing them with a one-time option for closing the audit proceedings due to the late filing of returns through the Finance Supplementary (Amendment) Act 2018.

The Board said that the assertion by the media that the FBR is pressurizing taxpayers for additional revenue through the recovery of penalties shows a lack of understanding of tax laws and their true intent.

The Board clarified that an amendment to income tax law made through Finance

Act 2015 by the previous government provided for automatic selection for audit if a person had not filed the return of income by the due date stipulated under the law.

As per media reports, the FBR had started audit of 319,123 salaried people who were late in filing their returns However, FBR said through Finance Act 2018 this amendment was withdrawn, howe ve r, t he c ases that w ere automatically selected under the said provision prior to its withdrawal were still to be audited. This created a lot of problems for the taxpayers and also resulted in a large pendency of audit cases. Therefore, in order to facilitate the taxpayers, the present government provided a one-time option to the taxpayers for closing the audit proceedings due to the late filing of r e t u r n s t h r o ug h t h e F i n an ce Supplementary (Amendment) Act 2018.

Under the Finance Supplementary (Amendment) Act 2018, taxpayers were provided with an option to get their audits closed on the payment of either 25 percent higher tax than the tax paid with the return or in case no tax was payable 2 percent of the turnover and to file revised return by 31-12-2018.

The salaried individuals, whose cases were selected for audit due to the late filing of returns, were facilitated by exempting them from the requirements of paying 25 percent higher tax and filing revised returns for the closure of their audit cases. They, however, are required to pay only the penalty on account of delay in filing of return in order to get their audit cases closed, the Board clarified.

It is worth mentioning here that the previous government had fixed the minimum penalty for late filing of return at Rs 20,000 through the Finance Act 2013 and no change was made by the present government.

It is imperative to understand that the penalty proceedings are independent of the audit, which will be applicable regardless of whether the taxpayer avails the benefit under the above-mentioned provision of the Finance Supplementary (Amendment) Act 2018 or not.

“How small to big industries can work smoothly when these ki nds of harassment causes uncertainty,” Sabir said urging the PTI government to provide conducive bus iness environment which could boost industrial activities besides exports.

www.automark.pk | December-2018 | Page 24

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Media Coverage

Monthly AutoMark International

Inaugural Ceremony of Forland Sahiwal Motors Autohoised 3S dealership Inauguration of Forland Sahiwal Motors held on Tuesday, November 13th, 2018.

Mr. Alex Zou (C.E.O. Foton JW AutoPark Pvt. Ltd.), Mr. Abid Saeed (Director Operations, Foton JW AutoPark Pvt. Ltd.) & Mr. Zahid Raza Shaikh (Chairman, Oriental Trading Corp.)

Mr. Danish Dalia (G.M. Marketing, Foton JW AutoPark Pvt. Ltd), Mr. Umair Nasir (Regional Manager, Foton JW AutoPark Pvt. Ltd.), Danish Hameed Shaikh & Mr. Shaheryar Zahid Shaikh (Executive Directors, Oriental Trading Corp.) were also present at the event.

www.automark.pk | December-2018 | Page 25

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Exclusive Reviewed by Owais Khan

Monthly AutoMark International

Higher localization fails to provide relief to consumers Every year they come out with three to five times price hike, blaming falling rupee amid claim of achieving up to 70 per cent localization.

However, this tall claim of higher local contents in cars holds no importance in view of persistent jump in vehicle prices Without wast ing any time, car assemblers quickly pass on the negative impact of rupee devaluation against the dollar to the consumers in shape of price hike.

Makers of different products take time to implement the exchange rate inci dence o n p rod ucts’ prices.

Auto assemblers adopt dilly-dallying tactics in lowering prices on rupee recovery against the greenback, which is an unjustified move.

Every year they come out with three to five times price hike, blaming falling rupee amid claim of achieving up to 70 per cent localization. However, this tall claim of higher local contents in cars holds no importance in view of persistent jump in vehicle prices.

Neither the previous governments nor the current government have taken any notice to check whether the price hike in the name of rupee-dollar parity is really genuine or the rates are artificially jacked up keeping in view thriving demand under which prices are not cut.

Why Japanese companies bring model change after every five years in other parts of the world as compared to Pakistan. For instance, different models of used Suzuki Alto, which the consumers are now driving, have not been introduced in Pakistan despite 12 year’s assembly period of Alto.

The localization levels should have crossed 95 per cent in these five models but no scrutiny was ever done why deletion levels could not reached at desired levels.

Another big problem lies at the end of vendors also who are also dependent on some imported raw materials to produce local parts. Rupee depreciation makes imported parts costlier.

On the other hand, the price of Honda Civic manual transmission is now tagged at Rs 2.882 million which was Rs 2.053 million in 2016, while Honda City manual costs Rs 1.869 million as against Rs 1.537 million.

Toyota Xli and GLI manual are sold at Rs 2.049 million and Rs 2.379 million

now compared to 2016 prices of Rs 1.627 and Rs 1.827 million respectively.

From January 2016 to November 2018 the rupee had lost strength by 34-35 per cent. Currently one dollar is equal to Rs 134-135 as compared to Rs 100 in January 2016.

Market analysts believe that increase in prices of cars does not match with the rupee depreciation against the dollar.

In end of November, Pak Suzuki proudly celebrated two million vehicles line off from start of assembly vehicles in 1984 till to date. Pakistan’s population is over 200 million.

Competition Commission of Pakistan (CCP) in its September 2018 report said that in 1985, the government introduced a Deletion Program for the auto industry in which local automobile manufacturers were to increasingly produce/source parts locally in exchange for protection from imports. To ensure compliance with WTO requirements this program was replaced in 2006 with aTariff Based System which allowed assemblers to import non-localized parts on favorable duties.

The automotive industry currently works on the pull model suited for markets with weak demand. Assemblers plan for and produce vehicles when they receive a confirmed order from customers. For the Japanese manufacturers, parts are ordered in a Just-in-Time model which helps in minimizing inventory pile up.

Automobile dealers are essentially authorized agents of their principals and act as conduits between the assemblers and customers. They are compensated by pay ment of pre- determined commissions. This model is increasingly becoming unsuitable for Pakistan due to higher demand for vehicles.

Car prices by assemblers should not be increased on random basis, but in a more structured fashion such as in the beginning of a quarter.

Each of the automobile assemblers has picked a particular segment of market for sale and continues to dominate it.

The 800cc segment is dominated by Suzuki Pakistan, the 1,300cc by Toyota

Indus Motors and the 1,600cc and above segment is split between Honda and Toyota. Owing to this market structure, automobile companies have not laid any emphasis on safety and value added features as are introduced internationally. The continuous production of Suzuki in the same configuration/technology for at least three decades is a testament to that.

Another symptom of this monopolistic market is frequent increase in prices of cars across all segments of cars.

The automobile assemblers have failed in implementing 'technology transfer' to the extent agreed upon with the Government of Pakistan at the time of launch of their businesses.

The industry representatives explained that different cars have different levels of localization depending on volumes.

For example, 60% of parts used by Indus Motors to produce the corolla are produced locally. For the Honda City, the extent of localization is 68%.

Similarly, the localization for Suzuki Mehran stands around 75%.

The contentions of the industry representatives are understandable.

There is no denying the fact that the pace of localization of parts will depend on many factors including volumes of production, availability of finance, willingness of global partners to transfer technology, and the curtailment of counterfeit and smuggled goods. We also understand that some parts may never be produced in Pakistan as it will always be cheaper to import them from abroad, at least in the foreseeable future.

Pakistani automotive part vendors have a lot of room to improve. Currently there are no tier 1 auto part vendors in the country who supply directly to regional or global OEMS. In order to develop the auto parts market, it is important that the government facilitate the availability of financing, encourage Research and Development (R&D), and curb sale of smuggled and counterfeit goods through t he r el ev an t la w en f o rc eme nt authorities.

www.automark.pk | December-2018 | Page 26

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Exclusive Report by Aqsa Mirza

Monthly AutoMark International

Suzuki seeks Greenfield status to bring $450 million investment in Pakistan The $450-million investment promised

by Pak Suzuki Motor Company remains a di st ant d ream f or Pak istani government as the Japanese automaker has once again linked its investment with tax benefits that are available to only new entrants under the Automotive Development Policy (ADP) 2016-2021.

To get the $450 million investment, the government will need to revise the ADP 2016-2021 policy which distinctly bans the granting of extending Greenfield investment status to existing automobile manufacturers like Suzuki, Indus Motors and Honda. However, if the government still wants to secure the $450-million investment offer, it will be seen as a favour to the Suzuki Motors.

Under the ADP 2016-2021, Suzuki’s investment would fall in the Brownfield category, however, it wants to avail tax benefits of the Greenfield project, said officials in the Ministry of Industry and Production (MoIP).

Given the background, Automotive Development Policy (ADP) 2016-2021 wasapproved by Economic Coordination Committee (ECC) of the Cabinet on March 18, 2016, with the mission to develop a modern, competitive and viable automobile and auto-parts industry capable ofmeeting national and

regional demands by 2021 through ( i) New inv estmen t measur es; (ii) Tariffrationalisation; (iii) Rationalisation of import policy; (iv) Establishment of infrastructure for quality,safety and environmental standards; (v) Ensure consumer welfare, and (v i) Establishment of Pakistan Automotive Institute.

The previous PML-N administration had stood its ground two years ago resolute two years before and rejected to extend these tax benefits to existing Japanese assemblers, which maintain a market stranglehold and dominance in the auto industry of Pakistan. The exgovernment wanted to break the monopoly of these automakers by bringing in at least one European and other Asian brands.

On Tuesday, Pak Suzuki senior executives met with Prime Minister Imran Khan and promised to invest $450 million to expand its projects in Pakistan.

After the meeting, Finance Minister Asad Umar had said that it was an “excellent day from a foreign investment perspective, as Global Chairman Suzuki Motors visited and expressed interest

in investing $450 million to expand car production in Pakistan”.

Ministry of Industries Secretary Azhar Chaudhary said any revisions in the ADP 2016-2021 will be made in consultation with all stakeholders including the new entrants and will not be a party specific decision.

Nonetheless, stakeholders believe that there is a room of small amendments in the auto policy 2016-2021 but there should not be any major shift in the policy as it would discourage the entrance of new automakers in the country. With launching new Suzuki models and setting up new assembly plants, it is expected that Suzuki Motors would most likely bring the investment in the country, however, the final decision will still have to be made by the company.

Last week, RazakDawood, inaugurated Suzuki’s 2,000,000th vehicle in Karachi.

Suzuki has planned to introduce four new models. Recently Celerio 1000 cc car has been launched under”Cultus” brand name. Suzuki Alto 660 cc is expected to replace Mehran 800cc in April 2019. M/s Suzukiis also planning to construct the second plant to manufacture additional 100,000 vehicles per year.

www.automark.pk | December-2018 | Page 27

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Exclusive Review by Aqsa Mirza / Hanif Memon

5 Best Cargo Pickups and Trucks in Pakistan “JW Forland is #1” Top 5 best cargo trucks and pickups reviewed in Pakistan, and we find that JW Forland is number 1, followed by Suzuki and FAW 13km/liter with 40 litre fuel tank.

C19 truck is the ideal choice for modern day transportation requirements of light-commercial and fleet businesses, offering more loading space, outstanding performance, durability, and reliability.

JW Forland is a partnership between Pakistan’s JW Group and Foton China and the company had already received Greenfield status for its plant and established the assembly plant in Lahore.

Suzuki Mega Carry XTRA

by Suzuki

Trucks and pickups can go almost everywhere. Large or small, they are the most important way of transporting goods. Almost everything in our homes or offices has, at one point of its production or distribution, been on a truck or a pickup. In Pakistan, different local and international automakers have introduced various cargo pickups or light commercial vehicles, that are playing their roles in moving goods from one place to another. Here, we will explain top 5 cargo pickups of

sensors, electrical powered steering (which is not available in other pickups), blower motor etc.

It has 9.2 feet deck length and 4.6 feet width and interestingly no other cargo pickup is available in the market with such dimensions. Being powered by a 1800cc engine, it’s fuel efficiency is 12-

The Suzuki Carry is a kei truck produced by the Japanese automaker Suzuki, made in Malaysia.

Suzuki Pakistan has introduced a new mega pickup in Pakistan in 2017 named Mega Carry Xtra powered with a 1493cc engine. The vehicle aims to fulfil the load carrying requirements of the goods transporters.

The gross weight of the Suzuki Mega Carry is 1,950 kg while curb weight is 1,100. Transporting goods from one place to another one is easy.

C19 Forland by JwForland JW Forland is the largest automaker of Trucks in China and its dominating the truck industry for the last 12 years. The company has introduced a series of cargo trucks called Bravo lineup in Pakistan this year in September. The most popular model of the JW Forland series is the C19, which is powered by a 1.8-liter diesel engine having a 1-ton payload and a 9 ft loading deck.

The C19 comes with an economical price tag of PKR 929,000 and offers features such as air-condition, reverse parking

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Monthly AutoMark International The Suzuki Mega Carry XTRA is the best partner for all of the business needs. Its power comes from a robust engine with superior fuel economy and mileage. A range of features such as generous loading space, durability, and reliability combined with a functional cabin make it an ultimate carriage vehicle. The Suzuki Mega Carry is available in PKR 1,499,000.

JAC X200 by Ghandhara Nissan JAC Motors has been a comprehensive automaker with full-line independent brand vehicles in China known for manufacturing light, medium and heavy-duty trucks.

JAC Motors X200 1-ton pickup has been introduced by Ghandhara Nissan Limited in Pakistan this year. The vehicle is primarily suitable for the distribution of goods in urban and rural areas, a bourse filing said.

JAC Motors X200 1-ton pickup is now being produced locally, previously it was imported in a built up condition from China. The network of dealers in Pakistan is widely spread in eight major cit i es. P rod ucti on Cap acit y at Ghandhara Nissan for this specific model is 5000 units/annum on the single shift basis. The company plans to offer more products in this strategic market.

The T6 truck has a 2.0L turbocharged common rail diesel engine under its hood. The pickup is available in both 4×2 and 4×4 configurations with an electronic 4-wheel drive selector. The rail diesel engine generates 134 hp at 3600 rpm and 320 Nm of torque at 1600-2600 rpm. The vehicle has pretty decent safety features as well. It comes with airbags along with the electronic brake distribution and anti-lock braking system. The JAC pickup is available in Pakistan with a price tag of PKR 1775,000.

FAW Carrier by FAW Motors Faw Carrier The FAW Carrier has started its journey in Pakistan as a cargo pickup in 2012.

In a market where people prefer spending a ridiculously high amount getting nothing in return other than resale, it’s pretty difficult for any newcomer to penetrate the market, with parameters such as features and performance on the menu. However, the FAW Carrier has been steadily building its name and has become a regular sight on roads.

The FAW Carriers has an 8FT loading deck with 1-ton loading capacity and 1000cc engine. FAW Carrier also comes equipped with RPM meter, trip meter, front fog lamps, heater, disc brakes, 3point seatbelts and AM/ FM Radio with USB input. Catering to different requirements, the FAW Carrier comes available in three variants, standard, flatbed, and deck-less. It is backed by a 3 years/ 60,000km warranty. FAW Carrier is available in very affordable price PKR 939,000.

KIA Frontier K2700 by KIA Kia Motors launched the Frontier K2700 commercial loading pickup in Pakistan this year in June. The vehicle is also known as Kia Frontier and Bongo in some regions.

The Frontier K2700 pickup comes with a 2,665cc diesel engine with 80ps of power at 4,000 rpm and 165Nm of torque at 2,400 rpm, mated to a 5-speed manual transmission. The pickup has a curved front fascia which improves the truck design aerodynamically. It features a 3,110 mm extra long (standard) and 1,630 mm wide bed, giving you plenty of loading capacity. The railed truck bed has a low height of 770 mm for easier access when loading and unloading.

The payload is 1,000Kg while the fuel tank capacity is 60 liters. The key features include power steering, power windows, central locking, fog lamps, 3way opening rear deck, disc brakes, USB+AUX and heater etc. The pickup is available in PKR 2,049,000.

Amongst this we found JW Forland to be the best combination of price and features.

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Exclusive Article by Nadeem Aftab

Monthly AutoMark International

New auto players (OEM`s) will face the challenges of skilled manpower As we all well known that ChinaPakistan Economic Corridor (CPEC) will bring a lot of opportunities for Pakistan and auto sector. This in turn will benefit the transport warehousing and freight forward ing services by fu rther expanding the auto and logistics sector of Pakistan.

Over the years the automobile industry world-wide has become a true reflection of the economy, similarly Pakistan's economic indicators are improving with the present peak of the automobile industry.

The auto industry in Pakistan is currently entering a new phase in its development as many new players set their plants in Pakistan. From a virtual stagnation for nearly 10 years, the automotive industry is finally coming of age, with volumes growing exponentially and demand for quality, price and prompt deliveries being the order of the day. Now the question is that how new team players will fill the huge gap of skilled persons for their new facilities.

Why Skilled Manpower Are Important Staying organized in the workplace can save a company time and money.

Organizational skills are essential for multitasking and keeping a business running smoothly and successfully.

Employers aim to recruit applicants who can work to achieve results consistently, even when unforeseen delays or problems arise.

Workers with strong organization skills are able to structure their schedule, boost productivity, and prioritize tasks that must be completed immediately versus those that can be postponed, delegated to another person, or eliminated altogether. In previous two years we saw in Pakistan Automotive

industry peoples left their previous organization and move to join new team players with lot of attractive also business leaders are reacting in several standard ways: recruiting hard for the few candidates who are out there, offering higher pay and benefits to attract and retain them but no one from government either Automotive side to investing in learning and development programs to increase the skills of current employees.

The skilled labor shortage is affecting companies not only in the Pakistan but all over the world. According to the latest Manpower "Talent Shortage Survey" 44% of employers across the globe report they cannot find the skills they need.

The German Economic Institute recently calculated that the lack of skilled labor -- estimated at 440,000 qualified workers -- is costing the German economy 30 billion euros a year in GDP growth (0.9 percentage points to be exact).

The problem of skill shortages has also to be resolved for reducing income inequalities. When the country has skill

shortages those possessing the requisite skills are able to command high premiums on their earnings. These benefits widen income inequalities which, in turn, slow down the process of poverty reduction despite reasonable growth rates.

To cop up this situation Pakistan Automotive OEM`s need to close liaison with the government for collaborative training programmes, there is less enthusiasm and willingness on the part of the government to realize their imp ort ance i n re lati on to t he opportunities arising from new developing industries of Automotive.

This is suggests suggested that unskilled issue could be addressed to a large extent by just imparting skilled technical education to the youth. “No skilled per son has been found to be unemployed, and companies would take benefits from these skilled persons and produce high quality products in Pakistan.

Written By Nadeem Aftab Head of Production Plastech Autosafe

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Corporate News - Update

Monthly AutoMark International

Ghandhara Industries becomes Forbes Asia "Best Under A Billion" Company for the second consecutive year

Forbes has released their latest annual “Asia’s Best Under a Billion” list and the event was sponsored by Melco Resorts & Entertainment (Nasdaq: MLCO) in Tokyo last week.

Ghandhara Industries from Pakistan is honored to be selected as one of Forbes Asia “Best Under A Billion” companies for 2018. The company is known for manufacturing pickups, trucks and buses. The company qualified for the award from a pool of 24,000 because of the remarkable performance in 2018.

This is the second time that Ghandhara Industries consecutively made into the Forbes Asia “Best Under A Billion” company.

CEO, Mr. Ahmed Kuli Khan Khatak, and Deputy Chief Executive, Mr.Muhammad Kuli Khan Khatak, received the award at Forum and Awards Dinner in Tokyo, Japan.

The event announced and celebrated an annual list of high-performing and en t rep r en euri al p u bl icl y - li st ed

companies in the Asia Pacific region.

The Forbes Asia Best Under A Billion List features 200 exceptional small and medium-sized companies from all around the Asia that has an annual revenue between $5 million and $1 billion, positive net income and are publicly traded for at least a year. From a universe of 24,000 companies, the awardees were selected on the basis of sales growth and earnings growth in the past 12 months and over three years, and for the strongest five-year return on equity.

The program of the awards dinner featured welcome remarks by Mr. Lawrence Ho, Chairman and CEO, Melco Resorts & Entertainment and Melco International Development after introductions by Makoto Takano, CEO & Editor-in-Chief of Forbes Japan and Christopher Forbes, Vice Chairman of Forbes Media.

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Exclusive Article by Anwar Iqbal

THE CULT OF VESPA SEVENTY TWO YEARS OF INDUSTRIAL MYTHOLOGY

This is 1947 model vespa 98 ii series was imported by Nawab of Bahawalpur this the oldest scooter known to be exist in Pakistan Ravi Automobile joined hands with Piaggio of Italy in 2007. Now the company is positioned to take the risk of bringing back Vespa in completely built up (CBU) condition to check consumer’s response instead of directly venturing into assembling in Pakistan.

It is unfortunate that scooters are totally out of fashion in Pakistan, as a result the re-launch of Vespa scooter in Pakistan is still a non starter.

Vespa is an Italian icon that has made its mark throughout the globe. Vespa was also a market leader in Pakistan for more than onedecade.Classic design and symbol of the "fun & pleasure", the Vespa turned 72 years old on April 23,2018. Italy's most celebrated scooter is buzzing along nicely after tripling sales in the last decade. It was in Florence that the wasp-shaped two-wheeler was born, Enrico Piaggio having registered the patent in the Tuscan capital on April 23, 1946. Seventy years later, more than 18 million models have been sold around the world.

Piaggio was one of the best-known and best-loved Italian firms around the globe. Most of the merit for this is obviously due to its main product, the VESPA, which has sold millions and millions of scooter since 1946. Becoming

a stable part of contemporary life.The first element that turned the VESPA into such a great success on the sales level, and therefore also on the level of ideas, lies in the anomaly of its invention: the VESPA is the result of a multiplicity of ideas.

The idea of the low wheels joined together by a frame comes from aeronautics, and roughly corresponds to the landing gear. Motoring offered the idea of turning the frame onto a body, causing the engine and the tank to disappear from view, and reducing the noise.Unlike the motorcycles, the VESPA gives an impression of safety, can put up with a minimum of bad weather, doesn’t get you dirty like vehicles with an open engine, and can therefore transport the basic nucleus of

"Sembra Una Vespa" - It look like a Wasp

the family, that is to say, the couple. The comfortable pillions seat. Furthermore, the VESPA has a broad seat, and even a child can be transported with a certain degree of tranquility.

It all started in Post World War II Italy, in light of its agreement to cessation of war activities with the Allies, had its aircraft industry severely restricted in both capability and capacity.Piaggio emerged from the conflict with its P ont ed er a fight er pl ane p lan t demolished by bombing. Italy's crippled economy and the disastrous state of the roads did not assist in the re-development of the automobile markets.

Enrico Piaggio, the son of Piaggio's founder RinaldoPiaggio, decided to leave the aeronautical field in order to address Italy's urgent need for a modern and affordable mode of transportation for the masses.This is how Vespa was born.

The first Vespa was design by an aeronautical engineer Mr. Corradino D’ Ascanio. In April 1946, the first vehicle toll shape. Seeing it for the first time, E nr ic o Piag gio commented:/ “SembraUna Vespa!/”(It look like a Wasp). SoVESPAname was chosen because first thing one think of, naturally is the fact that engine "buzzed" just as insects normally do.

Enrico Piaggio gave the go-ahead for

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Monthly AutoMark International mass production of the first Vespa 98cc, offering luxury optional features like a speedometer a side stand and stylish white – trim tyres.First year production was 2484 scooters, the total reached 19822 units in 1948 with the new Vespa 125. In 1950 with first German licensee, output reached 60,000 vehicles. Three year later, it soared to 171,200 and number of Piagio service stations around the world – including America and Asia – rose to more than ten thousand. This magical period was only the start: soon the Vespa would be produced in 13 countries and marketed in 114 countries around the world. “Having inspired a thousand copies and imitations.

In 1953 Audrey Hepburn made her big screen debut alongside Gregory Peck in the Hollywood movie Roman Holiday.

The film featured a brief few minutes where Hepburn’s character in search of excitement hops on board a Vespa and runs amuck through the streets of Rome with flair in the way only this classy leading lady could.Vespa’s appearance in the film may have been brief, but coupled with countless movie posters that pictured a young Hepburn riding the handlebars of the scooter against a Roman cityscape backdrop, the romance between Rome and Vespa were cemented for decades to come.

In 1956 shipments topped the one million mark. By 1960 they had risen to 2 million, then 4 million in 1970 and more than 10 million in 1988. To date, Piaggio has shipped more than 18 million Vespa scooters. Contribution to this success were scooters that have become legends, like the Vespa 50 in 1963 and dozens of models that, over the years, have renewed the myth. The Vespa 150 GS of 1955 was the first “Sports” model to reach 100 km/h, followed by the 180 SS in 1965. The 125 Primavera of 1968 became one of the symbols of a generation that left its mark on the history of the world. The 180 Rally from 1968 introduced the new and more powerful front headlamp, the 50 Elestart of 1970 launched an electric starter system, while the imposing 200 rally of 1972 became the Vespa for travelers exploring the world.

The year in which “VESPA” arrived in Pakistan was 1958 and it was imported in CBU condition. It proved to be a great success in Pakistan market. This import business was carried out till 1968 and after that in the year 1968-69, Khawaja Auto Cars Limited entered into a

business contract with Piaggio Italy for licensing and technical assistance and together they installed a manufacturing unit in Karachi and started production of scooters and auto rickshaws.

KhawajaYousuf, founder of Khawaja Auto Car was not well educated but had very strong relations in Italy, Italians also trusted on him that’s why Italians introduced many products in Pakistan through Khawaja Auto Cars. Although Vespa as product and brand was very successful at that time and the plant was also established in a proper industrial area of Karachi at Landhi. However the owner of KhuwajaAutocars was not capable to run such industrial venture.

As a result the company fell in financial crisis and at last in 1975-76. One of the Vespa sales dealer Mr. Raja Abdul Rehman purchased this plant. At this

And............... Vespa Today

point of time Vespa scooter was the brand leader in two wheeler segment.

Vespa enjoyed this status, till 1985.In 1980 Mr. Raja Abdul Rehman established a big brand new factory in Mirpur Azad Kashmir. It was not only assembly plant, rather it was a composite automobile manufacturing unit, which includes machining die casting, steel fabrication, punching & pressing and even tyre manufacturing facilities.Unfortunately from 1990 onward scooters sales gradually start to decline and motorcycle becomes the trend and fashion of the time resultantly in mid nineties this plant was shut down and classical era of, scooter came to an end in Pakistan.

However Vespa is continuously shining on global horizon. Today more than ever, the Vespa is a global brand: the Pontedera factory turns out Vespa scooters for Europe and the Western markets, including the Americas; in Vietnam, the VinhPhuc plant produces vehicles for the local market and the far East countries; in India, the brand new Baramati plant, which opened in April 2012, serves the Indian market. The Vespa also continues to set the pace in terms of aesthetic and technological innovation. With the arrival of the LX/S and GTS/GTV families, production has more than triple over ten years, during which time more than one million new Vespa scooters have appeared on the world’s roads. Today the Vespa’s intention of continuing provide a window on the future while honoring its legacy. The legend demands nothing less.

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Exclusive Report by Aqsa Mirza

Monthly AutoMark International

GHANDHARA NISSAN LAUNCHES RENAULT TRUCKS IN PAKISTAN Renault Trucks introduces new C, K and D ranges French brand working with GNL has launched its full range of trucks

Senior Management of Ghandhara Nissan Limited and Renault Trucks International at the occosion of launching ceremony of Renault Trucks in Pakistan Renault Trucks, in partnership with G han d hara N i ssa n Lt d ( G NL) introduces the full range of Renault Trucks to the Pakistan market.

Renault Trucks and GNL signed co-operation agreement in early 2018 to represent Renault Trucks in Pakistan.

GNL will be responsible for the import, distribution and after-sales service of the three new ranges, as well as the CKD assembly at its manufacturing site situated at Port Qasim, Karachi by the end of 2019; which demonstrates the company's significant commitment to the country. Currently all the vehicles are being imported in Built-up condition from Lyon, France.

The new Renault Trucks range was unveiled to over 500 guests, including — corporate & individual customers, bankers, vendors, government officials, media persons and representatives from Renault Trucks.

Speaking at the launch, Olivier De Saint Meleuc, Senior Vice President of Renault Trucks International, said: "I am personally proud to witness this milestone for Renault Trucks in Pakistan with our partner GNL. Pakistan is an important market for Renault Trucks.

Pakistan is rapidly developing with many large infrastructure projects specially under the China Pakistan Economic Corridor (CPEC); that require robust & reliable trucks to cater demanding operations. Renault Trucks offer fuel efficiency, engine performance and safety along with lower maintenance and operational costs, ultimately providing profitability to the customers.

With our new range launched in 2013, we have deployed „significant resources to ensure these vehicles deliver maximum reliability. Each range has undergone rigorou-s-quaiity trials-and has been _exhaustively field-tested under actual operating conditions to meet the demands for reliability and robustness expected by our customers in Pakistan".

Mr. Ahmed Kuli Khan Khattak, Chief Executive Officer of GNL thanked the management of Renault Trucks and esteemed guests. He further said," Whenever GNL has introduced any commercial vehicle to Pakistan, it is being well accepted in the market. By the blessings of Almighty Allah, GNL is taking yet another lead by bringing European Trucks. Subsequent CKD Operation of Renault Trucks from end

2019 will create new job opportunities and offer the highest standard transport solution for the benefit of customers. " Speaking at the event, Mr. Muazzam Pervaiz Khan, Sr. Executive Director Marketing & Sales of GNL highlighted over 50 years of relationship between customers and Ghandhara Group which is one of the major factors in company's long-term success. He further said that with this huge opportunity available in the market for Robust, Fuel-Efficient & reliable trucks, introducing Renault Trucks was need of the hour. The demanding specs in terms of safety by all the major oil marketing companies can be 100% complied by Renault Trucks.

While company representative talking with Automark on sideline of the event says this is an official event of the launching the vehicles, while company already sold some remarkable units of the Renault truck to many customers.

These France made vehicles are expensive but they have very special features and quality which are unique in Pakistan. It’s a onetime investment for the purchaser of this vehicle.

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Commercial Vehicles Road Show - Update

Monthly AutoMark International

Sinotruk Road Show and Service Camp by Dysin Automobiles Limited Many units inspected & delivered free filters among satisfied customers of SINOTRUCK

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Corporate Event - Media Coverage

Monthly AutoMark International

Honda Atlas Cars (Pakistan) Ltd. Vendor Conference, 2018

Lahore (PR) –Honda Atlas Cars Pakistan Ltd. has always valued its relationship with local vendors. To cherish this association the Annual Vendors Conference, 2018 was recently held by Honda Atlas Cars Pakistan Ltd at Holiday Inn Hotel Sukhumvit Bangkok. CEOs and Directors from 45 vendor joined the event. President/CEO Mr. Hironobu Yoshimuragraced the event with his presence along with Director Purchasing Asian Honda Mr. K atsuhiro H ar ad a and HAC PL management . H eadd ressed the gathering and warmly welcomed everyone present.

The main highlight of the conference was the expansion of localization in near future. HACPL is stepping ahead for more localization especially focusing on functional & High tech parts. HACPL will enhance and transfer knowledge and expertise to the local vendors to achieve the desired results.

Topics under discussion at the conference were Current status of localization & Future localization strategy, Ongoing Honda Good practices, Environment improvement activities & Honda Quality culture implementation.

Mr. Harada also addressed the participants and highlighted the importance of HACPL business among AO region & the efforts HACPL is making for localization expansion. The recently launched new models of Civic & BR-V are a clear evidence of HACPL

sincere commitment to localization.

After the presentations, Q&A session was conducted with the representatives of HACPL. The ceremony concluded with award distributions by Mr. Hironobu Yoshimura, Mr. Maqsood Ur Rehman Rehmani (VP Administration & HR) & Mr. Asif Mahmood Pirzada (GM Purchasing). Amongst the accolades distributed to the vendors were Best Quality Achievement Awards, Cost Improvement Awards, Best Parts Delivery, Parts Development Awards, Environment Excellence award.

The conference became more exciting and fruitful as the participants were taken to visit Thai vendors. Industrial visits of Thailand’s 6 Suppliers were also arranged. The visits were well appreciated by local Vendors who were offered the opportunity to learn new i deas that could be eff ectively implemented at their workplace.

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Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR MT 1000cc NEW CULTUS VXL MT 1000cc NEW CULTUS VXL AGS 1000cc BOLAN VX 80cc EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2

SUZUKI MEGA CARRY 1.5 MT SUZUKI CIAZ (A/T) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol) VITARA GLX AT 1.6 VVT

Ex Factory Advance Tax Price Rs. 25,000 Rs. 1184,000 Rs. 25,000 Rs. 1274,000 Rs. 769,000 Rs. 10,000 Rs. 10,000 Rs. 840,000 Rs. 1,515,000 Rs. 50,000 Rs. 1,651,000 Rs. 50,000 Rs. 1,380,000 Rs. 1,501,000 Rs. 1,608,000 Rs. 834,000 Rs. 10,000 Rs. 800,000 Rs. 10,000 Rs. 756,000 Rs. 10,000 Rs. 1,499,000 Rs. 2,100,000 Rs. 1,960,000 Rs. 2,293,000 Rs. 2,718,000 Rs. 3,890,000

HONDA Model Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda

Price

BR-V i-VTEC 1500cc CVT BR-V i-VTEC S 1500cc Model Civic i-VTEC 1.8L Civic i-VTEC Oriel 1.8L City 1.3L Manual City 1.3L Prosmatec HYUNDAI City 1.5L Manual City 1.5L Automatic Aspire Manual 1.5L Aspire Prosmatec 1.5L

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

2,399,000 2,499,000 Price 2,824,000 2,974,000 1,869,000 2,009,000 1,929,000 2,693,000 2,079,000 2,219,000

PRINCE DFSK PAKISTAN Model K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS/PW C37 1500CC, 11 Seater,AC/PS/PW Prince Glroy 300 1499cc M/T Prince Glroy 370 1499cc M/T Prince Glroy 580 1499cc

Price Rs. 899,000 Rs.1,099,000 Rs.1,724,000 Rs.1,850,000 Rs.2,150,000 Rs.3,450,000

TOYOTA COROLLA Model XLI VVT-i 1.3L M/T XLI VVT-i 1.3L A/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 M/T SR 1.8L (Grande CVT) Corolla Altis A/T SR 1.8L (Grande CVT) FORTUNER A/T 4x2 2694CC

Price Rs. 2,049,000 Rs. 2,124,000 Rs. 2,304,000 Rs. 2,379,000 Rs. 2,579,000 Rs. 2,819,000 Rs. 2,869,000 Rs. 3,004,000 Rs. 6,407,000

Toyota Hilux Pickup 4x2 sc Model

Price

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

Rs. 2,914,500

Toyota Hilux Pickup 4x4 E Model

Price

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

TOYOTA REVO DAIHATSU

Model & Price

Vigo MT RevoChamp-V G M/T 1GD-FTV 2755cc

4,865,000 Revo V A/T 1GD-FTV 2755cc Vigo Champ-G AT 5,095,000

Rs. 4,555,000

FAW MOTORS Model

Price

FAW Carrier DL 1000cc Rs. 919,000 FAW Carrier 1000cc STD Rs. 939,000 FAW Carrier 1000cc Rs. 929,000 (Flat Bed) Rs. 1034,000 FAW X-PV 1000cc Std Rs. 109,5000 FAW X-PV 1000cc A/c FAW V2 1300cc M/T Rs. 1,289,000 Local Assembled

Monthly AutoMark Magazine - International Price updated Dec- 2018

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Academia-Industry Linkage

Monthly AutoMark International

Industrial Advisory Board NED University of Engineering & Technology 2nd Industrial Advisory Board meeting held in Karachi Preamble: NED University of Engineering and Technology has been producing highly skilled man-power to cater the needs of local as well as international industries.

NED University has always kept a liaison with the relevant industries to prepare its students to meet the current and future industrial needs. The increased diversity in the engineering disciplines at NED University, industrial needs of specialized persons, and requirements of outcome based education system necessitate to establish a formal procedure for better academia-industry linkage. University administration has therefore decided to establish an Advisory board for each department with the objective to strengthen academia-industry linkage, taking industrial input to the curriculum, f e t ch i n g i n t er n s h i p s an d j o b opportunities, recommendation for OBE implementation etc.

Vision: Departmental advisory board will be a non-profitable board constituted on voluntary participation basis to enhance

the academic standards through a better liaison with industrial representatives.

Objectives & Scope: To recommend and monitor the academic activities for the maintenance of the quality of programme being offered at the department and to keep it at par with the international standard, industrial needs and new trends of development.

The scope includes the following: 1. Curriculum Review 2. Strengthening of Faculty: Faculty Training, visiting faculty from the industry, guest lectures etc.

3. Providing final year projects along with supervision.

4. Arranging technical events such as

workshops, conferences etc.

5. Strengthening of Academia-Industry linkage 6. Facilitating in provision of Internship and industrial visits 7. Industrial input on the outcome based education (OBE) system 8. Feedback on standard of the programs being offered at the department.

For the purposes above, 2nd Industrial Advisory Board Meeting held on 15th November at Industrial & Manufacturing Enginering Department.

Valuable industrial iputs and feebback given by panel of Industrialists from Automotive/Manufacturing/Industrial Sectors.

Following members attended meeting.

Industry Members: CEO Auvitronics Pvt. Ltd. Mr. Abbas ul Husaini, GM Technical Agriauto Industries Ltd. Mr. Kalim Ullah, COO Pak-China Motors Mr. I.H.T. Farooqui, Manager Supply Chain Glaxo Smith Kline Muhammad Sal man , and D y. C hie f Me te r Manufacturing Plant Sui Southern Gas Company Muhammad Fahad.

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Monthly AutoMark International

Automotive News - Update

Heavy truck sales plunge, demand for buses edges up Ban on non-filers to buy vehicles, rising diesel prices, falling rupee value and increasing auto financing rates have caused a decline in truck sales in 4MFY19 due to massive decrease in H i no p a k ’s v o lu me s. Ho w e v er , substantial jump in Isuzu bus sales slightly lifted the overall bus sales figures.

Hinopak’s truck sales plunged to 853 units in 4MFY19, from 1,224 units in same period last year, followed by a meagre fall in bus sales to 124 units from 140 units. This brought down the average per month sales of the company (trucks and buses) to 244 units, from 341 units last year.

Similarly, Isuzu’s truck sales fell to 1,099 units in 4MFY19, from 1,169 units in corresponding period last year while the bus sales jumped to 95 units as against 17. The overall average monthly sales edged lower to 352 units, from 357.

Some heavy vehicle assemblers had pushed up the prices by 5-10 per cent owing to the rupee devaluation against the dollar while others either kept their rates pegged or offering discounts.

As per the new figures, the restriction on non-filers to buy vehicles has not hit Isuzu hard as compared to competitors.

For instance, Master truck sales plunged to 401 units in 4MFY19, from 506 units, followed by a drop in bus sales to 91 from 102 units.

Ghandhara Industries Ltd (GNL) General Manager Marketing and Sales Badar Mir said cargo market (goods carriers) had observed descending trend in the last three to four months. The government had imposed the ban on non-filers, assuming that it would bring positive changes to country’s economy besides enabling the government to generate more revenue.

He said high exchange rates pushed up the rates of trucks and buses by 5-10pc.

Additionally, higher bank leasing rates and rising prices of diesel compared to less income also hit the sale, he added.

The Oil and Gas Regulatory Authority (Ogra) has given the time limit to oil marketing companies (OMCs) up to 2019 to standardise the trucks/prime movers according to Ogra criteria. “Oil transporters due to these restrictions are selling their old vehicles in cargo market which is also affecting new truck sales,” Mir said.

He said customers may prefer Chinese vehicles due to high-priced Japanese products.

Atlas Autos to invest $20 million in chain production plant With an overall investment of around $20 million, Atlas Autos (Private) Limited has inaugurated the DID assembly plant in Karachi, established in technical collaboration with Daido Kogyo Company, Japan, for the assembly of chain drives and CAM chains for Honda mot orcycles.

Atlas Autos CEO Suhail Ahmed and Daido Kogyo Vice President Hirofumi Araya inked a memorandum of understanding (MoU) for studying and establishing a new joint venture in Pakistan.

The new company plans to invest $20 million over a period of three years with the aim of producing products for Pakistan, utilising the Atlas Group’s business expertise in the country and Daido’s technologies in relation with motorcycle chains.

Atlas Group President Aamir H Shirazi, Daido Vice President Hirofumi Araya and Embassy of Japan Counsellor for Economic Affairs Yuji Tokita were present at the inauguration ceremony.

Honda motorcycles are highly localised and only chains and carburetors are imported. Now with chain manufacturing in Pakistan through the establishment of the new plant, Honda bikes will further be localised, which means it will alleviate some pressure on the country’s import bill.

Atlas Honda is the market leader in the motorcycles segment in Pakistan. It sold 1.15 million bikes in the last fiscal year.

Its nearest rival is United Motors, which sold 0.4 million bikes in the same period.

Published in The Express Tribune, October 30th, 2018.

Besides, oil pipeline from Karachi to Machike near Lahore (covering central Pakistan including Bubak, Shikarpur, Fazilpur, Mehmood Kot near Multan and Faisalabad) would reduce at least 3,000-4,000 oil transportation vehicles on roads which may cause a drop in sales of prime movers in future, he feared. Bus sales have improved due to orders from academic institutions and government departments, he noted.

On the other hand, six-wheeler and 10wheeler oil transportation truck sales would increase in central Pakistan for small distance transportation, he added.

“Isuzu has emerged as the market leader in the last seven months, beating its Japanese counterpart Hinopak,” Mir claimed, while referring to the sales figures of Pakistan Automotive Manufacturers Association.

The truck segment, considered as a barometer of trade, enjoyed boom from 2013-14 to 2017-18 while bus assemblers witnessed robust demand from 2011-12 which continued till 2016-17.

A Hinopak Motors Ltd official said despite the fact that prices of various products are under pressure, owing to 30pc devaluation against the dollar since December 2017, “our company has not passed on the impact of rupee-dollar parity to commercial vehicles as this segment is very much price sensitive.”

He said the company is absorbing exchange rate impact, which is another blow being faced by the industry.

Because of the ban on purchase of vehicles for non-filers and rupee depreciation, he said “on an average our sales dropped by 30pc during first four months of the current fiscal year.” In FY18, Isuzu sold 3,878 trucks and 122 buses versus Hinopak’s 3,874 trucks and 334 buses.

In FY17, FY16 and FY15, Hinopak was the top seller of trucks with sales of 3,024, 2,458 and 1,510 units as compared to 2,640, 1,398 and 938 units

by Isuzu.

In buses, Hino sold 709 units in FY17, 821 in FY16 and 475 in FY15. Isuzu sold 122 units in FY18, 263 in FY17, 168 in FY16 and 82 units in FY15.

Published in Dawn, November 18th, 2018

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Monthly AutoMark International

By Hanif Memon / Aqsa Mirza

German Volkswagen’s commercial vehicles will soon be manufactured/produced in Pakistan Pakistan Premier Motors Ltd (PML) signed the final legal agreement with the German auto giant – Volkswagen (VW) AG, the largest automotive group in the world. The agreement was signed on 7 November 2018 for manufacturing and assembling of commercial vehicles under the licensing contract of CKD Assembly in Karachi. The automotive industry is considering it a major breakthrough in the automotive sector of Pakistan. The Commercial Section, Berlin has been actively engaged with the VW and PML for the last two years and especially since signing of Letter of Intent ( LOI) on 22 June 2017.

Automark is the first source to break the news and it is hoping that the new entrant would be warmly welcomed in the country because the current local auto manufacturers are working at full capacity and still not keeping up with the demand and supply, with VW’s advent the demand and supply of the vehicle would undoubtedly increase in the country.

The news is very refreshing for the people of Pakistan because as new automakers come in the country, the

more diverse the local industry would become and people can have a variety of vehicles to choose from.

Premier Systems (Pvt.) Ltd. gears towards bringing an even better experience to Pakistan to enable consumers in the country to enjoy a new level of performance and luxury. Hence,

Audi was introduced in Pakistan and Premier Motors is the legal distributor of it. With the entrance of Audi in Pakistan, consumers now had access to sporty, sophisticated and progressive premium vehicles.

About Premier Systems Founded in 1993, Premier Systems (Pvt.) Limited is one of the leading veteran ICT infrastructure provider in Pakistan.

Our claim to fame is not merely system integration, but we are also constantly architecting innovative ICT solutions across all our client’s needs from network convergence, five Ss cloud computing, failover plan and power system audit and solutions to break-fix and managed services.

With enormous multivendor knowledge on the back of technology alliances with the global ICT bellwethers, including Microsoft, HP, Cisco and Juniper, the company has handled multiple projects of small, mid-sized and large customers belonging to various industries, such as Telecom, Banking, Oil and Gas and Defence in Paki stan, UAE and Afghanistan. Gradually making inroads into the African market, we have successfully delivered data centre consultancy, power system audit and HP Blade and storage in the world’s second largest continent.

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Exclusive Cover by Hanif Memon

Team Automark Oragnized two Get together events in Lahore & Karachi Automark team has organised two successful get together events; one in Lah or e o n 16 t h N ov e mbe r at Massionette hotel and second in Karachi on 17th November at Metro Highway Restaurant with the support of the professionals of auto industry.

The events had marvellous arrangements and very encouraging participation of professionals from different companies, that would be remembered for a long time now.

Both the events concluded with a great response from the industry and auto professionals. With every passing year, Automark has become a driving force, pushing the local auto industries professionals to grow and get the latest information.

The event is one of a kind initiative by Automark, aimed at discussing the progress of the local auto sector and the latest models being introduced globally.

This premiere auto GTG was attended by many automotive celebrities and the overall response was great and welcoming ;appreciating the Automark team for organising such automotive GTG in the country.

Different leadi ng automotive

manufacturers professionals were present during the occasion who discussed current trends in the automotive industry and exchanged their ideas to make Pakistani auto industry grow better and faster.

D if f er ent co mpan ies i nclud i ng JwForland, Hyundai Nishat, Cavalier Automotive, KA Hanteng Motors, VPL, Regal Auto, United Motors, Pirani Group, Pak Suzuki, A-One Techniques, Cosmos Engr., Khalid Mushtaq, Pak China Motors, Honda Car, Team Nayyer, Service Industries and many auto vendors gave a great insight of upcoming trends and new implications and thus the gathering was felt to be far more learning oriented then it was thought.

“Hats off to All who put their efforts to make it a successful event”, said by Muhammad Imran Khan G.M Sales Kausar Automobiles ( APirani Group).

“For Auto industry professionals there are very few platforms, which provide an opportunity to sit together, share some news and views. Auto mark got achieved a level and involved so many auto industry people.”, said by auto industry specialist.

“I t was very i nformat iv e, and

constructive discussion about different aspects of the industry.

I think for future we should enhance the time of discussion to expand the benefit of this GTG. And some guest speaker could give us an idea about the future of industry or comparison with other countries”, remarked by one of the auto sector experts.

“Credit goes to Mr. Hanif Mamen, He is the person who takes initiative and start this GTG with 13 persons last year and for future, I think he will require a place for more than 100 persons to organize this activity. I am foreseeing this GTG to be converted into Seminar in future.”

Automark is considered as one of the most authentic source to emphasize automobile industry’s issues. If you show your trust; we ensure it to be best and reliable source of promotion for the target market of your excellent products and services.

Team Automark is thankful for JW Forland authorities and friends from Pak Suzuki who supports the GTG and participation of their top brass made the occasion not only eventful but it

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Monthly AutoMark International

turned out to be a great learning for the young professionals of the Automotive industry.

Special thanks to Faisal Mufti, Imran Khalid for Lahore GTG and Shahid Usman, Faheem-ur-Rehman, Kamran

Naveed sahib for Karachi GTG for their zabarzat efforts for thearrangments of the gathering.

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Road Safety Pakistan

Monthly AutoMark International

World Day of Remembrance for Road Traffic Victims by Institute of Road Safety

The participants of the seminar on “Road Safety” in connection to world road safety day organized under auspices of Institute of Road Safety Traffic En v i ro n men t on S u n d ay 1 8 t h Novermber in Islamabad, stressed on the compliance of traffic laws and rules to minimize road accidents in Pakistan.

Addressing the participants of the seminar, Director Roads Ministry of Communication Hameed Akbar said due to violation of road and safety rules millions of people die every year in road accidents while many others are injured resulting in permanent disabilities. The participants said that over speeding,

careless attitude, underage driving, use of drugs while driving, fatigue, and lane violation are the major factors which result in fatal accidents.

The speakers said that law enforcements agencies with the collaboration of all stakeholders, parents and civil societies shoul d ed ucat e p eop le on t he importance and use of helmet for bikers, seat belt for car riders, driver licenses, and vehicles permits.

Presiding the seminar Dr. Kamran lauded the efforts of the motorway police, calling it a disciplined force that has managed highways very well.

DG 1122 Rizwan Nazir said that they have always maintained the standard of

road safety in Pakistan which is also acknowledged worldwide.

DG General Health Wing UNHS Jawad Ali Khan said that the present government should take concrete measures to maintain the supremacy and enforcement of law on road safety.

Police scouts, rescue personals, police officials, doctors, representatives of civil societies and media attended the seminar.

Police officials set stalls in connection to world road safety day and presented brochures, booklets and pamphlets to make public more aware on road safety laws and rules.

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Rs. 41,800/= Rs. 43,800/= Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1

Retail Price Rs. 65,900/= Rs. 69,900/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 46,000/= Rs. 45,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=

125/150/200cc Motorcycle No.

Brand & Model Name

Retail Price

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Super Power SP 200cc Unique UD 125cc Unique UD 150cc Crazer Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G (2018) Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II Zxmco ZX-200cc

Rs. 110,900/= Rs. 130,500/= Rs. 109,400/= Rs. 176,000/= Rs. 70,000/= Rs. 67,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 2,00,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 119,900/= Rs. 139,900/= Rs. 134,900/= Rs. 65,000/= Rs. 71,600/= Rs. 2,45,000/=

Sr./ No. 13.

14.

15.

16.

17.

18.

19.

20.

Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Union Star Ms Jaguar MS 70

( DREAM)

Zxmco ZX-70 Regular Leader LD-70

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

100cc/110cc Motorcycle No. Brand &Model Name 1. Honda Pridor 2. United US-100 Euro 2 3. Road Prince 110cc 4. Unique UD-100 5. Super Power SP-100 6. Hi-Speed Classic SR-100 7. Hi-Speed Alpha SR 100 8. Super Star SS-100 9. Crown CR-100 10. MS JAGUAR MS 100 11. Zxmco ZX-100-SS 12. Leader Classic LD-100

Retail Price Rs. 90,900/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 82,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/= Rs. 52,900/=

Suzuki Motorcycle Sr./ Product & Retail Price No. Model Name 1. GS-150 SE Euro-II Rs. 170,000/= 2. GD 110S Self Start Rs. 145,000/= 3. GS-150 Rs. 150,000/= 4. NEW GR-150 Rs. 229,000/= 5. SD 110 Eco Rs. 119,900/= Heavy Bikes Product & Sr./ Retail Price Model Name No. 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Bandit GSF650SA Rs. 14,50,000/= 5. Honda ADA CB250F Rs. 6,40,000/= 6. Super Power Sultan-250 Rs. 2,90,000/=

Prices update Nov-2018 www.automark.pk | December-2018 | Page 49

Report by Aqsa Mirza

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KA Hanteng Motor Company awarded Greenfield status under auto policy 2016-21 Under automotive development policy 2016-21, the Government of Pakistan has awarded category-A Greenfield Investment status to KA Hanteng Motor Company Pvt. Ltd. to set up an assembly pl ant and st art manu factu ring commercial vehicles. The automaker is anticipated to bring an investment of about $50 million for the local auto sector. M/s KA Hanteng Motor Company (Pvt) Ltd., has collaborated with a famous Chinese car maker M/s.

Hanteng Automobile Co. Ltd., to initiate manufacturing passenger cars & SUVs. The agreement between both companies was signed in May 2018 in Shangrao, China and it also includes technology transfer, manufacturing of electric and hybrid vehicles.

Automark has verified this news from the company representative and the joint venture is all set to establish an assembly plant at M3 Industrial Zone in Faisalabad with a capacity to build 15000 units annually. The local compay from the sports industry of Sialkot. The company has also revealed its plan to introduce Hybrid Cars & SUVs in near future.

The agreement is subjected to the following conditions: • M/s KA Hanteng Motor AUTO POLICY 2016-2018: Officials stated that the government has given 12 companies the status of ‘green field investment’, a type of foreign direct investment (FDI) where a parent company builds its operations in a foreign country from the ground up, while two companies have been given ‘brown field investment’ status, where a company or government entity purchases or leases existing production facilities to launch a new production

Company (Pvt) Ltd shall strictly adhere to the conditions mentioned in Notifications No. 2(9)/2013-LED-II dated 2nd June 2016.

• EDB will issue manufacturing certificate and list of importable components after it verifies that the assembly/manufacturing facilities developed by the activity.

As per the documents available with this scribe, Regal Automobile Industries in collaboration with DFSK Motor have invested $10.71 million to assemble light commercial vehicles (LCV) and sports utility vehicles (SUV).

Similarly, United Motors (Pvt) Limited in partnership with Luoyang Dahe New Energy Vehicle and Yangste Motor Group have invested $19.05 million to assemble 800cc passenger cars, 1,000cc

company are sufficient enough to produce quality and roadworthy vehicles.

This agreement shows increasing trust of Chinese private companies in Pakistani auto sector, economy, and investment opportunities. The joint venture will further strengthen the relationship between two countries through industrial cooperation and economic growth which is a step ahead in the CPEC project.

LCVs (pick up) and vans.

Khalid Mushtaq Motors (Pvt) Ltd in a JV with Changan Kuayua Automobiles has invested $3.50 million to assemble LCVs. Kia Lucky Motors Pakistan Ltd, invested $190 million in the country’s automobile sector.

Hyundai Nishat Motors (Pvt) Ltd., in a JV with Hyundai Motors will establish an assembling unit to manufacturer LCVs, electric cars and SUVs with an investment of $163million.

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Defence Exhibition in Karachi

Monthly AutoMark International

10th international defence expo kicks off in Karachi The 10th edition of the International Defence Exhibition and Seminar (IDEAS-2018) kicked off at Karachi Expo Center in Pakistan's southern port city of Karachi on 27th Nov-2018.

Director Coordination of Defence Export Promotion Organization (DEPO) Brigadier Waheed Mumtaz informed media that as many as 522 exhibitors from 50 countries and regions including Pakistan, China, Russia, France, Germany, Turkey, Poland, South Korea, and the United States are set to exhibit their defense products during the fourday show.

Mumtaz further informed that Pakistan, whose defence exports stand at 300 million US dollars, will showcase JF-17 Thunder fighters and Mushak as their core defence products in the exhibition.

He stated that apart from the trade visitors, over 262 top-level delegations have established their exclusive country pavilions in the expo.

For the citizens of Pakistan's biggest metropolis, the organizers have also arranged "The Karachi Show" on Thursday, he concluded.

Russia is set to increase its level of participation with two naval ships that would visit Karachi port during the show. “Moscow has increased its

presence gradually. This time they are coming in bigger manner. Two Russian naval ships are to visit Pakistan for the first time in the history of IDEAS. That signifies the mutual desire to make this relationship flourish at all levels,” he added.

Air Commodore Tahir Anwar, who looked after defence export, said 12-14 foreign countries exclusive pavilions are being set up at IDEAS 2018. The countries include China, Czech Republic, France, Germany, Italy, Jordon, Pakistan, Poland, Russia, South Korea, Turkey, UAE, Ukraine and USA. Latest productions to be unveiled Defence Export Promotion Organisation (DEPO) Director Media Commodore Tariq Mahmood said Pakistan’s defence industries are showcasing their latest productions.

“The Global Industrial and Defence

Solut ions (GIDS) would u nv eil surveillance UAV BURRAQ, versatile surveillance UAV UGAB and aircraft combat monitoring and instrumentation system,” he said.

The Pakistan Ordnance Factories (POF) would unveil Depth Charger, an antisubmarine warfare weapon; recoil force measurement system (FRMS) and Heavy Industries Taxila (HIT) would unveil multipurpose infantry fighting vehicle (MIFV) – VIPER at the show.

DOUDSON would unveil its latest automatic grenade launcher.

The exhibition is also featured to perform ‘counter terrorism show’ by ground forces that was last organised for the participants in IDEAS 2008.

The show would explain to the world how Pakistan successfully fought terrorism. This would provide an opportunity to share with the world Pakistan’s experiences in the war against terrorism.

To make it a memorable event, the Pakistan Post Office would issue a special stamp ticket worth Rs10 on inaugural day of the exhibition. “The exhibition would help Pakistan attract new buyers from the globe. The exhibition will be opened for the general public for one day on Nov 30,” he said.

Chairman Cavalier Group Mr. Waseem Pasha Tajmul and his team with foreign guest visited Cavalier stall at IDEAS-2018 – Photo Automark

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Corporate Business Event Update

Monthly AutoMark International

Mayor Karachi along with CEO, Indus Motors Company and other officials at IMC's Million Tree Campaign Kick-off Ceremony

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International Automotive Industry - Update China’s first international import expo concludes with $57bn in planned deals The first China International Import Expo (CIIE) concluded on Sunday in Shanghai, with deals for goods and services worth up to US57.83bn planned for the coming year.

Among the intended deals, over US$16bn of them were signed at the smart and high-end equipment exhibition area, while the food and agricultural products exhibition area clinched deals worth almost US$13bn.

T h e au t om ob i l e ar e a re ac he d US$11.99bn, said Sun Chenghai, deputy director of the CIIE Bureau, at a press conference on last month.

In addition, transaction agreements with a total value of US$4.72bn were signed with countries along the Belt and Road - the signature trade policy of Chinese President Xi Jinping.

Sun also listed that 172 countries, regions and international organisations, as well as more than 3,600 enterprises, participated in the six-day event, which attracted more than 400,000 domestic and overseas purchasers.

Currently, more than 200 enterprises have signed up to participate in the second CIIE, the official stated. "We will review our experiences from all angles and also learn from the international first-class expo, to further promote the CIIE to be more international, professional, market-based and branded," he added.

Dongfeng Honda recalls vehicles in China over faulty sunroofs Dongfeng Honda Automobile is recalling over 4,000 vehicles in China due to defective sunroofs, according to the country's market regulator.

The recall involves 2018 JADE models manufactured between May 5, 2017 and June 21, 2017, the State Administration of Market Regulation said in a statement.

The vehicles have faulty sunroofs that may fall under extreme conditions due to weak adhesion of the sunroof glass.

Dongfeng Honda will inform users via registered letters, text messages and phone calls.

The company will replace the defective sunroofs free of charge.

Monthly AutoMark

Honda to shift production of SUV to China from US amid trade war Japanese automaker aims to avoid higher auto tariffs Honda Motor will increase output of its Acura luxury vehicles in China by switching to local production of a new version of an SUV model, rather than importing it from the United States.

Sales of the new China-made Acura RDX will start by the end of this year.

Vehicle imports from the U.S. are subject to 40% tariffs amid escalating trade friction between Washington and Beijing.

Other automakers may take similar steps to avoid the raised tariffs.

Honda manufactures autos in China through two joint ventures it set up with Guangzhou Automobile Group and Dongfeng Motor Group. Its total vehicle sales in China reached 1.45 million units in the year ended March 2018, accounting for about 30% of the company's total output. China is Honda's second largest production country after the U.S., where it produced 1.64 million in the same year.

Production of the new RDX, a mediumsized SUV, started recently at a Guangzhou Automobile plant. Previous versions of the model that were sold in China were imported from the U.S. Honda began considering switching to Chinese production before July, when Beijing and Washington started imposing retaliatory tariffs.

By shifting production, Honda aims to improve cost competitiveness and capture more local demand.

China in July lowered tariffs on imported vehicles to 15% from 25%, except for U.S.-manufactured cars, for which levies were raised to 40%.

The vehicles themselves will be free from the higher tariffs, although some components will still be imported from the U.S. and thus be subject to the levies.

Honda expects the new model to be about 20% cheaper than the previous version, which is priced at 399,800 yuan ($57,400).

Rival German automakers BMW Group and Daimler have raised the prices of cars imported from the U.S. to sell in China. Honda hopes the relatively low pricing of the new RDX will boost sales.

Even before the trade war escalated, China's tariffs of 25% on imported vehicles were considered relatively high.

The resulting prices limited sales of the Acura in the country, with 16,348 vehicles, or just 1% of Honda's total, sold in 2017.

As such, the company sees significant room for growth, especially amid a general trend for luxury spending in China. It is targeting annual sales of the new RDX of more than 10,000 units, over 10 times the previous target.

Chinese carmaker FAW to launch new Hongqi SUV model in 2019 CHANGCHUN - Chinese automaker FAW Group is set to launch a new Hongqi SUV model to target private buyers, the group said at this year's World Internet Conference (WIC) that closed on last month.

The luxury SUV model Hongqi HS7 is scheduled to hit the market in 2019.

Meanwhile, the company's first Hongqi electric SUV, unveiled at the Beijing International Automotive Exhibition this year, is also scheduled to hit the market in 2019. Both the SUV and electric car models are being launched to explore the private car market.

Earlier this month, the company unveiled a partnership with Baidu to develop a near-full autonomous vehicle in 2019 and achieve mass production

by the end of 2020. The company's first fully autonomous Apolong minibuses, rolled out earlier this year, are now running in over 10 locations.

Hongqi has set sales targets of 100,000 cars in 2020, 300,000 in 2025 and 500,000 in 2035, said FAW Group Chairman Xu Liuping. It will introduce 17 car models, including electric and SUV models, by 2025.

The first Hongqi, or Red Flag, car was made in 1958. Hongqi is one of China's iconic sedan brands and has been used as the vehicle for parades at national celebrations.

Established in 1953 in the northeastern Chinese city of Changchun, FAW was the first automaker in China.

PAKISTAN AUTO SHOW-2019 12-14 April-2019 in Karachi

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International Automotive Industry - Update

Monthly AutoMark

Trade war wipes out profit growth at Japanese automakers World’s Best-Selling Car Gets a Makeover as Toyota Bets on China For Toyota Motor Corp., China wasn’t always the first pit stop when it came to unveiling key car models. But this time, it’s different.

The Japanese automaker took the wraps off the all-new Corolla -- and its Chinaonly twin Levin -- at a global premiere in Guangzhou on Friday, hours before it was put on display in California. The move marks Toyota’s deeper push into the world’s biggest auto market where it is trailing rivals.

The Corolla, the staid workhorse that seldom makes heads turn but is still loved universally, is getting a makeover at a time sedans are losing their sheen in the U.S. while gaining followers in China. The new models will offer features tailored for Chinese buyers, including a 12.1-inch display and an aircleaning system to remove pollutants, as well as more connectivity functions.

Sales will start in 2019.

China Takes Lead China overtook the U.S. to become the largest market for the compact sedan last year, with the combined annual deliveries of Corolla and Levin reaching half a million and taking the lead in the segment.

“They are the most important vehicles for Toyota here in China,” Kazuhiro Kobayashi, Toyota’s China chief, said in Guangzhou. “These new models embody our drive in electrification, intelligence and informatization.”

Amid a sharp demand shift to SUVs in the U.S., Toyota is increasingly counting on China to sustain the success story of the world’s best-selling model of any carmaker over the last thirty years.

Reflecting the slumping demand for sedans in the U.S., Toyota plans to slow one of the three assembly lines at its Camry assembly plant in Kentucky next month.

In China, the Corolla and Levin contribute about 40 percent of Toyota’s sales and are key to changing the automaker’s also-run status. Toyota sold 1.29 million vehicles in China last year and is set to “greatly exceed” its 1.4 million-unit target for this year, Kobayashi said.

Honda, Nissan and three others expect full-year slump as steel tariffs bite Japanese automakers are girding themselves for the growing impact of Washington's protectionist trade policy on their full-year earnings, with six out of seven big carmakers expecting no profit growth in the fiscal year ending March 2019.

Honda Motor, Nissan Motor, Suzuki Motor, Mazda Motor and Subaru are projecting a profit drop, while Toyota Motor expects profit to stay flat on the year. Only Mitsubishi Motors, whose strength lies in the Southeast Asia market, is forecasting growth in earnings.

The company reported a 25% decline in interim operating profit for the AprilSeptember half to 210.3 billion yen ($1.84 billion). Materials expenses squeezed profit by 53.9 billion yen.

While robust sales in Japan and Southeast Asia helped Toyota, Honda, Mitsubishi and Suzuki post higher operating profits for the half, the picture becomes bleaker for the full year, especially with the world's two largest markets, China and the U.S., seeing slower sales.

Japanese carmakers were rattled on Wednesday when U.S. President Donald Trump reiterated his displeasure with the current status of auto trade with Japan.

"Japan does not treat the United States fairly on trade," Trump said at a White House news conference. "They send in millions of cars at a very low tax. They don't take our cars. And if they do, they have a massive tax on their cars."

Meanwhile, the U.S. market for new cars is losing steam, in part because rising interest rates are pushing up the cost of

auto financing. The trade war is adding costs for manufacturers.

Nissan's U.S. sales volume decreased 9% for the half. Seeking to boost sales, the company in October rolled out a new version of its popular Altima sedan, fully redesigned for the first time in six years.

Toyota sustained a 23% profit slide in North America in the first half. Jim Lentz, head of Toyota's North American operations, maintains that U.S. consumer sentiment is still robust. But he also points to a potentially adverse impact from factors like the trade issue and rising interest rates.

The trade war looms over the Chinese market as well. Nissan's September sales volume there dropped for the first time in 20 months.

Honda's April-September sales in China fell 9% to 660,000 units. "U.S. sanctions dampened demand to some degree," Executive Vice President Seiji Kuraishi said.

A plant that Toyota and Mazda are planning to open in the southern U.S. state of Alabama by 2021, for instance, is likely to cost more than expected initially. "We have no choice but to increase procurement from within the U.S.," Mazda senior managing executive officer Akira Koga said.

Toyota is considering producing electrified vehicles and components in the U.S. and China to shield itself from trade-related risks.

The automakers are also worried about depreciation of emerging-economy currencies, which is gaining speed on the back of rising interest rates in the U.S. A weaker Turkish lira, Mexican peso and other currencies pushed down Nissan's operating profit by 49.3 billion yen in the first half.

Volvo changing production plans due to U.S.-China tariff war The Swedish automaker—ironically owned by China's Geely Group—will look at whether it should change plans to make the U.S. the sole global source of the car.

Volvo could continue to make the sedan in China where it makes a longwheelbase version of the car for that market. And the automaker could add production of even more vehicles in China, rather than export them at a loss because of high levies in the wake of the trade war with the U.S.

Affects Charleston plant and sourcing of key models for U.S. consumers Just as production of the Volvo S60 sedan is launching at the $1.1 billion plant Volvo has built in Ridgeville, S.C., near Charleston, the Swedish automaker is making changes to what is built where because of the U.S. trade war with China.

Fewer, if any, S60 midsize sedans will be exported from South Carolina to China where they would be slapped with a 40-percent tariff. The S60 will still be exported to Europe and other markets.

www.automark.pk | December-2018 | Page 57

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