AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Editorial
MONTHLY
The Magazine for Pakistan Automotive Sector
December 2010 Vol 3, Issue 12 Editor : M. Hanif Memon Sub Editor : Dr. Raja Irfan Sabir Contribution Writers : Ali Hassan Mohammad Owais Khan Mian Iqbal Hassan Omar Rashdi Shahzad Tabish Advisor : J. Pereira Abdul Majeed Sheikh Imtiaz Rastgar Circulation Manager : Abdul Khaliq Designed By : Mustafa Hanif
RGST bill an important first step The Reformed general sales tax bill is an important first step to raise revenues amid measures to boost security and development spending. It makes sense to include agriculture, a sector that constitutes one-fifth of Pakistan’s gross domestic product (GDP), as part of efforts to expand the narrow tax base, but this is also a political question that is not easy. “Achievement of sustained economic growth and prosperity for citizens depends on government economic policies providing the base for the private sector to succeed,” Progress, however, cannot be achieved without first adopting necessary econom ic ref orms. With a fiscal deficit of 6.3 per cent of GDP in financial year 2009-10, the government has been unable to meet its commitments to the International Monetary Fund under the October 2008 stand-by agreement that provided more than $10.7 billion in loans over two years. Our tax-to-GDP ratio is less than nine per cent, one of the lowest in the world. The five sales tax-exempted sectors have said the government should not bring them under the reformed general sales tax (RGST) regime as it will hurt exports that have moved upwards over the last few months. Representatives of the five sectors including value-added textiles, sports goods, surgical items, leather goods and carpets – asked the government not to withdraw the 2005 sales tax regime.
Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.pak-auto.com E-mail: magazine@automark.pk automarkpk@gmail.com Tel/Fax : 021-32218526 Mobile: 0321-2203815
They stressed that they are not against RGST but the main concern is the refunds system that the Federal Board of Revenue (FBR) wants to bring with the new tax structure. These sectors account for more than 80 per cent of the country’s exports, which will be hurt as small exporters will disappear from the scene. Under the RGST, more money of exporters will get stuck for months in refunds which will eventually reduce exports, they argued.
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
CONTENTS The Mo nthly Magazine for Pakistan Automotive Sector
e-magazine Issue at our website
visit: www.automark.pk
Your trust is our success
AIDC meeting finally held amid acceptance and reservation on electric car project Exclusive Article on Auto Sector by Mohammad Owais Khan
9-10
APMA links surge in bike sales to purchase of two wheelers by Watan Card holders Exclusive Article on Auto Sector by Ali Hassan
11-13
Government to ‘rationalise’ prices of cars
14-15
Memon Motors Launch new model-2011 of 70cc Super Star Motorcycle - Event Glimpses
17
Brakes Development - by Omar Rashdi
24-25
The Industrialized Countries and Global Warming by Mian Iqbal Hassan
26-27
My Visit to Loncin Motorcycle Factory in China - Report
36
Top ten technology firsts of 2010
38-39
Local assembled car price list
40
Hinopak Motors - Corporate Events
45
Automobile Manufacturing Standards, A Comparative Analysis Exclusive Article by Shahzad Tabish
46-47
3rd International Foundry Congres - Report
48
Saad Autonobiles & Chongqing Changanin
49
Motorcycle price list
50-51
The only ONLINE automotive magazine in Pakistan
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Exclusive Article
by Mohammad Owais Khan
AIDC meeting finally held amid acceptance and reservation on electric car project Majority of the members show reservation on seriousness of the company based on their past experience And finally after a gap of 34 months the fifth meeting of Auto Industry Development Committee (AIDC) was held on November 5. Till October 2010 only four meetings of AIDC have been held since its formation on December 2007. According to terms of reference of the notification, the meeting was required to be held at least once a month but no serious efforts were made to convene meeting on regular mo nthly basis. The AIDC was formed through a notification is sued by Ministry of Industries and Production on Dec 18, 2007 as per a decision of the Economic Coordination Committee. While taking up the matter with the government, vendors of car industry say that the AIDC is a platform of all stakeholders which has a main role to play in preparing and implementing government policies. They believe that the AIDC meetings should be held in the first week of every month. Parts makers were also unhappy about the non-implementation of the Auto Industry Development Program (AIDP). This program, which replaced the deletion program in 2006, was prepared with consensus of all stakeholders,
including government, car makers and vendors. One of the key AIDP issues regarding localization of hi-tech parts and their inclusion in SRO-693 still requires a timely action from the Engineering Development Board (EDB). Under a five-year tariff plan in the AIDP, a total of 10 main hi-tech parts were needed to be localized and included in the SRO-693 with effect from July 2009. In the meantime, the EDB granted a one year extension for providing support to the car assemblers under a commitment that the inclusion of these 10 parts in SRO-693 would be done from July 2010. However, the Federal Budget 2010-2011 completely ignored this issue which is tan tamount to violatio n of basic requirement of the AIDP. Prior to the budget, an exercise of preparing budgetary recommendations was cond ucted by th e EDB and committees were formed under the convenorship of Engr M. A. Jabbar (Committee on Indigenisation and Budget Proposals) and Feroz Khan (Committee on Review of SROs and PCT Heads). Despite hectic discussions among government and stakeholders and submitting recommendations to the EDB for implementation in the 2010-
AUTOMARK | December-2010 09
2011 budget, recommendations were not incor por ated in th e budget. Coming to the fifth meeting of the AIDC, chairman Engineering Development Board (EDB), who chaired the meeting, strongly emphasized to hold AIDC meetings on regular basis. It is now known that the sixth meeting of the AIDC is scheduled to be held on December 8. The meeting focused mainly on depression and the revival process in the auto sector besides developing a strategy on the issues like future of Tariff Bas es Sy ste m (TBS), review an d im p l em ent a ti on o f A IDP , l ow production levels and ever rising increase in prices. On the life of TBS and AIDP, it was informed that TBS was implemented through finance bill and it has no time limit while AIDP is consisted of five year tariff plan which is up to 2011-12. As such AIDP is a time bar document and TBS has no time binding. However, it can further be reviewed /refined in light of present operational environment of the local industry. On Review of minimum in-house assembly/manufacturing facilities for manufacturing/assembly of vehicles, the EDB official informed the meeting
continued on next page
AUTOMARK MAGAZINE
Exclusive Article that the Board had forwarded the re co mm e nd at i ons p r ep a r ed in consultation with all the stakeholders to the Federal Board of Revenue (FBR) along with all the budgetary proposals for 2010-2011. The amendments as recom mend ed b y th e tec hni cal committee headed by Mr. Feroz Khan to provide specific minimum in house facilities for specific vehicles were also part of the EDB recommendations. Some of the participants were of the view that this document needs to be shared with the stake holders so as to see th e exact facilitie s proposed. On draft standards for trailers and semi trailers, Mr. Sohail P. Ahmed, convener of the sub-committee of the Safety, Quality and Environment Standards of AIDC informed that the draft standards for trailers and semi trailers had already been forwarded to PSQCA. He further in formed that Mr. Ahmed Saeed member of the sub-committee had again raised few observations which were currently under review by the EDB and the industry. In this regard issue of marking fee being charged by the PSQSA and enforcement of standards was also discussed in detail. The participants stressed upon the need for revamping of the Motor Vehicle Examination System in the country. They were of the view that consumers view point also needs to be considered while making any standards. It was decided that the Sub Committee of the Safety, Quality and Environment Standards of the AIDC would take up the matter with the Ministry of Science and Technology for early settlement of marking fee issue. Sub Committee may also develop close linkage s with other organizations involved in refinement of Motor Vehicle Examination System both in terms of infrastructure and amendment in Motor Vehicle Ordinance. PAAPAM in the meeting expressed serious concern over non acceptance of budgetary proposals by the FBR and Ministry of Finance and requested EDB
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
to persue the matter with the FBR to ensure implementation of proposals in totality, as all the proposals made earlier are still valid. EDB would follow up with FBR on this issue. On local assembly and manufacturing of electric car, General Manager Tariff informed the meeting that M/s. Karakoram Motors has approached the E DB to allo w i mpo rt of items/components of Dynasty Electric Car at zero rate of customs duty. In this regard the EDB before taking any decision has requested AIDC to give conceptual approval of the project. Majority of the members have showed reservations on serio usness of the company based on their past experience. AIDC approved the concept of electric car project subject to reviewing the complete technical details of the project. On line quota debiting system, the meeting was informed that computer based one customs system developed in association with FBR/PRAL for streamlining and effective monitoring of TBS is already operational since July 1, 2009. Under this system, EDB allocates quota of imported inputs to OEMs and vendors which is debited on line through one custom system and EDB has access to this system for year round monitoring of TBS. It was further informed that the system has been further simplified through uploading of the data by the EBD instead of PRAL with complete access to stakeholders to monitor their yearly quota and its util iz ation th ro ugh
AUTOMARK | December-2010 10
password protection. As the new system required installation of new hardware and regular maintenance each applying party may incur small fee for processing their cases. It was decided that EDB would arrange a complete demo of the system in the next AIDC meeting. It was proposed by the participants that the meeting of the AIDC should be held on a regular and more frequently for consensus development and to bring harmony in the efforts being made for the development of the auto sector. It was proposed that AIDC may be convened every month to discuss the issues being faced by the industry. Some of the participants were of the view that this may be too short a period, instead AIDC meeting may be called once after two months. The meeting decided that AIDC meeting will be held on monthly basis in the initial phase and decide the frequency depending on the resolution of present pending issues. Meanwhile, it is strange on the part of stakeholders and vendors that on one hand some of them are in favor of holding the AIDC meeting on monthly basis while others prefer holding the meeting after two months. In this circumstances how one could expect a consensus on various issues when they lack unity on a AIDC meeting issue. On introdu ction of electr ic car, participants were quite right in showing their reservations keeping in view the past experience of the company. When the manufacturers of decade old models of petrol and diesel version cars were enjoying a monopoly then how could a advance technology car can enter Pakistan. Under present political and economic situation, hardly any car makers of the world would come despite the fact that the government has relaxed the rules for new entrants recently and car makers having yearly production of 100,000 units can take a plunge in Japanese dominated Pakistani car market……
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Motorcycle Sector - Exclusive Article
By Ali Hassan
APMA links surge in bike sales to purchase of two wheelers by Watan Card holders
Japanese bike makers smoothly sail through the floods Chinese bike sales show mixed trend
The initial estimates of analysts and bike makers over a possible decline in sales has proved quite wrong as sales of many bike makers during July-October 2010 (the main period of floods) has risen as compared to same period of last year. Floods had started from July 28 and remained till October in Khyber Pakhtunkhawa, Punjab and Sindh, causing crop and livestock damages. It seems that the devastating floods have not made any big impact on the sales especially of Japanese bike makers who enjoy main market share in rural areas despite some laggard sales in August as compared to July 2010. Consumers continued to show their passion for Japanese bikes despite price
increase owing to losing strength of the rupee against th e Yen and other currencies. Even Chinese bike makers’ sales also depicted mixed performance during July-October 2010 p eriod. Many assemblers have either launched new 201 1 models or in the process of introducing new bikes in the current month. Chinese bikes are usually sold in urban areas. For example, except for Yamaha bikes, sale of Honda and Suzuki bikes rose to 172,709 and 6,302 units in July-October 2010 as compared to 151,068 and 5,066 units in the same period of last year. However, sale of Yamaha bikes plunged to 37,647 units as compared to 40,246 units. Sale of Ravi bikes rose to 8,172 units as compared to 7,273 units, while makers of Hero bikes managed to sell 13,989 units as against 12,308 units. Sale of Qingqi bikes rose to 956 units in JulyOctober 2010 as compared to 396 units in the corresponding period of 2009.
AUTOMARK | December-2010 11
Sohrab bike sales fell to 1,032 from 2,609 units. B ik e s a le s m a y r em a in sl ow i n D ec em be r as consumers prefer purchasing bikes in January every year M. Sabir Shaikh owing to change of Chairman, APMA r egist ra tion and model in new year. On mixed performance given by Chinese bike makers, newly elected chairman of Association of Pakistan Motorcycle Assemblers Mohammad Sabir Shaikh said that many flood affected people had got money through Watan Cards and they preferred lifting bikes after getting cash thus pushin g up sales of two wheelers. He said sales are rising as growers after harvesting some good crop of wheat, rice and minor crops had purchased bikes. On decline in Yamaha bikes, he said perhaps the 70cc Dhoom got a huge response soon after its launching owing to an impression that makers of Yamaha bikes were behind it. Now the consumers h ad realized t hat the Japa nese technology is not a part of Dhoom so they shifted towards other bikes which are cheaper than Dhoom. However, he said that the local bike industry after attaining production level of over 1.4 million units a year with more than 70 per cent indigenous parts is now looking forward to explore foreign markets aimed at fetching attractive
continued on next page
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Motorcycle Sector - Exclusive Article foreign exchange. When every thing was going smoothly relating t o ex port of bikes the government had withdrawn the a facility of $5 0 per b ike (Research and Development support) to bike exporters in July this year and till today this incentive has not been resumed despite hectic efforts. Th e b u rea u c ra ti c h u r d les an d discrimin ations are hinderin g the industry to play its role in the economic recovery of the country. Muhammad Sabir Shaikh, while talking to AUTOMARK said that previously the industry used to get research and development incentive per unit but its withdrawal has affected the margins of the two wheeler producers in the current scenario where the cost of input has been multiplied especially after increase in electricity and gas tarif fs an d pe troleum price hike. The cost of production got further multiplied after in crease in raw materials prices including steel, thus making the locally produced products incompetitive in the export market compared with the price being offered by India and China He said earlie r the in dustry had successfully competing with its rivals in Afghanistan, Bangladesh and other export destinations but the rising cost of doing business and withdrawal of $50 per unit bike subsidy had snatched away the potential markets. He strongly urged the government to restore the $50 per bike subsidy so that the industry could fully utilized the export worth of locally produced bikes which can give a tough fight to their rivals.
According to Muhammad Sabir Shaikh Pakistan's bike assemblers (Chinese and Japanese made) had achieved production of 1.4 million units in 2009-10 as compared to 918,000 units in 2008-09. Motorcycle industry, which provides an affordable mode of transport especially for the low income groups, need a supporting hand to enable it to serve the people severally hit by the high cost of traveling with the abnormal increase of fuel prices that led to rise in transport fares.
There is a need of age limit of using motor bikes as well to protect the environment, roads, as well as noise pollution. In Pakistan people have been al lowed to use even 30 years old motorcycle as compared to Europe and Japan where registration period is not more tha n th ree to five year s. It is seven years in Singapore and 15 years in India. Pakistan should also draw
a line for the registration period of motor bike which would also help the industry to survive besides triggering recycling process as well. Probably, Pakistan is the only country where there is no strict checking on the quality by the government after products coming out from the factories in the markets, and some new entrants who are producing low-priced Chinese cum Pakistani motorcycles also fall in the same category. After purchasing the bikes, the officials posted at the sales and service centres of many bikes makers turn their eyes and do not give desired respect. As a result, many new bike makers, instead of resolving the problems at the designated authorized showrooms, prefer checking their bikes to their old mechanics. Discussing the discriminatory attitude of the policy makers towards locally made motorcycles, industry sources said that Japanese motorcycle assemblers restart pushing up the prices on weakening of the rupee against the Yen. Hence the assemblers of Japanese motorcy cl es hav e been allowed to increase prices on the back of falling rupee against dollar and Yen, which made the imported parts dearer amid sl igh t inc rease in steel p ric es. During the last two years Japanese affiliated motorcycle assemblers increased prices of their motorcycles more than four to five times but all Pakistan i moto rcy cl es as semblers affiliated with Chinese principals had not allowed increasing the prices due to very tough competition between them and bad attitude by EDB with them. Sabir Shaikh pleaded that when the US Dollar price was equal to Pak Rs 62, our retail price was Rs 36,000 and now the US Dollar price is equal to Pak Rs 86 and still some assemblers are selling their motorcycles at Rs 36,000 in local market and also whole sale price for unofficial exports to Afghanistan at Rs 32,000 to Rs 34,000. Because today's production cost of made in Pakistan
Sale of Ravi bikes rose to 8,172 units as compared to 7,273 units, while makers of Hero bikes managed to sell 13,989 units as against 12,308 units. Sale of Qingqi bikes rose to 956 units in July-October 2010 as compared to 396 units in the corresponding period of 2009. AUTOMARK | December-2010 12
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Motorcycle Sector - Exclusive Article Chinese affiliated motorcycle is more than Rs 35, OOO without transportation. Besides the high numbers of production and addressing the problems of the commuters the uncontrolled and unregulated flock of motorcycles arc also causing traffic problems as well as becoming the major cause of fatal road accidents. According to a survey conducted by Indus Motors Limited, makers of Toyota cars in Pakistan, the highest number of road ac cidents is at trib uted to motorcycles. Its is time for the road management au thorities to look seriously to immediately evolve traffic management methods for the protection of the bike riders by allocating specific tracks for the good of the people in general and the motorcycle industry in particular.
Problems: Sabir Shaikh has identified at least 13 problems that are being faced by the local motorcycle industry: A) Deadline for submission of annual consumption data by OEMs in SRO 65 6/ 2 006 a nd SRO 65 5 / 200 6. B) Rec ognit ion of A PMA a s a representative of 2/3 wheelers OEM in
AIDC of EDB. C) Restriction of purchases of imported items fro m co mmercial importe rs D) Dif ficultie s in Importable List Verification from EDB which is waste of time and no need for any list verification because it is only a money making mach ine for EDB Tariff Department. E) Research and Development Support on Export of Motorcycles and Auto CNG Rickshaw. F) Revisit of SRO 693/2006 because the committee of EDB already suggest the
Govt . a bou t t hi s m at ter i f no implementation of report of AIDC then why Govt. arrange the AIDC for auto sector. G) No distinction has been given in SRO 693/2006 for motorcycle of different horse powers. H) Inclusion of commercial importers of Auto Parts under SRO 693/2006. I) Valuation Advices issued without consulting all the stakeholders of motorcycle industry. J) Valuation Advices issued without any basis only on motorcycl e industry. K) Non- availability of Valuation Advice publicly specially on motorcycle sector. L) Access to PRAL data is not available to OEMs/ vendors. It is useless system in trod uced by Govt. of Pakistan including EDB. M) CKD duty @ 15% for parts which are not produce in Pakistan is not justified and 15% +32.50 % = 47.50% duty on parts which are produce in Pakistan both are wrong one unified duty @ 35% must be introduced in Pakistan for motorcycle industry for all types of CKD no need of any list verification from EDB. And also Govt. must reduce CBU rate of duty from 65% to 45% on motorcycle sector‌..
Motorcycle Production (only PAMA member)
AUTOMARK | December-2010 13
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Update
Government to ‘rationalise’ prices of cars
In a major policy decision, the government has decided to raise the age of imported used cars from three to five years, which in turn will have a dramatic impact on the local car market, putting local carmakers at a distinct disadvantage. Since the price gap between a used 1300cc imported and local car is substantial, the age limit of imported used cars exceeding 1000cc may be increased from three to five years, it was recommended The move comes after local car p r o d u c er s r e p ea t ed l y i g no r ed government directives to lower local car prices and give some relief to customers. The new policy aims at making all car producers of the country, who have been earning profits ranging in billions of rupees, fall in line. The policy would also cover motorcycles, trucks, buses and tractors. According to official d ocu ments available with The Express Tribune, it was during the Economic Coordination Committee (ECC) meeting on November 4 that the federal government took this important decision. Th is move is exp ected to send shockwaves through the local car manufacturing industry. The cabinet meeting was presided over by Finance Minister Dr Hafeez Sheikh. The attitude of car manufacturers came under question who, for the past two
years, had been defying government orders to bring down the prices of locally assembled cars. The rise in prices of locally produced cars upset policymakers in Islamabad who were embarras sed that their ‘recommendations’ did not carry weight in the eyes of the manufacturers. The d efi a nc e al so m e ant t h at c ar manufacturers were free to formulate and follow their own rules of the game, without showing any respect for regulation from official quarte rs. The federal government was informed that one car manufacturing unit had
earned profits worth Rs3.4 billion in 2009. Despite this, the unit raised the prices of its cars instead of decreasing them. Moreover, violation of the terms of agreement with car manufacturers regarding the ‘deletion programme’ was also said to be one of major reasons beh ind thi s major p ol icy sh ift. However, sources confirmed that the decision would not be announced by the government until an inter-ministerial c omm it tee, c omp r isi ng f eder a l secretaries of commerce, finance and industries and the chairman of the Federal Board of Revenue discuss the whole issue in detail and propose a tariff structure and suggest a workabl e mechanism. Earlier, official documents revealed that a summary was submitted before the ECC by the ministry of industries and production on ‘Rationalising the prices
AUTOMARK | December-2010 14
continued on next page
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Update of locally Manufactured Cars’. In this summary, the ECC was informed that the prices of locally assembled cars h ad been on a constant rise over the last few years. As a result, indigenous cars have become too expens ive for consumers. Th e member s were reminded that in light of the decision by ECC in its meeting held on March 30, 2010, the minister for industries and production had h el d a s er i es o f meetings with man uf act ure rs o f automobiles and gave them a clear message to lower the prices of their products. Later, the members were informed that despite their orders, M/S Indus Motors had raised their prices, whereas Suzuki and Honda had raised their prices more than twice to date. The members were further informed that in a later meeting held on July 1, 2010, the ECC had directed the ministry of industries and production to bring a summary in the next [ECC] meeting with complete information about the profit/loss incurred by the automobile sector, along with proposals for improving the personal baggage transfer of residence and gift schemes for the import of used cars after consultation with other stakeholders. The ECC also directed for a presentation by the Engineering Development Board (EDB) on its role in the auto sector. During the presentation to the ECC members, it was disclosed that M/S Indus Motors (Toyota) have attained sales volumes of over 50,000 cars during 2009-2010 and achieved a gross profit margin of 7.5 per cent, whereas Atlas Honda cars sustained losses worth Rs852 million. M/S Suzuki Motors worked with a gross profit margin of only 1.42 per cent. However, the sales volume of M/S Atlas Honda cars rose from 11,144 units in 2009 to 14,120 units in 2010 and M/S Suzuki Motors from 83,350 units in 2009 to 124,100 units in 2010. The position of Indus Motors in the stock market has also improved with a net profit of Rs3.4 billion in 2010 compared to Rs1.3 billion in the fiscal year of 2009.
While reiterating the government’s commitment to follow the auto industry deletion programme in its true spirit, it was agreed by the ministries concerned that an effective way to ensure reduction in prices of locally assembled cars was to modify the schemes concerning import of used cars like transfer of residence, gift and personal baggage scheme so as to ensure a competitive market for the local car in dustry. It was also noted with concern by ECC members that car manufacturers failed to honour the ‘deletion programme’ hence they should be persuaded to ensure its timely implementation. Failure to do so may lead authorities to take appropriate action as per their terms of agreement. During the discussion in the ECC, members proposed that the age limit of imported used cars up to 1000cc may be enhanced from three to four years considerin g the narrow price gap between used imported cars of 1000cc and Pakistani used cars of similar capacity. Since the price gap between a used 1300cc importe d and local car is substantial, the age limit of imported used cars exceeding 1000cc may be increased from three to five years, it was recommend ed. Moreover , it w as discussed that the ECC may reaffirm its earlier decision relating to th e consistency of deletion program, besides endorsing the changes in transfer of residence, gift and personal baggage schemes for import of used/second hand cars. By amending the import policy, commercial import of three-year-old
AUTOMARK | December-2010 15
c ar s w a s a ls o recommended in t h e E C C de l ib e ra ti o n s . T h e E CC w a s further informed that the minister for industries and pro ductio n held th ree m eeti ng s wi th car ma nufa ct ur er s, but those r e m a i n e d inconclusive as the m i g h t y m a nu fa c t u r e r s were reluctant to decrease the prices of locallymanufactured cars on the grounds of “devaluation of the Pakistani rupee versus the Japanese yen as well as US dollars.” They also demanded zero-rated tariff on imported CD-kits in return for a decrease in car prices. During the discussion, it was felt that the main reason for an increase in prices of the cars was the non-serious attitude of car manufacturers toward s the Auto Industry Deletion Programme (AIDP) compliance, which was meant to achieve targeted deletion or otherwise face an increased tariff on import of such nonlocalised parts. Th e E C C w as to l d that car manufacturers were also working below capacity and producing fewer cars against local requirements. In this manner, they receive the full price of a car at last three months in advance in the name of “booking” while the delivery is actu ally mad e month s lat er . During the debate in ECC, the ministry of commerce bosses also pointed out that the subject of import falls under its domain under the rules of business of 1973. Therefore, said officials, the ministry of industries and production should not have initiated this summary. Moreover, they had maintained a record of imported used cars from time to time under different schemes, ie, under transfer of residence scheme, gift scheme and personal baggage scheme. In the light of this past experience, it can be recommended as to which method would be more effective for rationalising the prices of cars, they argued.....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Oil & Gas - Update
Use of APL pipeline
Hubco opposes PSO-Byco agreement The Hub Power Company (Hubco), Pakistan's largest independent power producer (IPP), has opposed a Pakistan State Oil (PSO) agreement with Byco to allow it the use of Asia Pakis tan Limited's (APL) pipeline to transport white oil from the refinery in Hub to K ar ac h i . H u b c o i n it s l a t es t communication to PSO said that any agreement between PSO and Byco would violate its right to exclusively use the pipeline till 2028. "PSO-Hubco agreement was reached way back in 1998. It provides Hubco the right to exclusively use APL pipeline for supply of furnace oil to its plants in Hub. Hubco requires over 8000 tons furnace oil daily to ensure uninte rrupted production of electricity and supply it to the system to meet Pakistan's growing energy demand," Hubco has reminded PSO of its obligations in its recent
communication and stressed it to avoid any difficult situation. Hubco, being Pakistan's major IPP, produces 1000 MW electricity per day and any ominous d e v el op m e nt i n t h e w a ke of controversial agreement between PSO and Byco for the use of APL pipeline can result in serious setback to Pakistan's energy system. Sources in Hubco confirmed to mediaer that the company has urged PSO not to enter into any controversial agreement, as it could risk fuel supply to Hubco plants. "We can go to any extent to make sure
that PSO does not allow any party to use APL pipeline so that our plants do not suffer any setback in supply of fuel and we have conveyed our position to PSO management verbally in meetings held to discuss the issue and now in writing", they said. They said that as per original plan, PSO is bound to let Hubco use 84 km long APL pipeline for supply of fuel to its plants for next 18 years. Hubco's plant can not be supplied furnace oil on lorries due to its huge volume. According t o sour c es, H ub co m ad e h u ge investment in APL pipeline. Hubco, other than paying as transport charges, is paying $ 18 to APL as fee to share its capital investment in the pipeline and in the given situation it can not allow any party to share the pipeline, Hubco sources claimed……
BYCO may acquire Admore There are rumours in the market that Byco, which is hungry to find new avenues to market its bulk supplies, is eager to acquire Admore, according to Topline Securities. With oil price deregulation on the cards coupled with growing circular debt in the energy sector, there are chances that small oil marketing companies (OMCs) like Admore, Hascombe and Overseas Oil Trading Company (OOTCL) will be taken over by big local refineries, said Topline Se curities analyst Farhan Mahmood. Various industry sources have confirmed that such a deal is in the pipeline and Byco is evaluating this transaction, said Mahmood. Though it is difficult to determine the
exact value of the deal due to limitation of data, the transaction value could be around Rs4 billion, Mahmood wrote in t h e com p a ny re sea rc h re po r t. Fourth largest after Admore acquisition Byco will become the fourth largest oil marketing company in terms of its retail network if it acquires Admore, said Mahmood. The company needs a wider retail network to market its bulk supplies as it is in the process of building the country’s biggest refinery, which can process 100,000 barrels per day. The refinery is expected to be online in the next few months. No details have been shared by the company’s management regarding the commissioning of the new refinery and
AUTOMARK | December-2010 16
its design. However, if it is assumed that all retail products will be marketed through its own network, then the company needs more than 2,500 retail outlets, said Mahmood. Admore has 390 operational retail outlets, of which 83 are in Sindh, 254 in Punjab, 44 in Khyber-Pakhtunkhwa, two in Balochistan and seven in Azad Kashmir, acco rding to the 2009 petroleum statistics. Interestingly what is happening with small OMCs like Admore is that their sales ratio to retail outlet is low due to non-availability of the product. Big OMCs sell their products to these small OMCs and thus the market share of small OMCs, despite their ability to sell, r emai n low , said M ah mood .....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Motorcycle Sector - Event
Glimpses of the events
Memon Motors Launch new model-2011 of 70cc Super Star Motorcycle
AUTOMARK | December-2010 17
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Update
Board of Investment to seek inclusion of motorcycles in automobile policy In October 2009, the BoI had also requested the Ministry for modification in new entrant automobile policy for its application across the board including motorcycles. The 125-150cc motorcycle categories are currently being imported from Europe and Latin American. The Board of Investment (BoI) is likely to put u p a proposal before the Economic Coordination Committee (ECC) for a change in new entrant automobile policy to attract investment in motorcycle sector as the existing pr oced u res d o not pr ovi de an environment conducive to the industry's development. Sources said that the Ministry of Industry and Production was unable to make appropriate changes in the existing policy, due to which the issue may be taken up in ECC meeting. Sources said that Yamaha Japan has threatened the government to revisit its plan of $150 million investment for manufacture and sale of motorcycles of advanced functions like EFI, high quality and sophisticated designs in the 125cc and 150cc categories in Pakistan unless the existing procedures are revised. The company has said that since October 2009 Pakistan's automotive policy under dev elop me nt d oes not i ncl u de motorcycles, which around the world is
defined as automotive ind ustr y. The company requested the Ministry of Industry and Production in its meeting in March 2010 that the policy should include motorcycles so that they could avail the terms and conditions of the policy, including the five-year import duty exemp tion for CKD par ts. In October 2009, the BoI had also requested the Ministry for modification in new entrant automobile policy for its application across the board including motorcycles. The 125-150cc motorcycle categories are currently being imported from Europe and Latin American. Yamaha plans to construct a state-of-
the-art manufacturing and employee training facility in Pakistan. It has already developed such services in Indonesia, and expressed desire to in trod uce th e sam e in Pakistan. A c c or d i n g t o c om p a ny p l a ns commencing in 2010, it would produce 22,000 motorcycles in the first year, with a workforce of 450 employees, and would gradually increase production to over 750,000 motorcycles by 2020, and employ 8,100 employees in Pakistan. It has divided the project into three phases. The first phase includes injection of 4.3 billion yen, which would include training of p er so nne l a nd p r od u c ti on. Th e second p has e would in clude injection of 7.4 billion yen, and the third phase would include injection of 3.3 billion yen, which would include 90 pe r ce n t l o ca l is a ti o n o f t he manufacturing. The company plan states that Yamaha Pakistan would be a hub factory for exports, and commits to export motorcycles from Pakistan.....
Visit our website: www.automark.pk AUTOMARK | December-2010 21
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Pakistan’s Business - Update
Duty-free access
WTO rejects EU trade concessions to Pakistan Sources told media that the European Union Council had unanimously approved duty-free access to Pakistani items in European markets. And it had mandated the European Union Commission to seek approval for the move from the WTO. Pakistan has de cided to launch a diplomatic offensive following rejection of a European Union (EU) move by the World Trade Organisation (WTO) to offer concessions under the Generalised System of Preference (GSP) to Pakistan for its export items. The rejection came following opposition to the EU move by some of the WTO members, including India, sources told Express newspaper. However, a senior Pakistani official put it the other way. “India did not oppose Pakistan at the WTO meeting rather it opposed the EU move,” he said, adding that the EU would now take up the matter with New Delhi. The rejection was made at a meeting of the Council for Trade in Goods (CTG) recently held at the WTO headquarters in Geneva. Sources in Pakistan’s commerce ministry told Express that the European Union Commission had sought WTO’s approval for d uty-free access to Pakistani products worth $500 million. According to the sources, most of the WTO members were in favour of the EU move, but some of them, including India, opposed giving the special trade privilege to Pakistan. India argued that most of the Pakistani products to be given duty-free access to E u r op e a n m a r ke t s w er e n ot manufactured in the areas devastated by the recent floods. It said the EU wanted to offer the GSP facility to Pakistan to help tens of thousands of people affected by floods. But since most of the industrial units, where the items are being produced, are located in the areas unaffected by
fl oo d s, t h e mo ve w ou l d h e lp industrialists and not the flood survivors. New Delhi said that the international community should provide more funds for the re habilitation of the flood survivors instead of offering it the GSP facility. Pakistan’s Commerce Secretary Zafar Mehmood confirmed that India opposed the EU move at the WTO meeting. He added that since it was the EU move, now the European Union would try to win over India before next WTO meeting. Sources told media that the European Union Cou ncil had u nanim ously approved duty-free access to Pakistani items in European markets. And it had ma nd at ed th e Eu rop ea n Union Commission to seek approval for the move from the WTO. The move was to be implemented from January 1, 2011 after approval from the WTO. However, India’s opposition has put the trade privilege for Pakistan in the doldrums. Sources told Express that Pakistan was supposed to export $500 million worth of items to European markets under the GSP facility. It is the first time in the history of European Union that a non-European country would be given duty-free access to European markets. Earlier this facility was extended to Bosnia Herzegovina and Moldova. Commerce Secretary Mehmood said that Pakistan would automatically get GSPPlus status following duty-free access to its products in European markets. And under the GSP-Plus facility, Pakistani
AUTOMARK | December-2010 22
products would get duty-free access to American markets. Sources told Express that with the GSPPlus facility Pakistan would be able to export bil lions of rupees worth of products to American markets under the Reconstruction Opportunity Zones agreements between Islamabad and Washington. However, following the rejection of the EU move by the WTO, the future of the GSP-Plus facility for Pakistan also hangs in the balance.
Pakistan set to allow 22 more Indian products Pakistan is considering allowing import of 22 more items from arch-rival India by shrinking the list of banned products in th e up com ing t ra de p olic y. According to official documents, the government is going to expand the positive trade list with India. The commerce ministry has prepared a list of 22 items which Pakistan has been importing from Europe but can import from India. Pakistan has been gradually improving trade ties with India. It has expanded the importable items list from 773 in July 2006 to 1934 items in March 2009. The decision to expand the list further would be in sharp contras t to the government’s policy towards India which seeks resolution of political issues first before talking business
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Update
Electric Car makes an attempt to enter Pakistan A loc al veh i cl e a ssem bler h as approached the government to allow import of components at zero rate of customs duty for the purpose of local assembly and export of “electric cars” in Pak istan but the Japan ese car assemblers and their vendors have shown reservation. According to the minutes of fifth meeting of Au to Indu str y Dev elopm ent Committee (AIDC) held in November, local car assemblers and vendors had shown concern about the seriousness of th e company based on its past experience. Karakoram Motors (KM) had presented a detailed report about the Dynasty Electric Car project at the fifth and sixth meetings of the AIDC. T h e com p any h ad assur ed th e government of 70 per cent localisation of parts but it had asked the latter to allow import of only those items at zero rate duty, which are till- to-date not availabl e in the country or bein g m a nu fa c tu r ed b y a ny v end or . Meanwhile, Pakistan Association of Auto motiv e Parts and Accessories Manufacturers (Paapam) chairman Aamir Allahwala said that the electric car should be treated as same as a normal car (with internal combustion engine). The association welcomes the new technology but apart from power source both ty pe s of cars are same and, therefore, both should be subject to duty as per rules defined in the AIDP and the tariff-based system (TBS). Local assemblers said that since there is no h is to ry of electric cars the maintenance of a huge battery would be difficult. With a brief history of two years the product can be unsound and unsafe for general public. The electric car will be unsuitable for roads in the presence of fast movin g vehicles, they added. They said that the electric car when compared with cars with petrol/diesel engine differs only in replacement of en gine with an electric motor. As for other
components like body, seats trims, bumpers, instrument panels etc are concerned there is no difference between the two. The assemblers said in view of these observations, no special consideration be given to electric vehicles as regards to new entrant policy, which has already been relaxed. Local car makers had informed the government that electric car would cost $19,000 -20,000 making it unaffordable for common man even if the government allows d uty and tax exemption. Karakoram Motors GM plant Engr IHT Farooqui told press reporter that the selling price of the electric car would be Rs800,000 for a basic model (subject t o g o ve r nm en t ex e m p ti o n on imports).The price quoted by assemblers is Dynasty Co’s own price and does not apply to Pak istan assembled car. He said in the sixth AIDC meeting the company presented its case and replied to each and every questions asked by EDB officials, Pakistan Automotive Manufacturers Association (Pama) and Paap am and oth er partici pants. The product was warmly welcomed by all, he claimed. He said in 2007 the KM had acquired the total assets of Dynasty Electric Car of Canada and shifted all the plant equipment an d machines to their assembly plant in Karachi. He added few units are now already assembled at the plant and are under test and trial. To a query on seeming incentives in absence of policy or tariff for electric cars, he admitted currently, there is no provision for the local production of Battery Electric Vehicles in the Auto Industry Development Plan (AIDP), but it does not mean that no amendment and alterations can be made in this policy. In the AIDP it is already mentioned in chapter 7 that new technology and environment -friendly products are now need of the country and will be given more incentives and priority to the entrant in this field.
AUTOMARK | December-2010 23
KM already submitted two lists of imported and locally made components to EDB and to Paapam. He denied the impressing that the company intends to import all parts at zero level duty. He said the company aims to sell about 300 units to international buyers in the first year and to earn as much as about $4 million. He added that as it is a low priced car in the global market the company hopes to increase the production within few years of introduction. Dispelling the impression created by Japanese car makers about the low speed of electric vehicle, he said it all depends upon the customer pocket and the speed of the car can be enhanced by installing a bigger size motor, and expensive batteries. He said this car is basically meant for universities, industrial parks, towns and airports and is called the ‘neighborhood vehicle’. These cars can be charged by household electric socket, by installing solar panels or by gas generators. With the help of a devise this car can supply 10Kw to the house by reverse charging called vehicle to grid. He said the KM had already exported one unit to UK for marketing purpose and have received good response from the market. Responding to the assemblers’ assertion that the Canadian Transport Authority has not allowed it for use on public roads, Mr Farooqui said the Canadian government has allowed electric vehicles in majority of their provinces which incl udes Quebec, Vancouver and Alberta. Additionally, many states of US already allowed these low- speed environment-friendly vehicles on their roads. Til l to-date only 10,000 units are manufactured in the world. Besides Dynasty, there is an Indian company Reva, which sold more than 6,000 units to European market.
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Inside - Exclusive Article
by Omar Rashdi from St. Patrick’s Technical Institute
Brakes Development In braking system Mater Cylinder has distinct lines for front and rear, suppose if the oil leakage took place in one of master cylinder’s division, the brake still work by other divisions. Most modern cars have disc brakes on the front wheels, and some have disc brakes on all four wheels Speculation The brakes transmit the force to the tires using friction, and the tires transmit that force to the road using friction also.
Turning Background One of the first steps taken to improve braking came in the early '70s when manufacturers, on a widespread scale, switched from drum to disc brakes. Since the majority of a vehicle's stopping power is contained in the front wheels, only the front brakes were upgraded to disc during much of this period. Since then, many manufacturers have adopted four-wheel disc brakes on their highend and performance models as well as t h e ir l ow -l in e ec o no m y c a r s. Occasionally, however, as in the case of t h e 19 9 9 M a z d a P r ot eg e' s , a manufacturer will revert from a previous four-wheel disc setup to drum brakes for the rear of the car in order to cut both production costs and purchase price.
Analysis We have 4-wheel disk brake with drum brakes in rear wheel because of safety causes. In brak ing system Mater Cylinder has distinct lines for front and rear, suppose if the oil leakage took place in one of master cylinder’s division, the brake still work by other divisions. Most modern cars have disc brakes on the front wheels, and some have disc brakes on all four wheels. This is the part of the brake system that does the actual work of stopping th e car. The most common type of disc brake on modern cars is the single-piston floating caliper.
Drum brakes work on the same principle as disc brakes: Shoes press against a spinning surface. In this system, that surface is called a drum. Many cars have drum brakes on the rear wheels and disc brakes on the front. Drum brakes have more parts than disc brakes and are harder to service, but they are less expensive to manufacture, and th ey easily incorp orate an e m er g en c y b r a k e m ec h a n i sm .
Self-Adjusting Brakes The single-piston floating-caliper disc brake is self-centering and selfadjusting. The caliper is able to slide from side to side so it will move to the center each time the brakes are applied. Also, since there is no spring to pull the pads away from the disc, the pads always stay in light contact with the rotor (the rubber piston seal and any wobble in the rotor may actually pull the pads a small distance away from the rotor). This is important because the pistons in th e brakes are much larger in diameter than the ones in the master cylinder. If the brake pistons retracted into their cylinders, it might take several applications of the brake pedal to pump enough fluid into the brake cylinder to engage the brake pads.
There's relatively less throughout for brake discs during the past 20-30 years. The most powerful disc b r ak es a re st il l ventil ated, cr ossdrilled and made of cast-iron, although larger wheels enable larger diameter of brake discs. For calipers, road cars today still employ single caliper per disc. Each caliper is actuated by up to 4 pistons ("4-pot") or a few racing-biased cars may even employ 6-pot calipers. The caliper is made in a single piece - so called "monobloc" - and made of aluminum.
Cast-iron, aluminum and carbon-fiber discs Obviously, cast-iron disc is the heaviest part of a brake - about 8 kg each, or 32 kg per car. Aluminum alloy discs are used in the base Lotus Elise. Though
Porsche's ceramic disc brakes Recently, Porsch e introdu ced a breakthrough to the 996 Turbo - ceramic
Brake evelopment
AUTOMARK | December-2010 24
continued on next page
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Technology Update
Workshop calls for developing country’s high-tech industry Technology trade most increasing trend in contemporary era Small industries urged to work in line with modern high-tech advancement The three-day workshop entitled ‘Future for High-Tech Industry Development in Pakistan’ organised by the South Asian S tr at eg ic S tab il ity Inst itu te in collaboration with the Centre for Internatio nal Trade and Security, University of Georgia continues at the Serena Hotel. N u c l ea r s c i e n t i s t D r S a m a r Mubarakmand, SASSI Director General Dr Maria Sultan, Pakistan Nuclear Regulator Authority ex-Chairman Jamshed Azim Hashmi, Ministry of Industries and Production’s Planning Commission Joint Secretary Shaista Sohail and oth ers addr essed the ceremony organised on the second day of th e workshop on Wednesday. Speakers were of the view that high technological trade was the most increasing trend in this contemporary era. They said that it was evident through current trends in global trade that developed natio ns had been augmenting and modernising fields of disc brakes. Ceramic disc is highly heat and fade-resisting. Moreover, it is just 4 kg each, or half of a conventional castiron disc, thus save 16 kg per car. This benefit performance as well as ride quality (because of lower unsprung weight). The ceramic disc is based on specially treated carbon-fibers that are siliconized at 1,700°C in a high-vacuum process. Accompany with a new metallic brake pad, Po rsche claimed it pro vides superior braking power yet requires less effort, thus does not require brake assist.
telecommunications, medicines and agriculture while be nefitin g fro m technological advancement. In her opening remarks, SASSI DG Dr Maria highlighted the need for hightech trade in Pakistan. She stressed the need for integrating country’s industry in international market, saying that small developing industries should also w or k w i t h m o d e r n h ig h -t ec h ad vancement, so that Pakistan’s economy cou ld be strength ened. Speaking at the workshop, Dr Samar Mubarakmand said that current energy crisis was causing Rs 230 billion loss to the country every year. He said that present dependable power supply hovered around 14,000MW in summer whereas it dropped down in winter. He estimated that power demand in year 2030 would reach over 100,000MW. In this situation, he observed, Thar Coal could play a pivotal role in meeting energy needs. He said that a viable s o l u t i o n f o r m ee t i n g en e r g y
The pad does not absorb water, hence excellent response under wet conditions.
Brake Assist According to Mercedes, most drivers
AUTOMARK | December-2010 25
requ ireme nts of the country was development of Thar coal. Pakistan Nuclear Regulator Authority ex-chairman Jamshed Azim Hashmi said that importance of high value added trade heightened the sense of diplomacy, which compelled a nation to resolve dispute s w ith neighbours without warfare. Through this, he added, trade could be promoted. Pakistan Atomic Energy Commission Chairman Dr Ansar Parvez, while highlighting the role of nuclear power in energy scenario of Pakistan, said that the country had always ensured effective measures to control its nuclear activities. U niver sit y of Eng ineer ing and T ech nology Ta xila ’s Fac ul ty of Mechanical Engineering Director Zafar Khan, SASSI’s Adviser on Nuclear Affairs Zafar Nawaz, CITS Se nio r Research Associate Dr Dmitry Nikonov, Col Zafar Ali from SPD, Sirajuduin and others presented their papers at the workshop. (especially women) do not brake as hard as they would have thought during accident. Analyzing the Braking Pedal Effort vs Time curve will find the braking pedal effort easily fade because of the lack of physical effort. Some people's feet are not accelerative enough to brake hard quickly. As a result, collision may still happen no matter how strong the brakes are Therefore many Mercedes cars are installed with BAS (Brake Assist System) to artificially accelerate and enhance the braking effort.....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Focus on Environment - Exclusive Article
by Mian Iqbal Hassan
The Industrialized Countries has Created Alarming Situation in Global Environmental Pollution and Global Warming The Earth naturally absorbs in coming solar radiation and emits thermal back into space. Some of the thermal radiation is trapped by certain so-called greenhouse gases in the atmosphere , which increases warming of the E a r t h ’s s u r f a c e a n d atmosphere; trap some of the thermal radiation. In recent years, carbon dioxide (CO2) a naturally occurring greenhouse gas, has been building up in the atmosphere the result of human activities burning of fossil fuels (coal, oil and natural gas) and deforestation Water vapor, methane (CH4) Nitrous oxide (N2O) and ozone (O3) are also naturally occurring green house Greenhouse gases that are mostly human-made include c hl or ofl uor o ca r b on s (C FC s) hydrochlorofluocrbons (FE Cs), and sulfur-hexafluoride (SF6) Several nongreenhouse gases Carbon monoxide (CO), oxides of nitrogen (N2O) and nonmethane volatile organic compounds contribute indirectly to the greenhouse effect by producing greenhouse gases during chemical transformations. Since 1800, atmospheric concentration of CO2, CH4 and N20 has increase by 30% 145% 15% respectively. The increasing buildup is believed by many
scientists to be the major cause of higher th an norm al avera ge globa l temperatures in 1990 / 1997 was the hottest year on record. Over the past century, the Earth’s average temperature has risen by approximately 1 degree F, and scientists believe that it could rise
AUTOMARK | December-2010 26
by 5 to 6 degree F over the next 50 to 60 years. This global warming could speed up the melting of the polar ice cape. It is generally expect that the sea levels are likely to rise by more than 3 m e t er s i n t h i s c e nt u r y. T h e climatologists believe that population residing with in 40 miles from sea. Will go under w ater th e country lik e Netherlands, Bangladesh or Ice land Nations of the pacific are low-lying, how th ey w ill r espond suc h for ces. In Dec, 1997, a United National summit on global warming was held in Kyoto, Japan, arranged by industrialized countries. Delegates from over 150 nations attended international treaty to set some limits on emission of CO2, CH4, HFC2, PFCs and SF6, The accord, known as the Kyoto Protocol. Called for an overall reduction in emissions of 5.2% bellow 1990 levels by the year 2021, significantly bellow the 15% reduction
continued on next page
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Focus on Environment - Exclusive Article proposed by the European Union. Under the accord, the 15 EU nations agreed to reductions of 8% The U.S. to 7% and Japan to 6% the under developing countries were permitted to limit their emissions voluntarily. The accord allowed high emissions nations to meet their targets by Purchasing pollution rights nations that have exceeded their goal, although the mechanism for buying and selling such emission permits were not worked out. According to this agreement the industrialized countries agreed to provide 0.8% of their GDP which comes out to be 240 Billion US $ every year to the developing counties and their own industries to work for environmental protection. The industrialized countries are not full filling their commitments. About 7 Billion Metric Tons of carbon equivalent harmful greenhouse gases are omitted by industrialized countries every year. This quantity does not include carbon dioxide (CO2) absorbed by the forests. The Indu strializ ed cou ntries are r e spo nsibl e f or 78% d ir e c t environmental pollution as per EPA Washington U.S.A reports as under. The industrialized countries are exporting their waste by incineration process and pu mping in to the atmosphere.
1. U.S.A = 24% 2. Japan & Developed Eu. Nations = 26% 3. Eastern Europe and former USSR= 15% 4. China = 13% 5. India = 9% 6. Other developing nations = 13% The nuclear countries have about 28500 nuclear Arsenals with multi mega tons capacities which can completely destroy many earth size planets. The Industrialized Countries have installed nuclear power reactors for their economic benefits and put the global inhabitants in great danger which reads above 83 % of the world as under up till 30-06-2009. USA and UK in particular are creating hell of problems for Pakistan for nuclear power generation in collaboration with China. The Ind ustrial ized Countries are
transferring out-dated technologies / processes and equipments to poor developing countries, which do not fulfill their own environmental standards, resulting lot of po llution in those countries. Not only this, they are dumping their hazardous wastes in poor developing countries. Due to lack of education in developing countries, the industrialized nations are exp loiting and trying to get the environmental cost from them by various tactics and slogans i.e. Depletion of Ozone lay er etc. Where in the industrialized countries are mainly responsible for the environmental pollution, damage to Ozone layer and global warming. The CFC’s produced and marketed by i nd ustriali zed countries like U.S.A. USSR, Japan European Union, Canada, Australia etc; has mainly damaged the Ozone layer. NASA has reported in 1995 that human produced CFC,s will continue depleting Ozone layer till 2020. They are not ready to pay its environmental damages cost w hich is in T rillion of dollars.
pollution may be first eradicated by financing the poor nations and bringing them to equal respectable level with out any discrimination of religion, color, race and region etc. Otherwise no one can protect the globe from nuclear disaster and other wars of terrorism. In the larger interest of global cleanliness the RECYCLING INDUSTRIES in particular should be promoted and the 21st century may be named as recycling century. To protect this Earth globe f rom en vi ronm en ta l pollution, Technologies special grants and interest fr ee f inanc ing, by i nt er na t ion a l d on or age ncies should be provided all over the world with immediate effect on e me r ge nc y ba si s f or r e c y c l i n g in d u s t r i e s .
It is suggested that in the larger interest of global peace and sec urity / protection. The economic
About writer: Mian Iqbal Hassan, Ex-President, Board of management, Multan Industrial Estate. AUTOMARK | December-2010 27
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Alternative Energy - Update
Local firm manufactures wind turbine It was decided to hold an international workshop on indigenous manufacturing of wind turbine machinery in the beginning of 2011 A Pakistani firm has manufactured wind turbine locally and is setting up a pilot project at Jinnah Avenue Islamabad to generate energy with the wind flow of traffic. The firm has requested the Engineering Development Board (EDB) to take up the matter with National Hitghway Authority for setting up of similar projects on the motorways. CEO, EDB Aitazaz A Niaz i held a me eting with a committee of the ma nu f ac t u re r s for m ed b y th e stakeholders and stressed the need of making a beginning for indigenous manu fa ctu ring of wi nd tu rbine machinery in the country. According to EBD sources Niazi assured them full support of EDB to achieve the goal of indigenization of wind turbine machinery as EDB had prep ared Na t io na l E ng i neer i ng E xp o r ts Development Strategy (NEEDS) and taken up the matter with the Prime Minister to discourage import of machinery which is manufactured locally. It was decided to hold an international workshop on indigenous manufacturing
Energy crisis
comp onent s and pa rt s. It w as recommended that R&D funds should be established at the earliest for capacity buildings of local man ufacturers. The committee decided to meet again by the end this year to finalise the agenda for international workshop. Later CEO, EDB and senior officials of the Board met Managing Director, Alternative Energy Development Board (AEDB) and briefed him about the proceedings of the committee and other related issues....
of wind turbine machinery in the beginning of 2011. An a ssessment of th e exist ing capabilities of local manufacturers for m an u f a ct u r i ng w in d t u r b i n es components and potential for future expansion in capacities along transfer of technology was also made. It was emphasised that speedy transfer of technology can only be made through joint ventures. The meeting also identified the raw ma te ri al s and it s sou r ce s f or manu fa ctu ring of wi nd tu rbine
Pakistan calls for balance
Highlighting its rising electricity needs, Pakistan has called for a balance in the International Atomic Energy Agency’s regulatory, promotional and safety functions to ensure its continuing relevance in the context of promoting peaceful uses of nuclear energy and nonproliferation.
“IAEA’s role in promoting peaceful uses of nuclear energy is indispensable. The agency is uniquely placed to facilitate transfer of nucl ear technology to develop in g cou ntries,” Pak istan i delegate Raza Bashir Tarar told the UN General Assembly..
AUTOMARK | December-2010 28
Electrical Engineering conference Students of PU Department of Electrical Engineering has shown outstanding performance in 'All Pakistan Electrical Engineering Conference' organised by Ghulam Ishaq Khan Institu te of Engineering and Technology (GIKIET) from Nov 26-28 last. Umer Saleh and Hafiz Kashif won first position in research paper while Salman Tahir, Nouman Haider, Hafiz Ishtiaq and Muzammil bagged first p rize in hardware project contest. Lec tur er Umer Far ooq wa s th e su p erv iso r of s tu d ent s i n t h e competitions. Vice-Chancellor Prof Dr Muj ahid Kamran has congratulated College Principal Dr Javed Ahmad, Chairman Dr Rafique Ahmd, Umer Farooq and students on this great achievement.....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Business - Update
Businessmen seek preferred status for India
Renowned businessman Amin Hashwani, said trade between the two countries is heavily tilted in India’s favour, which has a share of four times more than that of Pakistan. Business owners have expressed apprehensio n th at trade hurd les between Pakistan and its Eastern neighbour will persist even if Islamabad gives the most-favoured nation (MFN) status to India. Talking to the media, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Sultan Chawla said local businesses openly support the idea of granting the MFN status to India but one hurdle will follow another and impediments in the way of bilateral trade will continue to pop up. Leading Pakistan i entrepreneu rs recently visited India and held a series of high-level meetings with business owners and government officials. During the deliberations, India reiterated the demand for MFN status. Meanwhile, Chawla also called on India to lower tariffs on goods of interest to Pakistan. In the longer term, “there will be a need to cooperate on regular crossb or d e r i n ve st m en t fl o w s a nd encouragement of FDI (foreign direct investment) in each other’s countries.” Re no w ne d b u si n ess m an A m i n Hashwani, said trade between the two countries is heavily tilted in India’s favour, which has a share of four times more than that of Pakistan. Pakistan, being a smaller economy, should have benefitted more in trade with the bigger economy, as is the norm. Hashwani cited certain non-tariff barriers imposed by India to protect its economy which are hurting Pakistan, particularly the dominant export sector, textiles. However, the barriers are not Pakistan-specific. “Pakistan is at the
receiving end right now because it has a weak export base.” He called on the governments of both countries to ease visa restrictions for business owners who wait for months to ac qu ir e th e requ ir ed tr av el documents. In a statement issued on Friday, the FPCCI called for removal of non-tariff barriers by India and facilitation of people’s movement across borders. It said that there was a need for enhancing traffic through road, rail and air,
AUTOMARK | December-2010 33
increasing customs check-posts, opening bank branches in each other’s countries and trade facilitation. The non-tariff barriers include subsidies, a d mi ni st r a ti ve fee , sp e ci a l supplementary duties, import credit discrimination, variable levies, border taxes, quotas and import licensing r eq u ir em en ts a m ong st oth er s. However, Indian officials contend that the non-tariff barriers do not specifically target Pakistan and that Delhi wants to trade with all neighbours. Tariq Sayeed, a prominent businessman, stated that the onus lies on the two governments to transform the region into a dynamic hub of economic activity. He asked the two countries to remove all obstacles in the way of socioeconomic cooperation, but said strong political commitment based on sincerity will be required to transform South Asia into a prosperous region. He suggested the signing of a bilateral investment treaty between the two sides t o p r o m ot e g r e at er ec ono m ic cooperation and widen the sphere of economic activities. President India-Pakistan Chamber of Commerce and Industry SM Muneer pointed out that greater economic cooperatio n could prove mutually beneficial in the form of lower prices for consumers, revenues for governments and cost-effective gas import to India via Pakistan. Most importantly, it could generate a new linkage between the business commu nities, th ereby nu rtur ing constituencies of peace in the region, he said.
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Economic - Update
Bilateral trade between Pak, Sweden can be doubled The 32-member Swedish Trade Delegation to Pakistan headed by Swedish Trade Minister Ewa Bjorling and comprising representatives of 21 leading companies and government officials was on four day visit to Pakistan from November 29 to December 02, 2010 Swedish Trade Minister, Ewa Bjorling, sees huge untapped potential in bilateral trade between Pakistan and Sweden, saying that the exiting volume of trade could be doubled in next few years. The bilateral trade between the two countries is increasing substantially, as Pakistan's imports from Sweden have increased by 90 percent to (Sweden Krona) SEK2.047 billion in the first six months (Jan-Jun) of this year from SEK1.076 billion in the same period last year, while Pakistani exports to Sweden increased by 12 percent to SEK393.593 million in six months period in 2010 against SEK350.758 million in the same period a year back. The Swedish Trade Minister, who was heading first ever 32-member high level trade delegation to Pakistan, while talking to Business Recorder said that h er government had contributed substantially in disaster and emergency aid to Pakistan. The Swedish Ambassador to Pakistan Ulrika Sundberg was also present on the occasion. The Swedish Trade Minister believed that Swedish companies have a lot to contribute in the coming reconstruction p roc ess. " A strong emp hasis on sustainability, both environmental and economical, as well as commitment to upholding strong corporate social responsibilities will be a driving force in 'building back better," she said and assured that the Swedish companies as well as the Swedish government weree ready to support Pakistan. "Pakistan is a country with a diverse history and during the last year's global
economic turmoil Pakistan was one of few countries that showed a strong economic growth," she added. She believed that there is a great potential for an increased bilateral dialogue between Pakistan and Sweden and strengthened business relationships. "Between the year 2000 and 2009 we have seen an annual 15 percent growth of Swedish exports to Pakistan and I hope this visit will lead to a continued growth in business relationship," she said. T he 32-memb er S wed ish Tr ade Delegatio n to Pakistan headed by Swedish Trade Minister Ewa Bjorling and comprising representatives of 21 leading companies and government officials was on four day visit to Pakistan from November 29 to December 02, 2010. During the visit, the Swedish Trade Minister had meeting with the Prime Minister Syed Yousuf Raza Gilani and other high government officials and d iscu ssed possib ilities of more cooperation between the two countries. She pointed out that they have held vario us high level meetings with government officials, leading business and trade bodies and private sector
AUTOMARK | December-2010 34
business and trade leaders in Karachi, Lahore and Islamabad. "We have held a meetin gs with Sindh Governor, officials of Sindh government, Pakistan Business Council and various other business and trade leaders in Karachi," h e added. Earlier, th ey also held meetings with Punjab Governor, Chief Minister and members of Lahore and Islamabad Chambers of Commerce. To a query, she said that Swedish companies have expertise and modern technology in solar and wind energy, transport, transmission, industries, t our ism , li ve st ocks, fi sh er ies, agriculture, technical education and other sectors. She said the Swedish companies are ready to invest in energy sector particularly in solar and wind e ner g y , S ol ar P ow er ed W a te r Purification System and to control line l osses in p ow er tr a nsm issi on. She was confident that their meetings with Pakistani government officials and business leaders will be very productive and lead to new partnerships as well as contribute to a deepened dialogue b et w een t he tw o cou nt ri es.....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Renewable energy - Agreements
Tuwairqi signs agreements with Slovenian companies Tuwairqi Steel Mills Limited (TSML), in collaboration with Gresham’s Eastern Private Limited, has formally signed memoranda of understanding (MoUs) with three Slovenian companies (IBE, Turbo Institute and KIV) for the development of renewable energy projects. In addition to steel manufacturing, TSML – a subsidiary of the Saudi Arabian group Al Tuwairqi Holding – is also involved in the country’s energy sector. IBE, an independent engineerin g consulting co mpany, will provide technical as sis tance in setting up alternative energy-based plants, while Turbo Institute will provide technology for small and small to medium-scale turbines. KIV, on the other hand, will
share expertise in gasification and power generation from municipal solid waste and bio-mass sources. T he MoUs wer e sig ned b y representatives of all five companies concerned at the head office of the Sindh Board of Investment. Adviser to Chief M inister Si ndh for Investm ent Mohammad Zubair Motiwala was also present at the signing ceremony. The companies were part of a Slovenian trade delegation which is visitin g Pakistan to encourage cooperation in the field of renewable energy and other areas of mutual benefit to both countries. “The Sindh government will provide all-
Iranian company signs $100m wind power deal An Iranian company, Sanir, has signed an agreement worth $100 million with a Pakistani company to provide 1,000 megawatts of electricity to Sindh by setting up a wind power plant, informed Iran’s Commercial Counselor in Karachi, Ahmad Fasihi. During a meeting with Tariq Sayeed, Chairman of the Pak-Iran Business Council of the Federation of Pakistan Chambers of Commerce and Industry, he said that Iran has great potential in the technical service sector relating to installation and export of power plants, wh ich cou ld assist Pakista n in overcoming shortage. Fasihi said that Iranian companies can also assist Pakistan in construction of highways, railway tracks, bridges, huge building complexes, grain depots and dams. Joint ventures in these fields could be fruitful for both countries and
Pakistani investors can participate in various projects, including buying or starting private banks in Iran, he added. He stated that with the launch of an Iranian bank in Pakistan and a Pakistani bank in Iran bilateral trade could reach $3 billion a year. Sayeed praised the Iranian commercial counselor for arranging exchange of trade delegations which resulted in signing of agreements in various fields and increased (non-oil) trade volume from $350 million four years ago to $800 million in the previous year. It is expected that trade volume will exceed $1 billion in the current year, as a result of a 45 per cent rise in bilateral transactions, he added. He also said that for the first time Pakistan’s solo exhibition will be held in Iran next year and Iran would also organise an expo in the same year.....
AUTOMARK | December-2010 35
out support to Slovenian investors who want to share their technology and expertise in renewable energy,” said Motiwala on the occasion. He also said that the government was keen to take help from Slovenian experts in indentifying small and large hydroelectricity project sites to further augment the process of investment in the energy sector. General Director Turbo Institute Dr Vladimir Kercan poin ted out that there existed the potential of generating about 60,000 megawatts of hydel energy in Pakistan – an extraordinary amount for a country struggling to manage the shortfall of energy. Officials part of the visiting delegation said that they were not only willing to help develop Pakistan’s hydel sector but
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
International Automotive - Visit
My Visit to Loncin Motorcycle Factory in China
The industry is located in the industrial district of Chongqing, China. The city is maintained so well that you wouldn’t believe that it was China unless you are told so. We all know that China is a great place to manufacture electronics. But have you ever come across the fact that more than 50% of the World’s motorcycles are being manufactured in China? Yes, the Chinese motorcycle industry is booming and I had a chance to visit the Loncin Motorcycle Factory during my stay in China. The industry is located in the industrial district of Chongqing, China. The city is maintained so well that you wouldn’t believe that it was China unless you are told so. A group of journalists including me arrived at the factory around 2 PM on a hot summer day. I had long dreamt of visiting Hero Honda factory in India but haven’t got a chance so far, but visiting a Chinese motorcycle industry almost fulfilled my
dream. The factory was a very long stretch of parallel assembly lines. If you can walk from one end of the factory to the other end, you can witn ess a co mplete motorcycle being assembled from parts to finish. Each motorcycle model has a separate assembly line. The parts needed for the bikes are filled in the moving selves by a set of employees. As it starts moving, the people at each part of the assembly take the parts from the shelf and assemble it on the belt which moves very slowly. In one part of the belt, you can see engines being assembled, a few metres away you can see the bike taking shape. Keep moving and you will start seeing tyres, lights, seats and so on. There was one section which drew a lot of eyeballs, it was the stylus machine which engraves the engine numbers on the engine. It was quite cool. You can see it in action in the video. I was surprised to see a BMW 650cc
AUTOMARK | December-2010 36
engine inside the factory. First I thought that it was a sample for benchmarking, but when I saw a whole line of engines, I was shocked. Soon I came to know that Loncin is the OEM for some of BMW’s engines. Quite cool to see a German motorcycle’s engine being manufactured in China. The manufacturing industry in China is old and th e pr ocess h as been streamlined over the years. One of the major factors for their success is the availability of man power, but the fact that they have streamlined the system cannot be ruled out. In the near future, do not be surprised if you see a tag under your German bike such as –“Desinged by BMW in Germany, Manufactured in China.” - Deepak
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
International Automotive Industry - Report
Honda to end motorcycle joint venture in India In future, Honda will focus its resources on wholly owned subsidiary Honda Motorcycle and Scooter India (HMSI), the fourth-biggest motorcycle maker in India, with sales of 1.2 million units. Honda Motor Co plans to sell its stake in India's top-ranked motorcycle maker, Hero Honda Motors , and instead focus on its wholly owned subsidiary in the country, a news report said on Dec 4, 2010. The Japanese automaker may earn some 100 billion yen (1.2 billion dollars) from the sale of its shares in Hero Honda, founded in 1984 with India's Hero Group, the Nikkei business daily said. Honda and the Hero Group reached a basic accord this week to dissolve their partnership, Nikkei said, adding that they will seek final approval from their respective boards of directors later this month for the breakup.
Honda will sell its entire stake in the motorcycle maker to the Hero Group's founding family and investment funds by as early as March, and will no longer provide technical support to Hero Honda. Hero Honda sold 4.5 million Hondabrand motorcycles in the previous fiscal year, grabbing 48 percent of the growing
Indian motorcycle market, the world's se c on d -l a r g es t b e h i nd Ch i n a . Hero Honda contributes roughly onethird of Honda's worldwide sales, but Honda reckons that it needs to have full control over operations to respond quickly to market changes, Nikkei said. In future, Honda will focus its resources on wholly owned subsidiary Honda Motorcycle and Scooter India (HMSI), the fourth-biggest motorcycle maker in India, with sales of 1.2 million units. Honda plans to build a new factory in the southern state of Andhra Pradesh for HMSI, w hile speeding u p its development of new sales outlets, Nikkei said.....
Hyundai and baic break ground for $975 million third china plant Beijing (november 29, 2010) : south korea's top automaker hyundai motor co and its chinese partner broke ground on sunday for a third plant to ease their undercapacity in the world's largest auto market. bejin g hyundai, a tie -up be tween hyundai and major chinese state auto group beijingauto mo tive industry holding co (baic), is expected to sell about 700,000 cars in china this year,
up some 23 percent from 2009 and above current capacity of 600,000 units, baic chairman xu heyi said. "when the third plant is up and running, beijing hyundai will spe ed up the introduction of hyundai's medium-tohigh end models to further expand its p ortfolio," xu told governm ent dignitaries and company executives at the site of the plant. the facility on the outskirts of beijing
AUTOMARK | December-2010 37
will give the partners 300,000 units of new capacity annually in july 2012, rising to 400,000 units eventually, xu said. hyundai, which made further inroads into the united states in 2009, has also been gaining ground in china, one of its fastest gr ow ing major markets. beijing hyundai sold 59,287 cars in china in october, up 23 percent year on year.....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Update
Age limit for import of used cars increased upto 5 years Government considering including all vehicles and Local makers, vendors slam decision The government is considering opening up the country’s automobile industry, particularly for investors from China, by increasing the age limit for import of all used vehicl es, including buses, coaches, wagons, trucks and tractors. It has been learnt that after the age limit for the import of used cars was relaxed to five years, Minister for Industries and Commerce Mir Hazar Khan Bijarani directed his ministry to prepare a proposal for increasing the age limit for import of other veh icles, except motorcycles and three-wh eeler s. According to officials from the ministry for industrie s and production, the summary of the proposal has been sent for approval to the Cabinet’s Economic Coordinati on Commi ttee (ECC). For initiating the immediate production of cars, the ministry has also offered to provide bases in state owned enterprises (SOEs). Chinese and other investors can partn er with th ese SOEs under a mutually agre ed equity basis. The proposal also allows reduced customs duties on the import of cars and parts for new entrants. The government claims that it is keen to break the monopoly of local car manufacturers and to rationalise the prices of cars. Therefore, the government says that it is willing to open its auto indu str y for oth er international competitors and for China in particular. Although these schemes were meant for overseas Pakistanis the commercial importers would jump in to import cars on bulk basis, while using passport d eta ils of over seas Pa kista nis. “This is an implementation issue not a policy one”, a senior customs official told Dawn on condition of anonymity. He said it would be difficult to make
sure that overseas Pakistani, especially the labour class to stop selling their documents to commercial importers for availing these facilities in duty reduction. According to the same official, the decision would not only generate revenue for the kitty but would also discourage the smuggling of cars, especially in Balochistan and Khyber Pakhtunkhwa. The decision was expected to speed up import of used cars to around 20,000 units in a year due to high local demand as the domestic manufacturers have increased prices of cars manifold in past few years making it beyond the reach of customers, an official in the ministry of industry requesting anonymity told Dawn. As per the decision, now the importers could avail depreciation in value of cars up to 50 per cent for assessment of duty. Currently, the depreciation is only one per cent per month, which means a maximum of 36 per cent in val ue. But now enhancing the age limit to 60 months, an importer could avail a maximum of 50 per cent depreciation in value of car for assessment of duty. The decision has upset parts vendors and car makers. The Pakistan Association of Automotive Parts and Accessories Manufacturers chairman Aamir Allawala said that a total of 1,600 vendors an d parts manufacturers, were employing over 200,000 skilled workers to produce quality parts at prices lower than world rates. During the last two years, the parts manufacturers have been on the verge of closure and squeezed due to everincreasing cost of production along with reduction in car production by up to 60
AUTOMARK | December-2010
38
per cent due to eco nomic slump. They demanded that this decision, which is one of the factors driving away foreign investment in Pakistan auto industry since the last two years, be reversed immediately. A spokesman of Pakistan Automotive Manufacturers Association (Pama) told media that the government has still not realized the impact of rupee depreciation against the yen on imported parts which is forcing the local car makers to raise prices on imported completely knocked down kits and other parts. He said from 2007 till to date, yen has appreciated by 113 per cent. He said the decision would hit the industry as in the world markets people usually sale off five year old cars and it will definitely find way into Pakistan. He added that three year age limit had not made any big impact on local car production. All Pakistan Motor Dealers Association had forwarded only two proposals like increasing the age limit of used cars to fi ve yea rs from two year s and depreciation to two per cent from one per cent, saying these steps would not hurt the sale of locally assembled cars. A total of 72,000 used cars and other vehicles imported under transfer of residence, personal baggage and gift schemes had arrived in 2005-06. At that time, the government had al lowed import of 10 years old vehicles. But after a strong representation from the local assemblers, the imports have been continuously falling sharply. In 2006-07, the age limit was reduced to five years and imports fell to 42,000 units. In 2007-08, the age limit was fu rt her slash ed to th ree year s.
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
www.automark.pk
magazine@automark.pk
December-2010
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive - Technology & Innovation
Nanotechnology in the automotive industry Although nanotechnology promises cheap bipolar materials using nanocomposites, more efficient non-platinum electrocatalysts, and thermally stable and more durable membranes to become available in the near future, the precious metal platinum still remains the workhorse of PEM fuel cells (Nanowerk Spotlight) Nanotechnologies will play a major role in the car industry; but don't hold your breath to see a nyt h i ng l ike t h e Vo lks w ag en Nanospyder futuristic concept car anytime soon. This entrance to the 2006 Los Angeles Design chal lenge was supported by hydrogen fuel cells, solar power, wheel-mounted electric motors and inflatable organic body panels combine to form the unusual shape of the two-seater concept. According to its creators – designers based at the Volkswagen Design Center in Santa Monica – the Nanospyder would be formed out of a latticework of billions of tiny programmable nano devices measuring less than half a millimeter in diameter. Each of these tiny devices can be programmed to be as strong or weak as required meaning active crumple zones can be created. Clothing the nano-lattice are panels formed out of a mix of organic materials some of which can inflate to provide further cushioning in the result of an impact. The material doubles as a power source as polysynthesis generates small amounts of electricity. This coupled with hydrogen fuels generates power to drive the tiny electric motors mounted within the hubs of all four wheels. OK, back to today. The automotive
sector is a major consumer of material technologies – and nanotechnologies promise to improve the performance of existing technologies significantly. Applications range from already existing – paint quality, fuel cells, batteries, wearresistant tires, lighter but stronger materials, ultra-thin anti-glare layers for windows and mirrors – to the futuristic – energy-harvesting bodywork, fully self-repairing paint, switchable colors, shape-shifting skin. The basic trends that nanotechnology enables for th e autom ob ile are
• lighter but stronger materials (for better fuel consumption and increased safety) • improved engine efficiency
AUTOMARK | December-2010 42
and fuel consumption for gas oli ne-po wer ed c ar s (catalysts; fuel additives; lubricants) • reduced environmental impact from hydrogen and fuel cellpowered cars • improved and miniaturized electronic systems • better economies (longer service life; lower component failure rate; smart materials for self-repair) The following examples are but an overview of a large number of efforts and applications involving nanotechnologies in th e autom otive in dustry:
Chassis and exterior Vehicle weight reduction is a key part of car manufacturers' strategies to improve fuel economy. Ford's"Atoms to Engines" team for instance looked at the structure of cast aluminum alloys at near atomic levels. From this work, a detailed analy sis of the structure/property/process relationship of the aluminum alloy engine blocks has led to reduced engine weight and, in t ur n, inc reased fu el effi ciency. Another area is the substitution of mineral glass windows by polymers. However, until re cently some key performance specifications had not been reached; scratch resistance and long term ultraviolet resistance remained challenges. Recent advances involving n a n o te ch n o l o g y a re he l pi n g polycarbonate window developers to
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive - Technology & Innovation
Nanotechnology holds great promise for improving the performance and life-times of the Li-ion batteries. It also has the potential to enhance the energy and power density, shorten the recharge time, as well as decrease the size and weight while improving safety and stability of the batteries. overcome these challenges. N a noen gi nee re d t h er m op l as ti c materials allow a weight reduction of up to 40% compared to traditional steel chassis parts. With regard to paints and surface coatings, nanostructured surfaces result in improved paint adhesion and color durability. Self-cleaning will become standard on windscreens and car body shells. Scratch-resistant, dirt-repellent, UV-resistant and self-healing car paints are applications that already exist or are in development.
Tires Tires are one of the early applications of nanostru ctu red mater ials in automobiles. Carbon black was the first nanomaterial to be u sed by the auto mo tive industry in tires as a p igment and reinfor cing ag ent. The key to tire performance is the mixture of the rubber – but its optimiz ation requirements can be contradictory (highly complex chemical and physical interactions between the rubber and the filler material): While the tire needs good grip its rolling resis tance has to be low as well. Some 30% of the tire cover consists of reinforcing filler which makes possible wanted properties such as grip, abrasion resistance, resistance to initial wear and tear, and tear propagation. There are three products that significantly improve the properties of natural rubber: soot, silica and organosilane. Now being produced in nanoscale form, these particles as well as the cross-linking with the natural rubber molecules play a key role for tire properties.
Propulsion Building an electric car needs to take
into account four basic requirements – powerful and safe energy storage to give the car a sufficient driving range; engines and associated electronic components that make best use of the stored onboard energy; light-weight components to compensate for the (at the moment still) extra weight of the batteries; and all that at a price that can c om pete w ith g asoli ne-pow er ed automobiles. Lithium ion batteries are currently being intensively developed worldwide for use in electric vehicles. The consensus view among researchers is that the battery will be of the lithium-ion type, but which of the lithium-ion chemistries to use is still a major question. Nanotechnology holds great promise for improving the performance and lifetimes of the Li-ion batteries. It also has the potential to enhance the energy and power density, shorten the recharge time, as well as decrease the size and weight while improving safety and stability of the batteries. A large number o f c om p a n i es s u c h as A lt a i r N ano te ch n o log ies , m Pha se Technologies, A123 Systems, Li-Tec Battery GmbH, NanoEner Technologies, Next Alternative Inc., Nexeon Ltd. etc. are actively pursuing the development of nano-enabled batteries while some others are already producing them (see h ere for an over view of m ajor producers/developers of nano-based batteries and their product range). Nanotechnology is also key to improving fuel cell performance of fu ture generations of hydrogen-powered cars. One of the leading fuel cell technologies d ev e l op ed , i n p a r t i c u la r f o r transportation applications, is the proton exchange membrane (PEM) fuel
AUTOMARK | December-2010
43
cell, also known as polymer electrolyte membrane fuel cells – both resulting in the same acronym PEMFC. These fuel cells are powered by the electrochemical oxidation reaction of hydrogen and by the electroreduction of the oxygen contained in air. Although nanotechnology promises ch ea p b ip ol ar ma ter i als u si ng nanocomposites, more efficient nonplatinum electrocatalysts, and thermally stable and more durable membranes to become available in the near future, the precious metal platinum still remains the workhorse of PEM fuel cells. One way to minimize platinum usage is to increase cata lytic efficiency by nanostructuring the platinum metal; another way of eliminating the use of platinum altogether is by exploring the use of much cheaper non-precious metal catalysts where the nanostructured surfaces match or exceed the catalytic properties of platinum.
NanoMobil In 2004, Germany, through its Federal Ministry of Education and Research (BM BF), est abli sh ed a spec ific nanotechnology funding program – NanoMo bil – in connection with automotive technologies and in order to keep the German car industry and its supplie rs co mpetitive. Numerous re search institutes, suppliers and automotive companies hav e been participating in several interdisciplinary projects. The following chart shows the range of topics covered by NanoMobil and gives an indication of the wide range of nano-app lications with in the automotive sector....
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
International Automotive
Compiled by : Shahzad Tabish
Global Automotive updates McLaren’s most anticipated MP4-12C’s price has been announced, the basic variant costing £168,50 0. Most importantly this figure is 1 grand cheaper than Ferraris 458 Italia’s basic variant. Talking about McLaren’s basic specs, it produces 592 bhp from a small 3.8l twin turbo charged, V8 which is 32 bhp more than Italia’s V8 engine displacing 5L Air Fuel Mixture. If you consider yourself as a wealthy, Eco-Friendly maniac, then this new McLaren is the car for you, as its engine has the least Carbon dioxide emission to bhp ratio when compared with any other car in the market. As far as the stats are concerned, MP4 beats the 458 hands down, to this criticism Ferrari responds by saying that the 458 has carbon ceramic brakes as a standard, which come as an option in the McLaren. A lot more can be said on a comparative analysis; but, the truth remains that this car will be owned by all those who aspire McLaren, or those who really like the design concepts of the vehicle, over the magnificent design concepts of 458 Italia, surely; provided that you have all the resources to pay for the ownership & maintenance....
First Chevy Volt up for auction After a build-up that's lasted for almost four years, you now finally have the chance to buy the first-ever Chevrolet Volt “extended range electric vehicle” av ailable for retail sal e. The catch: General Motors has decided to auction the car off to the highest bidder. Proceeds will go to the Detroit Public Schools Foundation, to support science, t e c h n ol o g y , e n g i n e e r i n g a n d mathematics initiatives. Online bidding started at US$50,000, and at the time of publication is already up to $180,000. The car’s MSRP is $41,000
Pagani has been revealing many different variants of Zonda very recently, Cinque was the first the thing making it exclusive were the production number of just “5” & the body shell material w hich is a co mposite of Carbonfibre(which is a composite itself) & titanium. This has to be exclusive. Secondly the Zonda 750 was revealed, compared to a standard 670bhp Zonda this has 750bhp; I know that is a lot, nut is it exclusive? It may be faster than a Cinque but it won’t be exclusive. Very recently the Nurbrugring pace setter; Zonda R was revealed, it is a shame to know that it isn’t road legal due to some missing obligatory features like missing indicator lights nor it fulfils FIA standards so that It may hit the track & prove its worth in a competition. SSC launched the photos & specs of their upcoming super car. It has a Reventon looking front, much more sleeker infact, horsepower matched to Veyron Super sport i.e 1200bhp to be precise & 1/3rd the weight of Veyron, thanks to the minimal luxuries on offer & not even bothering to install a Traction Control computer on board, it produces wheel spin even after 100mph. Amazing! That’s mesh bending torque. SSC’s CEO was assured that he would be on top of Bugatti’s Super Sport again & he almost is. Let’s wait for it to hit the salt flats.
Ariel recently launched their new Atom variant & it’s a rocket on 4 wheels. It’s named Atom V8 500, corresponding to the 3.0L engine configuration & bhp on offer respectively. For a standard road car that figure is plenty, but talking about Ariel Atom we talk about an entirely different scenario. It produces 900bhp/ton, forget the ro ad cars , equation says that a GP 2 car produces 850bhp/ton... this means that this thing is only slower to an F1's V8. FIA obligations have made real racing cars a joker in front of this production & road legal reciprocating jet pack on 4 wheels.
Sports Updates: Red bull racing & Sebastian Vettel win the constructors & drivers championship in Formula 1. Both for the team & driver it was their first title, however Vettel becomes the youngest F1 champion ever. Sebastian Loeb won his 7th World rally championship title, while team Citroen won the constructors title to make it a double for the French. Jorge Lorenzo won his first Moto GP title this season, after Valentino Rossi suffered from a broken leg due to which he was unable to race in 3 races in mid season, this made the road to victory easy for Lorenzo who clinched on it with a co mpetitiv e machine in han d...
Fiat Turns to Natural Gas for U.S. a s To y ot a , G M G o E l e c t r i c As Sergio Marchionne brings back Fiat SpA to the U.S. after nearly three decades, he may add another Italian speciality: the natural gas engine. Marchionne, who is chief executive officer of Fiat and Chrysler Group LLC, says natural gas engines offer a better way to cut emissions because they’re cheaper than competing technologies. He al so argues electric cars, which General Motors Co. and Toyota Motor Corp. are betting on, present “too many obstacles” such as the recharge time for batteries. “Natural gas is very suitable for the U.S.,” Constantinos Vafidis, who oversees transmission and hybrid development at Fiat’s research center in Turin, Italy, said in an interview. “Especially for p u b li c ser v ic es an d go od s
AUTOMARK | December-2010 44
transportation, where vehicles are r efu eled from a c entra l ba se.” Fiat is the market leader in Europe in natural-gas engines, with an 80 percent share of methane-powered cars and 55 percent of light commercial vehicles. Bolstering Marchionne’s view, the U.S. has the natural -gas supply for the engines after becoming the world’s largest producer last year. “Fiat will use its technological leadership in natural gas, in a region discovered to have huge reserves,” said Giuliano Noci, a professor at the MIP management school of Milan’s Polytechnic university. “It’s almost a mandatory strategy. Fiat should lead the natural-gas car market as it’s far behind in the electric vehicle sector.”
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Corporate Event - Update
Extraordinary General Meeting of Hinopak Motors The Extraordinary General Meeting (EOGM) of the Shareholders of Hinopak Motors Limited was held on November 25, 2010 at the Company registered office. The meeting was convened for the election of directors for the next term of three years. The Chairman of the Company informed the shareholders regarding the progress of the Company and its future prospects and appreciated the efforts of the management and w o rk for c e for th e re ma r ka bl e performan ce of the Compan y and obliged the trust and support from the shareholders including the majority shareholders i.e. Hino Motors Ltd. Japan and Toyota Tsu sho Corp oration. The following directors were elected for the next tenure of three year: 1. Mr. Kunwar Idris 2. Mr. Hideya Iijima 3. Mr. Takeshi Ito 4. Mr. Hiroshi Kokaji 5. Mr. Hirofumi Wachi
A group photograph taken at the Hinopak Motors Limited Extraordinary General Meeting (EOGM) attend by Hinopak Chairman Hinopak Motors Limited, Mr. Kunwar Idris, MD & CEO, Mr. Hideya Iijima, DMD, Mr. T. Ito, Mr. Hiroshi Kokaji, Mr. Hirofumi Wachi, Director Production ,Mr. Harou Komatsu, Mr. Koji Tsubouchi, Company Secretary & GM, Finance, Mr. Fahim Sabzwari, and Mr. Muhammad Irfan Shaikh.
6. Mr. Haruo Komatsu 7. Mr. Koji Tsubouchi
Hinopak Delivers 1st Unit of Dutro Junior LCV Truck
Hinopak recently delivered the first unit of its new LCV Truck, the Hino Dutro Junior to Ferozsons Laboratories Ltd. Mr. Hideya Iijima, Managing Director & CEO Hin opak Motors Limited, handed over the symbolic Hino key to Mr. Muhammad Anwar Khan, Director Procurement Ferozsons Laboratories in a ceremony held at the Hinopak Assembly Operations plant. Mr. Shahab Anwar, DGM Sales & Marketing Hinopak and Mr. Rehan Zafar Siddiqui, Area Manager Sales (South) Hinopak were also present at the ceremony. Mr. Anw ar Khan on the occasion expressed full confidence in the new Dutro Junior and said that a high performance, superio r quality and reliable LCV truck like Dutro Junior is a breath of fresh air in the LCV market of Pakistan and we look forward to inducting more Dutro Junior units in our fleet to meet our expansion goals......
AUTOMARK | December-2010 45
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Exclusive Article
by Shahzad Tabish from NED University Karachi
Automobile Manufacturing Standards, A Comparative Analysis When we consider the case of corolla & civic we basically take into consideration the two locally assembled luxury sedans, as we call them. Both of these vehicles correspond directly to the international standards on offer as far as the design characteristics are concerned. Automobiles have now been around the globe for mor e th an a centu ry. Considered as a luxury for the upper clas s during the era of its origin, Automobile has now become a basic necessity of transporting masses & shortening the distances of landscape. Not only A ut omob iles bu t th e manufacturing procedures involved in the production of automobiles has a rich histo ry th at indicates constantly changing methodologies adopted for mass prod uction of Au tomobile assembly. From the early era of fully manual methods of production to the modern era of robotic influence in car production, the final assembly that is
used for transportation has evolved into what we see today. Globally many countries take pride in the car manufacturing arena. The resear ch & p rod uc tion (R&D) procedures followed by them are of the highest standards & its reflection, the final product; produced, becomes a source of inspiration for all. Pakistan is considered as a densely populated country. Due to the massive human population & is direct reflection on the necessity of transportation, Pakistan adopted car manufacturing industry in order to cater the local needs. The very first initiative was taken in the late 80’s, when PSMC was established
AUTOMARK | December-2010 46
as a car ma nufact uri ng f a c i l i t y, i n c o op era tion w ith Suzuki moto r cooperation, Japan. Later, other Japanese, Korean & re cen tly so me Chinese investors have established their m anu fac tu r in g fa ci li ty fo r t h e manufacturing of two & four wheeler assemblies. Takin g in to co nsideration the two wheeler manufacturing industries first, the initiative in the aspect was taken by the renowned Japanese brands, however very recently Chinese & their cheap in cost production technologies have taken over from the Japanese giants. The basic design & production procedure remains the same; the only difference is the reduction in cost of the technology which in turn attracts consumer’s attention. Due to this fact massive numbers of Chinese two wheelers have now been sold, establishing their stronghold in local market in a mere 5-7 years. Now the Chinese have started to improve their product in design & performance characteristics which is a positive sign indeed. As far as the automobile manufacturing is concerned the local manufacturing ind ustry is focused towards th e
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Exclusive Article production of cheap in price automobiles in massive numbers. In order to maintain cost, some industries introduce much older variants of their vehicles in the local market for sale. The production procedures for these vehicles & these vehicles themselves are phased out from the global arena & replaced by their newer variants. Examples include that of Daihatsu Coure, the local variant of Coure belongs to the 4th generation of this family, while globally 7th generation is on offer & is named Mira. Simil arly the locally available Suzuki alto belongs to the 5th generation while globally 7th generation of the family is on sale. The manufacturing in the local industry is done via manual methodology ; Robotic influence has not yet found its
way in the indu stry. Majo rity of m an u fa ct u r i ng op e r at i ons a r e performed utilizing man power. Highly s k il le d lab o r e n s ur e s g o o d manufactu ring qu ality, how ever uniformity, precision & consistence achievable by utilization of robots remains missing. The safety standards are enhanced in international auto industry on a regular basis. The newly introduced vehicles from all manufacturers incorporate the most modern research on safety parameters. Since the local industry of Pakistan is based on the production of globally phased out vehicles, th e customers remain out dated to the most necessary safety features available with the newer variants. Such features include he seatbelt design changes, inclusion of Airbags in other than conventional positions (knee &
curtain airbags) & the design changes in the construction of the chassis itself, the rigidity, deformation & restitution characteristics in case of collision & impact circumstances. When we consider the case of corolla & civic we basically take into consideration the two locally assembled luxury sedans, as we call them. Both of these vehicles correspond directly to the international standards on offer as far as the design ch ar ac t er is ti cs a r e con ce rn ed . However when we talk about safety parameters of both these vehicles, they lack this aspect in many ways. Locally 2 frontal airbags are on offer as an option, however in international market 7 airbags are considered as a standard, internationally ESP is also available as an option which we find in none of the locally assembled vehicles. Positively ABS is now available as a standard in both these sedans as a standard. Not only safety but the emission ratings of the locally assembled vehicles do not comply with international standards. However the use of CNG has helped to low er emi ssion ra tings b y far . Local car manufacturing industry remains a mile behind the international standards not only due to the adaptation of phased out technology but the local economy & power crisis also become a major contributor in this aspect. The degradation of Pakistani Rupee in the past three years has forced the local ind ustr y to a dop t conser vativ e standards. The price of the locally manufactured cars has raised sky high due to the direct effect of flattened economy. Yen has now gained equal
value to that of Pakistani rupee, not so long ago, it value was 0.4 PKR. This devaluation of PKR directly reflects on the raised cost of imported parts from Japan. Similarly the industry also suffers from electricity crisis every now & then. Even if the government tries its level best that the OEM does not get’s affected by electricity crisis, the vendor industry remains totally un noticed & suffers heavily in due to electricity shortfall. This in turn directly reflects in the quality of product it supplies to the OEM.
Concluding this story, I personally believe that someday we would enable ourselves to strengthen our economy, so that the local manufacturing industry enables itself to incorporate the latest equipment needed to produce the newest variants of various automobiles at an affordable price & I really hope that it is not a day dream that shatters. Cheers!
The manufacturing in the local industry is done via manual methodology; Robotic influence has not yet found its way in the industry. Majority of manufacturing operations are performed utilizing man power. Highly skilled labor ensures good manufacturing quality, however uniformity, precision & consistence achievable by utilization of robots remains missing. AUTOMARK | December-2010 47
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Event
3rd International Foundry and Congress held at the PC Lahore on 1-2 Dec 2010 Government to provide all-out support to engineering sector, Chief minister Punjab chief minister (cm), muhammad Shahbaz Sharifhas said that there is a vast scope of development in the engineering sector and government will provide all out facilities for the purpose. Shahbaz said technical courses, in accordance with the market needs, have been introduced in technical education and vocational training authority (tevta) and other institutions. He was addressing the inaugural ceremony of third 'international foundry conference and exhibition', here friday. shahbaz said international foundry conference on the topic of "duniya hamari mandi" will help provide a strong basis to engineering sector in pakistan. he assured that every effort will be made to make pakistan lead other countries of the region in the engineering industry. he further said punjab government is extending all out co-ope ratio n to pakistani and foreign industrialists for this purpose.
He appreciated that the industrialists associated with pakistan foundry association are playing an important role in saving foreign exc hange b y pr od u cing qu al it y products. he also hailed th e per for ma nce of chairm an pu njab vo ca t io na l t ra i ni ng council, sikandar mustafa khan in this regar d. The cm said tevta and punjab vocational training council have been modernised, and a skilled workforce according to market needs is being produced. he said he is ready to resolve all problems of foundry industry. he invited the persons associated with the sector should come to him for evolving an effective strategy. he also said that facilities within the scope of punjab government will be provided and
Imtiaz Rastgar delivering " Strategic Directions for Pakistan's Foundry Industry" at the opening session of the 3rd International Foundry Congress
feder al government will also be contacted in this regard. President Pakistan foundry association, sikandar mustafa khan also addressed the conference. earlier, the cm visited exhibition of engineering industry and appreciated the standard of casting equipment, machinery tools and heavyduty machinery produced in Pakistan....
Mr Razzak Dawood and Imtiaz Rastgar taking a round of the 3rd International Foundry and Congress held at the PC Lahore 1-2 Dec 2010
AUTOMARK | December-2010 48
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Upcoming Automotive in Pakistan
SAAD AUTOMOBILES & CHONGQING CHANGAN KUAYUE AUTOMOBILE CO., LTD Products to be introduced very soon in Pakistan by Saad Automobiles S a ad A u t om ob i les a c om p a ny established in 2003 with its Head office in Karachi, deal in g excl usiv ely in automobile and automobile related products has entered the automobile industry with long-term plans for marketing and sales of good quality, reliable, economical and well designed vehicles to the Pakistani customers. Saad Automobiles has recently signed an MOU with Chongqing Changan Kuayue Automobiles to market their International CAKY brand of light commercial vehicles, initially in CBU and later on shift to CKD. Chongq ing Chang an Ku ayu e Automobiles is the tenth factory of Changan Automobiles Group, referred to as “Chongqing Little Giant” and “Chongqing Hi- Tech Enterpris e”. The company developed more than 300 models including the Changan lightduty, middle-duty, heavy-duty trucks and various special purposes vehicles. The company has inherited the excellent tradition of Changan group, and passed se ver al q u al it y a d m ini st ra ti on certification systems including ISO9002, IS 0900 2 (20 00), ISO/T S1694 9. Located in the Chongqing Gangcheng industrial zones, the new factory compound of KUAYUE covers an area of about 200 hectares. The first stage of the project is based on the development requirement of high starting point, specialization, and large productive capacity, having established the welding
and pressing production line, coating production line, assembly line, the security test for the complete vehicles and the fu lly-equipped assisting facilities. The new factories compound adopts the large-scale extended pressing process, multi-hydraulic pressure techniques, cathode electrophoresis techniques, and expands the assembly working stations to 25, completely solving the problems of the interchangeability of the outer covering parts and the de-welding and improving the quality in all aspects. The design of production line in new factory is up to the requirement of industrial information management, which is convenient for actualizing process quality supervision and ERP project and offers platforms for the management of the large quantity production of commercial vehicles. In order to pu t the CHANGA N KUAYUE’S new factory into use, the company has formally launched several models of products, such as the trucks on chassis basis, truck with platform cargo box, and van. The presentlylaunched CHANGAN Golden Leopard of single cabin is equipped with 465 gasoline engine, adopting chassis frame technology of truck, forward type front axle, entire riveted frame work with eq u iva lent wi d th , 14 0m m-h i gh crossbeam, equipped with powerabsorbing and crash-proof body and bumper, high ratio transmission and rear axle, the structure of non-separate type suspension with gliding stiffness leaf spring, cargo box with larger capacity.
AUTOMARK | December-2010 49
Golden Leopard offers more potential for carrying more goods and is of more safety. The cab inherits and expands the advantages of CHANGAN automobile with luxurious inner decoration and easy manipulation. Compared with the same kind of automobile, the cab has more space and is more convenient; offering heater and air condition as optional equipment. The design of humanization reaches every aspect. The emission meets the EURO 2 norm while the noise meets the second-phase national requirement, which is available in all cities around the country and is fit for the requirement of users all over the world. It is a product without pollution and has been warmly w elcomed by u sers and dealer s. All qualification reached the standard requirement of technology, China’s laws and regulations. It is a safe, energysaving and practical truck, whose economic index and qualification are superior to the products of the same kind all over the country. CAKY LCV’S have been exported to USA, Russia, Africa, South America, Middle East, Southeast Asia and some other friendly nations.......
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
70cc Motorcycle
Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.
Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70
Retail Price Rs. 42,500/= Rs. 38,000/= Rs. 38,000/= Rs. 38,500/= Rs. 38,000/= Rs. 45,300/= Rs. 38,000/= Rs. 39,500/= Rs. 41,000/= Rs. 38,900/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 62,900/= Rs. 40,000/= Rs. 40,500/= Rs. 37,500/= Rs. 38,500/= Rs. 38,000/= Rs. 38,500/= Rs. 42,900/= Rs. 38,000/=
Sr./ No. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44.
Product & Model Name Pak Hero PH-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Star DL-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70
Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 38,000/= Rs. 39,000/= Rs. 42,500/= Rs. 39,000/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 40,500/= Rs. 40,500/= Rs. 45,000/= Rs. 38,500/= Rs. 38,500/= Rs. 41,000/= Rs. 42,000/= Rs. 38,000/= Rs. 40,500/=
Price updated Dec-2010
AUTOMARK | December-2010
50
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
125cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand & Model Name Habib HB-125 Sitara ST-125 Ghani GI-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II
Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,500/= Rs. 75,000/= Rs. 86,500/= Rs. 108,900/= Rs. 55,500/= Rs. 78,000/=
Yamaha Motorcycle Product & Sr./ Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale
Retail Price Rs. 73,300/= Rs. 69,900/= Rs. 70,000/=
100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand &Model Name Asia Hero AH-100 Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100
Retail Price Rs. 46,000/= Rs. 45,500/= Rs. 55,000/= Rs. 70,900/= Rs. 51,000/= Rs. 48,000/= Rs. 45,500/= Rs. 52,000/=
Suzuki Motorcycle Sr./ Product & Model Name No. 1. Suzuki Sprinter ECO 2. Suzuki Sprinter STD. 3. Suzuki GS-125 4. Suzuki GS-150 5. Suzuki Shogan
AUTOMARK | December-2010
51
Retail Price Rs. 67,000/= Rs. 70,000/= Rs. 79,900/= Rs. 86,000/= Rs. 76,000/=
AUTOMARK MAGAZINE
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.