Contents 14 18 20 23 39 43 44 45 36 38
Company Article / Review Profile Bike Users Enjoying Latest Wave of Motorcycle Financing on Zero Markup Exclusive Article by AM Team
Taxes make 33pc of car price says Chief Operating Officer (COO) Ali Asghar Jamali at IMC A ‘non-serious’ budget Article on Budget 2016-17 Japanese Used Car Import Guide Article exclusive article Daewoo Express Bus Service introduces ‘Gold Class’
Riding Safety & Speed – Any relation? by Muhammad Zahid Iqbal Malik, Founder & Head Safe Riding – Road Safety Dept. Pakistan Bikers Club Toyota Prius 2016 Is the most fuel efficient Hybrid Car Ever Built New Honda City 2016 An Overview (10th Generation)
Price List
Vehicle price list
Motorcyclcle Prince List
Only accredited automotive magazine from Pakistan for automechanika Frankfurt 2016 from 13-17 September-2016
Inside
July-2016
18 40 41 42 45 19 22 20 26 32 35
News / Event
Dinner hosted by Memon Motors in honor of Karachi base dealers Exclusive Coverage German Pakistan Chambers of Commerce and Industry inaugurated Corporate News - Glimpse Buraq Automobile Brings Benelli & Keeway Motorcycles in Pakistan New Honda City 2016 An Overview ( 10th Generation )
News Updates
New Investment Policy Pakistan woos Renault-Nissan in push for auto investment Local Automotive News Dewan to Re- launch Shehzore in Pakistan
Petrol Used in Your Cars in Pakistan is One of the Worst in the World
International Atuo News
July-2016 edition Pakistan’s premier magazine on automotive, engineering & energy sector Volume 09, Issue 07
AUTOMARK International Monthly
Editor-in-chief Muhammed Hanif Memon Technical Editor
Muhammad Shahzad
Advertising Manager Tahir Siddiqui
Circulation Manager Shahzad Raza
Graphic Designer Mustafa Hanif Salman Hanif
Web Master Murtaza Hanif
CONTRIBUTING IN THIS ISSUE M. Zahid Malik Mohammad Laman M. Hanif Memon
Talal Hussain Malik Abdul Samad
Advisors
Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Engr. IHT Farooqui Chief Operating Officer Karakoram Motors (pvt) Ltd. Karachi
Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Tel : 021-32603371 Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk
AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management
Tax moves hamper investment
Large foreign companies operating in Pakistan feel that several tax proposals in the budget for 2016-17 run counter to `policy predictability, consistency and transparency`, and will discourage investments in the manufacturing and job creating ventures. Interests of foreign firms operating in Pakistan, has expres s ed its sur pr ise over the government`s failure to announce bold measures to attract large foreign direct investment in the manufacturing and job creating ventures by offering attractive additional incentives. The major budgetary tax proposals that have irked the multinationals include omission of provincial sales tax on services from the definition of input tax, continuation of super tax for yet another year, exclusion of baling sector from reduction in corporate tax rates, withdrawal of zero-rating regime for processed milk and dairy products, and changes in the group taxation scheme introduced in 2007. The proposal to apply minimum tax also on companies having gross loss should be withdrawn because it was an extremely harsh measure for the companies making major new investments in plant and machinery and may act as a disincentive for large new investments. It also warned that the increase in general rates of customs duty of 10pc and 15pc to 11pc and 16pc will impact several hundred items and result in financial burden on common man.
Bike Users Enjoying Latest Wave of Motorcycle Financing on Zero Markup
Article on Two Wheeler Financing
In Pakistan motorcycle market, after showing remarkable growth for over a decade, increase in motorcycle sales came to a halt, stagnating at around 1.7 million units since 2010-11. However, its sales have jumped significantly in the last one-and-a-half years, touching a record two million in calendar year 2015 (Jan-Dec). For the last few years, branded motorcycles like Suzuki 150cc, Yamaha YBR125 and Honda CG125 were gaining popularity. The price of these bikes ranged from Rs 104,500 to Rs 140,000. Looking at their price range and durability, banks were taking interest in bike financing, according to a response from Meezan Bank (when asked about the surge in motorcycle financing. It’s not the case that bike financing was unprecedented in Pakistan. The credit facility has been in place, but the renewed and increased interest is something new. MBL, like other banks, is in Bike Ijarah or bike financing for a few years now. “Looking at the growing potential amid increasing needs of bikes in Pakistan –
especially in urban areas as a basic need for working middle class – the bank relaunched it as a separate unit with a dedicated team in January 2016,” the management of MBL informed. In the first phase, MBL signed an agreement with Pak Suzuki in Dec 2015. “After successful launch of Bike Ijarah with Suzuki, we are now increasing our menu by introducing Honda bikes. The Memorandum of Understanding (MoU) has been signed with Atlas Honda and we are also very close to bringing Yamaha on board as well,” the bank added. Replying to a question, MBL said that the bank offers Bike Ijarah to two
segments i.e. salaried and business individuals. However, the management said that it got a much better response from salaried individuals that earned between Rs 30,000 and Rs 60,000 per month. Other banks were also launching similar schemes. Recently, United Bank Limited (UBL) went a step ahead while offering motorcycle financing with zero per cent mark-up rate for the first six months. One of the Japanese manufacturer claimed that his clients’ credit needs were catered by Askari Bank, Bank Alfalah, MCB Bank, HBL, Bank of Khyber and Khushhali Bank. Pakistan’s motorcycle industry is broadly divided between Chinese and Japanese manufacturers. But banks only deal with Japanese players (Yamaha Pakistan, Atlas Honda and Pak Suzuki) because it is easy for them to deal with well-documented companies instead of Chinese assemblers, comprising of small players that fall in the informal sector. “Banks are not involved with informal or Chinese motorcycle manufacturers.
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Monthly AutoMark International
M. Sabir Shaikh Chairman APMA
They are more comfortable with the organized bike makers that are mostly Japanese,” Association of Pakistan Motorcycle Assemblers Chairman Muhammad Sabir Shaikh told Automark.
Chinese assemblers first introduced bike financing in Pakistan in 2006, which helped them compete against Japanese manufacturers in Pakistan. However. with growing incomes, the situation is now fast changing as Japanese are regaining their market share, a trend further reinforced with the re-entry of Yamaha in Pakistan in 2015. “Even if Japanese bike makers succeed in selling 10% of their bikes through financing, it will be a big success for them because I think their dealers are too weak in financing area,” said Sabir Shaikh, who mostly deals in Chinese bikes in Karachi’s Akbar market, one of the biggest bike markets in Pakistan. Market analyst say one of the key reasons why banks are now taking an interest in bike financing is that they anticipate a fall in their own incomes in coming months due to record-low interest rates, something that augurs well for citizens pursuing bike financing. Banks have historically been shy of
Source: EDB
extending credit, especially when dealing w i t h n o n - c o r p o r a t e a n d no n government clients – a middle income client seeking credit for purchasing a motorcycle would usually be turned away. Lack of security and high-interest rates were blamed that pushed the risk of default high. However, a better security climate and historically low interest rates have pushed banks towards changing their stance such that they are competing against one another for clients. One of the main reason is that the motorcycle assemblers also providing three to four months credit facility on Zero markup to all banks for financing on lower rates, assemblers also facilitati ng to b ank s wi th heavy commissions / discounts on every bikes. All other Chinese based assemblers already doing this business with the help of sales dealers all over the Pakistan, financing of Chinese based bikes i nc l u d e s a s s e mb l er s , v e n d o r s , Parts importer investors and sales dealers. In total two million sales of bikes the share of 70 cc bike is 1.5 millions, the price of 70 CC bikes is Rs, 40,000 and the remaining gape of sales filled by 100 cc to 150 cc where majority consumers paying cash for having a bike.
Pakistan’s motorcycle industry is broadly divided between Chinese and Japanese manufacturers. But banks only deal with Japanese players (Yamaha Pakistan, Atlas Honda and Pak Suzuki) because it is easy for them to deal with welldocumented companies instead of Chinese assemblers, comprising of small players that fall in the informal sector. “Banks are not involved with informal or Chinese motorcycle manufacturers. They are more comfortable with the organized bike makers that are mostly Japanese,” Association of Pakistan Motorcycle Assemblers Chairman Muhammad Sabir Shaikh told Automark.
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Monthly AutoMark International
Dinner hosted by Memon Motors in honor of Karachi base dealers
On last month, a dinner were hosted by Memon Motors management, assembler of a famous brand of motorcycle ‘Super Star’ in honor of its Karachi dealers in Regent Plaza hotel Karachi. Karachi Motorcycle Dealers Association’s president Ahsan Islam and other members of the association were also
present on the occasion. Many other guest and number of electronic and print media groups were there to cover the event. Director marketing Javed Memon, Director Dr. Naeem Memon and Senior Manager Marketing Muhammed Ashfaq Memon specially came from Hyderabad
to attend the event. While talking with media both Directors appreciated efforts of dealers across the country for their hard working for keep sealing the super star bikes. They said that company is always with dealers and they hope to continue good sale of the brand.
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Automotive Sector - Update
Monthly AutoMark International
www.automark.pk | July-2016 | Page 17
Taxes make 33pc of car price
Automotive Sector - Update
Monthly AutoMark International
says Chief Operating Officer (COO) Ali Asghar Jamali at Indus Motor Company (IMC)
One-third of a car price in Pakistan is made of taxes, bringing its rate up and encouraging the import of used cars, industry officials said on last month. Chief Operating Officer (COO) Ali Asghar Jamali at Indus Motor Company (IMC) said the auto sector is a top contributor to the government’s kitty in terms of taxes, as 33 percent of a vehicle’s price is paid as taxes. The auto sector creates thousands of jobs for the skilled people. Jamali said there was much debate that the cars manufactured in Pakistan were overpriced as compared to the region. “However, the comparison of Pakistan’s most selling Toyota Corolla prices in the region shows that it is cheaper in Pakistan than in India, China and Thailand,” he said. The IMC’s COO said auto industry can increase its contribution to national exchequer if the government prevents the misuse of used car import policy by revising duties and taxes. “Auto industry can also flourish and rise as a key player in the region if Auto Policy 2016-21 is not tinkered with for the next five years, providing the ground for manufacturers to plan their investment and production plans,” he
added. The official said through extensive localisation some of the models, being manufactured in the country, comprise of almost 70 percent locally produced parts, made in accordance with the highest global quality and safety standards. “In this way, the auto industry has also facilitated saving millions of dollars of foreign exchange,” he said. “Due to low per capita income, only 16 out of 1,000 people in Pakistan currently have access to a vehicle that is in stark contrast to 18 in India, 30 in the Philippines, 69 in Indonesia, 206 in Thailand and 361 in Malaysia.” Jamali said Pakistan is set to become the 4th largest populated country by 2030 of 240 million people, “and this presents a huge potential for growth of the mobility sector in the country.” “The confidence of original equipment manufacturers and the parts supplier industry, that invested more than Rs100 billion in automobile and parts manufacturing, has been somewhat low due to frequent policy changes in the past,” he said. “The Asian countries such as Japan, Korea, Thailand, Malaysia, China, Indonesia, India and Vietnam
Data Communications Module will be the standard equipment in nearly all new Toyota and Lexus vehicles sold in Japan and the U.S. by 2020, and will gradually be installed in a range of new vehicles in other major markets over time Toyota Motor Corporation and KDDI Corporation have partnered to establish and operate a global communications platform that will enable the operation of communications networks throughout the world to support car connectivity. Toyota aims to bring greater connectivity to its vehicles throughout the world. To do so, a broad-reaching, robust
communications platform and the use of a uniform data communications module (DCM) will be essential. Toyota will develop such globally uniform DCMs by 2019. DCMs will be the standard equipment in nearly all new Toyota and Lexus vehicles sold in Japan and the U.S. by 2020, and will gradually be installed in a range of new vehicles in other major markets over time. "Communications t echnolog y is essential to enhance vehicle connectivity and Toyota has been making efforts in this field for years," said Shigeki Tomoyama, Senior Managing Officer of Toyota Motor Corporation. The joint establishment of this global
Ali Asghar Jamali
present a great case of economic revivals and turnaround by way of having a vibrant manufacturing base, particularly of auto mo tiv e manuf ac tur ing. ” These countries have protected their local manufacturing industries through various tariff and non tariff barriers, besides restricting import of used cars to ensure that locally manufactured automobiles are promoted.
Toyota and KDDI to jointly Promote Global Communications Platform for Car Connectivity
communications platform with KDDI will help us offer a more stable and higher quality connectivity service to customers all over the world." With the advent of this platform, globally uniform DCMs will be automatically connected with telecommunications carriers in different countries, based on where each car is located and used. Toyota said that While adhering to all applicable regulations in each country and region, this will allow Toyota to enhance its product-related R&D and the quality of its services by making use of vehicle data collected via DCMs.
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Monthly AutoMark International
Automotive Policy - Review
Auto Industry Policy 2016-21
NEW INVESTMENT POLICY
A new manufacturer under Automotive Development Policy (2016-2021), establishing maiden assembly facility will invariably need separate treatment and greater incentives in the early years to enable it to introduce its brand, develop a market niche and share, create a distribution and after sales service netw or ks, and develop a partmanufacturer base.
a. Investment Categories
ADP (2016-21) envisages two categories of New Investment with different incentives:
4.1.1 Category-A:
Greenfield Investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of a make not already being assembled / manufactured in Pakistan. [Note: “Make” is defined as any vehicle of whatever variant produced by the same manufacturer], and
4.1.2 Category-B:
Brownfield Investment is defined as revival of an existing assembly and/or manufacturing facilities, that is non-operational or closed on or before July 01, 2013 and the make is not in production in Pakistan since that date and that the revival is undertaken either independently by original owners or new investors or under joint venture agreement with foreign principal or by foreign principal independently through purchase of plant.
b. Investment Incentives
4.2.1 Category-A
Investor shall be entitled to the following incentives: a) Duty-free import of plant and machinery for setting up the assembly and/or
manufacturing facility on a one-time basis; b) Import of 100 vehicle of the same variant in CBU form at 50 percent of the prevailing duty for test marketing after ground breaking of the project; c) Concessional rate of custom duty @ 10 percent on non- localised parts and @ 25 percent on localised parts for a period of five years for the manufacturing of Cars and LCVs; d) Import of all parts (both localised and non-localised) at prevailing customs duty applicable to non-localised parts for manufacturing of trucks, buses and primemovers for a period of three years, and e) The existing policy for Motorcycle industry as approved by the government and notified by FBR vide SRO 939(I)/2013 and SRO 940(I)/2013 shall continue.
4.2.2 Category-B
Investor shall be entitled to: a) Import of non-localised parts at 10 percent rate of customs duty and localised parts at 25 percent duty for a per io d o f thr ee y ear s fo r the manufacturing of Cars and LCVs, and b) Import of all parts (both localised and non-localised) at prevailing customs duty applicable to non-localised parts for manufacturing of trucks, buses and primemovers for a period of three years. 4.3 Eligibility Criteria The Board of Investment shall be the single point of contact for the investor with the government. Any new investor shall be required to submit a detailed business plan and relevant documents for manufacturing of vehicles to the Board of Investment. The Board of Investment shall have the Bu si ness Plan assessed by the Engineering Development Board, which
shall verify the investor’s in-house assembly/manufacturing facilities for the manufacture of road worthy vehicles. The Engineering Development Board shall determine eligibility of the applicant under the defined criteria to be declared as Category A or Category B Investor. The Ministry of Industries and Production, on recommendation of the Engineering Development Board, shall approve a new investor under the relevant category. The Auto Industry Development Committee (AIDC) and Engineering Development Board shall review results of the new investor policy once every two years and shall recommend modifications, if any.
GOALS
In consonance with the Vision of the ADP 2016-21, the following goals reflect future demand by recognising the need to restructure and modernise the Auto Industry to meet the increasing demand for quality product in future: • To increase automotive production gradually by 2021 to: • Cars Nan/Jeeps: 350,000 • Light Commercial Vehicles (LCVs): 79,000 • Trucks: 12,000 • Buses: 2,200 • Tractors: 88,000 • Motorcycles: 2.5 million • To increase contribution to the Gross Domestic Product from 2.3 percent to 3.8 percent; • To increase contribution to manufacturing from 22 percent to 30 percent, and • To increase direct and indirect employment from 2.4 million presently to 4 million.
Source: EDB
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A ‘non-serious’ budget
Budget 2016-17 Review by Dr Ashfaque H. Khan
In this article, I highlight that part of the budget which has not been revealed by the government. It has grossly overstated the revenue, massively understated expenditure, did not take into account the loss of revenue as a result of taxation measures, and grossly overestimated the provincial surpluses. This article also highlights the risks attached with external resource inflows
Now that the federal budget 2016-17, the fourth budget of the currentgovernment is likely to be approved soon by the Parliament, I
conditionality on the one hand and doling out resources as part of the election campaign on the other. What the government has revealed in
would like to warn the readers and those who have interest in Pakistan’s economy that this is a highly fragile and nonserious budget, with serious macroeconomic consequences for the economy. It hides many facts than it reveals the true intention of the government. Pakistan is technically still under the IMF Programme, therefore, it has to meet the budget deficit target as agreed with the IMF. But at the same time, the government wants to dole out resources as it appears that it has entered the election campaign mode. This budget has attempted to strike a balance in an ingenious way between meeting the IMF
the budget is something that was required to keep the IMF happy, that is, meeting the deficit target (3.8% of GDP or Rs. 1276 billion), at least on paper. This is what matters for the IMF. What it has not revealed in the budget is the resources which have been doled out as part of the election campaign. In this article, I highlight that part of the budget which has not been revealed by the government. It has grossly overstated the revenue, massively understated expenditure, did not take into account the loss of revenue as a result of taxation measures, and grossly overestimated the provincial surpluses. This article also highlights the
Even our best friend China has withdrawn its $1.0 billion under China Safe Deposit from the State Bank of Pakistan (interestingly, this withdrawal of $1.0 billion did not impact our foreign exchange reserves. Can the SBP explain this?).
risks attached with external resource inflows. On the understatement of expenditure, the government, in order to pacify the farmers, has announced several measures to revive the sector. This included, among others, the subsidy on fertilizer to the extent of Rs 46 billion with federal government footing 50 percent of the bill, that is, Rs 23 billion. Similarly, the government announced the subsidy of Rs 27 billion on account of reduction in electricity tariff for agriculture tube wells. The total subsidy therefore amounts to Rs 50 billion which is missing from the budget document. The government has announced an extensive pay and pensions relief amounting Rs 57 billion (see para 116 of the Budget Speech) which is again missing from the budget document. Interest payment, the single largest budgetary item, is grossly understated. Given the maturity of high cost Pakistan Investment Bonds (PIBs) in the domestic sources and high cost borrowing from external sources, interest payment is understated to the extent of Rs. 100 billion. Expenditure, therefore, is understated to the extent
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of Rs 207 billion. On the overstatement of revenue, the government has included Rs. 170.7 billion or $1.6 billion Coalition Support Fund (CSF) under the non-tax revenue. The United States Senate has recently passed its draft of the National Defence Authorization Bill, which includes $800 million or Rs. 85.3 billion under Pakistan Secur ity Enhancement Authorization. This amount is one-half of the budgeted amount, therefore, a sum of Rs. 85.3 billion is overstated in revenue. Given the current state of bilateral relations between the two countries, there is a risk involved even in this limited inflows. The government has kept Rs 75 billion under PTA (4G licenses), appearing as non-tax revenue. It has just sold one license to a single bidder amounting $ 395 million or Rs 42 billion. Is there any appetite for yet another 4G license? Is the single bidder who just bought one license and paid only one-half of the amount, expected to buy another one in 2016-17? Is the spectrum available for sale in 2016-17? The answer to these queries are in negative, therefore, this amount is not likely to be available in 2016-17. The government has announced that all pending sales tax refunds till April 30 whose papers have been completed, will be cleared by August 31, 2016 amounting Rs 100 billion for which, no provision is made in the budget. In other words tax revenue for the year 2016-17 will be down by Rs 100 billion. Thus, altogether Rs 346 billion revenue is overstated in the Budget 2016-17. The government has taken various taxation measures in the budget 201617. These measures will result in loss of revenue as well as gains in revenue with resulting net loss to revenue. The government has reduced corporate tax rate by 1.0 percent, reduced customs tariff slabs from 5 to 4, reduced GST rate on POL productsand fertilizer and zero-rated five export sectors. The total loss in revenue is calculated to be Rs. 200 billion. But at the same time, the government has imposed withholding tax on property and others, it has imposed federal excise duty on cement at the rate of Rs. 1.0/kg, and savings from input adjustment in GST. These measures will yield Rs 100 billion to government. The net loss to revenue as a result of tax measures is estimated at Rs 100
billion. Provincial PSDP amounting Rs. 875 billion was approved by the National Economic Council for the year 2016-17. The budgets of all the provinces have been presented to their respective assemblies. The total provincial PSDP is now estimated to be Rs 1042 billion – an overshooting of Rs 167 billion. Such overshooting will have implications for the budgeted provincial surplus. This leads to the discussion on provincial surplus. In order to achieve the budget deficit target of 3.8 percent of GDP in 2016-17, the government has assumed that the provinces will deliver a combined surplus of Rs 339 billion in their budgets. Should we expect such a large surplus from provinces whose development spending have already exceeded the target by Rs 167 billion; provinces are expected to share subsidy on fertilizer to the extent of Rs 23 billion, and that they have to raise pay and pensions of their employees costing Rs 100 billion. Hence, the loss to provincial surplus is estimated to be Rs 290 billion,
that is, the government is not likely to receive provincial surplus amounting Rs 339 billion. In fact, the government may expect only Rs 49 billion. Based on the above analysis, the total slippages in the budget is amounted to Rs. 857 billion or 2.6 percent of GDP. Overall fiscal deficit is, therefore, estimated to be Rs. 2133 billion (Rs. 1276 billion + Rs. 857 billion) or 6.4 percent of GDP in 2016-17. If we add circular debt to make the deficit consistent with 2012-13, the overall fiscal deficit may reach over 8.2 percent of GDP. This level of fiscal deficit is consistent with that of last five years, that is, 2012-13 onward. How the government is going to finance sucha large gap in the budget? The government is expected to finance fiscal deficit through both external and domestic sources. As shown in the
Monthly AutoMark International budget document, there are serious risks associated with external flows. Both the multilateral development institutions (World Bank and the ADB) as well as the Islamic Development Bank (IDB) have significantly scaled down their lending to Pakistan. Even our best friend China has withdrawn its $1.0 billion under China Safe Deposit from the State Bank of Pakistan (interestingly, this withdrawal of $1.0 billion did not impact our foreign exchange reserves. Can the SBP explain this?). Such scaling down of external flows has forced the government to rely more on non-traditional sources of external flows like borrowing from foreign commercial banks ($2 billion or Rs. 211.5 billion) and floating Eurobond and Sukuk (Islamic bond) amounting $1.75 billion or Rs 184.6 billion. Thus, out of Rs 797 billion estimated external inflows, onehalf (Rs 396 billion) is expected to come from foreign commercial banks borrowing and through floatation of various sovereign bonds. Can Pakistan attract investors in sovereign bond floatation when it is out of the IMF program and multilateral development financial institutions have scaled down their lending? Hence, financing such a large fiscal deficit (Rs. 2133 billion) in a highly risky external flows environment will be a serious ch al le ng e fo r the go ver n men t. Accordingly, the government’s reliance on domestic sources, particularly local commercial banks to finance fiscal deficit would be extremely high, leading to massive crowding out of private sector. The macroeconomic consequences of such a risky budget include: (i) massive crowding out as bulk of the commercial banks’ lending would be siphoned out by the government, (ii) it would certainly increase money supply with serious consequences for a surge in inflation, and (iii) targeting a growth rate of 5.7 percent in 2016-17 in the midst of massive crowding out would be contradictory to each other. Thus, based on the above argument, it is safe to suggest that the federal budget 2016-17 is a non-serious budget. It hides more facts than it reveals and hence will have serious macroeconomic consequences for the economy. Curtsey: Originally published on 22nd June-2016 in Daily Business Recorder
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Pakistan woos Renault-Nissan in push for auto investment
Monthly AutoMark International
Automotive News - Update
There is potential in Pakistan, There is no doubt about that," said Puneet Gupta, associate director at consultant IHS Automotive. "(But) we really don't feel Pakistan is in a relatively stable condition, from a mid to long-term perspective
Pakistan is wooing foreign car makers like Renault-Nissan with generous import duties, but convincing them to set up factories will be an uphill challenge given fears about the country's long-term political stability and security. Pakistan wants to shake up its Japanesedominated car market and loosen the grip of Toyota, Honda, and Suzuki, whose locally assembled cars are sold at relatively high prices but lag behind imported vehicles in terms of quality and specifications. To do that, analysts say, the government must convince manufacturers that the country has turned a corner after a decade of economic turbulence and a series of major attacks by Islamist militant groups including the Taliban. With the economy growing at its fastest pace in eight years, the local currency stable against the dollar and interest rates at their lowest in 42 years, Pakistani officials believe the country is once again on the radar of investors seeking to tap into a market of nearly 200 million people. Officials are touting a new auto policy, skewed in favor of new entrants, that i nc l u d e s o f f e r i n g f o r e i g n c a r manufacturers lower duties as an incentive to set up plants in Pakistan or revive shuttered ones. "We expect that there will be one or two foreign investors coming into Pakistan," said Miftah Ismail, chairman of Pakistan's Board of Investment, who has been talking to car makers about setting up assembly plants for the local market. Ismail told Reuters he had held talks with Japan's Nissan and alliance partner Renault for "some time", and last month met Fiat executives in Italy for the first time. Previous discussions also involved Germany's Volkswagen. "I hope some people will bite," he said. A source close to Renault said Pakistan
was under consideration for new production investment, along with other potential locations, but added that discussions were at a very early stage. In an e-mailed statement, the company said it had "no news to announce at this time". Nissan chief spokesman Jonathan Adashek said: "Pakistan is certainly a market of interest for us at present", but added no final decision had been made. STABILITY Analysts say the odds are stacked against Pakistan finalizing deals, despite the concessions on offer. A major obstacle is the perennial concern about political stability in a country where the military has staged several coups since independence and attempted others. The threat of militant attacks also remains high, despite the armed forces' long-running campaign against groups including the Taliban who are opposed to the government in Islamabad. Foreign companies have been reluctant to invest large sums when the long-term outlook is so uncertain. "There is potential in Pakistan. There is no doubt about that," said Puneet Gupta, associate director at consultant IHS Automotive. "(But) we really don't feel Pakistan is in a relatively stable condition, from a mid to long-term perspective." Another possible turn off for investors is the size of Pakistan's car market, where 180,000 cars were sold in the 2014/2015 fiscal year. That compares with more than 2 million passenger
vehicles a year in neighboring India. "The Pakistan market is not big enough," said Mumshad Ali, chairman of the Pakistan Association of Automotive Parts. He added that the government's new policies were probably not bold enough to tempt new manufacturers, nor did they address ways to increase demand, such as lowering sales taxes. The local manufacturing partners of Toyota and Honda did not respond to requests for comment. Ali said existing manufacturers felt aggrieved that the government was favoring new investors, and believed they should be similarly encouraged to build new plants and expand existing facilities. Suzuki on Friday said it was prepared to invest $460 million in Pakistan, including setting up a new plant, if the g overnment pro vided the right incentives. It called for changes to the new auto policy, which it said "may damage the tremendous investment potential in the Pakistan automobile sector". Ismail said new entrants would be able to import machinery for plants duty free. Customs duty for importing car parts has been set at 10 percent, while existing players will have to pay 30 percent. "We want greater competition, and we expect with greater competition consumers will be offered better choices," he said. Some Pakistanis are frustrated by high prices and the quality of locally produced cars, which tend not to have airbags, anti-lock breaking systems (ABS) and other features considered standard elsewhere. The cheapest Pakistani car, the Suzuki Mehran, sells for 650,000 Pakistani rupee ($6,200), or about double the price of a comparable model in India.
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Japanese Used Car Import Guide
Monthly AutoMark International
by Adan Ali
In Pakistan, used car imports have been on a rise for more than five years in a row. In FY2016 alone more than 43,000 used cars were imported to Pakistan up from around 28,000 used car imports in FY2015. These imports have been made mostly by big dealers who also happen to have offices in Japan which purchase the car, initiate import and then sell them here in Pakistan. PakWheels.com provided comprehensive information about Used Car Importers in Pakistan; you can import your favorite car at PakWheels.com So the question that pops in the head is:
How can you import one by yourself?
Part 1: Selection Step1: Used cars in Japan are mostly auctioned at auction houses which can be tracked online through various auction sites live. Your safest bet is to find an auction website and sign up. Step2: Search for the car you are looking for. The search process is also similar to any other classifieds
website.
Step3: Once you have found the car
you want to import, look for its auction sheet which provides a concise grading for the car. Moreover, the page also mentions its auction date and auction house.
Part 2: Purchasing the car offshore Step1: Now if you are genuinely interested in getting the car imported, you will need to deposit a refundable payment of around USD 1000 to the company’s account (this amount may vary depending on the company you use) this amount is refunded in case you do not win the auction of the car. Step2: Once you make the payment, you will be granted access to bid on the cars available for auction online.
Step3: After you have placed the bid for your desired car, you will be intimated by your company on the auction date regarding results of the auction. Step4: Now if you win the auction, your company would ask you to pay the
difference between the upfront deposit and the winning auction price. In addition to this, you will be requested to pay for the C&F or Cost and Freight charges. C&F charges are less than 10% of your winning bid.
Note: If you didn’t win the auction you would need to repeat the steps listed before. Part 3: Importing the car things to note! 1) Once the payments have been confirmed, your company would send the original documents of your car via c o u ri er b ef o r e c ar ’ s shi pm e n t 2) After payment, the car is sent to the inspection office for a final review which can take up to five days 3) Delivery takes around 15 days to reach Karachi Port 4) A customs agent needs to be hired to handle the process of customs clearance along with the payment of passport fees and port charges.
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Suzuki may invest $460m into Pakistan if New Auto policy revised
Monthly AutoMark International
Automotive News - Update
Suzuki plans to invest $460 million into Pakistan if the government provides the right incentives and amends its new auto policy, the company said on Friday. Pakistan in March announced a new auto policy that favours potential new entrants over existing manufacturers by offering them lower duties, part of a strategy to attract foreign car makers and loosen the dominance of Suzuki, Toyota and Honda. The Pakistan Suzuki Motor Company, which assembles Suzuki cars for the local market, said it had concerns that the new auto policy may "damage the tremendous investment potential in the
Pakistan automobile sector by existing players such as Pak Suzuki Motor Co". In an emailed statement to Reuters, Karachi-listed Pakistan Suzuki said: "If the incentives and benefits should be given then we are ready for $460 million investment in Pakistan." The investment would include creation of a state-of-the-art new plant on an "urgent basis" and from this plant Suzuki would introduce four new models within five years, including two new models by 2018. Plans to introduce new models would go some way towards soothing government anger about lack of
competition and choice in Pakistan's car market. Officials say they want foreign car makers to shake up the Japanesedominated market because locally assembled cars are sold at relatively high prices but lag behind imported vehicles in terms of quality and specifications. The existing Japanese manufacturers feel let down by the government's new auto policy because it prefers outside investment to their own, and removes many incentives for them to invest in the country, said tw o industry participants familiar with the matter.
Tractor prices to drop by up to Rs. 80,000 after cut in sales tax
The government’s decision to cut sales t ax o n i mp o r t e d a n d l o c a l l y manufactured tractors to five per cent from 10pc will bring down prices by Rs. 35,000 to Rs. 80,000 per unit, depending on the power of the engine, the industry says. Finance Minister Ishaq Dar announced the cut in ST while addressing the National Assembly on last month. Pakistan Automotive Manufacturers Association (PAMA) Chairman Sohail Bashir Rana said the price of a 50 horsepower (HP) tractor would come down by Rs. 35,000, followed by 50,000-54,000 in 75-85HP, whereas four-wheel drive 85HP tractor price w o uld decl ine by Rs. 8 0,000 . He said market reports suggest the government was likely to implement the ST decision either from June 24 or from July 1. Cut in ST coupled with incentives to the agriculture sector in Budget 201617 would augur well for farmers, and the tractor and allied industry. On possible increase in sales of tractors
in the upcoming fiscal year after 5pc reduction in ST, he said much would depend on production of various crops, their prices in the local and global markets, and prospects of exports. However, there may be slowdown in sales of tractors during the current month as farmers may wait for the implementation of budget decision to avail price benefit on farm machinery. He urged the government to quickly implement its decision by issuing notification. He recalled tractor makers had a tough current fiscal year due to poor
agriculture sector performance coupled with farmers’ wait-and-see attitude over tractor subsidy scheme announced by Punjab and Sindh governments in Budget 2015-16. After losing hope over non-execution of subsidy scheme, farmers resumed tractor buying from January 2015 onwards pushing up sales every month. But the sales for July-May FY16 remained lower compared to the same period of the last fiscal year, he said. Fiat sold 11,653 tractors in the 11-month period compared to 15,703 a year earlier while Massey Ferguson sold out 18,208 units compared to 26,155. According to Economic Survey 2015-16, the agriculture sector as a whole witnessed a negative growth of 0.19pc against 2.53pc growth during the same period of the last year. The growth of sub-sectors including important crops, other crops and cotton ginning posted a negative growth of -7.18pc, -0.31pc and -21.26pc, respectively.
www.automark.pk | July-2016 | Page 24
Exclusive Review by David McMullan from China
Monthly AutoMark International
China Motorcycle and Parts Fair-2016 (November 16th-18th in Guangzhou )
World’s biggest motorcycle
parts fair opens discussion forum
The China Motorcycle Parts Fair (CMPF) has been staged in automotive hub cities around China twice a year for nearly 40 years and has evolved into the biggest and most useful motorcycle parts trade fair in the world. The last edition in Harbin attracted over 21000 trader visitors from 37 different countries. The next edition of CMPF (held in Guangzhou this November) is set to be the biggest fair yet with an estimated 1100 different companies exhibiting literally millions of motorcycle parts, accessories and lubricants. One of the new features of this autumn’s fair is the CMPF forum. This forum is available to all visitors and is designed to help motorcycle parts importers and distributors meet the manufacturers and exporters in order to open lines of conversation that will help to make the importation and trade of Chinese made motorcycle parts run more smoothly. During the forum attendees will hear speeches from key industry figures that will explain and demonstrate the ways that the Chinese motorcycle industry is evolving. These lectures will involve subjects like- preparing for EURO 4 (also DOT, EPA) upgrading. They will also outline the improvements being made in motorcycle electric control technology and advanced braking systems as well as giving attendees useful information on new product materials and advances in moto part quality. All forum attendees will be invited to question our key-note speakers and give their opinion of the Chinese motorcycle industry and how to best improve it. Motorcycle parts importer Fabricio Lacabanne has visited the CMPF many times and gives his opinion. “Many years ago when I first came to the CMPF there
were very few foreign visitors, certainly none from westerncounties, and the parts on display were mainly geared towards the Chinese domestic market. Since then I have seen huge changes in the fair, as more and more international traders came the exhibitors changed the products on display to suit a more cosmopolitan expo. One of the most noticeable things was that there were many companies exhibiting Chinese made parts for eig n mo tor cycle manufacturers including Honda, Yamaha, Suzuki, Kawasaki, Piaggio, Peugeot, Triumph, Kymco, Bajaj and just about every other motorcycle manufacturer in the world. In the past most international parts dealers would use the internet to secure their parts orders usingsimple Google searches like ‘Chinese motorcycle parts’ that reveal hundreds if not thousands of results. Some of these results will be of no use; they will be companies with localised custom, selling individual parts and spares to individual motorcycle owners. In its early years the Chinese online shop service ‘Alibaba’ was the answer to all parts importers dreams, now it is gorged with thousands of small parts trading companies and my advice is to stay clear of it (also services like ‘made in China’) for the sake of your sanity and make a trip to China where you can visit the CMPF and meet the people that you will be dealing with. The other advantage of actually attending the fair is that you will be able to judge the quality first hand and maybe take some samples with you there and then. Years ago the displays were all a bit raw and unorganised, some exhibitors seemed to have just thrown parts everywhere over a table, but now it’s as organised and user friendly as any of
the world’s great motorcycle trade exhibitions and I am really looking forward to joining in with the new trade forum at the next fair.” The venue for this November’s fair will also (at the same time) feature the China Electric Vehicle Expo. This expo displays 2 and 3 wheel electric bikes and trikes from scooter commuters to tricycle taxis and has proved to be a useful addition to t he CM P F a s m an y of t he international motorcycle dealers are now looking to import and sell electric bikes and scooters and a popular sideline. The geography of the autumn edition of the fair is important as Guangzhou (and Guangdong province in general) is a main hub (second only to Chongqing) for the Chinese motorcycle industry. Visitors to the fair who also deal in fully built motorcycles can ask the CMPF advice service to organise a visit to any of the areas’ motorcycle manufacturers includingGuangzhou Haojin Motorcycle Group Co., Ltd. Wuyang-Honda Motorcycle (Guangzhou) Co., Ltd. Guangzhou Tianma Group Tianma Motorcycle Co., Ltd. Guangzhou Sanya Motorcycle Co., Ltd. Guangzhou FanyuHaojian Motorcycle Industry Co., Ltd. ZengchengBenma Industrial Co., Ltd. Guangzhou Dayun Motorcycle Co., Ltd. Guangzhou Dayang Motorcycle Co., Ltd. Guangzhou Fast Power Motor Co., Ltd. And many others.
The 36th (Autumn, 2016) China Motorcycle and Parts Fair” will be held on November 16th-18th in Guangzhou Poly World Trade Expo Pavilion. For visitor advice contact David McMullan at englishmaninchina@gmail.com
www.automark.pk | July-2016 | Page 25
Local car sales rise to 167,507 units
Monthly AutoMark International
Automotive News - Update
Sales of locally produced cars swelled to 167,507 units in July-May 2015-2016 as compared to 136,723 units in the same period of last fiscal year. Low interest rate, improving law and order situation and overall improvement in country’s economic situation can be attributed to rising sales of cars, said Mohammad Tahir Saeed at Top Line Securities. Toyota Corolla, with longest delivery time, continued to be the highest selling car with the sale of 53,410 units as compared to 46,680 units last year. Combined sale of Honda Civic and City remained weak, far lower than Corolla, and stood at 23,800 as compared to 21,134 units, revealed figures released by Pakistan Automotive Manufacturers Association (Pama). Suzuki Swift sales rose to 3,761 units
from 3,220. In 1,000cc segment, Suzuki Cultus sales soared to 14,850 units from 12,750, while Wagon R sales reached 8,490 units from 4,707. Suzuki Mehran and Suzuki Bolan sales hit to 34,691 and 28,498 units as compared to 27,580 and 20,579 units. In LCVs, vans and jeeps, sale of Toyota Fortuner fell to 518 from 668 units followed by decline in Sigma Defender sale to 173 from 381 units. Suzuki Ravi sales peaked to 28,339 units from 20,225 under Panjab Taxi Scheme. Toyota Hilux sales crawled up to 4,603 units from 4,137. Pak Suzuki’s (PSMC) sales increased 33pc YoY to 118,629 units in 11MFY16, mainly led by Punjab Govt’s Taxi Scheme. Volumes remained flat MoM while they declined 22pc in May 2016 to 9,001 units due to completion of taxi
Dewan to Re- launch Shehzore in Pakistan
It has been reported from sources that Dewan Farooque Motors Limited is about to relaunch its very famous and successful Medium sized truck Shehzore with a different name. During its prime days more than a decade ago, Shehzore was a formidable competitor in its class and had won the trust of all its customers due to its rugged construction, unmatched reliability and performance. The remaining Shehzore’s today are found mostly in bad shape due to unavailability of spares and absence
appropriate maintenance. According market sources, this will be assembled by Dewan in same plant at Sajawal, it will be domestic brand with or without Hyundai logo, power train Korea, engine transmission and axel rest will be local. Price tag will be around 1.5m. However the news of the comeback would surely bring a sigh of relief to the businessmen relying on LCV’s as still in this category there is a big void which Shehzore left and none of its competitors could fill up since.
scheme. Indus Motors sold 58,531 units of Toyota Corolla in 11MFY16 versus 51,485 units last year. Sales marginally improved in May 2016 at 5,544 units. Honda Cars 23,800 units were sold in 11MFY16 compared to 21,134 units in the same period last year. Sales improved 7pc to 2,507 in May 2016, but declined 9pc MoM. Tahir Saeed said Honda City is the main contributor to overall sales of Honda Atlas Cars and volumes of Honda Civic are expected to dry out now. Buyers are likely to prefer the new model of Civic (10th generation). Pre-booking registration for the same has already begun and the company is expected to launch the model shortly.
Italian envoy visits KATI
Italian Counsel General Gianluca Rubagotti has said Pakistan and Italy are working to make stronger trade relations with each other. He said this during his visit to the Korangi Association of Trade and Industry (KATI), a statement said on Wednesday. KATI President Zahid Saeed welcomed the Italian consul general. “Many Pakistani industries are using Italian machinery and we look forward to technology sharing,” he said. Head of standing committee on diplomatic affairs in KATI, Masood Naqi said that business to business contacts should be built between both the countries, he also briefed about possible sectors for technology sharing and manufacturing services.
www.automark.pk | July-2016 | Page 26
International Automotive News - Update
Monthly AutoMark International
Suzuki CEO steps down due to fuel economy scandal in Japan
Osamu Suzuki will step down from the position of CEO of Suzuki, at the end of this month, in the wake of the company’s fuel economy calculation scandal. The 86-year-old Suzuki will however retain his role as chairman of the company that bears his adopted family’s name. Executive vice president Osamu Honda will also step down on June 29 at the company’s annual general meeting. A replacement CEO and executive vice president have not yet been named.
In addition to the two resignations, Suzuki announced that it will cut bonuses and pay for top executives and managers at the automaker. Directors will forgo their bonuses for the 2015
Govt plans to do tests on Suzuki vehicles in Japan
The government will conduct driving tests on some automobiles made by Suzuki Motor Corp. over its fuel economy scandal, Land, Infrastructure, Transport and Tourism Minister Keiichi Ishii said last month. The tests will be conducted by the National Agency for Automobile and Land Transport Technology. The agency plans to measure travel resistance data needed to gauge the vehicles’ fuel economy. Suzuki has violated state regulations on ways to collect data used for vehicle fuel economy tests since 2010. The problem affected a total of 2.14 million units of 26 vehicle models, including those manufactured by Suzuki for sale under other makers’ brands. Ministry officials searched Suzuki’s headquarters in Hamamatsu on Friday and heard the background of the scandal from Suzuki Chairman Osamu Suzuki. After the scandal came to light, Suzuki calculated the vehicles’ fuel economy under the state-set format and said their actual performances were better than the listed figures.
Since May, the agency has carried out driving tests on four mini-vehicle models manufactured by Mitsubishi Motors Corp. in connection with the fuel economy scandal at the automaker. No real data measured Suzuki measured no real data based on tests obligated by law for all 26 vehicle models involved in its fuel efficiency scandal, it was learned Monday. The mini-vehicle maker initially said that it had collected real data on fuel economy tests, as well as tests conducted under a method different from the stateset standard, but changed its account. Real data were measured only for vehicles under development and data reported to the government were calculated from the combined results of c omp o ne nt-by-c ompo nent test s conducted indoors. At a press conference on May 18, just after the scandal came to light, Suzuki cited difficulties in testing vehicles at its test course due to wind on a hill close to the sea as a reason for the violation of state-set measurement rules.
financial year, while managing officers will have theirs cut in half. Osamu Suzuki will also have his pay reduced by 40 percent for the next six months, with smaller reductions for less senior officers. Suzuki’s auditors and senior managers will be docked 10 percent of their pay over the next three months. The company will take unspecified “disciplinary measures” against people within the engineering and certification departments. In addition, Suzuki will step up training, internal checks and balances, “promote utilisation of the whistle-blowing system”, and consolidate its testing facilities. Back on May 18, the company publicly admitted that it had used an improper and illegal testing procedure to calculate its fuel economy numbers for cars sold in Japan. For the country’s coasting test, Suzuki used rolling resistance data that was constructed from “measured data of individual components such as tyres, brakes and transmission” rather than direct measurement. It’s said that 14 Suzuki-badged vehicles, as well as 12 cars made by Suzuki but sold by other Japanese car makers, had their fuel economy numbers calculated improperly. Suzuki has stated that “the issue does not apply to our products sold outside Japan”. After re-calculating its domestic fuel economy numbers via the governmentapproved method, Suzuki found that “all certified [fuel economy] values r em ain ed wi thi n the r an g e o f measurement deviation”.
www.automark.pk | July-2016 | Page 31
Petrol Used in Your Cars in Pakistan is One of the Worst in the World
Energy Sector - Review on Petrol
Most people in Pakistan think petrol is just petrol. Unfortunately that’s not it. Petrol comes with a certain quality, standard of purity and a pre-calculated formula of mixture and obviously not all petrol is good petrol; especially when you are in Pakistan. Would you be shocked if you are told that Pakistan is (officially) selling one of the the worst qualities of “standard petrol” in the world? Illegally imported petrol — that’s widely available across Pakistan — is even further degraded in quality that can not only harm your pockets due to low average mileage but it also damages the engine of your vehicle. How Engines Work The reason why people end up with ample engine faults is usually because of the low quality petrol. Engines work by igniting the fuel, resulting in a detonation. Petrol engines rely on combusting air and fuel compressed together as a mixture. Hence, compression is an important factor for petrol engines (compression engines).
Problems Caused by Using Low Quality Petrol
When petrol gets ignited before the intended spark ignition, it results in uncontrolled explosions in the engine. Since these detonations are uncontrolled, it hurts the engine and they fail to last a long time. People keep getting their engines rebuilt because of this problem. Due to the excess of air or petrol, the explosions exceed the designed limits that engine components can handle. We can say that the fuel explodes instead of burning smoothly. These explosions are generally called “knocks” or “pings”.
In short we can say that low quality petrol causes following issues:
and can make a lot of difference in how a car operates. Simply switching from 97 to 98 RON can fix a car’s knocking problem, making it run perfectly smooth.
Quality of Petrol in Pakistan • Engine damage – resulting in regular faults and decreased resale value • Increased engine noise • Poor mileage • Slow acceleration • Engine shuts down on its own randomly • Reduced top speeds • Incomplete combustion causes more toxic emissions • Modern cars are not designed for low quality petrol
Quality Measure
Petrol quality is assessed by measuring the amount of octane in it. It can be measured using an octane rating. The most commonly used method of measuring petrol’s quality is Research Octane Number (RON). You can also say that RON tells petrol’s anti-knock quality. RON is measured by running the fuel in a test engine. This engine usually has a variable compression ratio under controlled conditions at 600 RPM. The test informs about the amount of octane molecules in the petrol. Simply having more octanes isn’t better, that’s where RON numbers come in handy to identify what’s best. Other than RON, Motor Octane Number (MON) and Anti-Knock Index (AKI) are also used. MON uses a more demanding 900RPM engine while AKI is calculated using the difference between RON and MON. Generally, a difference of 1 RON is a lot
Pakistani petrol stations sell 87 RON petrol as a standard. The same standard is being used for the past 20 years, however, cars, technology and the rest of the world has already moved ahead. Then there’s Hi-Octane (HOBC) that’s sold on select petrol stations which comes with comparatively higher RON of 97. That’s pretty much all the petrol quality we have in Pakistan. Not to mention, a lot of petrol is smuggled from Iran and is widely sold across Pakistan. This Irani petrol comes with even lower RON value but is sold across Pakistan on petrol stations of all companies. Another issue, prevalent in Pakistan is that private pump owners tend to mix jet fuel (which costs half of what petrol does), benzene or kerosene with petrol in order to make more profits. Sadly, the government isn’t too keen on banning pumps selling impure petrol as there’s no check and balance and pump owners are usually given a free hands.
Comparison with International Markets
We would like to mention the different qualities of petrol available in some countries so our readers can compare just how far behind Pakistani market is in this regard. Another point to note is that most countries also stopped selling leaded petrol 2 decades ago, since it is hazardous for health. However, it is still available in Pakistan. The countries with their respective petrol RON values are listed below: • Australia: Regular (91), Premium (95/98)
www.automark.pk | July-2016 | Page 32
Monthly AutoMark International
• China: Rural (92), Urban (95),
Premium (98) Germany: Regular (95), Premium (98), Ultimate (100) • Hon g Kon g: 98 RO N o nl y • India*: Regular (91) with some special additives, Premium (93 & 97) • Iran: Regular (92), Super (95) • Russia: Regular (92), Premium (95), Most expensive (98) • Saudi Arabia: Regular (91), Premium (95) • Sri Lanka: Regular (92), Super (95) • Turkey: Regular (95), Premium (98) • UK: Regular (95), Premium (97), Premium Plus (99), Ultimate (102) • USA: Multiple offerings ranging from 90 to 110. *India manufactures small cars which are specially designed to avoid knocking problems with low RON fuels hence the 91 RON standard. As you can see above, no country (with officially available RON stats) is offering petrol below the 91 RON standard. Most countries use 92 RON while countries which have a large automotive industry use 95 RON for regular petrol. Some countries offer users the choice to get the type of fuel which is most suitable for their car, depending on the size of the engine.
•
RON Price Difference
When compared with 87 RON prices, a higher quality 92 RON fuel would cost an additional Rs 2.5 to Rs 3 per liter. A 95 RON upgrade would cost an additional Rs 4 to Rs 6 per liter. These estimates are based on international rates.
How Should Pakistan Calculate the Appropriate RON Value?
RON values are dependent on air density and oxygen quantity in it. A car which requires 98 RON at sea level would work fine on 95 RON when in a mountainous region. Our government, which is aware of the cars being used in Pakistan, can establish a minimum RON level which would suit most cars. If most people have cars under 1000cc, anything more than 92 RON would suffice, but if there’s a majority of people using cars with a powerful engine, then another standard
with a greater RON value should also be made available. Simply increasing the RON values isn’t the answer. The value has to be appropriately selected depending on the market and the geography of the country. For a country the size of Pakistan, having at least three or four different fuel types would be a good step. Pakistan’s Recent Steps in this Direction Earlier this year, the government asked the oil companies to upgrade their refineries and replace the below standard petrol with a higher one, although with a higher price tag. The oil companies unanimously rejected the proposal, citing their conditions that they would accept only if they can sell the low quality fuel under the new brand which would help them make up for the losses in technology upgradation Some industrial players, including Shell, wanted the government to allow selling multiple differential fuels i.e. 87, 92, 95 RON with minor price differentials. The petroleum ministry refused the companies’ proposal citing that consumers won’t know if they are getting 87 or 92 RON due to mistrust. In our opinion, it was a good proposal because the consumer still doesn’t know if the petrol they are is getting is pure enough or not. Differential fuel strategy could cater to all types of consumers vehicles, like mo to r cy cl es (w ith l e ss er R O N requirements), small cars, mediumsized cars, etc.
As far as the local oil refineries are concerned, they called the task completely impossible before 2019. They haven’t even started any upgrades yet and it could take some time before they even begin such a project. It would take about 3 years plus million of dollars of investment for the refineries to get the upgrade. However as far as oil companies are concerned, it would take them around 6 to 8 months to import, market and distribute 92 RON petrol after government approval. Pakistan imports a major share of petrol to fulfill its demand and supply gap and directly importing a higher grade petrol would
be a feasible interim option. It has been reported that Pakistani refineries are at least moving towards Euro-II standard 87 RON petrol. It has more to do with the contents of the petrol and little to do with engine performance. It will improve upon emission standards and will be available in Pakistan by the third quarter this year.
Regular Testing Procedures
Petrol is regularly monitored on most company owned petrol pumps. Oil companies have their own checking vans, which visit pumps occasionally and check the purity and RON value of the fuel. The vans are equipped with portable RON meters calibrated with a 600cc testing engine, letting the individuals test the fuel quality right then and there. Company-owned petrol pumps are usually more vigilant in inspecting fuels as compared to private or franchise based petrol pumps. Government, as in many other cases, isn’t too keen o n such testing procedures. Hence, anyone can go ahead and start selling impure petrol without any worries. Final Words Future plans give a clear picture that oil companies and oil refineries are in no real hurry to improve their petrol standards. They want to keep the current standard in order to keep growing their profits. The government doesn’t want to interfere with the petrol regulations, nor force companies to sell high quality petrol. It does not even want to ban pumps which mix jet fuel with petrol. It is the government’s job to regulate the oil companies and refineries and maintain standards. Simply leaving it to them would never solve the issue. It’s not fiscally advantageous enough for private companies’ to make the change. Leaving the industry to regulate itself is naive. Meanwhile, people owning cars with powerful engines, should opt to buy premium petrol (Hi Octane) all the time. The rest should avoid private or franchise petrol pumps unless you are really sure that the fuel you are getting is really 100 percent petrol.
www.automark.pk | July-2016 | Page 33
VW to pay $10B to settle diesel scandal in US
International Automotive News - Update
Volkswagen plans to pay more than $10 billion to settle the scandal over excessive diesel emissions with U.S. authorities, according to multiple reports. The settlement would, in part, compensate nearly half a million U.S. VW owners whose vehicles can emit up to 40 times the federal threshold of nitrogen oxides. In total, about 11 million vehicles worldwide were equipped with software to manipulate emissions levels during official testing. VW plans to buy back the vehicles or, once a fix is approved, pay to alter the cars to comply with environmental standards. Owners will also be eligible for additional compensation with an average value of about $5,000. The Wall Street Journal reported that about $4 billion of the settlement will be used to offset pollution from those vehicles, as well as increase the automaker's production of zeroemission models. Terms could still change as attorneys hash out final details; a federal judge is expected to announce the deal early next week. Volkswagen's final price tag, however, will likely exceed the $10 billion
settlement. A source told Reutersthat some environmental remediation costs were not factored into the initial total. The settlement also excludes some 80,000 diesel vehicles equipped with larger 3.0-liter engines as well as potential civil penalties for violations of the Clean Air Act. Volkswagen originally set aside $7 billion to cover costs from the scandal, w h i c h w a s a nn o u n ce d b y t h e Environmental Protection Agency last year, but raised that amount to more than $18 billion in April. A recall is already underway in Europe, where most of the vehicles are located,
Electric car maker Tesla Motors is selling around $1.4 billion worth of stock to help bring its lower-cost Model 3 to market. Palo Alto, California-based Tesla offered 6.8 million shares Wednesday. Its shares slid less than 1 percent to $210.60 in after-hours trading. Analysts had expected the move after Tesla announced this month it wants to produce 500,000 cars per year in 2018,
two years earlier than planned. The company wants to meet strong demand for the Model 3, which goes on sale at the end of 2017. Tesla began taking reservations for the $35,000 car on March 31; more than 373,000 customers have put down a $1,000 deposit. CEO Elon Musk is selling an additional 2.8 million shares to pay the taxes he will incur after exercising stock options.
Monthly AutoMark International
but the U.S. settlement only inches VW closer to resolving the issue. A plan to recall the U.S. vehicles will be much mo re c ompli cated that the f ix implemented in Europe, and the automaker continues to face criminal probes, including in the U.S. and its native Germany. German prosecutors announced this week that they are investigating former CEO Martin Winterkorn and a member company's management board for possible violations of securities laws.
Tesla is selling $1.4B in shares to pay for Model 3 production
www.automark.pk | July-2016 | Page 34
International Automotive Industry - Update
Yamaha opens new assembly plant in Lagos, Nigeria
Japanese motor company Yamaha, has opened a new plant in Nigeria’s commercial city Lagos. Together with French company CFAO, the two firms jointly opened the assembling plant which has the capacity to produce 70,000 motorbikes yearly. The new plant will also produce out board engines for boats and also power generators in a country that often has blackouts. During the opening ceremony it was established that the new plant is because of the country’s potential for economic growth. “The motorcycle market in Nigeria is just over a million new imported bikes annually, mainly from China, India and Japan. And it represents about half of the entire West African market. So basically Nigeria is equivalent to all the other West African countries in terms of market size, “ said Thomas Gajan, director of motorbikes activities, CFAO. One of the highlights of the opening was the special display of Yamaha power bikes and Moto GP world champion machine. “We will manufacture mainly two models. The first is a model intended for commercial use, a motorcycle taxi. The second model is a 110 cm3 scooter, for other consumers, including ladies,” Gajan added. Yamaha returned to set shop in Africa’ largest economy ten years after seizing its operations. The joint venture withCFAO is founded on business experience and vast distribution network in Nigeria.
Suzuki Motor Says More Cars Given Improper FuelEconomy Tests Suzuki used an unapproved testing method on 26 models, having previously said 16 were affected
Monthly AutoMark
Ford in talks to build Lincolns in China, report says
Ford Motor Co., aiming to make China the top market for its Lincoln luxury line, is in talks with partner Changan Automobile Group about producing the brand’s vehicles in Chongqing, people with knowledge of the matter told Bloomberg. Ford is considering a major manufactur ing presence in t he southwestern Chinese city that would serve the domestic market and be an Asian export base, said one of the people, who asked not to be named revealing internal deliberations. Output could begin as soon as 2018 if Lincoln continues strong growth in China, where it got off to a fast start last year, the person said. Matt VanDyke, then-director of Global Lincoln, said in January the brand might consider eventually adding production in China if volumes are large enough to justify doing so. For now, all of its products are exported there from North America. Ford CEO Mark Fields has said China could replace the U.S. as Lincoln’s largest market by the end of this decade. The company is investing $2.5 billion to overhaul the faded luxury line. Ford stopped making the Town Car, the longlived business-travel stalwart that had become the symbol of Lincoln.
Later this year, Lincoln will bring back the Continental nameplate on a broadshouldered cruiser with an opulent back seat aimed at affluent Chinese customers w ho prefer to be chauffeu red. “It’s different in the U.S. than in China,” Kumar Galhotra, head of Lincoln, said of the brand’s standing in a January interview. “In China, our heritage plays very strong. Our favorable opinion in China is actually ahead of Lexus and on the factor of prestige, we’re actually ahead of Audi.” In its first year in China, Lincoln sold more than 11,000 vehicles, which Fields has called the fastest start for a luxuryauto brand there “in recent history.” Manufacturing in China would allow Ford to save on a 25 percent import tax, making its offerings more competitive in a premium market dominated by Germany’s Audi, BMW and MercedesBenz. Lincoln would join General Motors' Cadillac and Nissan Motor Co.’s Infiniti among luxury nameplates that are made in China. The possibility of building Lincolns in China is made easier by the fact that the luxury cars are built on the same mechanical underpinnings as Ford models already produced there, said one of the people.
Volkswagen plans to launch 30 allelectric models to reposition itself as a leader in "green" transport. Matthias Mueller, chief executive of Europe's biggest carmaker, said huge investments would be needed as the firm moves beyond the "dieselgate" scandal. He hopes that by 2025, all-electric cars would account for about 20-25% of the German carmaker's annual sales. Latest figures show that sales of Volkswagen-branded cars continue to fall behind European rivals. Outlining what he described as the "key building blocks in the new group strategy", Mr Mueller said VW aimed to "transform its core automotive business or, to put it another way, make a
fundamental realignment in readiness for the new age of mobility". VW will focus on "the most attractive and fastest-growing market segments", he said. "Special emphasis will be place on e-mobility. The group is planning a broad-based initiative in this area: it intends to launch more than 30 purely battery-powered electric vehicles over the next ten years," he said. VW was plunged into crisis when it was revealed in the US last September that diesel engines had been fitted with software that could distort emissions tests. The company later revealed that some 11 million cars worldwide were affected.
VW plans huge investment to become electric cars leader
www.automark.pk | July-2016 | Page 35
Car / Light Vehicle Price List
SUZUKI
Model Model WAGON-R VX 1000cc Euro II WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc
SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II CULTUS EFI VXR CNG LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX 800cc E2 BOLAN VAN VX 800ccm (M)E2 SUZUKI VAN CARGO Euro II RAVI PICK-UP STD 800cc E2 APV 1.5L GLX MT (Petrol)
Ex Factory Advance Tax Price Rs. 25,000 Rs. 864,000 Rs. 25,000 Rs. 906,000 Rs. 1109,000 Rs. 25,000 Rs. 10,000 Rs. 630,000 Rs. 10,000 Rs. 700,000 Rs. 10,000 Rs. 683,000
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
1,297,000 1,433,000 1,044,000 1,119,000 1,365,000 1,444,000 700,000
Rs. 671,000 Rs. 642,000 Rs. 2,418,000
Rs. Rs. Rs. Rs.
50,000 50,000 25,000 25,000
Rs. Rs. Rs. Rs.
10,000 10,000 10,000 10,000
HONDA
Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 2541,000/=* Honda Civic 10th Generation 1.5L Turbo Rs. 2911,000/=* Honda Aspire Manual 1.3L Rs. 1,687,000 HYUNDAI Rs. 1,809,000 Honda Aspire Prosmatec 1.3L Honda City Manual 1300cc Rs. 1,537,000 Honda City Prosmatec 1300cc Rs. 1,678,000 Rs. 2,053,000 Honda Civic VTI Manual 1800cc Rs. 2,285,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,174,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,406,000 Honda Civic VTI Prosmatec SR (Oriel) * Ex factory Price, Govt. Taxes Apply Price will be charge at the time of deliver what so ever
TOYOTA COROLLA
Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis A/T CVT-I (1.8 ltr) GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T FORTUNER 2.7L A/T Petrol
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Toyota Hilux Pickup 4x2 sc
Model
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Price 1,672,500 1,817,500 1,892,500 2,047,500 2,147,500 2,272,500 2,307,500 2,457,500 5,085,500
Price
Rs. 2,063,000
Toyota Hilux Pickup 4x4 E
Model
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
TOYOTA VIGO DAIHATSU
Model Model
Price Price
Price
Rs. 3,324,500
FAW MOTORS
Model
Vigo Champ-V MT Rs. 3,598,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c Vigo Champ-G AT Rs. 3,798,500 Sirius S80 1300cc (WHITE ,BLACK,STRONG BLUE & SILVER) Sirius Grand 1500cc FAW V2 1300cc A/C EFI Petrol CBU
Monthly AutoMark Magazine - International
Price
Rs. Rs. Rs. Rs. Rs. Rs.
744,000 849,000 899,000 1705,000 1885,000 1049,000
Price updated July- 2016
International Automotive Industry - Update
Honda City hatchback spotted in China
Ahead of its official debut, the Honda City hatchback called the Gienia has been spotted in China. The new model is basically a downsized City sedan which is sold as Griez in China. However, this car will be exclusive to China market and might not make it across the globe. The rest of the world will continue to be served by the Jazz in India a.k.a. Fit in the international markets. The automotive trend in China has been known to be different from the rest of the countries, hence widening the scope to introduce a second hatchback from the same family. The hatchback believed to be based on the Concept B design study; it gets a bolder grille and bumper on the front. It also comes with projector headlamps. As for the rear, the Gienia gets large taillights which are connected by a strip. The rear bumper is large and sculpted with chrome accents. To complete its sporty look, the hatchback version gets a rear spoiler. In terms of dimensions, the Honda Gienia measures 4,517mm in length, 1,705mm in width and 1,477mm in hight. The car will get a wheelbase measuring 2,600 mm. In comparison to Griez, the Gienia is about 22mm shorter in its overall length. Under the hood, the Gienia will continue to be powered by Honda’s existing 1.5-litre iVTEC engine that generates 127bhp of power and 155Nm of torque. The engine will come mated to a five-speed manual transmission, while CVT might be optional.
Suzuki produced half of its global volume in India as carmaker's
in India as carmaker's global sales shr ink s for 6 str ai ght mo nth s Maruti Suzuki has also started exporting its premium hatchback Baleno to Japan. This is the first time since the beginning that Maruti Suzuki has exported to the home country Suzuki, the Japanese automaker produced 250,465 units globally, half of which was manufactured by Maruti Suzuki here in India. The global production of Suzuki has
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Maruti Suzuki WagonR MPV to get 1.2-litre petrol engine: Report
Maruti Suzuki's plan to launch an MPV that sits below the Ertiga has been doing the rounds over the internet for quite some time. Maurti Suzuki reportedly imported the WagonR based MPV codenamed YJC in India last year to check the feasibility. Emerging reports indicate Maruti Suzuki is going ahead with the plan and the vehicle would be powered by a 1.2-litre petrol engine. The three-cylinder engine that has been designed and developed by Suzuki reports MotorOctane. The engine is expected to make about 75bhp of power and about 105Nm of torque mated to five-speed manual. On the design front, the MPV will also look like the WagonR. Maruti Suzuki will extend the wheelbase slightly to accommodate a third row. The MPV will
offer 5+2 seating, while leg space at the third row will be sufficient for kids only. The seven-seater Wagon R will get similar interiors that of the current Wagon R and there will be some additional features too. According to the records of Zauba, which tracks the record of India's import and export data, Maruti has imported two units of new WagonR MPV YJC to India for research and development (R&D) purpose last year. The YJC -- which is imported to India as CBU from Japan - measures 3700mm in length. The WagonR MPV will be pitted against Datsun Go+ MPV and prices are estimated to be in the range of Rs. 5.5 lakh to Rs. 6.5 lakh. Market entry of the vehicle can be expected in early 2017.
Toyota Kirloskar Motor has left behind Tata Motors in the battle of new launches in May 2016, thus becoming the fourth largest passenger vehicle maker in the country. Toyota's newly launched multi-purpose vehicle (MPV) Innova Crystacould be cited as the reason behind this surge in its sales. The car maker sold 12,614 units of Innova Crysta last month, which is 9.6% higher than the number of units sold in May last year (11,511). On the other hand, Tata Motors sold 26.7% lesser cars in May, selling 9,456 units and falling below the 10,000-unit mark. This, despite the launch of Tiago in April. "Toyota has been able to do well because of the new generation Innova Crysta. It is definitely an achievement as despite the ban on big diesel vehicle, Innova Crysta has been able to perform so well," Puneet Gupta, associate director, South Asia automotive sales forecast &
advisory, IHS Automotive, told ET. "They have been able to improve the product which has helped it carry the good name made by the previous generation Innova." Innova Crysta was launched on May 2 at a price of Rs 13.83 lakh ex-showroom Mumbai, being the first major upgrade that Innova got in over a decade of Toyotas India stint. Tata Tiago , which was expected to revive Tata Motors' fortune in the passenger vehicle segment is in fact losing the market share. "Yes, there was a good euphoria around Tiago before the launch. But it has to be understood that Tata is coming back after a good long break as they didn't have any big launch. So, Tata is at a stage where they are trying to build momentum which has started a bit with Tiago but it will take some time," said Gupta.
Toyota beats Tata Motors to become India’s fourth largest passenger vehicle maker
been falling consistently for the last six consecutive months and in April, the production fell by 98.6 percent as compared to April 2015. Maruti's production in April stood at 125,134 units which is a 9.2 percent yearon-year growth. In its home market, Japan, Suzuki manufactured just 68,942 units in April which is down by 81.5 percent. This
number has been in a continous fall since last 14 months. Maruti Suzuki has also started exporting its premium hatchback Baleno to Japan. This is the first time since the beginning that Maruti Suzuki has exported to the home country.
www.automark.pk | July-2016 | Page 37
MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
70cc Motorcycle
Sr./ Product & Model Name No. 1. Crown CR-70 2. Hero RF-70 Model 2015 3. Hero Plus 90, 90cc 4. Honda CD-70 5. Honda CD Dream 6. Hi-Speed SR-70 7. Metro Premier+ 70cc 8. MS JAGUAR MS 70 Euro- II 9. MS JAGUAR MS 70 ( DREAM) 10. Ravi Premium R1 11. Road Prince bullet 12. Road Prince 70cc 13. United US 70 14. United Extreme 70 No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Sr./ No. 1. 2. 3. 4.
Retail Price
Rs. 42,000/= Rs. 46,000/= Rs. 48,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 46,950/= Rs. 43,500/= Rs. 41,500/= Rs. 42,000/= Rs 44,500/=
125/150 cc Motorcycle Brand & Model Name Crown CR-125 Super Star SS-125 Super Star SS-125 DLX Honda CG-125 std Euro II Honda CG-125 DX Hero Prince 125 Metro MR-125 Regular Ravi Piaggio Storm 125 United US-125 Euro 2 Yamaha YBR-125cc
Retail Price Rs. 65,000/= Rs. 59,000/= Rs. 67,000/= Rs. 102,900/= Rs. 124,000/= Rs. 96,000/= Rs. 68,800/= Rs. 112,000/= Rs. 70,000/= Rs. 129,400/= Road Prince Twister 125cc Rs. 116,000/= Road Prince WEGO 150cc Rs. 195,000/= Unique US 125cc Rs. 70,000/=
Suzuki Motorcycle (Heavy Bikes)
Product & Model Name Inazuma GW 250 Intruder M800 Hayasuba GSX1300R Bandit GSF650SA
Sr./ No. 15. 16. 17. 18. 19. 20. 21.
No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Sr./ No. 1. 2. 3. 4. 5.
Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70 Bionic AS-70
Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,500/= Rs. 44,500/=
100cc Motorcycle
Brand &Model Name Crown CR-100 Hero Splander Model 2015 Honda Pridor MS JAGUAR MS 100 Super Star SS-100 Super Power SP-100 Road Price 110cc United US-100 Euro 2 Unique UD-100
Retail Price Rs. 52,000/= Rs. 56,000/= Rs. 86,000/= Rs. 48,800/= Rs. 57,000/= Rs. 60,000/= Rs. 52,000/= Rs. 50,000/= Rs. 75,000/=
Suzuki Motorcycle
Product & Model Name
SD110 Sprinter ECO
SD110 Raider GS-150 Euro-II GD 110 Euro-II GD 110s Euro-II
Retail Price Rs. 98,400/= Rs. 101,400/= Rs. 133,500/= Rs. 119,000/= Rs. 131,000/=
Retail Price
Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/=
www.automark.pk | July-2016 | Page 38
Price update: June-2016
Daewoo Express Bus Service introduces ‘Gold Class’
Automotive Sector - Update
Daewoo Pakistan Express Bus Service has launched its GOLD CLASS service — a brand new fleet of imported Volvo buses which will service the company’s most active route between Lahore and Rawalpindi/Islamabad. Powered by environmentally friendly, advanced technology EURO III engines, the new Volvo buses are equipped with enhanced safety and comfort standards. The new buses, which will replace the existing Premium Plus fleet on LahoreRawalpindi routes, have double glazed windows and are vibration resilient upgrades that offer a quieter and more comfortable journey. Daew oo r emains c ommitted to
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maintaining its highest standards in terms of bus fleet modernization, safety & security, punctuality, and hospitality. Speaking at the launch ceremony, Faisal Siddiqui, President Daewoo Express, said, “This is a major investment which is centered on a larger effort of fleet enhancement by introducing state of the art buses and providing the highest standards of service quality, because our passengers have rightly come to expect only the best from Daewoo Express. He added, “The company intends to continuously invest in fleet enhancements and increasing its fo o tpr in t ac r o s s t he c ou nt r y” . Chief Executive of Daewoo Express, Shaheryar Chishty said, “With this new fleet we are introducing an upgraded level of luxury service. Combining 18 years of experience as Pakistan’s pioneering transportation network with international standard luxury buses by Volvo – the Gold Class will offer customers a superior traveling experience.
Daewoo Express Fares
Lahore-Rawalpindi
Luxury:
Premium Plus:
Rs. 1,270/= Rs. 1,450/=
Gold Class:Rs. 1,500/=
www.automark.pk | July-2016 | Page 39
International Business Relationship
Monthly AutoMark International
German Pakistan Chambers of Commerce and Industry inaugurated
A high ranking delegation from Germany inaugurated the newly created Ge rm an P a ki sta n ch amb er s o f Commerce and Industry (GPCCI) on Friday. German Ambassador Ina Lepel, Dr Stephan Osward, Division head of the German Ministry for Economics, Cooperation and Development (BMZ), Rainer Schmiedchen, Consul General of the Federal Republic of Germany in Karachi and prominent business leaders were present. “This is an important step to further deepen our bilateral business ties,” Ambassador Lepel stated. “The chamber will provide a new and permanent home for all German Companies in Pakistan. Pakistan Companies working with German products and Pakistani companies trading with Germany,” she added. Dr Stephan Osward, Division head of the German Ministry for Economics, Cooperation and Development (BMZ) said that both the country enjoyed strong relations for the last 60 years. He termed Pakistan as an interesting market. He said that his country was endeavoring to bring more participation of private sector in development projects. He said that Pakistan needed energy and its textile industry was facing hard times. Rainer Schmiedchen, Consul General of the Federal Republic of Germany in Karachi said that security situation in the country had improved. He said that travel advisory to Pakistan had been relaxed. He said that people from Germany can come and travel easily. On the occasion Chairman GPCCI Qazi
Sajid Ali said that the chamber was established after efforts of 10 years. The formation of the chamber came reality with the efforts of all those connected with bilateral business between the two countries. He said that the formation of German Pakistan Trade and Investment (GPTI) was turning point for the chamber. The GPTI was established with the main objective to lay down the proper legal and business framework for the chamber. "GPTI laid down the ground to reach eligibility criteria for the joint chamber," the chairman said. He praised Dr Tilo Klinner, the former Consul-General and the present ConsulGeneral Rainer Schmiedchen and Ina Lepel, the Ambassador of the Federal Republic of Germany to Pakistan; they all have at every stage supported us, encouraged us and motivated us. "Without their support it would not have
been possible to achieve the joint chamber status," he said. He also praised the Ministry of Commerce, Director General Trade Organisation and the Securities and Exchange Commission of Pakistan also contributed towards this national cause. GPCCI is the first European bilateral chamber in Pakistan. It will support its members by offering an ever-increasing range of services aimed at facilitating bilateral trade and direct investment. The inaugural ceremony ended with signing of memorandum of understanding (MoU) between the GPCCI and the Pakistan German Renewable Energy Forum (PGREF) whereby GPCCI will provide a secretariat for PGREF in Karachi and will help promote German expertise in renewable energy as part of the PGREF program.
www.automark.pk | July-2016 | Page 40
Corporate News - Glimpse Monthly AutoMark International
Received WHO'S WHO Professionals Award From Governor Sindh Dr. Ishrat ul Ebad Khan.
China provides 425 police pickups, 80 ambulances, office equipment for capacity building. The Government of China has provided 425 police pickups and 80 ambulances, apart from other office equipment, worth Chinese Yuan 95 million with a view to enhancing the capacity of law enforcement and health intuitions. The equipment would be used in all the four provinces, Gilgit-Baltistan, FATA, Azad Jammu Kashmir and Islamabad Capital Territory.
www.automark.pk | July-2016 | Page 41
Buraq Automobile Brings Benelli & Keeway Motorcycles in Pakistan
Launches Pure Italian bikes in Pakistan
Buraq Automobile has finally launched the long-awaited Benelli & Keeway motorbikes in Pakistan. The launching ceremony of both motorcycles held in Faletti’s Hotel Lahore. Benelli is being manufactured by an Italian Motorbikes Manufacture while Keeway is the product of a Hungarian Motorcycle company. Both bikes are currently being distributed by the Qianjiang Motor C o mp an y . I n P ak i s ta n , B u r a q Automobile and Qianjiang Motor
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Company are working as a joint venture. Benelli launched with one model TNT 25. There are not many world class brands in Pakistan when you are looking for a motorcycle, and just 2-3 brands are known for holding mammoth market share. With eyeing all this reasons, Pakistani customers were on the seventh heaven after hearing it about the release of Benelli and Keeway, the eminent brands from Italy and Hungary respectively.
It is a sporty 250cc bike. Styled like its big brother range, TNT 25 is perfect bike delivering excellent fuel economy, agile performance and easy to ride specialty. Getting on the brakes is easy with Benelli’s own ø 280 mm front disc with a 4 piston caliper and at the rear, a ø 240 mm single disc with a double piston caliper. The 17” aluminum alloy rims finish off the sporty look and add to the impressive handling.
Banelli in Pakistan- Model, Specs
This Italian brand is in the business since 1911 and has proved themselves as the key contributor in various fields including automobile. Banelli unveiled TNT 25 for the Pakistani market at the launch ceremony.
Key Features Banelli TNT 25
250cc water cooled EFI engine Max. Output 28.16HP (Rated Output 25.5) 280mm Front Disk Break 4 Pistons Caliper 240mm Rare Disk Break Double Pistons Caliper 17 Liter Fuel Tank 30 – 35 KM/LTR Banelli TNT 25 in Pakistan will be available in Red and Black Colors.
Keeway in Pakistan- Model, Specs
Keeway is a brand that was born in Hungary in 1999 with the dream and conviction of being regional leaders in the scooters segment. After 15 years, Keeway has become a Multinational Motorcycle Brand with presence in over 80 countries, up the latest they have launched RKS150sport (CG) and RKS150sport (GS).
Key Features Keeway RKS 150 sport
150cc Benelli Technology engine (GS) Max. Output 13HP (Rated Output 12) 230mm Front Disk Break Flower cut design 60mm Rare suspension Mono Shock (Adjustable) 16 Liter Fuel Tank 45 – 50 KM/LTR Keeway RKS150sport in Pakistan Photos It will be available in three colors, Blue, Black and Red.
www.automark.pk | July-2016 | Page 42
Riding Safety & Speed – Any relation?
Exclusiv Article by M. Zahid Iqbal Malik
Is there any relation between speed & safety? Is there direct relation between speed & safety? Though it is 2016 when human beings are challenging nature, but still there are parts of the world where awareness about different issues of life is not even present. If we take it as a whole and considering the population Pakistan, a small part of motorcyclists in major cities have awareness about safety, which is again not enough to guide others. In short, we need to have awareness about Safety for our riding lives in Pakistan. Today, majority of us have access to internet and we do it almost 20 hours a
day, but, mostly through facebook or twitter. None of us tries to get help regarding Safety. Today we see a lot of boys and even girls too going for Bike Tours from their cities to other places, mostly high altitude locations. But sorry to share that majority do not take time to check anything online about safety measures and rules of group riding, etc Whereas, there are some communities, people, organizations and companies too here that are working with respect to motorcycling safety. For example, Pakistan Bikers Club members share safety needs and solution with everyone who calls from anywhere. PBC Riding Academy gives lectures and organizes trainings for Responsible Riding in collaboration with universities, City Traffic Police is also organizing training at their places and at locations if organizations are huge in strength. Moreover, there are also brands or shops that are selling bike riding safety equipment, for example, Ryders in Islamabad / Rawalpindi, Torque Motorsports Karachi, Multan & Lahore, Bashi Motors at Lahore, PBC Motor Sport (online / country w ide). Now coming to first point, I must share
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that safety is directly related with speed. Both have positive progress in parallel movement. You use street bike of 70cc and your speed is 50km/hr mostly, you need to have basic safety items like helmet and gloves as minimum protection. You go for a bigger machine like 125cc / 150cc, then average speed will be like 60 to 70 km/hr that most of riders do, then we must go for more safety. I would suggest for helmet, gloves, elbow& knee guards. After this if we plan a tour with bikes commonly available in Pakistan, then same formulae will be used and more safety will be needed. I would suggest to have Helmet (full face), Gloves (with Kevlar Protection), Riding Jacket with Protection or Full Body Armor, Knee Guard, Proper Shoes (should cover ankle). Weather you take it as minimum standard or what but I will not go with less than this. I would suggest to use same technique for higher options. In simple more speed more safety, else you are not riding safe. By: Mr. Muhammad Zahid Iqbal Malik, Founder & Head Safe Riding – Road Safety Dept. Pakistan Bikers Club
www.automark.pk | July-2016 | Page 43
Toyota Prius 2016 Is The Most Fuel Efficient Hybrid Car Ever Built
Latest Car Review
Monthly AutoMark International
When Pakistanis think about cars, the long CNG & Petrol lanes remind them of the agony brought by the prospect of owning a car. Although during the last few years, Pakistani roads have witnessed new hybrid cars cruising along and making passers by think about them (for a moment at least!). One of the successful hybrids in Pakistan is the Toyota Prius. And as it turns out, even the rest of the world believes that the Prius 2016 model is the most fuelefficient hybrid car in the world.
The Economical family car
The Prius is an elegant five-seat automotive, one of those vehicles that serve the idea of fuel economy & elegance. Surveying the market of hybrids, the Prius is certainly a good choice having the traits of a family vehicle along with appreciable fuel efficiency. It was the first hybrid to enter mass production. After its international launch in 2000, it has quickly made its place in the global market as the most cost-effective hybrid in its category.
which beats the previous-generation Prius’ 44 MPG and Honda Insight’s 51 MPG which was achieved back in 2000.
Possible future competitors
What makes the Prius “A Stand Out Hybrid”
The 2016 Prius model achieves a mileage never achieved by any hybrid before according to consumer reports tests. Undoubtedly it is the most efficient mass-produced vehicle among nonelectric cars. If we look at some of the other superstar hybrids, Tesla’s Roadster achieved the equivalent of 119 miles per gallon (MPG) back in 2011. But unlike an electric car, the Prius doesn’t need lengthy plug-in times to recharge its battery. Whereas while Audi’s A3 hybrid gets 80 MPG in the right conditions, the Prius gets 52 MPG in almost all conditions
Considering the advancements in hybrid technology and new developing ventures, the Prius could face possible competition from other vehicles. Specially the 67 MPG equivalent Toyota Mirai seems to be a good prospect, but until hydrogen fuel cell cars hit the roads, hybrids will rule the roads as the torch bearers of fuel efficiency. So if you are looking to have a proper family car with the best fuel efficiency, the 2016 Prius is the car to have.
Will it Become Available in Pakistan?
It remains to be seen if the 2016 model of the Prius will make it to Pakistani shores, especially in the light of the new Auto Policy being passed in Pakistan. However, seeing the import of earlier Prius models in Pakistan, one hope that in time, this too will be available here.
www.automark.pk | July-2016 | Page 44
New Honda City 2016 An Overview
Honda City Overview
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( 10th Generation )
All New Honda Civic 2016 Price in Pakistan and Review has been released. Latest model 2016 Honda Civic in new shape and look. New model images HD pictures with specification release by the company.
The new Honda Civic 2016 comes to market with a new shape and design with more attractive lines for the exterior and interior, more technological, technology does not stop in the cockpit, the safety board can count on an automatic braking at low speed available as standard throughout the range. Honda designers have paid great attention to the comfort on board and have greatly improved the efficiency of aerodynamics and vehicle weight to boost fuel efficiency, going down by a good 20% compared to the engines of older generation.
Civic Interior
LITTLE CHANGE IN – Unchanged instead the original setting of the car that earns Honda civic 201516 new finishes for seats, door panels, and instrumentation but also the HONDA Connect multimedia system with 7-inch touchscreen. The system has the digital radio (DAB), Bluetooth connectivity, navigation INTERNET, rear parking camera and, on request, satellite navigation. These
design improvements are perfectly combined with the exceptional interior space for which the range is unknown.
Civic 2016 Model in Pakistan
also introduced the all-new audio system and information Honda Connect. Honda Connect offers great utility and road connectivity with the following features: AM / FM, DAB digital radio, Bluetooth connectivity, ability to surf the Internet, satellite navigation * (optional) and rear camera parking aid. The Pakistani Honda Civic 20116 range has been expanded with the introduction of a new version. Based on the concept of the sedan and powered by a 1.6-liter diesel engine with 120 horsepower or 1.8-liter petrol engine with 142 horsepower, the car has a rear spoiler and colored 17-inch alloy wheels fitted only on the sports version.
New Salient Features
In addition, the Civic Sport draws an exceptional design of the already announced Honda civic with a new front bumper features a lower grille and a black coating of the roof all internal DELL interior.
Honda Civic Exterior
Both the Civic 2016 will be characterized with regard to the exterior design of a completely new front, which will give the cars an attractive look with headlights with integrated daytime running lights and a stylish new front bumper. The Civic sedan will also have a new rear bumper, a new design of the side panel, rear spoiler with the black finish and LED taillights. In perfect harmony with the outstanding improvements to the exterior, the Civic series 2015 will be characterized for the interior greatly improved with the introduction of new seat fabric and stitching on the headrests, new inserts on the doors with chrome handles and a dashboard finished in metallic black. Aboard the Civic series, 2015-16 will be
2016 Honda Civic New Latest Model Pictures with Color Range
www.automark.pk | July-2016 | Page 45
Toyota Technology Dominance
Automotive Sector - Update
Toyota Motor is dominating the global market for the fuel cell, electric and hybrid vehicles patents. Toyota has been developing technology and process patents far ahead of its competitors.
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From 2011 to 2015, Toyota engineers were granted 9,807 patents for inventions related to alternativepowered vehicles. The gap between Toyota and second place almost
doubled. Volkswagen outspending every company and yet did not even make it to the top-10 on the list.
Top 10 automotive patent recipients in 2015
# of patents 1. Toyota 4,214 2. Hyundai 2,469 3. Bosch 2,390 4. Denso 2,169 5. Honda 2,039 6. Ford 1,837 7. Daimler 1,575 8. GMC 1,435 9. Beiqi Foton 1,223 10. Nissan 1,188
www.automark.pk | July-2016 | Page 46
Jiangnan Alto, China’s Cheapest Car from Zotye, Beats Tata Nano
International Automotive Industry - Review
A Chinese car manufacturer, Jiangnan Auto (a subsidiary of Zotye Automobile), has released a new car in China. The car looks exactly like the Suzuki Mehran but costs several times less. It has been named Jaingnan TT and bears resemblance to our Mehran. Jiangnan TT is being called the cheapest car in China and that’s a big achievement considering the tough Chinese market. Suzuki Mehran has been the most sold car in Pakistan for more than a decade. However, the car which has remained the same for more than three decades, costs several times more than the newly revealed Jiangnan TT. Constant price hikes means that you can end up paying over PKR 700,000 after registration for a Mehran and that’s part for the reason the public wants new car manufacturers to e nter the Pak istani market. The car is powered by a 0.8 litre threecylinder petr ol engine with 36 horsepower output. The engine is comparable to the Mehran and the TT can reach a top of speed 120 km/h. TT comes with a front wheel drive and its gearbox sports four-speed manual shifting. In terms of dimensions, the car measures 3.3 meters in length and 1.4 meters in width. Yes those are exactly the same as Mehran. Jiangnan sells car parts at reduced prices as well, much less than the Suzuki car parts. Car mileage is stated to be around 20 kms per liter. Jiangnan will sell the cars in relatively smaller cities and countryside. More details confirm that the car is indeed based on the second generation Suzuki Alto (1984-1988), which Suzuki developed in a joint venture with Changan Automobile. TT includes some minor improvements over the second-gen Alto. The second generation Suzuki Alto is more or less what we call Mehran today. Suzuki and Changan have licensed the production rights of this car to various Chinese manufacturers. Many other manufacturers have built eccentric cars
based on Alto’s designs. While Mehran costs around three times as much as the TT, the latter offers a servicable AC, optional power windows as well as ABS. Since every company on Earth exists to make money, it’s safe to assume Jiangnen will make a profit on the TT. Do note that Jiangnan and other Chinese car manufacturers aren’t like the Chinese products we’ve come to know in Pakistan. Most of the Chinese brands make high quality products but at good prices (case in point; Xiaomi, Huawei and others) but it seems like only the lower quality ones end up in Pakistan.
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www.automark.pk | July-2016 | Page 47