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Monthly
AUTOMARK Pakistan’s premier magazine on automotive, engineering & energy sector
Loadshedding across the country
Editor M. Hanif Memon Sub Editor Dr. Raja Irfan Sabir
Technical Editor Muhammad Shahzad
Advertising Manager Abdul Khaliq
Circulation Manager Tahir Siddiqui
Computer Operator Salman Hanif
Web Master Mustafa Hanif
CONTRIBUTING IN THIS ISSUE Muhammad Shahzad Haider Nawab Ali Hassan Shahzad Tabish M. Owais Khan M. Yousuf Shaikh Ali Abass
Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad
All the stakeholders of the country have deep concern over awful and continuous prolonged loadshedding and urged the government to ensure equitable power cuts in all parts of t he country.
Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi
Punjab had lost almost two percent of its GDP which means a net loss of Rs. 200 billion with a closure of 40 percent of the industry while another 10 to 15 percent industry is on the verge of closure if the Federal government fails to take immediate remedial measures.
Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center & Director (MME), NED University, Ex-Director Pak Suzuki Karachi Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi J. Pereira Senior General Manaer After Sales Service and Parts Master Motor Corporation Ltd., Karachi
The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management.
The private sector is engine of the growth but it would be unable to give desired results if it would not be provided an enabl ing environment. It was very strange and beyond the understanding of the business community that the government was unmoved despite r ep e at e d ap p e al s f or e q uit a b le loadshedd ing across the country. How the government would establish its writ and from where it would collect revenues to run its day-to-day affairs when the industrial wheel is coming to a grinding halt. T he unemp loym ent , pr ic e hikes, industrial closures always give birth to lawlessness and anarchy. Therefore, the government should understand the ground realities and reset its priorities regarding provision of electricity to the industry. The industry needs continuous supply of electricity to keep the units operational and to complete the export orders well within the given timeframe but only because of the shortage of electricity the exports are not up to the mark.
AutoMark REGD: SC-1330
Published every month by M. Hanif Memon Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk E-mail: magazine@automark.pk automarkpk@gmail.com Tel : 021-32218526 Mobile: 0321-2203815
Pakistan had already lost a number of global markets and the new power cuts would further aggravate the situation. The cheaper and uninterrupted power supply is only way to achieve economic targets set for th e year 2012-13.
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CONTENTS
Monthly AutoMark Prosperous Chinese Motorcycle Industry Seeks Transformation
11-13
Motorcycles Production Figures for year 2011-2012
14-15
Slow implementation of Euro II standards 17-18 in two wheelers Exclusive Article by Ali Hassan Consumers bearing transformation cost of cars to Euro II Exclusive Article by M. Owais Khan
19-20
Indus Motor embraces ‘Euro II’ standards 21 Warranty - Exclusive Article By Ali Abbas, Toyota Southern Motors
33
International Automotive News - Update India & China
36-37
CSM-Customer 38-39 Satisfaction Management Exclusive article by Mohammad Shahzad Master Motors celebrate world environment day across Pakistan
40
101 Ways to achieve better fuel mileage 42-43 Part 3 (Last part) Exclusive article by Mohammad Shahzad Hinopak Launches Hino Dutro 300 Series Trucks - Event
45
Local Assembled/Imported car price
44
OEM Plus Minus Exclusive articel by Haider Nawab
46
Current Motorcycle price list
48-49
Suzuki Gala for used cars by Shahzad Tabish
50
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Exclusive Report on Chinese Motorcycle Industry
Monthly AutoMark Magazine
Prosperous Chinese Motorcycle Industry Seeks Transformation Every year since 2002 the city of Chongqing hosts the CIMA, (China International Motorcycle Trade Exhibition) which is the largest motorcycle exhibition in Asia, and the fastest growing show of its type in the world. A report on the advancement of Chinese Motorcycles by Muhammad Yousuf Shaikh, Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC) pakchina.mic@gmail.com
China has recently leapfrogged Japan to become the 2nd biggest economic power in the world, with no small help from its thriving motorcycle industry. Over the coming years, the Chinese motorcycle industry will undergo the gr eat est tr ansfo rm at ion it h a s experienced in its history. The upcoming changes are fundamental & affect all players of the industry, OEMs, suppliers, third parties, both new & established players. A dramatic production & sales shift to the Asian markets will take place quickly and permanently. The Asia demand su pports low-cost small displacement Chinese motorcycle on the other hand the small displacement motorcycle will lose their appeal for younger generations in developed countries. China’s motorcycle factories currently produce just over half of all the motorcycles ridden in the world having manufactured 25 million complete units from January to November 2010
generating a staggering $4.032 billion US dollars in revenue. It is then no surprise that China is the world’s biggest producer of motorcycles with over 400 exporting enterprises (including over 200 factories) employing in excess of 3 million workers; this is no mean feat considering that the total number of exported motorcycles from China in 1980 was a paltry 43000 units. Chongqing city as also known as motorcycle city in China is the ‘fastest growing city in the world.’ It is as a result of this growth, mainly due to migrant workers providing labour for th e production lines, that Chongqing has become one of the global centres of motorcycle production producing an estimated 15% of all two wheeled vehicles ridden in the world. A better known fact is that the Chinese industry mainly caters for the ‘lower’ end of the market, producing lesser quality and cheaper machines. It could be imagined then that Chinese motorcycle companies have found a winning formula, one that involves low cost labour, material s and limited research and development (R&D) but this is certainly no longer the case! Not content with producing budget, small engine motorcycles, cubs and scooters for ‘developing nations,’ the industry is now turning its attention to securing a market share in the Western world. Of course Chinese motorcycles have been
around for years in developed countries. Top Chi nese motorcycle factories are now investing vast sums on original research and development and also forming cooperative alliances with many of the world’s ‘big guns.’ In recent years Hond a, Yam aha, S uzu ki, BM W, Peugeot, Harley Davidson, MV Agusta, and Piaggio have all committed to long term collaborations with leading Chinese companies. It is mainly due to this influx of fore ign motorcycle culture and expertise that the Chinese industry has begun to rethink its strategy, choosing to concentrate its efforts on improving quality to a standard that would be generally accepted by a wester n motorcycling public and thus breaking in to the mainstream market. On the style front many top level Chinese factories are now engaging renowned motorcycl e designers from Europe. A typical example of this is the Qingqi motorcycle company, they employ the Milan based Marabese Design company who boast Triumph, Yamaha and Piaggio among their customers. This is a welcome deviation from the all too ‘homogenous’ Japanese copies which have flooded the market in recent years and is representative of the wish of many
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Chinese motorcycle companies to attemp t to discard the negative reputation previously attached to them. It may come as a surprise to the western rider that many Chinese factories are collaborating with such renowned motorcycle companies as the ones mentioned above. Top factories now boast of the ‘2nd wave’ of Chinese motorcycles; products that utilise state of the art technologies imported from countries with a more established motorcycle culture. One of the biggest stumbling blocks of promoting this new improved wave of motorcycles is that up to now Chinese motorcycles have been subject to ‘re-branding’ by foreign dealerships as opposed to promoting the factory name. The top Chinese motorcycle factories have long term plans to make their brands as publicly recognisable as their competitors from Japan, Europe and America. As brand marketing became the name of the game for the top factories measures were taken to give brands maximum exposure. In recent years anyone attending the major motorcycle exhibitions in the world (Indianapolis, Cologne, and Milan etc) would have noticed a considerable influx of Chinese exhibitors and China itself is not without it own exhibitions. The Canton Fair in Guangzhou is an export exhibition that has its roots in ancient Chinese history. These days it is the largest an d most modern export fair in the world and boasts a considerable motorcycle exhibition section; bu t to really appreciate the growth of the industry it is essential to take in the ‘CIMA’. Every year since 2002 the city of Chongqing hosts the CIMA, (China International Motorcycle Trade Exhibition) which is the largest motorcycle exhibition in Asia, and the fastest growing show of its type in the world. Many of the world’s mo st famous motorcycle brands will attend the tenth CIMA exhibition. These companies will include Ducati, BMW, Honda, Suzuki,
Harley-Davidson, Kawasaki, Peugeot, Piaggio, Paim, and Benelli. There are also many motorcycle parts and components enterprises coming to exhibit their products from countries with advanced motorcycle technology, including Germany, USA, Spain, the UK, Thailand, and Taiwan of China. It is expected that over 800 purchasers, with a purchase capacity of over USD 100 million, from more than 20 countries, including USA, Germany, Pakistan, India, the UK, and France, will visit the tenth CIMA, an increase of 60% from the same period last year; the number of visitors is expected to exceed 100,000, up 42.86% from a year earlier.’ I have noticed over the last couple of years that the amount of foreigners v is i t i ng CI M A h a s i nc r e a se d exponentially. Many of us in the industry have noticed a marked improvement in the quality and design of the machines and I now stock many different models of dirt-bike and ATV. They are proving very popular. In previous years the main problem with importing from China was not just the matter of quality. One of the biggest negative factors was th e availability of spare parts, or should I say lack of them! I’m pleased to say that in the recent past the Chinese motorcycle industry has redoubled its efforts in improving the ‘supply chain’ and it is no longer a problem to find suitable quality parts either by direct delivery from the factory or online.” A not h er ob je ct i on t o Ch i nes e motorcycles has been lack of power due to smaller engine sizes. This is also being addressed in China as three of the top
ten ‘giants’ of the Chinese motorcycle industry are collaborating to produce three separate models each with a displacement of 650cc (there is also a 600cc inline 4 in the pipeline!), a development that I will keep you up to date w ith in th e future. This is a striki ng transform ation from previous displacement policies, with Chinese factories previously more comfortable producing much smaller engines. ‘According to the statistics of the China Association of Automobile Manu fac tur er s, the to p fi ve Ch ine se mo t or c yc l e mo de ls (displacement) in exports from January to May of 2011 were 125cc, 150cc, 50cc / 70cc, 110cc and 100cc , wi th the ir re spec ti ve exports of 1.3954 million units, 689,900 units, 504,300 units, 500,300 units, and 446,000 units, up 2 5.59%, 24.41%, 29.82%, 17.43%, and 15.89% year-on-year respectively. The total number of the above five major motorcycle models (displacements) exports from January to May was 3.5359 million units, taking up 91% of the total mo tor c yc le ex po rt s in Ch i na.’ For me the surprising statistic is that 9% of the motorcycle companies have chosen to research develop and market motorcycles with a displacement of over 150cc! The same statistics reviewed 5 years ago would have revealed that 98% of Chinese made motorcycles had a displacement of 125cc or under; a clear indication of the changing production trends. All this, of course, is a far cry from Chine se motorcycl es being commonplace in showrooms and on motorways, but as more attention (as well as money) is being paid to how best to please the western motorcycling public and to tempt them in to a dalliance with a Chinese machine we may yet be witnessing the beginnings of a motorcycling revolution, the likes of which has now been seen since the
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I have noticed over the last couple of years that the amount of foreigners visiting CIMA has increased exponentially. Many of us in the industry have noticed a marked improvement in the quality and design of the machines and I now stock many different models of dirt-bike and ATV. They are proving very popular.
Japanese burst on to the scene in the 1970’s.
Chinese Motorcycle Industry Faces Many Troubles during Transformation The future of small displace ment motorcycle is dim whereas the future of imported large displacement motorcycle is bright in China. So, making large displacement motorcycle has become a com mon sense i n t he Ch inese motorcycle industry. Many Chinese motorcycle manufacturers including Dachangjiang, Lifan, Loncin, Zongshen, a nd C F M ot o r el ea s ed l a r g e displacement (over 250ml) motorcycles last year, including 600ml and 650ml super large displacement motorcycles. However, technical bottleneck is the key restraining the upgrade of the Chinese motorcycle industry. Chinese large displacement motorcycles still need overseas technologies. The CF Moto 650TR which was prais ed as the innovative product at the summit uses It ali an tec hno logy . Z ongsh en' s representative reported to CMM that th e ir 4 5 0 ml a nd 6 5 0m l la rg e displacement motorcycles which are under development will adopt Korean engines. The large displacement motorcycle has a bright future in China & overseas markets. But the transformation of the Chinese motorcycle industry will be restrained as long as the ban on the use of motorcycles in Chinese cities exists. "On one hand, large displacement motorcycles are liked by China's urban consumers; on the other hand big Ch inese ci ties b an th e use of motorcycles. "The Chinese motorcycle industry has ente red a dead end as the sales competitions on overseas markets are fierce especially in Pakistan the Chinese
motorcycle assemblers ex-factory prices to dealers are lower then the cost of manufacture units due to the sales competitions of some Chinese brands m otorc ycles h er e in Paki st an," The overseas motorcycle market has become the last straw for mitigating Chinese motorcycles sales decline since the motorcycle sales plunge in China in 2010. However, export data of quarter one 2 012 sh owed t hat Ch inese motorcycle exports enco untered a decline after many years' of increase. According to insiders, the situation will not improve in the latter half of 2012. According to the statistics of China A s soc i a t io n of A ut o m ob i le Manufacturers, the output and sales of the Chinese motorcycle industry in Q1 2012 were 5.5412 million units and 5.6299 million units respectively, down 8.81% and 8.82% .
Overseas Market Encounters a Turning Point According to the statistics of China A s soc i a t io n of A ut o m ob i le Manufacturers, Chinese motorcycle exports in Quarter 1 2012 were reduced to 2.0073 million units from 2.2301 million units of last year, down 4.8% year- on-year. Chinese motorcycle exports were increased by 14.36% in 2011 from 2010. Many participating representatives were pessimistic about Chinese motorcycle exports in latter 2012. Overseas markets play a vital role for Chinese motorcycle sales as motorcycle sales in China keep declining. Chinese motorcy cl e exports reached 10.74 million units last year, accounting for 40% of the total motorcy cle sales. Usual Chinese moto rcy cle export destinations include countries in Africa, South America and Southeast Asia. However, the price advantage of Chinese
motorcycle products is disappearing along with the rise of production costs and the appreciation of RMB. "Chinese motorcycle products have encountered apparent impacts from local products in Vietnam and other countries,". It is an inevitable consequence of the Chinese motorcycle industry which has only focused on low end products. "The development way of Chinese motorcycle industry is always to transfer to low-end markets. Motorcycle sales have been transferred from urban areas to rural areas and then to developing countries. Small engine displacement motorcycles are key products of the Ch in ese motorcycle industry." Motorcycles with engine displacement less than 150ml take up the majority of Chinese motorcycle exports. "Small displacement, low additional value, and limited markets, Chinese motorcycle export has reached an end,". Small displacement motorcycles have been losing their price advantage in China with the ban on the use of mo to r c yc le s i n ci t i es, t h e implementation of National III (euro III) emis sion standards and th e in creasing population of electric vehicles..... About writer: Muhammad Yousuf Shaikh has worked with the Chinese motorcycle industry for over the decade as an importer, exporter and marketing consultant. In these years he has seen the highs lows and revival of the Chinese motorcycle industry. He currently established PCMIC China office in the city of Chongqing the private capital of the motorcycling world. He is Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), pakchina.mic@gmail.com He is regular contributor writer and member of advisor’s panel for Monthly AutoMark Magazine.
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Exclusive - Motorcycle Production Figures 2011-12
Monthly AutoMark Magazine
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Exclusive - Motorcycle Production Figures 2011-12
Monthly AutoMark Magazine
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Monthly AutoMark Magazine
Automotive Sector - Report
Foreign venture may hurt local vending industry Allowing a new investor to import all motorcycle parts at zero duty would make a big dent in the local vending industry which has progressed through te chnology transfer an d currentl y produces 95 percent parts locally, giving employment and generating revenues through several hundreds of small- and medium-sized vendor units. Arshad Awan, the CEO of Lahore-based General Engineering, told print media that allowing a new investor to import all motorcycle parts at zero duty would negate previous policies and encourage all Original Equipment Manufacturers (OEMs) to bypass vendors and deter them from producing parts locally. The logic presented by one OEM, Yamaha, is particularly worrisome and against the interest of the country and future industrialisation. Their local lobbyists are none other than advisers employed directl y in the Board of Investment to serve this interest, he said. Pakistan undoubtedly needs foreign investment but the country should not be so desperate in attracting investment, to cater to unit-specific investment proposals and destroy its most vibrant sectors where locals and foreigners are already investing. Such a case is that of the motorcycle industry. Stakeholders say, a sad reality is that the Board of Investment (BoI) has not been able to succeed in attracting foreign investment because of genuine reasons such as local law and order situation and global financial situation. However, most is due to the ad-hoc initiatives taken by BOI which signal the opposite sentiments to those desired by genuine investors. Genuine foreign and domestic investors don't seek special incentives but seek long-term consistency in policy. Even in sectors where Pakistan enjoys competitive advantage such as textiles, information technology, leather and sports goods, light engineering and many others, the country has failed to attract investment. In fact, Pakistan has emerged as global le ad e r i n p r od u c t ion of 7 0 cc motorcycles, said Fahad Iqbal, CEO of HKF Engineering, a leading motorcycle producer. He said that even new 125cc
bikes are also now being exported. The projection of Yamaha as a new investor by BOI conveniently ignores the fact that the same brand was being produced and marketed for decades in Pakistan and was forced to wind up on failure to compete with other brands especially the Chinese bikes. Industry experts are dismayed at the constant pursuance to grant special status to Yamaha on its re-launch and even more so by in sis ting that a supposed, and highly misleading, $150 million investment figure will be made. The proposal given to the government reflects that the Yamaha investment is hardly a couple of million dollars in the initial years. The remainder is merely a commitment to re-invest the tax so saved in the form of exemptions granted. Under the scheme, BOI wants the government to allow the new pseudo entra nt to im por t 100 p erc ent motorcycle parts at zero duty when all other motorcycle manufacturers have readily agreed to pay high duty on the import of parts that are being produced in Pakistan. Another surprising aspect in this regard is that BOI wants the government to allow the Japanese manufacturer to import parts from anywhere but most probably from China. The claim that the new investment would bring new technology is an eye-wash as the existing players have all introduced latest Euro 2 engines in the market without looking for any special incentive. Current players are even willing to import hybrid and EFI-based engine without special incentives. This is because many of the engine parts for the new emission stand ards are produced locally. Stakeholders strongly believe that any policy mis-step at this stage will send a wrong signal and crowd out local
motorcycle vending base that has been developed after decades of hard work and investment. "Ha d th e new investment been for top 1000cc models of Harley Davidson, it would have made some sense," said one industry player, adding that to favour an investor for eliminating the local vendors "is simply unacceptable". He said Pakistan would be importing motorcycle parts worth millions of dollars that are being already produced in the country. Pakistan, he added, had started making its mark in global markets as exporter of quality motorcycles, competing successfully with products from China and India. The proposal from Yamaha Mo tor Company has met resistance from all relevant government departments and ministries. It attracted adverse remarks from FBR, Ministry of Industries, EDB and even the Ministry of Commerce. Everyone refused to support a proposal to allow duty free import of parts and motor cycles for a single entity. Th e Cha irm an of th e Planning Commis sion, th ey said, had also supposedly been pressurised, against all accepted rules of businesses, to refer the case to the National Tariff Commission (NTC). It was ill-advised to move the under-capacity and inexperienced NTC that made an erroneous report which ran aground amid heated debates. The report was dismissed by all stakeholders, including the Ministry of Industries, the FBR and even its parent ministry - the Ministry of Commerce -which is trying to create a balance, but is reportedly facing a lot of pressure to relent. The Former Secretary also advised strongly against government considering formulation of policies for specific businesses and interests. He is known to have said that "the government is not here to consider proposals to favour individuals". The NTC, under immense pressure from the Planning Commission and the BoI, created a report which has been heavily criticised. Civil servants are upset about excessive manipulation and pressure which was put on them to a c c om m od a t e s u c h a r e p o r t , stakeholders said.
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Exclusive Article by Ali Hassan
Monthly AutoMark Magazine
Slow implementation of Euro II standards in two wheelers The leading Japanese bike maker of 70cc, Atlas Honda and Pak Suzuki Motor Company has also failed to bring Euro II bikes by July 1, 2012. However, Atlas Honda has already successfully launched its three models of 100-125cc models with Euro II specifications. These assemblers are likely to introduce the Euro models in second week of July.
T
he deadline of July 1, 2012 to transform the locally made bike models to EURO II compliant has passed away but the government has not moved an inch to ch eck the impleme ntation of the European standard in the two wheelers. Even t h e gove rnm ent h a s not announced any strict action to be taken against the assemblers failing to comply with the Euro II standards’ deadline. The leading Japanese bike maker of 70cc, Atlas Honda and Pak Suzuki Motor Company has also failed to bring Euro II bikes by July 1, 2012. However, Atlas Honda has already successfully launched its three models of 100-125cc models with Euro II specifications. These assemblers are likely to introduce the Euro models in second week of July. The same deadline had to be met by the three wheelers (CNG rickshaw makers) but so far everything was quiet from their front. The Chinese bike makers may not face an uphill task to roll out Euro II models as the parts and accessories used in this transformation is cheap but nobody knows why the low cost bike makers have been dilly dallying in bringing out Euro II models. The Environmental Protection Agency (EPA) and Environment Ministry is responsible to take action against the assemblers who missed the deadline but so far no action has been tak en. Japanese bike makers will raise the prices by Rs 1,000-3,000 to bring out cost of Euro II from the pocket of consumers then the Chinese bike will definitely spend less than Japanese bike makers’ cost. However, the government
should check the cost of transformation of Euro II from the bike assemblers. Many assemblers, who have absorbed the impact of Euro II cost, will not hesitate in bringing out the cost of higher imports on account of persis te nt devaluation of the rupee against the dollar. The rupee lost its value by 10 per cent in 2010-2011.
Meanwhile, confusion has gripped in the market whether the government has given any kind of relaxation by giving more time to the Chinese bike makers on Euro II issue by at least three months.
Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Shaikh believes that the June 27 letter issued by the Engineering Development Board (EDB) to all the assemblers gives a clear indication that the Euro II deadline has been extended to September 2012 at least which relates to extension in lists of importable parts components issued under SRO 656 (I) /2006. The letter indicates that the Chinese bike makers can import parts (non Euro II p ar ts) ti ll Sep tem ber 2 012. The letter said that this is with reference t o t h e i m p o r t a u t h o r i z a t i on issued/revalidated under SRO 656 (I) 2006 for the year 2011-2012 for the im por t of c om pone nt s fo r manufacture/assemble of automotive vehicles, valid up to June 30, 2012 and continuation to EDB letter of even num b er d a ted J u ne 27 , 20 12. The validity date for the said import authorization is hereby extended on “provisional basis,” up to September 30, 2012 with effect from July 1, 2012 to the extent of 25 per cent of the quota allocated for the fiscal year 2011-2012, which is already up loaded on the system. The PRAL has already been requested for extension in date and allocation of 25 per cent of quota for the said period. Assemblers were asked to provide all the requisite data/records for the fiscal year 2011-2012, as already asked for vide above referred EDB letter, within the specified time i.e. 15.08.2012 as per the conditions of the SRO 656 so that
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When asked when Chinese bike makers will introduce Euro II bikes, he said much will depend on the market conditions . “We will see in September as to what else we can do to achieve European standards,” he said adding it is not a big issue for Chinese bike makers. Market sources said that there is no relaxation in the Euro II. the case for re-validation of quota for the next fiscal year could be processed accordingly. When asked when Chinese bike makers will introduce Euro II bikes, he said much wil l depe nd on the market conditions while losing value of Pak Rupee against the Dollar is a constant threat making cost of parts’ import costlier. “We will see in September as to what else we can do to achieve European standards,” he said adding it is not a big issue for Ch inese bike makers. Market sources said that there is no relaxation in the Euro II. Those assemblers will face a tough time when the Ministry of Industries will not renew their production license and other documentary requirements for not having the Euro II compliance. The assemblers must need a certificate from the EPA on Euro II. It is really surprising when the people of the world are driving Euro IV vehicles, Pakistanis are bound to ride a 70cc CDI bike which is basically introduced in 1993 by Atlas Honda and then was followed by Chinese bike assemblers. The only change in Honda model since 1993 was new stickers of fuel tank and side covers, speedometer etc instead of an overall new look of 70cc and even the company did not make any effort to assemble Euro II models. Chinese bike assemblers also follow the same theory but one or two assemblers dared to change the look of 70cc. In India, Honda h as introdu ced numerous models and now with tubeless tyres in 125cc. Another issue has rocked the existing bike assemblers and their vendors over the re-entrance of Yamaha in Pakistan with some handsome concessions. The matter came in the meeting of the Economic Coordination Committee (ECC) in the first week of July. The ECC discussed summary regarding protection to motorcy cle industry moved by Ministry of Commerce in which the Ministry proposed recommendations
that new eight digit tariff lines be created in Pakistan Custom Tariff for all the parts of 125CC motorcycles with five per cent tariff in case of new entrants. In the same way the Ministry proposed that w hile redu cing th e duty on Completely Buil d Unit (CBU) and Completely Knock Down (CKD) (in case of non-assemblers) from 65 to 35 per cent , t he d ut ies on p ar ts and components may also be reduced as recommended by National Tarif f Commission to protect the minimum cascading needed by the local industry. After du e d eliberati on the ECC constituted a committee comprising minister for water and power, minister for petroleum and natural resources, minister for information, chairman BOI, secretary water and power, DCPC and rep resentatives from min istry of industries and FBR to look further into the matter. The bike industry and their vendors are unhappy as they were not included in the ECC Committee which was reviewing changes in the Board of Investment proposed investment policy. They vent their anger over the BOI for continuously lobbying for a Japanese bike maker which is trying hard to reenter Pakistan. The local bike manufacturing industry has progressed through technology transfer and currently produces 95 percent parts locally, giving employment and generating revenues through several hundred of small and medium sized vendor units. By allowing a new investor to import all motorcycle parts at zero duty, it would negate the previous policies and discourage all OEMs to bypass vendors and produce parts locally. The logic presented by one OEM, Yamaha, is particularly worrisome and against the interest of the country's industry and future industrialization.
Their local lobbyists are none other than advisors employed directly in the Board of Investment to serve this interest. It is a shame to allow such blatant conflict of inte rest to be accommodate d. A sad reality is that the Board of Investment of the country has not been able to succeed in attracting foreign investment. Some is due ge nuine reasons like local law and order but most due to ad-hoc initiatives taken forward which signal the opposite sentiments to those desired. Genuine foreign and domestic investors don't seek special inc entiv es b ut seek long t erm consistency in policy. Even in sectors where Pakistan enjoys competitive advantage like textiles, information technology, leather and sports goods, light engineering and many others, BOI has failed to attract in vestment. Motorcycle production in Pakistan has increased by leaps and bound in past 12 years. It has increased from mere 100,000 units at the start of the century to around 1.6 million this fiscal. No other industrial sector has shown such high and sustained growth during past one decade. The projection of Yamaha as a new investor by BOI conveniently ignores the fact that the same brand was being produced and marketed for decades in Pakistan and was forced to wind up on failure to compete with either other brands especially the Chinese bikes. Industry experts are dismayed at the constant pu rsuance by the BOI chairman to grant special status to Yamaha on its re-launch and even more so by insisting that a supposed and h igh ly mislead ing $15 0 m illion investment will be made.
Under the scheme, Yamaha and BOI want the government to allow the new pseudo entrant to import 100 percent motorcycle parts at zero duty when all other motorcycle manufacturers pay high duty on parts that are being produced in Pakistan....
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Consumers bearing transformation cost of cars to Euro II The issue of local car assemblers came under discussion when Qudsia Arshad, a member of the standing committee proposed that the committee should recommend to the Commerce Ministry to put car imports from India on positive list so that people should get less expensive cars as there is no manufacturing in Pakistan.
H
igh prices of locally made cars in Pakistan ranging from over Rs 500,000 to over Rs tw o million give an impression that these cars must be Euro IV or if not at least Euro II emission standard vehicles but actually the reality is disgraceful. Instead of forcing car assemblers to start working on Euro II emission standards years back when the refineries were already producing quality petrol, the government authorities did not take the Euro II issue seriously. However, in diesel powered engines vehicles it will take two more years owing to non availability of its fuel. Refineries had already started making high grade petrol to meet Euro II standards especially for the EFI engines but unfortunately Pak Suzuki Motor Company did not make any effort and except in its only or two models, their oth er models lack EFI eng ines. Even if the cars had EFI engines then they had to install costly catalytic convertor to meet Euro II emission standards. Now reportedly the Pak Suzuki has started making EFI engines in all its models besides installing catalytic converter. While Toyota Corolla was already available in EFI or technologically advanced but it also installed catalytic convertor to meet the Euro II standards. All the efforts and cost of the powerful cartel of car assemblers in bringing Euro II compliant vehicles late will now be paid by the prospective buyers from Rs
20,000-75 ,000 dependin g on th e models and engine power. Majority of the countries in Europe and also in other parts of the world are using Euro IV vehicles and Honda Atlas Pakistan is the only company which has been assembling Euro IV vehicles for over five years. Assemblers have increased the prices of cars due to Euro II cost and also because of the Rupee depreciation against the Yen and Dollar. The government has never inquired the impact of currency fluctuation on domestic price of cars despite claims of assemblers in achieving higher local contents of parts and accessories. It is really an irony on the part of local assemblers especially Pak Suzuki which has never seriously bothered in bringing
at par the latest engine version of cars. Suzuki Mehran is the classic example of the achievement made by the company as the Pak Suzuki has been successfully pr od uc ing Meh r an si nc e 19 90 . Claiming to have achieved 70 per cent localization, many car experts believe that Mehran’s localization levels should have crossed over 90 per cent in view of its rising volumes but it seems that the efforts on localization on Mehran appears to been halted at 70 per cent. Any change in Yen-Rupee-Dollar parity have also always caused price hike in the already costly 800cc car. Minor changes of introducing crystal light and changing the left side of dash board and maintaining the old and unattractive speedometer portion and even the design and shape of car, this is what the assembler of Mehran have been giving the consumers for over two decades and the product is still running sound. After over two decades people will now drive EFI and Euro II model of Mehran but the assembler is not serious in giving a new look of Mehran knowing that the consumers will be bound in future to buy Mehran after discontinuation of Daihatsu Cuore’s production in Pakistan from April this year which was the only locally assembled arch rival of Mehran. With the suspension in Cuore, Mehran may ge t another boost in demand following Pak Suzuki’s decision to discontinue its 1,000cc Alto leaving the people not choice but to rely on only
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Exclusive Article - continued locally produced 800cc Mehran. Certainly Mehran cannot stand tall if any used imported 660-800cc cars of Suzuki, Daihatsu, Nissan, Mitsubishi, Honda etc is parked alongside with Mehran. The only negative point of the used cars is the problem in getting its parts or having purchased at huge cost otherwise, used cars certainly excels in quality, design, features, colors etc. Sources in car sector said that “the government is seriously looking forward the closure of Mehran from the country as the car lacks features, design etc while its price is continuously going up.” The outburst of the government can be analyzed from a member of National Assembly’s Standing Committee on Commerce Khawaja Mansoor Sohail. According to media clippings, local car as semblers have be en accu sed of sh owing ge nerosity in extending inducement at different for a in lieu of unprecedented protection. "Automobile sector pays huge bribes whenever its issue is tak en up at different fora," said, Khawaja Mansoor Sohail’ The issue of local car assemblers came under discussion when Qudsia Arshad, a member of the standing committee proposed that the committee should recommend to the Commerce Ministry to put car imports from India on positive list so that people should get less exp ensiv e c ar s as th er e i s no manufacturing in Pakistan. "Allow import of cars from India, why local industry is being protected," she added. Khawaja Sohail Mansoor endorsed the viewpoint of Qudsia Arshad an d requ ested th e ch air man of th e committee to allow import of Indian cars. "Auto sector gives substantial bribes whenever their issues come in the limelight. I may also be sent a message by the auto sector with an offer of money," he added. Chairman of the committee, Khurram Dastgir also supported Khawaja Sohail Mansoor, saying that he might receive first call from the auto sector after the meeting. Kashmala Tariq and Hamid Yar Hiraj also raised such issues in the committee and asked why local auto industry is being given out of the way protection.
The Engineering Development Board (EDB) has already accused local car assemblers of raking in unreasonable profits from advance full payments typically deposited three to six months before the delivery of a car. The EDB argued that the three Japanese car assemblers, who share a market of 140,000-150,000 cars among them, regularly blame low volumes as main stumblin g bl ock impedin g further indigenisation of critical parts and their efforts to give relief to the helpless consumers by way of rationalising car prices. Referring to the present system of sale, EDB said that a buyer deposits full amount for the car in a company's account (inclusive of all taxes, duties, levies and the duties to be paid for import of CKD) at the time of booking, but he is made to wait for three to six months to get a new car. Statistics, supposed to be available with the OEMs, indicate an increasing number of buyers waiting in line to get their cars on priority, but they usually end up paying a premium called 'on money', ranging from Rs 10,000 to Rs 100,000, to the dealers. To control the monopoly of Pak Suzuki in Mehran, the government should seriously strive hard in attracting European leading car makers by offering incentives to produce 660-800cc cars so that consumers could have a wide choice in small cars. Sources said that the government is wi lling to see Hyu ndai Sa ntro production to resume immediately but with the help of other investors. Sources said that General Motors is looking forward to enter Pakistan. Coming back to Euro II, the government had approved adaptation of Euro II emission standards as Pak II standards for new vehicles applicable from July 1, 2009 for petrol driven vehicles and July 1, 2012 for diesel driv en vehicles. However, these targets were not achieved due to various reasons either because of non availability of fuels or old design of engine vehicles. About 5070 per cent cause of pollution in cities is due to low quality fuel and old design of vehicles engines. Even if we will now have new engines and quality fuels being produced by the refineries but there is no cure to the
problem over mixing of Irani petrol and diesel by the petroleum dealers in locally produced fuels. The blending of cheap smuggled fuel with locally produced oil is causing serious damage to the engine and fuel system of new and used vehicles. The government should check the arrival of cheaper Iranian fuel in Pakistan otherwise it will be hard to contr ol environmental pollution. Besides, the government is not bothered about the huge volume of three to four decades old vehicles running on the roads and these are being plied on the roads by getting fitness certificate. One can estimate th e environmental pollution from the smoke emitting from their engines. The government should have addressed the issue of old vehicles first before pressing local assemblers to roll out Euro II vehicles from July 1, 2012. The government has been making a slow effort on to curb increasing pollution levels in the urban centres. The outcome of s ev er al m ee ti n g s b et w e e n stakeholders and the government was the introduction of unleaded petrol few years back and reduction of sulphur contents in diesel from one to 0.5 per cent. It was also agreed to further bring down sulphur in diesel from 0.5 per cent to 0.05 per cent by 2012 and introduce Euro II emission standards. However the target has not been achieved by all the refineries. Only Pak Arab Refinery Limite d (PARCO), which meets 40 per cent of country’s diesel demand, is producing Euro II compliant diesel while rest of th e refineries need to in stal l desulpharization plants. The refineries are in the process to install the required plants which may take two to three years time to complete. Af ter the 18th amendment in the Constitution, provincial governments are now respo nsible to implement environmental pollution and ecology under the law. Subs equently, th e implementation of emission standards including Euro II standards is now the responsibility of th e p rovincial environmental protection agencies. The involvement of provincial EPAs is imperative for establishing necessary infrastructure like testing facilities for Euro II and provincial standards for other type of vehicles will be their responsibility.....
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Indus Motor embraces ‘Euro II’ standards Indus Motor Company (IMC) is committed to producing environmentfriendly cars with minimum impact on environment and embraced Euro II emission standards in all Corolla variants. IMC welcomes government's decision to im plement Eu ro-II em issi on stan dards to decrease amo unt of hazardous vehicle exhaust emissions and installed catalytic convertor in its vehicles which converts engine exhaust gases into less harmful substances. When used with low sulfur Euro II compliant fuel, catalytic converter will reduce levels of CO2 and HC+NOx emissions substantially. IMC press release Saturday said revised prices of vehicles will be Rs.1,534,000
Corolla (XLi), Rs.1,669,000 Corolla (GLi), Rs.1,824,000 Corolla GLi (AT), Rs .1 ,6 5 4 ,0 0 0 C or o l l a (2 .0 D ), Rs.1,899,000 Corolla Altis (MT), Rs.1,994,000 Corolla Altis (MT/SR), Rs.1,994,000 Corolla Altis (AT), Rs.2,084,000 Corolla Altis (AT/SR), Rs.1,759,000 Hilux 4x2 (STD), Rs.1,799,000 Hilux 4x2 (UP-Spec), Rs.1,77 9,000 Hil ux 4x2 (Police), Rs. 2 ,87 4 ,0 0 0 H i lu x 4 x4 (S t d MT),Rs.3,174,000 Vigo Champ (MT),
New Suzuki Mehran 2012 Specs
Rs.3,374 ,000 Vigo Ch am p (AT). Along with introduction of catalytic converters in Xli and Gli variants, revised prices take into account steep depreciation of Pak Rupee as well, which has devalued by 5.5% against US dollar and by 3% against Japanese Yen during p a st fi v e m o nt h s on l y . IM C sp okesperson said , "We remain c om m i t t ed t o a d o p t g r e en e r technologies and in process will continue to offer low carbon mobility solutions to our cu stomers i n Pakistan." The company is always at the forefront of activities that preserve and improve the environment and aims for solutions th at ar e i n h ar m ony w it h t he environment throughout all areas of its business activities.
New Suzuki Mehran Euro II Model The all new mehran 2012 EFi EURO II, The engine is 800cc the same old one but with new changes, they mad e some typical ch ang es. Mehran is still Pakistan largest selling car. New smart features like head turning lamp, new front grill and a two spoke useable steering (not power) wheel gives small look. G oo d e co no my , av er a g e p er for ma nce and b est fu el efficiency, Mehran VXR is still the leader in small cars. The new Mehran EFi features a new grill with Mehran engraved on the left. This grill seems to be a flop copy of the Japanese Alto 2006. The headlights now have a slight blue tint that won't do any miracles for this old vehicle. Pak Suzuki thinks, by adding tinted headlights and playing with trims makes up a new model. There's a new Euro-II
www.automark.pk | July-2012 | Page 21
sticker at the back and an EFI system added in the same two decades old (F8B local-made) engine. The funny thing is that you can add all this stuff that makes the Mehran a new model in any of the previous Mehran because a there’s just a sticker and a new grille. While we heard sometime in the past that few guys have started offering EFI kits for different vehicles including Mehran. So everything can be retrofitted on old models. Prices have already increased exorbitantly as well after each auto assembler releasing Euro-II compliant model making these cars pack absolutely zero value for money but when you have zero options for a new car, we’re basically a bit helpless unless so me new f or ei gn au t o manufacturer steps in as well..
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Pakistan auto parts show 2013 to be held in Karachi Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has announced to hold the Pakistan Auto Parts Show 2013 in Karachi, from Jan 11-13, which will become th e lar gest showcase of Pa ki st a n’ s en gi ne er i ng ex p or t merchandise and services. “The event will be visited by a large number of buyers from across the world, while around 150 multinational and national companies will display their products at th e exh ibitio n,” said PAAPAM Vice Chairman Munir K. Bana, wh ile ad dressing th e lau nc hing ceremony of PAPS 2013 at a local hotel. He said that the auto parts show, just like the one held last year in Lahore, would be a thoroughfare to the true commercial and manufacturing diversity of Pakistani companies, thus providing an opportunity to forge new alliances
and business ventures. He also called upon the government for playing a part in organising the mega exhibition, adding that the last show was wholly financed by th e PAAPAM itself. Also present at the launch ceremony was the chairman of PAAPAM, Syed Nabeel Hashmi, who strongly demanded of the government to ensure adequate and exclusive export promotions for the engineering sector. “We expect that the Trade Development Authority of
Pakistan will support our initiatives, such as the PAPAS 2013,” he said. In P a ki s t a n , t h e l o c a l i n d u s t r y manu factu res motor cycles, cars, tractors, and heavy vehicles such as trucks and buses, and also hosts major original equipment manufacturers (OEMs) such as Toyota, Honda, Suzuki and Massey Ferguson. Hashmi added that Germany, with the collaboration of its government agencies, holds the world’s largest auto exhibition every year. In this exhibition, only a dozen of companies from Pakistan participate, while from India hundreds of auto firms display their products. He further said that with the steady growth in the automotive parts industry in the region, PAPS 2013 plays a crucial role in the economic development of the automobile-related market, both locally and internationally.
Corruption by DISCOs’ officials
The Pakistan Association of Automotive Parts and Accessories Manufacturers (P A A PA M ) h a s s a id t h at th e discrimination and corruption of the officials of the power distributio n companies have broken all previous records, as large industrial setups are receiving smooth power supply, while small industrial units are suffering the most, a statement said last month. “In several cases, the power distribution companies (DISCOs) grids are dedicated to ensure uninterrupted power supply to “certain companies” even in the prevailing severe power crisis, as officials have fixed per hour commission for this undue favour, said Syed Nabeel Hashmi, the chairman of PAAPAM. Resultantly, the production of small industrial units has nosedived due to crippling power cuts, stretching over 12 hours in industrial estates, he added. He also criticised the government’s inability to honour its commitment regarding five-day weekly provision of gas to the industry because of which the
industrial production and trading activities have come down to its lowest level. Hashmi and vice chairman Munir K Bana, addressing the meeting of the association’s managing committee, said that the government should come up with a clear cut energy policy as the unscheduled and hours long power outages and unsmooth gas supply even in the summer season are causing undue and unprecedented loss to the trade and industry. They said that the economy is fast heading towards the point of no return. The auto vendors said that the power outages for the industrial areas should be scheduled with at least three-hour gap as in most of the industrial units, a machine usually takes 40-45 minutes for full functioning after start up and if the power breaks on hourly basis than no industry would be able to survive. “When the government is unable to bridge the gap between the demand and supply, it should at least take all the
stak eholders in to co nfidence an d announce a proper schedule for both the trade and industry so that they could readjust their working hours, according to that schedule.” Hashmi said that it is not the production loss alone, but the loss of export orders has now become the order of the day and it was a known fact that a large number of importers from the United States and the Eu ropean Union countries are now placing their orders to the other regional cou ntries. Timely delivery of an export order is a prerequisite to win any new order, but unfortunately, Pakistan’s exportoriented industry, in general, and Punjab industry, in particular, is unable to ensure timely delivery to their foreign buyers because of acute power shortage, he added....
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Visit CIMAMotor 11-14, Chongqing - China for more info call 0321-2203815
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SMEDA conducts industry support programme The industry support programme being co nducte d by Smal l and Medium Enterprises Development Authority (SMEDA) in collaboration with Japan International Cooperation Agency (JICA) for auto vendor industry has revealed good results in plants efficiency by reducing the defect rate up to 80 percent. This was reported in a co ncluding presentation of the 83rd project of the program made by Kiyoshi Yoshida, a seasoned Japanese automotive expert, on Thursday, at the National Automotive Components, Muridkey along with a SMEDA team. Alamgir Chaudhry, General Manager Outreach and Fayyaz Riaz, Head Industry Support Program of SMEDA also attend ed th e pr esentation. The Layout of Assembly section at the National Automotiv e Components , Muridkey has been redesigned by Yoshida along with SMEDA team which on operation is witnessing 46 percent reduction in travel distance, 50 percent reduction in work-in-process inventory and 80 percent reduction in defect rate, hence improving the overall productivity
to an optimal level. Muhammad Saleem, Chairman National Automotive Components appreciated the efforts of SMEDA and JICA in upgrading the automotive vendors in Pakistan for quality and productivity improvement with reduction of the production cost. “My comp an y has committe d to disseminate this improvement activity to other sections of the factory as well as to rest of the in dustry. Such programmes can change the working cul ture and thinking pattern of the industry stakeholders and workers,” he observed. SMEDA and JICA have been working together to support the automotive vendor industry of Pakistan since April 2006. JICA has placed the Japanese automotive experts at SMEDA in the field of production management who provide tech nical consu ltancy to automotive components manufacturers on voluntary basis. So far 83 auto vendor units have been provided with support under SMEDAJICA joint programmes....
CNG for transport - No chip, no gas Once the certification process of vehicles run on CNG is completed, gas stations across the country will stop serving the vehicles not having certified CNG fittings Petroleum Minister Dr Asim Hussain stated during the Question Hour that a digital chip fitted to the certified vehicles would help the gas stations refuse gas to uncertified vehicles. “No sub-standard gas kits are being manufactured in the country. Ogra does not have such information,” the minister said in reply to a question raised by Dr Mohammad Ayub Sheikh. A ban imposed by the government on the import of CNG cylin ders and conversion kits on December 15, 2011, and on private vehicles switching from petrol to CNG, had giv en rise to s us picion o f su b-s tandard manufacturing at home. Kits of only seven companies have been approved for use in transport vehicles and more than 100 workshops across the country have been appointed to
certify the quality of CNG fittings in the vehicles. “During the checking, unapproved CNG equipment and CNG cylinders will be replaced,” the minister said. These workshops have been approved by the Chief Inspector of Explosives (CIE) and certified by the Hydrocarbon Development Institute of Pakistan (HDIP). The two institutions are statuary bodies for the purpose and were developing the criteria for CNG system to be installed in vehicles, especially the pubic service vehicles. “Uncertified vehicles shall not be given fitness certificate, and route permit, by the relevant transport authorities,” said the minister. The seven companies approved to supply CNG kits for Pakistan are Landi Renzo, Lovato and BRC of Italy, Voltran CNG Conversion kit of Turkey, Sagas Autotec CNG Conversion Kit model CK34BRJB of India and Tesla Industries model EPM-05 and LR Pak (pvt) Ltd of
The first ever Foundry Service Centre (FSC), a joint initiative of the Small and Me dium Enterprise Development Authority (SMEDA), University of Engineering and Technology (UET) and Pakistan Foundry Association (PFA), would start its operations in the last quarter of the year, disclosed the project director of FSC at a tripartite meeting held last month at the office of the vicechancellor, UET. The FSC project, designed by the SMEDA, at an estimated cost of Rs179.40 million, would provide various services for development of the foundry industry, including design and pattern making, prototype development, testing and inspection laboratories, technical advisory, and training. The land for this particular project was provided by the UET, whereas the funds were obtained from the Ministry of Industries and Government of Pakistan under the Public Sector Development Programme....
Important Announcement Monthly AutoMark magazine has been selected as an exclusive global media partner from Pakistan for 11th China International Motorcycle Trade Exhibition CIMAMotor-2012. The largest motorcycle exhibition in Asia. At Chongqing, China from October 11-14, 2012
Pakistan. Petroleum Minister Asim informed the National Assembly that there are three kinds of conversions to CNG in the country – those done by the vehicle manufacturer, by the w orkshops authorised either by the CIE or HDIP. However, a vast number of conversions are carried out by illegal roadside workshops, he added. “This is the area where the certified criterion is mostly not followed. The provincial governments hav e been requested time and again to take strict action against th ese worksh op s. However, the government has not set any deadlin e for completing the certification process,” the minister said.....
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Millat Tractors Limited achieves 32,000-tractor sale target this year Despite of poor economic conditions prevailing in the year 2011-12, Millat Tractors Limited (MTL) achieved the sale of 32,000 tractors produced in this span. Thus, MTL grabbed 64 per cent share in the local tractor industry. During the financial year 2011-12, country's socio-economic condition went worse, it has particularly affected the sales of tractors. In the first eight months, General Sales Tax was 16 per cent which was later reduced to 5 percent. The heavy rains during July an d August extremely affected the crop. Fu rthermore, Agricultural and Commercial banks did not offer facilitating agricultural loans. But MTL tried to serve the industry better throughout. On this occasion, an event was organised during which, Sik an dar Mustafa, Chairman, Syed Muhammad Irfaan
Aqueel, CEO, handed over th e key of 3 2 , 0 0 0 tractor sold to a farmer. Ad dressing to the audie nce , Sikandar Mustafa added that t h i s p rodu ction and selling target hav e been achieved during a financial period which has been unfav ourable for business community. GST was 16 per cent till February. Achieving the target of 32,000 tractors is ind eed an accomplishment in current economic
Atlas Honda to invest another $50m After investing $35 million a year ago, At las H onda ha s inc reased it s motorcycle production capacity by 25% to 0.75 million vehicles annually keeping in mind the growing local demand, one of the largest motorcycle markets in the world, and export potential to regional countries. Atlas Honda Chief Executive Officer Saqu ib Sh irazi on th e occasion announced will now prepare a feasibility study for an expansion to 1 million units, which is estimated to cost around an additional $50 million. “The enabling environment provided by the government was instrumental in the phenomenal growth of this sector even du ring the per iod s of economic recession,” said Shirazi. Atlas Honda has been the market leader in the motorcycle industry since 2000. It has also seen its production grow eight-folds since then. “Our exports are expected to double to around 20,000 units this year, while we are hopeful to achieve our export target of 100,000 units in next three to five
years,” he added. Th e p rima ry market for loc ally m a n u f a c t u r e d m ot o r c y c l es i s Afghanistan and Bangladesh while other markets on the radar are Iran, Central Asia and Africa. T h e go ve r nm ent w il l su p p or t manufacturers through prudent policies and encourage them to enhance capacity and transfers of technology which will not only benefit local consumers but also increase exp or ts of locally manufactured motorcycles, said Federal Board of Revenue (FBR) Chairman M u m t a z H a id er Ri z v i a t th e inauguration ceremony. Pakistan with a population of 180 mil lion people can be co nsidered amongst th e biggest markets of motorcycles, said Rizvi adding that the country has an immaculate and talented workforce besides a thriving economy which calls for further investment, said Rizvi. Honda Japan to increase its role in Pa ki sta ni m ot or cy cl e m a r ket’ s development.
conditions. For all this, I congratulate management, labour and dealers of the company for untiring efforts, Sikandar Mustafa added.-PR
Belarus to invest in automobile sector A Belarus delegation headed by Sergey Roma nov of OJ SC MA Z Minsk Automobile Plant, called on Minister of S ta te a nd Ch a ir ma n Bo ar d of Investment Saleem H. Mandviwalla to explore investment opportunities in the field of assembly and manufacturing of heavy vehicles in Pakistan. The Belarus delegation showed keen interest in production of tractors and other vehicles in Pakistan due to lower cost of production, lower taxes and cheap labour. The local industry itself is developed which is an add ed advantage to the investors. The major interest of the Belarusian Company was to collaborate with the Pakistan Military organizations in the production of heavy vehicles. In this regards they were already in contact with Pakistan Army. The Minsk Automobile Plant is a stater u n a u t om o ti v e m a nu fa c t u r er association in Belarus, one of the largest in Eastern Europe.
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By Ali Abbas, Toyota Southern Motors, Karachi
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WARRANTY
Warranty helps in reducing customer concerns regarding the performance of the product and the financial risk as these are covered until the end of the warranty period. According to marketing signal theory, warranties serve as a signal to provide information about product quality and reliability. Speaking about warranty the first thought comes in mind is its relation with after sale service. Is warranty related to service only, in a way yes but it has to do more with the sales. It will not be wrong to say that warranty bridges service and sales. Warranty, sal es and service go hand in hand. Actually warranty is a sales incentive given to the customer to ensure product reliability and to gain the satisfaction of the customer that care of his product will be taken for any manufacturing fault developed in his vehicle during a specific time an d the mileage set by the manufacture. Let us see warranty with a different perspective, as a marketing tool, what warranty has to do with sales and how it provides securities in service. To begin with there are basically three important factors in purchasing a product first the manufacture, the product and the customer himself. As a persuasive marketing tool warranty fulfils two basic nece ssities of the customer.
1. Promotional:
Warranty promotes reliability and quality of the product on long term basis and implies a more reliable product.
2. Protectional: War ranty provides assurance to the customer against the defective product that fails to perform satisfactorily during the given time. Before buying any product customer goes through three different stages of pu rch as ing that is pre-purchase, purchase and post purchase. Marketing people have to understand that the customer has to resolve the uncertainties about the product before he purchases the product. So they have to understand the pre and post purchase behaviour of the customer. During the pre-purchase stage customer is affected by several factors like, new technology, customer
fact is customers t en d t o vie w wa rrant y as positively related t o Ali Abbas p r o d u c t reliability and quality. Warranty requirements and market trends. But what affects the customer the most in purchasing a product, is the uncertainty r e g ar d i n g p r o d u c t r e li a b il i t y, performance of the product over a period of time and wh eth er his investment wil l pay him off. This information is gathered mostly through advertisements and word of mouth. Promotional warranty h elps the customer to judge why and what to buy. The customer also goes through other uncertainties about the product like technical uncertainty, performance or reliability, matching, response and different risks as financial, performance, physical, social, psychological risks. Here the Protectional warranty helps the customer giving assurance for any manufacturing defects in the product that affects its performance over the warranty period. Warranty helps in reducing customer concerns regarding the performance of the product and the financial risk as these are covered until the end of the warranty period. According to marketing signal theory, warranties serve as a signal to provide information about product quality and reliability. The
have played an important role in the au tomob ile sect or , w ar ranty of automobile was 90 days in 1930 which has risen to 10 years and a 100,000 km’s. It has affected the sal es of automobiles like reported in New York Times (January 16,2003) that the sales of Hyundai had quadrupled over last 4 years due to affordable prices and a 10 year or 100,000 miles warranty. This was achieved not only due to advance technology but also because warranty was used as marketing tool. Warranty helps in giving the brand a name and a reputation in the market.
Warrant y and S ervi ce. Warranty in Service is related to product performance, which may be as simple as a component is working or not working or complex like diagnostic problems related to power train or NVH (Noise, Vibration and Harshness). Customers experience can differ from that promised by the manufacture and the actual product performance. When a customer is dissatisfied with the product performance as compared to what he was promised we see the customer in after sales service very often and we have a warranty claim. That is to say warranty provides security to a dissatisfied customer, it covers the customer financially risk as he does not have to pay for the repairs and provides him product reliability and quality. Customers have expectations regarding the quality of service which is fulfilled not only by regular customer service but through w arranty also. Customer
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e-Vehicle Management System NADRA has de velo pe d th e multiple-pronged “eV e h i c l e Management” system th at uses Rad io Frequ enc y Identification Device (RFID) technology to id enti fy veh ic les approaching ‘manned’ & ‘unmanned’ Check-Posts at entry/exit with real-time monitoring at the central control room. RFID passive contact-less chips are placed on vehicle’s windshield that contain vehicle’s details, linked with the owner’s details at the database level. The information stored in the RFID contact-less chip is encrypted ensuring international standards of security. Designated Check Posts are equipped with cameras, RFID antennas, static scanners and magnetic loops that are able to read the RFID tags on passing
vehicles. Transmission of complete date i n c lu d i ng t im es t am p , ve h i c l e information and Check Post details are transmitted in real-time to the central control room that allows authorities to monitor & generate route of vehicles. Suspect vehicles are marked in the system and alerts are generated when that vehicle crosses any Check Post.
The e-Vehicle Management System has the following elements: Vehicle Identification and Monitoring System (VIMS): Vehicles are issued unique Vehicle Identification Number (VIN) embedded in encrypted RFID contactless chips. The system allows authorities to monitor passage of vehicles and traffic levels at check posts helping them to eradicate vehicle theft and smuggling, catch suspe cts and improve vehicle tax collection. Vehicle Access Control System
(VACS): VACS can be deployed in secured premises/ building entry/exit points to restrict access of vehicles at designated gates, levels and points. The system is useful in monitoring activity at entry/exit points and generates reports of visitors and staff vehicles. The VACS is a valuable tool where security is a priority and passage of vehicles must be regulated by time. Vehicle e-Toll Collection System: This system can be deployed at toll plazas on motorways and/or highways for electronic collection of toll from vehicles bearing the e-Tag. The system i n c lu d es R e c h a r g e a b l e c r ed it mechanism and smooth reconciliation of collected toll providing comfort and time-saving to frequent travelers. The system is easily configurable and modifiable and generates reports on fin ancials and traffic tu rnover...
NG sector may consume 27pc of local gas supply in five years Gas consumption by the CNG sector is the fastest growing sector in the country and if the current trend continues, CNG consumption of gas would be 27 percent of the local gas supply in less than five years, said an official at the Ministry of Petroleum and Natural Resources. According to details, in 2005-06, CNG consumed 107mmcfd of gas and in 2010-11, CNG consumed 310mmcfd, which is a growth of 23.8percent, and makes it the fastest growing sector of gas consumption in Pakistan. If the government does not take measures to cap CNG demand, it is expected that CNG consumption of gas would reach 900mmcfd by 2015-16, which would be 27percent of the local gas supply,” the official warned. According to the Energy Year Book, CNG consumption increased at the rate of 24 percent since 2005-06 to 2010-11, the highest increase witnessed in any sector.With gas production facing a decline, this growth is at the expense of other value-added sectors like fertilizers, the general industry and the power
sector. People from the industry people say that with growing car ownership and CNG prices being kept at 55percent of petrol prices, the CNG monster is fast eating into the legitimate gas share of the other sectors. There are 3,330 fuelling stations in Pakistan that make up about 18 percent of all CNG fuelling stations in the world and Pakistan has the highest number of CNG refilling stations. The central bank’s annual report suggests that the total demand for gas would be 6,354 mmcfd by FY2016, while its supply would be only 3,333mmscfd. If this unprecedented consumption of CNG was not checked at this stage, soon there would be no gas for the industrial activities of the country, resulting in a decline in exports and an increase in unemployment. There would be a further increase in the impo rts of fertilizers and in their prices, with virtual power blackouts, there would be no job creation in the country, the ministry official boded.
On the supply side, Pakistan’s seven largest gas fields are rapidly depleting and there seem to be no large gas field or supply on the cards, which would come online for at least 2-3 years. The best option in the future is the import of TAPI, IP and LNG. Pakistan’s entire production of natural gas, in the following 10 years, is expected to fall by 30 percent, while demand would rise by almost 70 percent, thus reaching 8.5 billion cubic feet per day. “If the same trend persists, our country will run out of gas in less than 20 years, thanks to the high gas consumption of the CNG sector,” he predicted and added that since the expansion of the CNG sector, the incidence of Unaccounted For Gas (UFG ) h ad also r isen exponentially. Industry sources said that the people who could afford to drive cars were deriv in g benefit fro m CNG, whil e motorcyclists, who represented the lower middle strata of society, used petrol, which was 55 percent more expensive than CNG....
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China Automotive Sector - Update
Monthly AutoMark Magazine
China urges countries to increase trade openness Ch ina urg ed the wor ld' s ma jor economies to increase trade openness in order to revive the global economy, as world leaders reached a consensus on further countering protectionism in a last-minute deal during the G20 Summit on last week. In the final communique of the summit, which was held in the Mexican resort city of Los Cabos, leaders pledged not to put up new trade barriers until late 2014, extending their previous pledge by a year, in a move to boost global growth. At last year's summit, which was held in France, G20 members had vowed to oppose trade protectionism. At this year's summit, Brazil, Argentina and South Africa resisted extending the tr ad e pledge beyond its cur rent termination date at the end of 2013, while other countries wanted to extend it to 2015, Reuters reported. In a speech deliv ered at the G20
Honda launches new motorcycle Honda Motorcycle and Scooter India Private Limited launched ‘Dream Yuga’ - a new mass motorcycle with 110 cc engine with mileage of 72 km per litre (under ideal test conditions). Speaking at the inaugural function, the company official Lezil Anto said that the new bike’s engine was equipped with several cutting edge technologies like Honda intelligent ignition control system, which changes the ignition timings as per the load cond itions t o at tain ideal combustion, leading to improved power output and efficiency. He said that the model was loaded with a host of features like impressive exhaust, black colour grab rail, attractive graphics, realistic meter console and tail light along with al loy wheels. “The new vehicle is comfortable to r id e not only on smoother roads, but is equally good in difficult terrains,” he added. “The vehicle is available in three variants – kick, drum and spoke; kick, drum, alloy and self, drum and alloy. The motorcycle comes in five exciting colours – black, monsoon grey metallic, alpha red metallic, force silver metallic and maple brown metallic with starting price of Rs. 47, 316,” he added....
Summit, President Hu Jintao called for a resolution to establish a free, open and fair global trade environment an d opposed all kinds of protectionism. "Efforts must be made to ensure open and inclusive bilateral and regional trade, and to safeguard the multi-lateral trade system," Hu said. He said that G20 members should promote the steady recovery of the world economy, d eepen r eform of the international system, promote the healthy growth of international trade, promote development and advocate sustainable development. "China has taken a series of concrete measures to increase trade openness and oppose trade protectionism, in terms of government purchases, imports increase and tariff reduction," He said. In March, the State Council announced cuts on import duties on selected energy products and raw materials, as well as consumer goods, to boost purchases
Lifan to spend 670 million yuan on battery plant, tech center, R&D Lifan Industry (Group) Co. plans to spend 670 million yuan ($105.9 million) to develop starter batteries and electric vehicle batteries, the Chinese Web site Gasgoo reports, citing the Shanghai Securities Journal. Lifan will build a technical center and factory in Chongqing, the company said in a statement. Construction is sch edu led to take th ree year s. The factory will make starter batteries for motorcycles and autos, and will have annual capacity of 10,000 lithium batteries for EVs. Last year, Lifan said it had a deal to sell its first batch of electric cars to the ad m ini str at ion of Shang hai International Auto City, an auto production base on the western outskirts of Shanghai. Lifan's electric sedan is based on the platform of its 620 compact sedan. The EV is powered by a lithium iron phosphate battery pack. Lifan, which began as a motorcycle manufacturer, began producing autos in 2006. Its Chongqing plant builds compact sedans plus an SUV under its own brand....
globally. Vice-Premier Li Keqiang said earlier this month that China will import $10 trillion worth of goods and services in the five years ending 2015. "Boosting imports is China's active effort on trade opening, which contributes a lot to anti-protectionism activities and is significant for the global economic recovery," said Huo Jianguo, director of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. China is currently the world's largest exporter and second-biggest importer, playing a crucial role in global trade. But China has also been the biggest victim of international trade frictions for 17 consecutive years. In 2009, there were 116 trade remedy investigations into Chinese goods, accounting for 43 percent of the total global number. China has also seen repeated trade frictions regarding intellectual property rights.....
Toyota weighs adding plant in China Toyota weighs adding plant in China Toyota Motor Corp. is considering building a plant in the north China port city of Tianjin, according to Japanese media. The plant would boost the Japanese automaker's annual production capacity in China to 1 million units, reported Kyoto News, a Japanese news agency. More details on the possible plant were unavailable. Toyota has joint ventures with China FAW Group Corp. and Guangzhou Automobile Group Co. The joint ventures combined have five plan ts in China with total annual production capacity of 910,000 units, according to the Japanese automaker's Web site. Toyota sold 286,483 vehicles in China in the first five months of this year, up 11 percent from the same period last year, according to LMC Automotive.
Visit CIMAMotor Oct 11 - 14, 2012 Chingqing - China
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Indian Automotive Sector - Update
Monthly AutoMark Magazine
India The Next Automobile Hub of the World Japanese carmakers Nissan and Toyota have started exporting midsized cars made in India, spearheading a strategic change that seeks to make the most of the country's co st advan tage and growing technical prowess. In the next 12-18 months, Nissan plans to export 50,000 units of India-made sedan Sunny to the West, executives familiar with the matter said, adding that rival Toyota will ship Etios cars, made at its Indian unit, to South Africa. Volkswagen, Ford and Renault are expected to join them soon. Experts say exports not only help in dealing with the slowdown in the domestic market, but also act as a hedge against costlier imports, which have turned dearer by 25-30% in recent months. French carmaker Renault plans to export to the UK about 25,000 units of its sports utility vehicle Duster over 1218 months. The shipments may start in October.
Similarly, Germany's Volkswagen is keen on producing left-hand drive Vento sedans in India for markets in the West. Volkswagen, which exports India-made Vento cars to South Africa and Malaysia, has mandated vendors to develop components for a left-hand drive version of the sedan. The carmaker plans to export 8,00010,000 such units by 2013. "Our export of the Vento to South Africa confirms that we are able to produce high-quality cars in India at competitive costs," Volkswagen India's spokesperson said, adding, "This also shows our potential to further extend our exports to other markets. We are looking at various opportunities in the future, also in left-hand drive markets." Ford Motor, too, is likely to export its yet-to-be launched EcoSport SUV from India, according to people familiar with the company's plans. Executives dealing with the projects of
multinational carmakers say that over 10 0 ,00 0 sed a ns a nd S UV s manufactured in India are slated for export over the next 12 months. Experts say the growth in exports, which comes at a time the global economy is slowing down, could accelerate once the economy picks up. There are not many right-hand drive manufacturing bases that are as cost competitive as India, said Kumar Kandaswami, director at Deloitte. "The cost of engineering, both at the carmaker's end and supplier's level is very competitive, which gives India an edge. Manufacturers use exports as not only an opportunity to mitigate risk arising out of volatile currency, but even to balance the demand in the domestic market," said Kandaswami. After small cars, global auto companies like Nissan and Toyota start exporting sedans & SUVs from India - Economic Times
Ashok Leyland bags bus order from Bangladesh worth Rs 35 crore
Bajaj Auto unhappy over Pakistan's protectionist approach towards automobile sector
Honda to Double India Share In Global Motorcycle Sales
Hinduja Group flagship firm Ashok Leyland today said it has bagged an order to supply 88 airconditioned buses to Bangladesh worth $ 6.5 million (about Rs 35 crore). "Ashok Leyland announced the winning of another order from Bangladesh Road Transport Corporation(BRTC) for 88 AC buses for a value worth $ 6.5 million under the Indian Line of Credit (LoC) scheme offered for the improvement of urban transportation in that country," the commercial vehicle maker said in a statement. This order comes close on the heels of the recent order to supply 50 vestibule buses to BRTC, it added. Commenting on the deal, Ashok Leyland Managing Director Vinod K Dasari said: "This also represents our commitment to partner BRTC in the process of taking urban transportation in Bangladesh to a new level and underscores our preeminent status as the leading CV player in that country."
India's second largest two-wheeler maker Bajaj Auto h as expressed u nh a p p i n es s o v e r P a ki st a n' s protectionist approach towards the automobile sector, preventing the firms from the neighbouring nation to sell products here. The company's Chairman Rahul Bajaj, who was a part of an Indian business delegation. "Who could think after the Mumbai attacks that we would be here in Lahore in 2012, discussing trade prospects with our Pakistani counterparts," he added. However, Bajaj said he was unhappy as there was "no progress" in trade in the automobile sector, which is protected under Pakistan's negative list for doing trade with India. "As my concern is with the automobile industry, I do not think Pakistan will soon (remove restrictions in this sector). However, if things go smoothly on the trade front, the matter may be reviewed after a year or so," he said.
Honda Motor Co. expects to more than double India’s share in its global twowheeler sales as the company adds small-engined motorcycles and opens outlets to widen reach in villages and towns. “India will want more motorcycles as in frastructure grows, technologies improve and people’s incomes rise,” Keita Muramatsu, chief executive officer of Honda Motorcycle & Scooter India Pvt., said in an interview in Mumbai yesterday. The Tokyo- based automaker will add 100-cc models and increase its penetration in rural markets, he said. Honda, which in 2010 exited a 26-year partnership with Hero Group (HMCL), sold 1.99 million two-wheelers locally in the year ended March 31 surpassing TVS Motor Co. (TVSL) as India’s thirdbiggest seller of motorcycles, according to data from the Society of Indian Automobile Manufacturers. The world’s biggest motorcycle maker will increase its outlets and service centers in the country to 2,000 by the end of March 2013 from 1,500 in the previous 12 months, Muramatsu said...
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Monthly AutoMark Magazine
CSM-Customer Satisfaction Management Relationship with the Dealership In to day’s competitiv e automotive marketplace, what distinguishes one deal er sh ip from anoth er i s its relationship with their customer and the responsibility for that relationship resides with the people. The quality of products/services and competitive pricing are prerequisites and given that are essential just to stay alive in the au tomotiv e busin ess. Managing ex tr aord inar y cu stom er ser vice experience separates the good from the greatest dealerships. Customers have so many choices to choose from when making a decision to purchase a vehicle. You are onlya click away from your competitor. You’re no long er i n a b ri ck a nd mor ta r environment where you might have to look in the customer’s eyes, smile, sayplease an d “thank you” that’s certainly part of providing good service, but it’s only a small part andit’s not enough to satisfy today’s customer needs. That is a thing of the past. The key is the emotional link. Twenty years fr om now customer s won’t have metamorphosed. They are and will be human beings foreverand will still be driven by their desires and needs. Virtual environments do not create virtual customers. I haven’t seen any dealerships making cars in their backyard; all dealers’ depends on their vehicles delivered from a manufactur ing source and all inventories shipped from that plant to dealer’s lot. We all agree, people and processes are what make a dealerships business operation to sustain. After all,
it’s the people who can make the difference.
What is customer satisfaction and why it is important? There are lots of ways to describe customer satisfaction and it’s quite difficult to put in a single sentence. However, based on my interactions with the customer, the be st and brief de f in it io n I c an e n d o rs e is
“S a t is f a ct io n o cc u rs in a consumer’s state of mind when perception does, or does not, become reality” ~ Mr. Mark R. Bozian, CEO, TheBrimell Group, Toronto. Think this way, if you sell two new
vehicles that are similar with the same model and year at same price to twin siblings, you may find one person 100% satisfied with his or her purchase and other could have few concerns, which means the key is perception, not the product, price or process. Customer satisfaction, customer service, customer relations and CSI are words that have been used frequently in the automotive industry. They have been defined and discussed by everyone: manufacturers, dealers and customers. Each of these groups has different perspectives on the issue caused by the difference in priorities and needs. Everyone recognizes the importance of the issue but they often disagree on how to achieve satisfaction and whose job it is to deliver it.( In coming articles on CSM, I will discuss in details, how to establish an effective and profitable cu stom er r ela tion s/sa ti sfact ion department, mind it, it’s not an expense, in facts it’s an investments.)
Th e m a n u f ac tu r e ’ s perspective Le t’ s t a ke a fi r s t l oo k fr o m man ufacturer’s perspective, both domestic and imports have been major players in the customer satisfaction is sue. Th ey have researched and measured satisfaction for years. They continually study consumer opinions of product quality and design to meet the changing/challenging needs and wants of automobiles buyers. They have also measured customer satisfaction based on the ability of their franchised dealers to make and keep customer happy. They have developed a fairly uniform practice of surveying
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Exclusive articel - continued
The fact is, today’s consumers are not viewing products on a stand-alone basis. They view the product as a package of tangible and intangible things. customer’s opinions on the sales and service experiences. Whether it is called CSI , QCP, or OSI , the go al is to determi ne how their franchises are p erform ing a s a gr oup and as dealerships. Customer satisfaction has emerged as the n umber o ne iss ue in manufacturer/dealer relations in recent years.Competition is the primary reason that factories place so much emphasis on customer satisfaction. From the manufacturer’s perspective, the business of building and selling autos is more c om p eti ti ve t h an eve r b efor e. Customer satisfaction is viewed as a majo r battl e ground be tween the manufacturers now and even more so in the future. Manufacturers must rely on their franchise dealers to deliver best service to the customer. Customer oriented franchised dealers are viewed as essential. This is the primary reason th at th ey h ave m ade c ustom er satisfaction such a big factor in the F ac to r y and Dea le r r el at io ns.
problems solved. Service in this instance means continued service for not just the equipment/co mputer, bu t al l the elements that solved the problems in first place. The fact is, today’s consumers are not viewing products on a stand-alone basis. They view the product as a package of tangible and intangible things. (I will talk more on tangible and intangible services in the future CSM articles) A customer expects more from a new automobile than just steel, glass and rubber. The custo mer expects the dealership to provide financing and warranty packages and also feel good after singing the deal. A truly satisfied customer is one who has all of his needs and expectations met, whether that be a 0 to 60 in 10 seconds or the ability to drop off his vehicle for service in under 10 minutes. Today’s customer has learned that he can get this somewhere and he has a number of options in gettin g it.
The customer’s perspective
After taking the manufacturer’s and c us t o me r ’s pe r s pe c ti ve i n to consideration, I cannot leave the dealers perspective aside without reviewing it. Many dealers feel that they are caught in the middle of this issue. On one hand, they feel that manufacturers are not sympathetic enough with the day-today realities of selling and servicing automobiles. The dealer may feel that the CSI surveys are an unfair or inaccurate reflection of his customer’s feelings. On the other hand, the dealers are faced with customers who are becoming more and more demanding. Regardless of these feelings, however, most dealers have realized that customer satisfaction is not as easy as a piece of cake as they thought; it’s an ongoing challenge to face forever. The problem is especially tough for the automobile dealer because of the nature of his business. The business of buying and selling cars is one of the few b usinesses t ha t ar e essentia lly confr ontational. Buyer s w alk in expecting to get the car of their choice or the service required for the dollar they are willing to pay and having to fight for it. On other side, the product
If you look at the customer’s perspective, satisfaction means having hisneeds and expectations met, as he has significantly more choices and expecting better quality automobiles. If he receives what he wants, he will be satisfied. It sounds simple, but practical experience shows that customer satisfaction is a much more challenging and complex concern to resolve. It mean s that today’s dealership faces a more demanding and educated customer that could be due to internet source. Another trend among consumers, which can be dealt with by dealers, is that they are continually expecting more and better service. This is true w ith everything they buy, whether it is an airline ticket, a hamburger, or a new car. No one believes that McDonald’s is successful solely because of its food. They realized that their customers want more than good hamburgers. Similarly, IBM did not become the world leader in computer just by good computers. They also realized that their customer wanted more than that. They want their
The dealer’s perspective
advisor or service advisor feels that he/she has to get the best of the customer to get the most in his/her pay envelope. Dealers feel that they have to constantly keep an eye on both the customer and the employee to keep the whole process from coming unglued. Regardless of how you analyze and determine whether a custo me r is satisfied, the complete solution lies in identifying and managing the real problem and concerns. The solution is to exceed customer expectations in every situation. This sounds like a difficult and expensive idea. There are no quick or permanent solutions to customer satisfaction because every customer and dealership is different and both are constantly changing. While the solution certainly re quires a great deal of u n d er st a nd i ng , c r ea t i vi t y a nd commitment, significant improvements in customer satisfaction can be achieved without spending a lot of money or extra efforts if every aspect of the dealership is managed with customer satisfaction in mind.
Finally, Customer Satisfaction Management, or CSM, is a systematic proce ss by which dealership management can effectively control the level and quality of customer service in their organizations. The basic concept in the process are not difficult, however it does require the complete understanding and commitment of the top dealership management. Without this commitment, long term success would not be likely. This exclusive article on CMS-Customer Satisfaction Management has been written by Mohammad Shahzad S.A.E., D.M.P. , specially for Monthly AutoMark Magazine. (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at s ha h@ b r im e ll t oy ot a .c om or magazine@automark.pk
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Corporate Sector - Event
Free Tune – Up of Mitsubishi FUSO Trucks on World Environment Day World Environment Day is celebrated on the 5th of June every year across the globe. Likewise in Pakistan also various types of programmers are conducted to create awareness about the pollution of the environment and its impact on our daily lives. With special reference to motor vehicles the masses are made aware of the harmful effect of exhaust emissions and smoke emitting vehicles resulting in depletion of the ozone layer causing global warming. In this regard Master Motor Corporation Limited organized Free Engine Tune – Up Campaigns which were held at the Mitsubishi FUSO outlets in Karachi, Lahore, Rawalpindi, Islamabad, Multan, Faisal abad, Quetta an d Peshawar. During the Free Engine Tune – Up
Campaign, awareness was created amount the FUSO truck fleet operators on the benefits of a well tuned engine and the impact the same creates on the environment. Some of the benefits of a well tuned engine are. 1. Reduces Exhaust Emission and thus creates a healthy environment for ourselves and our children. 2. Improves the Fuel Consumption of the vehicle. 3. Improves the Pickup of the Vehicle. 4. Improves the Output of the Engine. 5. Improves the Performance of the vehicle on flat roads and especially on gradients.
Flyers and Banners were especially prepared for the occasion, while there was a good turnout of customers for the FREE Tune – Up Campaign. The FUSO customers very much appreciated this gesture on the parts of Master Motor Corporation Limited who took the iniative to address the issue of pollution from commercial vehicles. Seen in the photographs are Mr. Salim Idris, Director Marketing and Sales, Mr. J. Pereira, Senior General Manager, After Sales Service and Parts, Mr. Tariq Shaffi, Senior General Manager, Central and North, and Mr. Laeeq Ahmed, General Manager, Mid Country, of the company who took an active part in the event. Ensuring a cleaner environment is every ones responsibility.....
Free Tune up of FUSO trucks on World Environment Day at Lahore
Mr. Salim Idris, Director Marketing & Sales, Mr. J. Pereira, Senior G.M. After Sales Service and parts, Mr. Tariq Shaffi, Sr.G. M. Marketing and Sales Central and other personnel of Master Motors Corporation Limited during the Free Tune up of FUSO trucks on World Environment Day.
Free Tune up of FUSO trucks on World Environment Day at Rawalpindi / Islamabad
Free Tune up of FUSO trucks on World Environment Day at Multan
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Monthly AutoMark Magazine
By: Mohammad Shahzad S.A.E; D.M.P.
101 WAYS TO ACHIEVE BETTER FUEL MILEAGE (In four parts series, 2,3 of 4)
(C) PLANNING FOR FUEL ECONOMY (Part 3of 4)
(D) DRIVING FOR FUEL ECONOMY (Part 4 of 4)
continued from previous issue (June-2012)
Driving has become a part of our daily lives. Good driving habits not only save fuel cost but render us safe on roads and can reduce greatly accidents rates. 79. Before you turn the ignition key,
66. Travel off season to avoid heavy traffic on tourist spo ts. Plan your vacation within a short travelling distance near to your home city. 67. Travel during day time when cold and evening time when hot – it will reduce use of A/C 68. Use your garage for overnight parking – keep warm in winter and cool in summer. Use the car which is warmer than other especially for a short trip to near mall. 69. Use engine block heater to prewarm engine during winter for quick and easy cold start. 70. Park your car wherever you can park easily and take a walk to mall – Don’t circle and look around for nearest parking spot. 71. Know contingency short cuts to use if traffic is tied up ahead or on your way back. 72. Don’t wear awkward or heavy footwear when you drive, to keep light pressure on gas pedal. 73. Dress light cloths to reduce the use of A/C while you driving in summer. 74. Check for excessive weight carried in the trunk or under seats or glove box, every ounce count. Avoid carrying unnecessary items, especially heavy
ones. Remove trailer hitch in off season, to reduce weight. An extra 100 pounds in your vehicl e could reduce your mileage by up to 2%. 75. A roof rack or carrier provides additional cargo space and may allow you to meet your needs with a smaller car. However, a loaded roof rack can decrease your fuel economy by 5%. Reduce aerodynamic drag and improve your fuel economy by placing items inside the trunk whenever possible. 76. Clean accumulated snow from the trunk, hood, roof, and ice build up under fender wells near mud flaps to reduce weight and undue friction on tires during winter in the snow zone. This practice also increase tire life due to less wear. 77. Keep extra supply of food and drink during long trip to avoid stopping at service centers for a small bite especially when traveling with family. 78. If are planning to move your residences or buying house consider location cl ose to work and all daily amenities to save driving..
be sure that you’ve already adjusted your seat, set the inside and outside rear view mirrors, checked to see that every one wearing his or her seat belt, and look through your daily/long drive check list to make sure you‘ve got every thing you need to take along. 80. Leave home early and give enough traveling period for reporting on time, rash driving is unsafe and waste more fuel. 81. Avoid excessive engine idling it can increase fuel consumption by up to 5%. Do not run engine until you are ready to go. 10 second max in summer or 30 second in winter is enough for the engine to warm up. Don’t wait on driveway to get normal engine temp. Drive slowly few km after cold start, engine will warm-up quickly itself. Do not use A/C or heater right away, to avoid extra stress on engine power. 82. Turn the engine off at long red light, railway crossing, or long waiting for a joining passenger. Restart is more economical than excessive idle and getting 0 km per litre. This has become
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Exclusive Article - continued
New Year resolution to reduce weight for good health. If you can save an average of Rs.100 per day, this can add up to Rs.36,500.00 per year or Rs.1,82,600.00 extra in fuel costs over five years, that’s a lot! If you follow only 50% of the above tips & hint, and based on going very high fuel price, you still can save 15-30% on soaring fuel cost and reduce pollution to protect the air we breathe. a city by-law not leave vehicle idle for more than 3 minutes. Save money on unwanted fine in North America. 83. Drive sensibly, aggressive driving (speedin g, rapid acceleratio n and braking) wastes fuel. It can lower your fuel mileage by 33%percent at highway speeds an d by 5 % around town. defensive driving is also safer for you and others, so you may save more than fuel money
84. Move smooth and cruise. A vehicle
preserves momentum in city driving to save up to 25% on fuel and brake wear. 90. Drift for a few feet before applying accelerator during down hill. Use vehicle inertia for a fre e dow nward ride.
91.
When climbing a hill maintain steady pressure on the pedal to avoid breaking, and ease up as soon as you hit peak, and continue downhill to maintain vehicle momentum 92. In traffic watch at least two cars ahead for advance start and stop cue. 93. In a tunnel, watch the walls and ceiling for signals from braking ahead. 94. Use the rear view mirrors to monitor traffic behind and on your sides for safety and saving.
travelling at a speed of 130km /hr consumes approximately 30% more fuel than a vehicle travelling at speeds of 90 -100 km/hr. Use cruise contro l to maintain constant speed. Driving fast consume more fuel and may cause accidents.
95. Avoid drive through service lanes (Food /Banking) pa rk and walk.
85. Maintain slow steady pressure on
97. Turn on radio for traffic, weather
pedal as you accelerate, assume that there’s an egg between your foot and pedal. Make sure your parking/hand brake is off.
86. Don’t tail gate. Keep safe distance ahead to avoid excessive braking. Its take more power for the engine to move a car from a dead stop than while in motion. Also this practice saves brakes, tires and rear end collision. When stuck in traffic, switch to “N” gear to reduce strain on engine and transmission.
and accident new s; take detour according to the conditions. Watch for traffic condition neon sign on most highways and select express or collector as suggested.
98. Avoid “Jack rabbit” starts, flooring the pedal wastes gas and increase tire and brake wear. Pass and merge lane smoothly with the traffic flow. Avoid
Zig-Zag driving.
99. Keep the windows up when moving, especially at high speed. Use ventilation system, if you have to use A/C on highway turn off just before destination to use cold cabin air until last minute.
100.
Relax and think of economical re–route when stuck in traffic “Pipe line” Use mobile phone with blue tooth to contact home or vis itin g party to communicate. (Check your local bylaws) Keep a record of your fuel consumption and challenge yourself to reduce gas mileage just like most people have a New Year resolution to reduce weight for good health. If you can save an average of Rs.100 per day, this can add up to Rs.36,500.00 per year or Rs.1,82,600.00 extra in fuel costs over five years, that’s a lot! If you follow only 50% of the above tips & hint, and based on going very high fuel price, you still can save 15-30% on soaring fuel cost and reduce pollution to protect the air we breathe.
Last but not least 101 - DRIVE SAFE! LIFE IS MORE PRECEOUS th an th e Fuel/ CNG You live only once enjoy your best life with safe and defensive driving. Safety always starts with you!
87. Anticipate driving situation, If you see a stop light ahead, ease up on pedal and maintain the speed and timing in such a way so that when you come close to red light it turn into green and you can maintain steady flow .This can save 5 to 10% on fuel, nearly 50% of the energy needed to power your car goes to acceleration.
88. Select the straight road and route this will help to read lights timing ahead, to maintain synchronized speed and momentum.
89. Easy on the brakes. Minimize brake
This exclusive article on 101 ways to achieve better fuel mileage has been written by Mohammad Shahzad S.A.E., D.M.P. (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at s ha h@ b r im e ll t oy ot a .c om or magazine@automark.pk
usage by maintaining at least a 2 to 3 second buffer zone between cars
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Car / Light Vehicle Price List
SUZUKI
HONDA
Model Model MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic
Price Price Rs. 555,000 Rs. 607,000 Rs. 1,096,000 Rs. 1,176,000 Rs. 1,311,000
CULTUS Efi VXRI Euro II CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) RAVI PICKUP VX Euro II RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol Euro II SUZUKI VAN CARGO Euro II APV 1.5L JL SX MT (CBU) APV 1.5L JL DX MT (CBU) JIMNY JLX SX CBU (SN) JIMNY JLX DX CBU (SN)
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
965,000 1,015,000 1,332,000 1,411,000 582,000 621,000 634,000 610,000 1,999,000 2,074,000 1,974,000 2,123,000
Karakoram Motors Model Chery Standard Petrol Chery Standard CNG Chery Deluxe Petrol Chery Deluxe CNG Gonow Victor Gonow Troy Standard Gonow Troy Deluxe Gilgit (Double Cabin) Pet. Gilgit (Double Cabin) CNG Kaghan XL Petrol Kaghan XL CNG
Price Rs. 7,20,000 Rs. 7,70,000 Rs. 7,70,000 Rs. 8,20,000 Rs. 1,499,000 Rs. 9,99,000 Rs. 1,049,000 Rs. 3,85,000 Rs. 4,20,000 Rs. 1,285,000 Rs. 1,375,000
Honda Honda Honda Honda Honda Honda Honda Honda
Model CRV Automatic 2400cc Japan Accord Automatic 2400cc Japan City Manual 1300cc HYUNDAI City Prosmatec 1300cc Civic VTI Manual 1800cc Civic VTI Manual SR (Oriel) Civic VTI Prosmatec 1800cc Civic VTI Prosmatec SR (Oriel)
Price Rs. 7,117,000 Rs. 6,617,000 Rs. 1,497,000 Rs. 1,638,000 Rs. 1,851,000 Rs. 2,043,000 Rs. 1,971,000 Rs. 2,121,000
TOYOTA COROLLA Model Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.6 A/T 1599cc Petrol XLI VVT-i 1299cc ECOTEC GLI VVT-i 1299cc ECOTEC 2.OD STD 2000cc 2.OD SALOON MT 2.OD SALOON SUNROOF ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT Cruisetronic ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Standard)
Price Price Rs. 1,537,500 Rs. 1,672,500 Rs. 1,827,500 Rs. 1,602,500 Rs. 1,732,500 Rs. 1,607,500 Rs. 1,809,000 Rs. 1,914,000 Rs. 1,902,500 Rs. 1,997,500 Rs. 1,997,500 Rs. 2,087,500 Rs. 1,960,000
Toyota Avanza (Up Specfication)
Rs. 2,160,000
Hilux Pickup 4x sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled)
Rs. 1,763,500
Hilux Pickup 4x4 D/C Model
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
DAIHATSU
Price TOYOTA VIGO Model
Rs. 2,878,500
LAND ROVER Model
Price
Vigo Champ M/T Rs. 3,178,500 DEFENDER (WHITE ,BLACK,STRONG BLUE & SILVER ) STATION WAGON 90 Rs. 3,560,000 Vigo Champ A/T Rs. 3,378,500 STATION WAGON 110 Rs. 3,960,000 Soft Top 90 Rs. 3,336,000 (WHITE ,BLACK,STRONG BLUE & SILVER )
Price updated July- 2012
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Monthly AutoMark Magazine
PRESS RELEASE
“Innovation in Mobility”
Hinopak Launches Hino Dutro 300 Series Trucks
Pakistan’s local Giant in the truck & bus manu facturin g industry, Hin opak Motors unveil ed a new chapter of Innovation in Mobility, with the launch of the New Dutro 300 Series at a local hotel in Karachi. Keeping in view the ever changing log i sti c r eq u ir em en ts i n l ig h t commercial vehicles segment, Hinopak has recently introduced the new Dutro 3 0 0 s er i e s , w h i c h p r om i s e s improvements on three fronts i.e. Comfort & utility, Design and Expanded variation. The cabin has been redesigned to improve the aerodynamics which has further improved the performance of the vehicle. Aesthetically, cabin has been given a complete new look which is not only built for driving comfort, but for fuel-efficiency, reliability and durability. Hino Dutro 300 series is available in three different variants to satisfy diverse
business needs. The keynote speakers at the event included Mr. Yoshio Shirai, President, Hino Motors Ltd., Japan, Mr. Takashi Hattori, MD, TTC, Japan, Mr. Masaharu Sato, Consul General of Japan, and Mr. Keiichiro Utsumi, MD & CEO, Hinopak Motors Limited. Also present on the occasion were Mr. Kunwar Idrees, Chairman Hinopak Motors Limited, Mr. Mori, DMD, Mr. Nishio, Executive Director Sales & Marketing, Mr. Tsubouchi, General
Manager, Hino Motors, Ltd., Japan, Mr. Muroya, DGM Hino Motors, Ltd., Japan, Country Head Sales & Business Development Mr. Ahmed Rauf and Head of Business Development Mr. Ahmer Siddiqui. Th e guests al so in cl u d ed p r om ine nt c or p or a t e stakeholders, Hinopak Dealers and Cu stomers, d istingu ish ed media personalities and celebrities. Th e spea kers in th eir a dd r ess emphasized Hino’s commitment to continuous improvement and team development. They also highlighted that Hino’s heritage of design excellence and superior engineering is reflected in every asp ec t of t hei r v eh ic le li neu p . The event also witnessed a thematic opening performance, a cameo by a leading female vocalist, followed by a glittering thematic fashion show that demonstrated hi-tech fusion with hitech fashion....
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By Haider Nawab from Toyota Southern Motors
Monthly AutoMark Magazine
OEM PLUS MINUS Modification is deviation or shift from pre set standards; it is a very funny as w ell as i nteresti ng su bjec t for discussions. Now , th e q ues tion a ri ses w h y modification is carried out? The answer is: 1.Due to constr aints limitations 2.Get more be nefit / advantage 3. Show off 4. Exhibit talents 5. Enhance self image 6. Enhance economy 7. Matching with needs 8.Increase Sa le / Resale valu e 9. Increase service life 10.Reduce initial cost / investment 11.Enhance profile 12.False ego satisfaction 13.Other reason Basically modification is not permitted by designer of any object (machines, building, Furniture, engineered objects etc) due to obvious reasons to save its designed capability / durability but its end user do it at his own risk & cost to m eet h i s r eq u ir em ent s( 1~13 ) CASE OF MAT CHIN G WITH NEEDS (7) In the hilly areas around 7000 feet (ASL) variety of transportation modes are available. In some difficult terrains you may see jeeps plying on shingles round the year. In fact original 4 cylinder jeep cannot meet the local requirements (load & road) therefore mechanics modify such vehicles and replace the original 4 cylinder engine with 6 cylinder diesel engine (TOYOTA COASTER) and drive train with4x4 close ratio gear box, transfer case and compatible rear axle assembly to match with operating conditions. SERIOUS CASE OF MODIFICATION (2) One oil tanker operator purchased a HINO (KR 120) Truck chassis (1978) and handed over to oil tank fabricator and advised him to make 1.5 times larger tank for his truck than the specified tank size for that chassis frame. The fabricator bisected both long members of the chassis frame and welded pieces of some old frame to increase the over all length of the frame to mount 1.5 times more larger oil tank without consultation from the manufacturer. By chance one Hino engineer visited (Mandi Bahudin) to see fabrication of oil tankers with the writer and saw the chassis in two halves (length wise) As
7 do it as per the needs.
Engine Either the engine assembly is replaced to meet their requirements or some changes are accomplished inside engine, air induction system, ECM, fuel supply and ignition system for economy / speed / Performance.
Drive train usual he started taking photographs and advis ed me to inform owner that warranty of his vehicle has become VOID in any case. The owner (as observed by me) was least concerned with the warranty but offered us hi - tea in respect of our visit. The owner’s purpose was related to item No. 2 to earn 50% more revenue per trip. Generally modifications are carried out in the following areas of automobiles. - Suspension - Steering Mechanism - Wheels - Engine - Drive train (Gear box, Transfer case, Rear axle) - Cooling System - Electrical system - Body - Braking System - Fuel System
Suspension Two types of benefits are kept in view ignoring change in wheel alignment specs, vehicles stability and loss of steering control which could lead to accident. (1) Increase or decrease vehicles ground clearance. (2) Suit to riding comfort that is Harsh to soft or soft to harsh.
S t e e r i ng
Mecha ni sm
(1) Steering wheel is replaced with a fanc y s po rty and small in diameter wheel. (2) Turning radius is changed (3) Manual type is converted to power type
Wheel This area of modification is mostl y adopted by amateur persons at S.No. 3, 4, 5, 11, & 12 who change wheels (tire or rim or both) without taking into account aspect ratio, Drag Co-efficient (CD) wheel rim offset, vehicl e stabil ity, drivability etc. Where as persons at S.No.
Transmissions are changed to obtain close ratio or wide ratio to suit operating conditions ignoring fuel consumption & Final Gear ratio (FGR)
Cooling system People of high temperature areas replace OEM radiator with a larger size without taking into consideration the standard operating temperature of the engine and other cooling system components design. In their opinion they are providing more space for w ate r circulation and increasing face area for more dissipation of h eat by air.
Electrical system Some needy owners using additional equipment and electrically operated accessories get this system up for their electrical requirements therefore the modification efforts remain continue for one reason or other.
Body Ve ry few ow ner s d ema nd any modification in body exterior except ad dit ion of S POILER, Mi rror s, Bumpers, Lights, and Foot Boards etc. In fact such modifications are less harmful to overall efficiency of the vehicle. Whereas many modifications are created in the interior specially additon of extra seats in light and Heavy commercial vehicles which causes increase in the PAY LOAD. This increase in payload badly affects the service life of various components as well as increases accident risks.
Braking System To enhance braking efficiency according to load / Road conditions either some components are changed or in some cases all components are replaced to get desired results. However modification may be called an evil in case of loss of efficiency and blessings in case of advantage. Final decision maker is vehicle user.....
www.automark.pk | July-2012 | Page 46
AUTOMARK MAGAZINE
Automotive Sector - PR
Rescue operation continues in Siachen
As military personnel and volunteers work round the clock on the extensive rescue operation in the Gayari Sector in Siachen, a total of 1.73 million cubic feet area has been shifted since the avalanche engulfed the battalion headquarters. According to an update issued by the Inter-Services Public Relations (ISPR), despite cold weather hindering the operation, frequently causing equipment to break down, all efforts were being made to extract the trapped soldiers and civilians. The platforms, constructed on all sites, have been consolidated, however excavation work is being focused on expansion of the sites. The groundpenetrating radar teams have identified two more points. Meanwhile, a Norwegian team has returned to Islamabad after providing critical technical information....
SKF Automotive to supply bearings for Volvo V401 SKF signed a seven-year deal with Volvo for supplying rear wheel bearing units and front suspension bearing un its for the newly launched V40 car Mumbai: Leading motor vehicle parts supplier SKF Automotive, said it signed a seven-year deal with the Volvo Car Corporation for the delivery of rear wheel bearing units and front suspension bearing units for its newly launched Volvo V40 car, reports PTI. The contract covers the full production volume for the model, a company release said. "We have customised rear wheel bearings with our recently developed high performance seal for the newly launched V40 model. We have customized rear wheel bearings with our recently developed highperformance seal for the newly-launched V40 model," SKF Automotive President Tryggve Sthen said. SKF has developed rear wheel hub bearing units specifically designed for the V40, the company said, adding that these, along with the MacPherson suspension bearing units are reliable technical solutions developed for tough requirements of the automotive market....
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AUTOMARK MAGAZINE
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MADE MADEIN INPAKISTAN PAKISTANMOTORCYCLES MOTORCYCLES PRICE LIST LIST RETAIL PRICE
70cc Motorcycle
Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.
Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Challenger BA-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70
Retail Price Rs. 42,500/= Rs. 42,500/= Rs. 42,000/= Rs. 42,000/= Rs. 41,000/= Rs. 42,500/= Rs. 49,000/= Rs. 41,500/= Rs. 45,000/= Rs. 42,500/= Rs. 46,000/= Rs. 47,000/= Rs. 42,500/= Rs. 67,500/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 44,800/= Rs. 41,500/=
Sr./ No. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.
Product & Model Name Pak Hero PH-70 Raftar KM-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Sitara GT-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70
Price updated July-2012 www.automark.pk | July-2012 | Page 48
Retail Price Rs. 42,500/= Rs. 42,000/= Rs. 47,700/= Rs. 46,200/= Rs. 42,500/= Rs. 42,000/= Rs. 42,500/= Rs. 42,000/= Rs. 40,000/= Rs. 45,50/= Rs. 43,000/= Rs. 44,500/= Rs. 42,400/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 45,000/= Rs. 42,500/= Rs. 40,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/=
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MADE IN PAKISTAN MOTORCYCLES PRICE LIST
125cc Motorcycle No. Brand & Model Name 1. Habib HB-125 2. Sitara ST-125 3. Super Star SS-125 4. Super Star SS-125 DLX 5. Hero RF-125 6. Honda CG-125 std Euro II 7. Honda CG-125 DX 8. Metro MR-125 9. Ravi Storm-125 Euro II
Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 59,000/= Rs. 75,000/= Rs. 96,500/= Rs. 116,500/= Rs. 77,000/= Rs. 96,000/=
DYL Motorcycles Sr./ No. 1. 2. 3.
Product & Model Name YD100 Yama4 Janoon 100cc
Retail Price Rs. 77,600/= Rs. 73,700/=
100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7.
Brand &Model Name Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100
Retail Price Rs. 55,500/= Rs. 55,000/= Rs. 80,500/= Rs. 55,000/= Rs. 55,000/= Rs. 55,000/= Rs. 60,000/=
Suzuki Motorcycle Sr./ No. 1. 2. 3. 4.
Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-150 Suzuki Shogan
www.automark.pk | July-2012 | Page 49
Retail Price Rs. 72,900/= Rs. 76,400/= Rs. 95,500/= Rs. 85,500/=
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Exclusive Review by Shahzad Tabish
Monthly AutoMark Magazine
Suzuki Used Car Gala A Win-Win Deal for the OEM & Refurbished Car Consumer Market We belong to a state where the concept of junkyard is nowhere to be seen. For things, words like “obsolete” & “out dated” hold absolutely no place. As a matter of fact our country itself is becoming a giant scrap yard for the first world nations. Whether it is a secondhand electronic gadget from the west or a reconditioned car from the east, an affordable price tag is all that is required to sell it to our consumer market. Talking specifically about cars, the trend began around ten years ago when the i mport du ties w ere redu ced on r ec ondi tio ned CBU au t omob ile assemblies. Many local aftermarket dealers found huge scope & invested to gain benefits. The local consumer market which was fed up by the limited variety on offer by local OEM’s greeted the reconditioned cars with open arms & hence a new business started to prosper locally. Local OEM’s & their authorized dealers felt the setback & protested against the decision but it was in vain, they had to come up with an idea of their own. It took quite a while for them to step in, but now the local mass production giant Suzuki has started a mega project of t h e i r ow n i n t h e af te r s al es refurbishment program of their own branded product. This year Pak-Suzuki Motor Company recently has organized “Used Car Gala” in expo centre Karachi twice, in the months of April & recently on July 1st. The aim of the event was to showcase & sell used Suzuki certified vehicles from authorized Suzuki dealerships across Pakistan. The earlier event showcased a total of 120 vehicles amongst which 80 were sold out, marking a 67% success rate. Automark magazine paid a visit to the recent event. It showcased a total of 148 vehicles including Mehran, Cultus, Alto, Bolan, Liana & Swift. Out of these vehicles a total of 99 vehicles were sold out, again marking a total success rate of over 67%. These used vehicles were acquired either in the exchange scheme offered by Suzuki or either having being sold by the customers to authorized dealers of Suzuki. The vehicles sold
although have a price tag associated but still hav e a bargain price ranging between 10,000-20,000 pkr, which is surely a good news for the consumer. Talking to Mr. Mohammad Danish, Deputy Manager Marketing from Suzuki about th e business obje ctives & achievements of Pak Suzuki motor company he explained that this concept had been brought in order to benefit the OEM in two ways, firstly promoting the sales of genuine Suzuki spare parts w h ic h w e re be in g u t i li ze d in reconditioning the vehicles & secondly promoting the NVS through exchange car program. Most of the vehicles on sale in the gala were exchanged by the customers in the Suzuki car exchange program which encouraged the well-off customers to exchange their secondhand vehicles from new ones at a bargain exchange price. Having talked about a brief overview about the business, we shall now consider the certification criterions along with the warranty provided for that c e r t i f i c a t i o n . S u z u ki a w a r d s certifications to vehicles having their health check thoroughly done by their authorized dealer, this health check i nc lud es Eng ine, Dr ive tra in & Suspension. The role of the dealer is to minimize the cost of repairs & prepare the vehicle to be ready for certification by the Suzuki officials. Rana Hamid a Suzuki official having certifying authority to the refurbished vehicles explained about the certification crite rio n that, Suzuki only offers certifications to cars that are less than 5 years old. There are two categories of issued certifications to the cars i.e. a 1 year cer tification & a 6 month certification. The current dependencies on a year’s certification are that the car either shouldn’t be older than 2 years or it shouldn’t have done a total of 45000 kms, failing either of these two obligations imposed by the parent industry the car will be handed over a 6 month certification. Coming to the dealer’s perspective Mr.Irfan Ahmed from Suzuki Mehran motors explained his ideas that the
e x ch an ge car program had benefitted all th e authorized dealers by improving the means of sales. Previously t h ey w er e on ly dealing with brand new Suzuki vehicles but this program now had opened a wider market of customers, at their doorstep who couldn’t afford a new vehicle. He said that the trend of swappin g used to new vehicl es is increasing day by day in the customer market. Another representative from another authorized dealership of Pak Suzuki mentioned the fact that although the certification is awarded to only 5 year old vehicles which are attained from the customer, but the dealers are also involved in acquiring even older vehicles which are then sold out independently by the dealers themselves. Many Suzuki dealers also purchase vehicles belonging to other brands as well & sell them out as an in div idual business agency following the path way of countless independent dealerships in order to attain pure business objectives. It is heard that recently Toyota Dealer’s have also started such an activity as well. Concluding it is worth mentioning that although we can clearly see a business enhancement oriented approach behind this concept of “Used Car Gala” from Pak Suzuki but still we cannot deny the fact that the involvement of the Parent industry makes this scheme reliable from the consumer’s perspective. We may find countless vehicles from small individu al dealers on ou r roads everyday; but can we trust them when it comes to the health of the vehicle? Suzuki Used Car gala provides an authenticity from the parent company & answers this burning question in the minds of used car consumers. So next time you think about purchasing a Suzuki branded used car from a road side dealer, I’d recommend that you should think again. Cheers!
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