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Editorial Bye-bye CNG

Lack for planning, and improper utilization of natural recourses has marred our country’s economy right from Editor : M. Hanif Memon the beginning, with closure of supply of CNG for three days in Punjab and 2 days in Sindh on the cards, it Sub Editor : Dr. Raja Irfan Sabir appears we are heading towards complete failure.

Asst. Editor : Sumaiya Rizvi Unscheduled load shedding& less power generation has Contribute Writers : Syed Mansoor Ali already pushed people to wall with no ray of hope from Dr. Raja Irfan Sabir any side to come out of this crisis. In such circumstances, Ali Hassan denying meager available resources will further have Mohammad Owais Khan crushing impact on masses.

Khurram Sohail Around a decade ago when CNG was introduced as fuel, Mohammad Danish massive campaigns were launched for shifting from Omar Rashidi Petrol/Diesel to CNG. Depletion of natural resources Saad SAleem and digging out alternate options for exhausted ones are Advisor : Imtiaz Rastgar the top most priority of think tanks in western countries.

CEO, Rastgar Group & Alas! We never had any such arrangement. Anyway! It’s CBI External Expert late but not too late! Those sitting at the top echelon Islamabad must think wise and devise some strategy to preserve Abdul Majeed Sheikh existing one and explore more & more for the coming President, generations.

AOTS-ABK Dosokai, All the stakeholders expressed great concern and rejected Karachi Regional Center & the recent news by ECC to increase in tariff and Consultant (MME), curtailment of gas for CNG stations for 3-days in Punjab NED University - Karachi and 2-days in Sindh. The decision is one-sided and a fatal blow to cripple CNG sector. Huge investment was Syed Mansoor Ali made in the CNG sector in the light of Petroleum Policy Business Manager 1994, which assures that "The existing price differential Case NewHolland between industrial gas tariff and motor gasoline will be Pakistan maintained as an incentive for CNG USE". Upon this assurance of 50:50 differential ratio the investment was J. Pereira made and 3200 CNG stations were established across the General Manager country with total investment of Rs.185 billion, while Product Support Division Al-Haj FAW Motors (Pvt) Ltd. 3 million CNG vehicles ply on the roads countrywide where public has invested Rs.115 billion in CNG kits.

Karachi Approximately 6 percent CNG is used in the CNG sector whereas the revenue contribution is Rs.25 billion per Engr. IHT Farooqui annum.

General Manager Plant Karakoram Motors (Pvt) Ltd., The usage of CNG has substitution of petrol of 3.44 Karachi billion litres yearly, which leads to saving of foreign exchange worth $ 2.373 billion per annum. The parity between petrol and gas must be maintained, as pledged Circulation Manager : Abdul Khaliq by the government in the beginning, which is 50 percent.

Graphic Designer : Mustafa Hanif Any reduction/revision in gas sales price is not acceptable in any manner.

Experts have already warned that the harsh decision Postal Address would severely affect the economy and investment in Active Communications the CNG sector and the situation arising out of gas D-68, Block-9, Clifton,Karachi curtailment will not only affect the CNG users but will Visit us: www.automark.pk also lead to layoff of human resource. Currently over E-mail: magazine@automark.pk 500,000 people are directly and indirectly employed in automarkpk@gmail.com CNG sector.

Tel/Fax : 021-32218526 Mobile: 0321-2203815 Masses are not responsible for declined production of gas, insufficient exploration and ignoring alternative sources of energy such as Iranian gas and Thar coal are.

July 2011 Vol 4, Issue 07

AUTOMARK MAGAZINE

CONTENTS The Mo nthly Magazine for Pakistan Automotive Sector

Online available at our website

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July - 2011 edition Your trust is our success

Chinese bike makers seek Shahbaz Sharif’s help !

Exclusive Article on Motorcycle Sector by Ali Hassan

09-11

Chinese-Cum-Pakistani Motorcycle assemblers refuse to cut price

12

Stakeholders upset over plan to bring CNG rates at par with petrol, CNG Exclusive Article by M. Owais Khan

13-14

Impact of sales tax on Mechanization in Pakistan Exclusive Article by Syed Mansoor Ali

15-16

LORD Institute of Technology Technical Education - An Introduction

by M. Yakoob Gaziani

17-18

Street Racing in Pakistan by Muhammad Danish

33

Four-wheel drive (4WD) Exclusive Article by Omar Rashdi

34

Computer Aided Designing in Automotive sector

by Saad Saleem from NED University

35

High Speed Super Car Exclusive Article by Khurram Sohail from IMC

39

Chairman SDC Mian Akram Farid visited Islamabad Women Chamber of Commerce & Industry

41

China and the Challenge of Environmental Degradation 42-43 Exclusive article by Raja Irfan Sabir from China

visit: www.automark.pk

Shell ECO Marathon,the Past & the Present Exclusive Review by Shahzad Tabish from NED

44-45

D.S. Motors delevered 200 Unique motorcycles Ceremony Report

48-49

Motorcycles market prices M/s. Fateh Group participate on Russian Day in Karachi

50-51 52

The only ONLINE automotive magazine in Pakistan

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by Alli Hassan

Automotive Sector - Exclusive Article

Chinese Chinese bike bike makers makers seek seek Shahbaz Shahbaz Sharif Sharif ’s ’s help help !

Negative attitude of DG Excise Punjab irks APMA

Since the Chinese bike makers have m a d e d eep e r i nr oa d s va r i ou s government’s departments (either under some pressure from leading bike makers or a routine bureaucratic practice) have been creating bo ttlenecks in their smooth functioning.

When the assemblers do not have any issues with the federal government’s d e pa rt me nts, th e pr ovinci al government’ s departments become active in creating hardships.

Either in any circumstances, the Chinese bike markets have remained engaged in resolving scores of issues with the federal a n d p r o v i n c i a l g o v e r n m e nt s ’ departments.

Perhaps some bl ack sheep in these departments feel that it is the right time to make extra buck when the two wh eeler industry is flourishing is

Mian Mujtaba Shuja-ur-Rehman Minister E & T Punjab

Shamail Ahmad Khawaja Secretary E & T Punjab

showing a positive growth in the country thanks to the improved cash flow in the rural economy on account of strong support prices of w heat, cotton, sugarcane and rice crops.

In case of another good cash crops coupled with further increase in support prices this season, the rural buying will certainly remain brisk thus giving further boost to the already rising sales.

A leading bike maker feels that poor transportation in big cities followed by improving farm to market access to

M. Anwar Rashid Director General E & T Punjab

Masood-ul-Haq Additional Secretary E & T Punjab

through an upgraded road network in rural areas are also attributed to the rising growth in the two wheeler segment.

The peoples’ government after coming into power has never tried to check the bureaucratic hurdles knowing that it could stifle growth in the two wheeler industry which despite uncertain economic and political turmoil and r ising p ric es of motor cycles is p erformin g exceptionally well as compared to other sectors. This industry has also created new job opportunities both in formal and informal sector besides bringing in more investments and vendor development.

Association of Pakistan Motorcycle Assemblers (APMA), a group of Chinese bike makers, is now facing problems from the Punjab government. The

Muhammad Altaf Baluch Imran Aslam Deputy Secretary (Admn) Deputy Secretary (Tech.)

E & T Punjab E & T Punjab

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Automotive Sector - Exclusive Article

APMA said that instead of providing any relief to the two wheeler industry for bringing investment in the country and creating new job avenues and new steps should have been taken to lure new investors – unfavorable conditions especially in Punjab is being created by the DG Excise and Taxation without any cogent reasons.

Association has sought intervention of Punjab Chief Minister Mian Shahbaz Sharif to check the negative attitude of Director General Excise and Taxation for adopting delaying tactics in issuance of registration certificate for registration of bikes in the big province.

APMA said that instead of providing any relief to the two wheeler industry for bringing investment in the country and creating new job avenues and new steps should have been taken to lure new investors – unfavorable conditions especially in Punjab is being created by the DG Excise and Taxation without any cogent reasons.

APMA said that due to negative attitude of DG E&T the existing investors are worried and considering not to further expand their business.

The Association, in a letter to Mr Shahbaz Sharif, said that the assemblers roll out two wheelers in the market after strict monitoring by the Engineering Development Board (EDB) and Pakistan Standard Quality Control Authority (PSQCA) and when assemblers require registration certificate from Excise Department the DG E&T Punjab deliberately causes problems for assemblers by holding back th e certificate for months.

In case the assemblers request the DG for urgent release of certificate then the DG becomes intolerable and threatens for dire consequences. Even several requests have been made to Secretary Excise but in vain.

The bike makers have received a blow this week due to ban on pillion riding in Karachi owing to deteriorating law and order situation.

A bike maker said pillion riding has always led to decline in sales of bikes.

Karachi has around one million bikes and estimated 2.5-3.0 million people used to travel on two wheelers daily.

After ban on pillion riding, only one million people could travel on one bike.

It has been noticed that two to three friends working either on same offices or nearby offices/workplace used to share Rs 100 petrol a day to reach their

respective jobs.

The bike maker said that the official sale data has not arrived yet but sales in 2010-2011 (including Japanese made bikes) has definitely crossed 1.5 million as compared to 1.3899 million in the last fiscal year.

The costly Honda CDI 70cc at Rs 65,900 and its other costly models are still the market leader with sales of 517,163 units in July-May 2010-2011 as compared to 438,069 units in the corresponding period of last financial year.

The Engineering Development Board (EDB) has again reminded bike makers on June 27, 2011 that it is obligatory for the imp orter-cum-assem blers or manufacturer of vehicles, operating under the regulatory regime of SRO 656(I) 2006 to maintain records of inputs used for the assembly of vehicles

The Association, in a letter to Mr. Shahbaz Sharif, said that the assemblers roll out two wheelers in the market after strict monitoring by the Engineering Development Board (EDB) and Pakistan Standard Quality Control Authority (PSQCA) and when assemblers require registration certificate from Excise Department the DG E&T Punjab deliberately causes problems for assemblers by holding back the certificate for months. www.automark.pk | July-2011

10

during a year and submit the same to EDB on the proforma as prescribed under Annex-B of the said SRO. Non compliances to the condition of SRO necessitates to conduction of audit in ad dit ion to susp ensi on or non r eva li d at i on of m an uf ac t ur i ng ce rtificates and list of importabl e components.

The EDB has advised the manufacturers to provide comp lete in formation pertaining to input records as per the re quireme nts of the SRO for each product/vehicle separately latest by Augu st 15, 2011 on the formats prescribed for imported components, locally manufactured in puts from vendors and in-house manufactured components (hard and soft copy) under Annex B of SRO 656 al ong with following additional information/documents.

Statem ent (har d and soft copy) contai ning month w ise and product/model wise unit sold, sale price, total sales value, input tax, output tax, sales tax paid along with the hard copies of sales tax re turns and payment challans.

List of vendors with complete addresses, phone, fax, email (hard and soft copy).

List of importable components along with qua ntities pu rch ased from commercial importer/trader during the year 2010-2011 if any on separate sheet.

The revalidation of the manufacturing certificates and lists of importable components to be imported during 20112012 shall be subject to the provision of complete input records as per condition of SRO. The Engineering Development Board (EDB) has also initiated an inquiry to check the production data of locally produced bikes and rickshaws as it believes that the assemblers are not providing correct data.

The EDB has asked the excise and taxation departments of four provinces to provide details about the company’s name and its brand concerning the two and three wheelers registered during the year 2009-10 and 2010-11 (up to

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Automotive Sector - Exclusive Article March 31, 2011).

It is strange why the EDB has initiated an enquiry against two and three wheelers makers when various complaints regarding misuse of EDB facilities were already on record with the FIA and Customs Department against car assemblers and heavy vehicle makers.

The EDB is of the view that the assemblers produce more than one bike and rickshaw with same engine and chassis number and they sell these motorcycles and 3-wheelers in four different provinces and pay the general sales tax on one bike and rickshaw.

However, the provincial excise and taxation departments have not paid any heed to the request and the board had sent them a reminder.

The EDB feels that there should be centralization of registration of vehicles so that real production data of two and three wheelers could be determined.

The EDB, an apex body of the ministry of industries, in a letter had informed all four provincial excise departments that certain assemblers of 2-3 wheelers were procuring components from illegal s o urce s an d mis re po rt the ir production/sales.

The EDB said that it had been noticed that certain unscrupulous assemblers had been found involved in getting their products registered with provincial authorities against inval id/bogus manufacturing certificates, purportedly issued by the EDB. This malpractice is not only affecting the genu in e assemblers bu t also defeating the regulatory regime and depriving national exchequer of its legitimate revenue.

In order to put an end to the illegal assembly of bikes and consequent loss to the national kitty, the EDB has established a database to maintain and reconcile the data of production and sales of bikes to ensure proper payments of taxes and duties.

The assemblers are allocated a quota of completely knocked down (CKD) kits for imports under concessionary regime for the assembly of vehicles during a year based on the production of previous year.

At the end of each fiscal year, the assemblers are required to submit the record of inputs used for the assembly of bikes and rickshaws during the preceding year......

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Automotive Sector - Update

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Chinese-Cum-Pakistani Motorcycle assemblers refuse to cut price, blame high valuation rates

Local motorcycle assemblers have also decided to reduce prices, a few days after local car manufacturers cut prices to pass on the benefit of tax ation changes introduced by the government.

Pak Suzuki Motor Company reduced the prices of various variants of its Suzuki Motorcycle with effect from July 1.

The reduction in the prices follows cut in General Sales Tax (GST) by one percent and abolition of Special Excise Duty (SED), which was collected at the rate of 2.5 percent.

C h i n es e o ri g in m o to r c yc l e manufacturers have not reduced the prices, however. Suzuki Motorcycle has effected pr ice cuts of Rs1,900 to

Rs2,100.

Suzuki Motorcycle Shogun Deleted price has fallen by Rs1,900 and the new retail price is Rs74,500. Suzuki Shogun motorcycle price has been cut by Rs1,900 and the new price is Rs79,500.

Suzuki Sprinter is now pr iced at Rs71,000 after a drop of Rs1,900.

Sprinter ECO is available at Rs67,500 after price decrease of Rs1,900. GS125 price has been reduced by Rs2,100 and the new price is Rs82,500. GS150 is available at Rs88,500 after a reduction of Rs2,100.

Muhammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle Assemblers (APMA), said that Suzuki has reduced the prices of all its models and variants and the other two brands, Honda and Yamaha, are also in line to a nnou nce new re duced p ric es.

He said that though the government has announced reduction in General Sales Tax (GST) and removal of the Special Excise Duty (SED), the Pakistani assemblers affiliated with Chinese companies have not revised prices of their products due to the latest ruling of the Determination of Customs Value of Motorcycle Parts and Components of Chinese Origin, under section 25A of the Custom Act, 1969.

The new ruling has made the Chinese parts costlier.

This higher valuation ruling has been issued by Federal Board of Revenue (FBR) on motorcycle parts imported from China for the assembly of low cost Chinese-cum-Pakistani motorcycles.

The cost has increased by up to Rs1,700 to Rs2,000. So the local assemblers are not in a position to reduce prices, Shaikh said.

He said that assemblers are considering inc reasing the prices of Chi nese motorbikes, but are hesitant to do this now because of the depressed market conditions.

The prices of Chinese bikes will be increas ed gr adually in the co ming months, he said. Assemblers are not in a position to absorb the increased costs and the new ruling of Customs has aggravated the situation. They have no other choice except pas sing the increase d cost pressure to the consumers...

Local assemblers hit by rising input costs Industry sources have said that rising raw material prices, compounded by a continuous depreciation of the Pakistan rupee (PKR), has hit the country's automotive industry. According to a report carried by daily news paper, the local assemblers have had to bear the brunt of the high input cost.

Local assemblers in Pakistan import critical engine an d transmission components and other parts from Japan.

Consequently, the decline of the PKR

against the yen and US dollar has hit local OEMs hard, causin g severe financial challenges.

According to these sources, the US dollar has risen by 5.19% against the PKR between June 2009 and May 2011.

During the same period, the rupee has depreciated against the yen by 25.2%.

This has significantly increased the cost of importing parts.

With regard to other input costs, citing the sources, said natural gas rates have

www.automark.pk | July-2011

12

risen by 13% in the last two years; electricity by 34%; diesel by 34% and gasoline by 20%. The cost of steel has, over the last two years, shot up 27%, from US$586 per tonne to US$746. The c os t o f ot h er m a t er i a l s l i ke po lypropylene (+67%), al umin ium (+35%), copper (+24%) and lead (+45%) too have increased over this period, they said.....

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Energy Sector - Exclusive Article

by Mohammad Owais Khan

Consumers want low CNG price

Stakeholders upset over plan to bring CNG rates at par with petrol, CNG Loss of workers’ jobs, billions of rupees investment at stake Perhaps the Peoples’ government excel with other successive governments in terms of its failures to curb highest ever food inflation, deteriorating law and order, target killing, shortage and load shedding of gas and power, insecurity, bomb blasts, kidnapping for ransom, extortion etc.

There are hardly any consumer friendly steps that have ever been taken in the last three and half years. No serious steps have ever been taken to resolve the issues hurting the industry and consumers and as a result the burning issues continue to become more alarming for the people.

Consumers now brace up for another hot issue of load shedding in compressed natural gas (CNG) and it is likely to become more nerve wrecking for vehicle owners due to its upcoming high prices and also for the stakeholders who are seeing their billions of rupees investment at stake.

Industry people say that the government has been trying hard to bring the CNG rates at par with the petrol and diesel aimed at either destroying this sector to make a ground for increasing import of liquefied natural gas (LNG) or pocketing more revenue from the thriving business of CNG by putting up more pressure on the existing stakeholders.

The Ministry of Petroleum is determined to bridge the widening demand and supply gap on a fast track basis through LNG import.

The government had exempted CNG buses from the GST in 2008 and in budget 2011-2012 the GST has again been imposed thus makin g heavy vehicles unaffordable.

It is also amazing to see ban on new CNG licences but at the same time

issuance of new gas connections by Sui Northern Gas Pipelines Limited for CNG statio ns are commonly seen. The government should look into this matter.

Chairman CNG Dealers Association Abdul Sami Khan says that now the menace of total disaster of CNG industry is hanging over heads as very influential industrialist and importers have started campaign to bring CNG price at par with petroleum pro ducts to bring CNG industry to a halt and they may get full benefit of gas use for their own use only.

In case it happens then the billions of rupee investment made by stakeholders and even general public in their vehicles will go in drain.

The dire need of CNG can be gauged from the fact that many p ublic transports (especially mini buses and coaches) have made changes in their fuel transmission system and started running their vehicles on CNG to make huge saving. Almost all the four stroke three wheeler rickshaws are also running on cheap fuel.

However, the provincial authorities have yet to wake up as passengers are still paying high tariff as per increase in diesel prices to reach their desired places in Mazda Wagons.

www.automark.pk | July-2011 13

The government should announce a separate fair for public traveling in CNG wagons.

Instead of pondering over the issue and making a joint strategy to cope with the government’s aim to destroy the CNG sector, CNG bodies and associations operating in various cities sometimes come at logge rheads in taking up mileage in the matter of gas load shedding to deal with the higher ups of petroleum ministry.

This lack of unity proves highly suitable for the government who is working on the ph rase (div ide and rule) an d u ltimately consumers will suffer.

A s a r esu lt, Al l Pakista n CN G A ssociation, operated by Ghayas Paracha and Junaid Ismail Makda, CNG Dealers Association being run by Abdul Sami Khan and CNG Station Owners Association headed by Malik Khuda Bux on many occasions try to resolve the CNG issues on their own and sometimes differ on policy matters with each other.

For example, the All Pakistan CNG Association (APCNGA) has created a stir in the market by recently claiming that the proposed decision of around 70 per cent hike in CNG price has been revoked by the Ministry of Petroleum and Natural Resources.

Chairman APCNGA and Vice President Karachi Chamber of Commerce and Industry (KCCI), Junaid Esmail Makda said the Association’s delegation had met Petroleum and Natural Resources Minister Dr Asim Hussain where another decision was made to keep price difference between petrol and CNG at the parity of 60:40.

Junaid said it was further resolved that the gas load shedding in Northern Region will be held for two days and partial shutdown will be observed on

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Energy Sector - Exclusive Article Here Malik Khuda Baksh and Abdus Sami Khan, in a joint hurriedly called press conference, said that some CNG station owners had already obtained stay from Sindh High Court (SHC) against the closure of CNG stations.

They said that the government cannot increase CNG prices as it had already ensured under a pricing formula to maintain a 50 percent difference between the prices of petrol and CNG agreed between CNG associations and Government of Pakistan. the third day while in Southern Region load shedding will be observed for one day followed by partial shutdown on the second day.

At same time CNG Station Owners Association (CSOA) and CNG Dealers Association (CDA) had threatened to move to the Cou rt against the government decision for weekly closure of CNG stations and increase CNG prices.

Here Malik Khuda Baksh and Abdus Sami Khan, in a joint hurriedly called press conference, said that some CNG station owners had already obtained stay from Sindh High Court (SHC) against the closure of CNG stations.

They said that the government cannot increase CNG prices as it had already ensured under a pricing formula to maintain a 5 0 percent dif ference between the prices of petrol and CNG agreed between CNG associations and Government of Pakistan.

Simil arly, the government cannot su spend su pp ly of gas t o CNG filling stations in Sindh as the SHC had barred Sui Southern Gas Company from doing so.

The environment friendly CNG fuel was substituting petrol import of $4.5 billion annually for the economy, by using only seven per cent of the total gas consumption in the country.

The closure of CNG stations will virtually kill CNG industry as 2.5 million vehicles have been converted to CNG in the country.

They pointed out that Rs 235 billion have been invested in CNG sector which is directl y or indirectly providing employment to 500,000 people in the country.

Lamenting vested interests including oil marketing companies (OMCs), they said that they were lobbying against CNG sector. "But we will fight against these vested interests till our success", they vowed.

Gas shortage was caused by gas utilities and due to their mismanagement. They were also not going for large abandoned gas fields and also those under litigation, they noted.

They allege d the go vernment had

granted licenses to 350 CNG filling stations last year despite a ban on new licenses.

They said they could not understand as to why the government is trying to discourage the CNG sector when the country is already importing petrol at higher rates. “How the government would manage the petrol availability when people will shift towards it after removing the price difference,” they added.

While the APCNGA was threatening to go on strike, the SSGC management c a lle d u p on th e lea d in g CNG associations of Pakistan on July 6, 2011.

It had been agreed that due to the Annual-Turn-Around (ATA) of OMV Pakistan-operated Kadanwari Gas Field, CNG stations will be closed from 9.00 am on Monday July 11, 2011 til l midnight of Tuesday July 12, 2011.

SSGC was represented at the meeting, held at its Head office, by SSGC’s Zuhair Siddiqui, DMD (Corporate Services), Salim A. Mughal, SGM (DistributionS ou th) and Sh oaib Warsi, SG M (Distribution-North). Head of leading CNG Associations of the country including Abdul Sami Khan, Chairman, CNG Dealers Association, Junaid Esmail Makda, Central Chairman, All-Pakistan CNG Association and Malik Khuda Baksh, Chairman of CNG Station Owners Association participated in the meeting called by SSGC to take the stakeholders into confidence over the 2-day closure.

Now the APCNGA chairman Ghayas Paracha on July 8 had announced to start country wide protests from July 13 after the arrival of Petroleum Minister Dr Asim Hussain on July 10.

The protest campaign will be launched from July 13 from Punjab which also included rallies.

The government should stop gas load shedding and provide CNG at 40 per cent less price than petro l to the consumers, he said.

He termed the gas load shedding in summer as unjustified and it aimed at creatin g pro blems for consumers besides causing huge losses to the people as well as stakeholders.

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14

There is a dire need that all the industry people should unite under a one platform to save CNG industry from government’s nefa rious designs otherwise both industry as well as c onsum er s w il l suffer hea vil y.

SSGC has already received tremendous interest from local and international play ers in response to its recent invitation for the import of Liquefied Natural Gas (LNG) under Third Party Access, having received 17 ‘Expressions of Interest’ (EoIs) for the allocation of capacity under its transmission system from leading companies interested in developing their own LNG Floating Storage and Re-gasification Unit (FSRU), arrange their own supply of LNG and having their own buyers of re-gasified LNG (RLNG).

The 17 Companies which submitted their EoIs are Shell Gas and Power Developments B.V, 4Gas Asia, Granada Group of Companies, NatGas, BW Fleet Manageme nt AS, MTMK N Group, Global Energy Infrastructure Limited, Pakistan Gasport Limited, Kot Addu Power Company Limited, PK Energy, Vitol, Eng ro Corp Limited , SA F International, LNG Energy Limited, Iran Liquefied Gas Compan y, Trading Enterprises (Pvt.) Limited and Xpro Energy Limited.

The primary objective behind inviting the EoIs through a print advertisement published on May 24, 2011, was to ascertain th e number of parties interested in setting up LNG terminals and their state of preparedness so that SSGC can accordingly plan to modify and augment its system to help provide entry and exit points to the LNG terminal operators as well as the intended volume they can transport through the Company’s system. The advertisement was the first logical step in encouraging interested parties to expedite setting up of LNG Terminals so that the importe d gas is made available at the earliest in order to meet the growing shortage of gas to Pakistan’s i ndu st r ia l a nd c om m er c i a l customers……

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Exclusive Article on Agriculture Sector

by Syed Mansoor Ali

Impact of sales tax on Mechanization in Pakistan The recent imposition of sales tax (16%) will slow down the wheel of agricultural progress. Subsidy schemes were taking the industry to the next level as manufacturers were starting to feel inclined to produce both new and improved quality equipment. to many other sectors of economy.

Finally this will add to the troubles of th e gover nment a s th e over all contribution of agricultural sector in GDP growth may decline by 2-3 percent.

Agriculture is the main source of economic growth in Pakistan. Although it has not reached to its full potential an d – whether it is a resu lt of inc onsi st ent p ol ic ie s or ot h er weaknesses – it continues to make progress over the years. The government of Pakistan has always kept a consistent policy of supporting agriculture to attract foreign and local investments and to boost per acre yield. Tractors and agricultural machinery were permitted as imports without custom duties and sales taxes as long as they are not manufactured locally. The main reason to provide subsidy in agriculture was to support small and medium farmers who feed their families and earn their income from farming in addition to feeding the community. The subsidy on various agricultural inputs and machinery with providing them access to credit can ensu re r eal developm ent of the agriculture sector. In the current budget, the government of Pakistan has imposed 16% sales tax on agricultural machinery and inputs while subsidies on agriculture are withdrawn. This decision will cause an increase in the production cost and decrease the yield due to reduction in the application of prescribed machinery and quantity of inputs. These factors will lead directly to high selling price of agricultural commodities and indirectly

The primary focus of this article is to discuss the impact of sal es tax on implement manufacturing industry. A cursory assessment will be made on the tractor industry which has a direct bearing on implement sales.

The tractor Industry (TIV) has risen significantly in Pakistan from 40,709 tractors sold in the year 2004 to 70397 in 2009 representing an increase of 71% in six years. This was due to various subsidy schemes, improved prices for crops and easy credit facilities. The recent sales tax has brought the tractor sale down by 30%.

The implements industry, although made relative improvements over the years, has not come out of a workshop environment than a full fledged industry.

However, in the past the government initiated several subsidy schemes under different titles such as food security, multi-crop, raised bed equipment, drip irrigation, wheat straw chopper, which encouraged the man ufacturers to produce specialized implements. These subsidy schemes have changed the prices exogenously to alter demand and supply figures.

The agricultural implement manufacturing sector has developed as an outcome of such strategic decisions to boost agricultural mechanization. As a result, despite challenges such as the disastrous 2010 flood, there was a bumper wheat production this year. In a nutshell, government subsidy schemes for tractors and implements, zero tariff policy, no sales tax, hard work of the nation’s peasants, and with the www.automark.pk | July-2011 15

help of God, the agricultural sector has come a long ways.

The recent imposition of sales tax on agriculture does not make sense.

Subsidy schemes and Syed Mansoor Ali sales tax waiver has encouraged the growth of agricultural machinery industry and, as a result its contribution towards increased yields and cropping intensity has become visible. This has enhanced agricultural mechanization which is the prime goal of our country.

How come a government can push entire cou ntry towa rds d estr uction by discrediting its own good work which was of vital national importance?

Tractor industry might come recover from the impact of the raised sales tax, which has caused a rise in the prices by 100,000 Rs (average), compared to implement manufacturing industry due to its strong organizational set up comprising of experienced and educated marketing/sales teams with highly structured dealers network all over the country. It is difficult to make an assessment of its impact on the total industry volume. The decline in tractor sale will affect the agriculture sector in total as tractor industry holds the po tential to impro ve/increase the purchasing power of the farmer, which is rapidly diminishing in light of inflation that is apparent in all sectors of life. The miss-manageme nt of the current bumper wheat production was another blow on the farmers. Increased input prices, poor performance of wheat sale points (PASCO and Food department), ban on export of wheat brought the market pric e of wh eat d ow n to 80 0R s/ 4 0k g c om p ar ed t o th e government rate of 950Rs/40kg. The banks did not provide loan to these sale points to purchase wheat from the

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Exclusive Article on Agriculture Sector

The subsidy can be withdrawn or reduced once the industry reached to a point to take care of itself and can find easily a place for their products in the local and international market. farmers that has compelled them to restrict their wheat purchase to 8 bags (2.5 maund)/ acre instead of 20 bags/acre. The average yield of wheat was 45 maunds (1800kg) this year.

Implement manufacturers are not only d isor g ani zed bu t h ave l im it ed production capacity and capability. Their equipments/implements are crafted individually from start to finish unlike

mass production (tractor industry) that allows a manufacturer to produce more per worker-hour, and to lower the labor cost of the end product. Their machines are outdated and obsolete that affects its production capability. For these reasons, th eir sales are larg ely dependent on advance orders that only come whenever there is a good enough crop for the farme rs resulting in sufficient money for investments or even necessary purchases. They have limited resources to build up inventory and keep their machines in stock. There are numerous other problems which are hindering the development and growth of this industry, most prominently lack of education and awareness among the farmers to understand the importance of using the proper equipment for the job. This is one of the reasons that tractor sales have gone up but the right use of tractors still remains a matter of concern. In the past two years the government has not only introduced subsidy schemes on implements but implement specific subsidy schemes, such as the “Straw Wheat Chopper� subsidy scheme, were launched to encourage farmers to go for job-specific implements. This was an innovative work of the government. If this would have been continued for some time with the same spirit and financial concessions for the farmers, the outlook of Pakistan mechanization will improve greatly.

or sales outlets and then final sale to end user. This may not be true but such gray areas provide an advantage to marketers to exploit the situation in their favor by ripping the end users.

Naturally this will cause substantial increase in the existing prices. Therefore, price increase along with withdrawal of subsides will force production units, particularly small and medium, to shut down and large units would have to go to right sizing or downsizing. This will cause huge un-employment affecting the bread and butter of around 400,000 families.

The recent imposition of sales tax (16%) will slow down the wheel of agricultural progress. Subsidy schemes were taking th e industry to the next level as manufacturers were starting to feel inclined to produce both new and improved quality equipment. Th e workshop designs and qual ity was monitored by the government and farmers were enco uraged by th e governm ent to make necessary purchases. This was bringing a healthy change in agricultural mechanization as the farmers were getting convinced to use job-specific implements.

In a conver sat ion wi th tenu red manufacturers, it was revealed that the real price impact on the end users will not be a straight increase of 16% but it will actually be around 40 to 50% due to various other factors. The sales tax would be paid at every step like when manu factu rer will purch ase raw material, sale its machinery to retailer

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In the absence of current authentic data on the number of implement manufacturers in the country it is difficult to gauge the real impact of sales tax.

Following assumptions have been made in consultation with the manufacturers to get a feel of incoming crisis.

The decline in the sale of implements will have a huge impact on agricultural production. This will create a demand supply gap leaving no choice for the government but to import the shortfall by spending huge amounts of money from the government exchequer. It will jeopardize the economic condition of the country and would be detrimental tow ards develop mental projects.

It is quite pre-mature to make a full estimate of the catastrophic effect of the sales tax on agriculture. There is a strong hope that government will reverse its decision and let the agricultural industry grow to make Pakistan p rosper.

It is to be remembered that there is a huge gap in the status of tractor and implement industry.

In true sense this gap should be minimized to attain true benefits of the tractors. This is only possible if the government should chalk out a strategy to help implement industry to come out of its blacksmith/workshop environment and become an industry by definition. The subsidy schemes should be streamlined and structured in a way that slowly the players in this industry should attain manufacturing

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Technical Education - An Introduction

LORD Institute of Technology VISION

KEY FEATURES OF LIT

Fast growth of industrialization in the country needs skilled and competitive work force. LORD Institu te of Tec h nology (LI T) is pr ep ar ing individuals to be technically determined contributing to social and economical development of the country.

MISSION LORD Institute of Technology (LIT) is committed to providing demand driven training, equippin g individuals to international stand ards thr ou gh innovative and inventive training along with motivation and professionalism.

MOTTO To standardize and integrate dynamic Technical Education and Vocational Training (TEVT)

An Introduction LORD Institute of Technology (LIT) is establis hed to impart Vocational Training in various disciplines. The fasttrack trainin g courses offered are tailored to help unskilled people to learn skills to exp and t h ei r ear ning opportunities with respect and value.

This will also lead to develop trained manpower to cater the needs of local industry and the ever increasing demand of h ig h lev el co mp eten cy a nd professionalism in international jobmarket.

The basic aim of the institute is to provide a first-rate technical training to the indiv iduals (who even have a minimum level of education) in different

trades which may also lead them to achieve an abroad job.

The institute is equipped with all necessary apparatus, machinery and training aid. Workshops and class rooms are outfitted with the state of the art tools and devices. The Instructors / Trainers are experienced qualified and dedicated. A very Friendly environment is developed in the institute which maximizes the learning.

LIT is going to create a joint venture with the industry according to our trades for On Job Trainings (OJT), we will facilitate our students by providing transportation (to & fro) from Institute and industry, schedule of training session with the industry and OJT certification for students. Such venture will facilitate the LIT students to get u pd a te w i th th e t ech n olog ic al development, Training and as well as fulfill the market deman d of skill workforce.

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• K no wl e dg e : P r ovi si on a nd promotion of demand driven technical knowledge with practical • Professionalism: Develop a definite level of professionalism in the students with an art to cope with the challenging situations in the career.

• Skill: Developing a delicate skill to make students explore their potentials in th e trad es of their interest .

• Student Retentio n: Student retention indicates the effectiveness of Institute we have d evelop ed an infrastructure through trade counseling and other activities that reveal us the students need.

• Quality of Faculty: Experienced qualified and dedicated instructors and trainers equipped with the tools to benefit their students as much as possible.

• Empl oyment: Employment will reflect upon the Institute’s satisfaction of fulfilling its long term objective of providing jobs to its trained students.

• Liaison: To establish Data Banks for skilled workers and technicians to provide an easy choice for am employer

OUR COMMITMENT The quality of technical program is maintained and so ensures that the student gets val ue for exce llence .

To build up a dynamic technical and vocational training system to ensure mobility.

Regular upgrade the teaching and equipment to the required standards.

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Technical Education - An Introduction

An Icon for your Technical Growth www.lordinstituteoftech.com

Discover A New Career FACILITIES State of the art Equipment and devices, multimedia, Best environment for maximum learning, modern Training methodology, Standby-Po wer, Air cond itioned class r ooms (w here applicable), Trade-Counseling, Jobconsultancy.

Offered Courses Co mputer So ftware Co ur ses Office Management o Microsoft Office o MS Windows o Data management o Internet and Email o Introduction to Networking o Introduction to Graphics/Image editing o Inpage Graphic Designing o Adobe Illustrator o Adobe Photoshop CS3 part 1 o Adobe Photoshop CS3 part 2 o Macromedia freehand 10 o Inpage 2009 Animation o Macromedia Flash o Adobe After Effects CS3 o Particle illusion o Anime Studio Pro 5 o ProShow Producer 3.2 3D o 3D Magic o Autodesk 3D max 2009

o Xara 3D o Poser 7

o Mobile Phone repairing technician o Fiber Optics Technology

Web designing o HTML / DHTML o Dreamweaver CS3 o CSS o Macromedia Flash o Web easy 8 o Adobe Photoshop CS3 o Java Scripting, Joomla, Work Press

Telecom Technician Soft Skill Courses o Project Management o HR Management o Security management o Supply chain management

Networking o Network Administrator o Windows server Applications o Exchange Server 2003 o Exchange Server 2007

Industrial operation courses o Industrial electronics o Advanced Industrial electronics o PIC Microcontrollers o 8051 Microcontrollers o Programmable Logic Control (PLC) o Printed Circuit Board (PCB) Designing o Refrigeration & Air Conditioning (RAC) o Heat Ventilation & Air Conditioning (HVAC) o Generator Repairing & Maintenance o General Electrician o Powerhouse Technician o Welding o Alternative Power Generation o Lift Technician o Multimedia courses o Digital Photography o Video editing o Audio editing

Data Bases (DB) o SQL Server 2000 Above o Oracle 10g Above o My SQL o Access 2000 Above Software Accounting o Advanced Excel o Peach tree o Quick book o Tally Engineering courses o CAD / CAM o Auto CAD o MAT LAB o Or CAD Computer Hardware Courses o Computer hardware Repairing Industrial oriented professional courses

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Safety Core Training

Language courses o English o Chinese o Arabic

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Automotive Sector - Update

AIDP implementation to be reviewed EDB to move for declaring Sialkot as EPZ

Competitiveness of industries EDB to help WB collect data

At a recent meeting of the Auto Industry Development Committee (AIDC) it was decided to take up the matter about the future of Tariff Based System (TBS), part of AIDP, in the next meeting in the light of detailed discussion and consultation with all stakeholders.

The Engineering Development Board has decided to review implementation of Auto Industry Development Plan (AIDP) an d take up the matter of declaring Sialkot city as export processing zone (EPZ).

The EDB is among those selected stateowned enterprises, which require massive restructu ring u nder the Industrial Policy 2011 to minimise op er a t i o n a l l o ss es . A f t e r i t s restructuring, EDB would acquire the nomencl atu r e of 'Ind u str ial Development Board', to more accurately reflect its new mandate. These stateowned enterprises have become a cause of regular addition to non-development expenditures of the government, while corruption is adding fuel to the fire, as reported in the June issue of /Industrial Bulletin', EDB's in house journ al .

The overall implementation progress of AIDP will be reviewed to figure out how much progress has been made on the targets fixed in the plan. Under the AIDP, the auto industry was required to achieve localisation of certain parts by 2010, and tariff of those parts was to be increased from 32.5 percent to 50 percent. These parts were not localised during the past four years.

AIDP was prepared in 2007 with a preannounced structure of five years to allow investment in the auto sector for the development of the industry. It was aimed at faci litati ng i nd ustr y's integration into the global supply chain by maximum indigenisation. The envisaged localisation of parts under the plan was that car manufacturers would transfer technology and know-how to the vendors for manufacturing of al ternators, starte r moto rs, w ater pumps, fuel pumps, fuel filters, seat reclining, power steering, engines and transmission.

According to 'Industrial Bulletin', the

progress on localisation is very dismal due to many factors, including global slump in the auto sector. At a recent meet ing of t h e A ut o Ind u st ry Development Committee (AIDC) it was decided to take up the matter about the future of Tariff Based System (TBS), part of AIDP, in the next meeting in the ligh t of detailed d iscu ssion and consultation with al l stakeholders .

The government, the 'Industrial Bulletin' reported, may declare Sialkot city as export processing zone (EPZ), which would help organise the informal sector of economy, and increase exports. The EDB has decided to take up the matter with the Ministry of Commerce for finalising a proposal in this regard.

The industry would get benefit in the form of exemption in taxes and duties on import, and the government would be able to document the informal sector by declaring Sialkot as EPZ. Pakistan's annual surgical instruments exports amounted to around $ 240 million in 2009-10 which, the surgical instrument manufacturers hope, would increase in the current fiscal year.

The EDB has calculated that the exports of surgical in struments could be increased to $ 500 million in two years and ultimately touch one billion dollars in five years time. To achieve this target, it is important to move towards branded prod ucts and promote th ese in international markets.

The bulk of surgical instruments industry is situated in Sialkot, but majority of manufacturing units are unorganis ed an d are ope rating as cottage industry. Some unregistered units and some small and medium enterprises are also operating in the city and the government's focus is on organising and facilitating them to in crease the quantum of surgical instruments' exports.....

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The Engineering Development Board will assist World Bank in collecting data on leading industrial sectors of Pakistan for carrying out a comprehensive study on competitiveness of the industries.

A decision to this effect was taken during a meeting between EDB and a visiting W or ld B an k m is sio n h er e o n Wednesday.

The WB study would analyse causes of failure of Pakistani industry to make inroads in global market through valueaddition and suggest measures for improving the situation.

EDB Chief Executive Officer Aitezaz A Niazi told the World Bank mission on trade and competitiveness that the share of engineering sector in export was just four per cent.

Surgical goods were contributing 32 per cent of the total engineering goods exports.

However, export of engineering goods would touch the $1 billion mark by the end of current fiscal year.

The lack of international certification and standardisation is a major hurdle for the engineering sector for enter ing into global markets, he told the mission while highlighting the role of EDB in reducing the cost of doing business in Pakistan through tariff rationalisation.

Mr Niazi also informed the mission that EDB has identified 20 sectors for export development and work has been initiated to remove bottlenecks in the development of surgical instruments, fan and cutlery sectors.

The mission was briefed in detail on measures undertaken by EDB for export d ev e l o p m e n t a n d i n c r e a s i n g competitiveness of the local industry through a comprehensive policy paper on the National Engineering Export Development Strategy (NEEDS) which is to be presented to the prime minister for final approval.

Nihal Pitigala, Senior Trade Economist of the World Bank, who is heading the mission, was informed on initiatives u nder taken b y EDB for g iving i nte rn at io na l ex po su r e to t h e engineering industry of Pakistan by way of taking them to the world’s most famous engineering trade fairs and exhibitions and today many industries are reaping the benefits of th is .

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Agriculture Sector - Update

Sindh agricultural development plan Growers having 25 acres would be provided modern farm implements on subsidised rates to encourage mechanisation of small land holdings.

A SUM of Rs3.25 billio n has been earmarked in Sindh ADP 2011-12 for fina nc ing 40 new a nd ongoing agriculture schemes. Of these, the number of new projects is 11, estimated to cost Rs293.1 million, while the rest Rs2.95 billion will be spent on the 29 ongoing schemes.

The development strategy gives priority to completion of ongoing schemes, lingering since long. The backlog of these schemes, launched on political grounds, has been a curse for the development of the province since General Zia’s rule.

This approach was adopted to generate a so-called popular political base for the t h e n a u t oc r a t i c g o v er nm en t .

Unfortunately, the same development mode was also adopted by the successive e l ec t ed c i vi l ia n g o ve r nm e nt s.

The new agriculture developme nt schemes and allocations made for them in the next year’s provincial ADP are: Upgradation of pesticide and fertiliser quality control and testing laboratories (Rs30m), reclamation of saline soils through effective measures (Rs110m), rehabilitation of rice and cotton research stations (Rs50m), establishment of agricultural services complex an d advisory centre (Rs53m), development of bio-pesticide (Rs9m), strengthening of Qaid-e-Awam Agriculture Research I nsti tu te L ar kana (R s26 m), standardisation of sugar testing and variety development laboratory for sugarcane crops (Rs19m), internship programme for agricultural graduates in p artner sh ip w ith A gricu lture University and institutes (Rs25m), d ir ect orat e-genera l, ag ri cu ltu re extension and directorate training b ui ldi ng Hy der abad (Rs21.1m), inclusion Malhi training course at ATI Sakrand , Phase-II (Rs10m), an d construction of Training Resource

Centre and facilities at Agriculture Training Institute, Sakrand (Rs10m).

This time, more stress has been laid on the schemes meant for the provision of quality seeds for at least three main crops cotton, paddy and wheat to the farmers on subsidy for which a scheme “Development and Promotion of Quality S e ed ” t h r o u g h p u b l i c -p r i va t e p a r t ne r sh i p i s u n d e r a c t i v e implementation.

Th e total cost of this scheme is Rs669.957 million while in 2011-12 ADP an amount of Rs120 million has been allocated. These quality seeds will be grown by farmers. The task of multipli cation of seed is being undertaken by the Sindh Seed Corporation, which has been activated.

A noth er important scheme is to construct water reservoirs/tanks at the tail end of branches. This scheme envisages construction of 300 such tailend water tanks/reservoirs at each of which crop cultivated on maximum one acre can be supplied irrigation water.

The total cost of this scheme is Rs112 million while Rs104 million have been allocated in the ADP. Agro-based export procession zones are proposed to be established for fruits, vegetables, flowers, and allied processing products from local farms/processing units for overseas markets. Currently, such zones are being set up in Karachi, Mirpurkhas and Khairpur and for this p roject Rs109 million have be en provided for the next year.

Small growers having 25 acres would be provided subsidised modern agricultural implements like chiseled ploughs, rola rota and 18 other varieties of implements so that agriculture mechanisation among small growers is encouraged.

The total cost of this scheme is Rs200 million while Rs106.750 million have

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been allocated in the ADP. Sindh government is also implementing a scheme called “Replacement of Earth Moving Machinery” to get rid of old tools and to switch over to latest and modern technology. The total cost of this project is Rs807.5 million while so far Rs50.15 million have been spent. This scheme is scheduled to be completed by 2012 and for that Rs422.875 million have been provided.

The provincial government is also establishing fodder research station at Tando Jam and is introducing salt tolerant high yielding varieties of fodder at the cost of Rs25 million and so far Rs12.852 million have been spent on this scheme while Rs12.148 million have been set aside in the ADP. In order to meet water shortages the provincial govern ment plans to install 3,027 tube wells for which an amount of Rs60 million has been earmarked.

It is also implementing a scheme meant for providing assistance to the growers for purchasing 10,000 wheel type tractors. In addition, it is also providing laser land leveling equipment to the farmers on 50 per cent subsidy. This scheme is to cost Rs250 million while Rs120.683 have been allocated in the ADP. Under one more ongoing scheme, the government is constructing Mirch Mandi in Kunri, District Umerkot at the cost of Rs195.878 million while Rs20 million have been allocated for this purpose in the ADP. It is al so establ ishing new subzi mandis/cold storages at Karach i, Mirpurkhas, Tando Allahyar and Shahpu r Jahanian at the cost of Rs233.344 mil lion while Rs33.892 million have been allocated for this sch eme in t he A DP 2011-12 .....

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Automotive Sector - Update

Auto manufacturer manages release release of of faulty CNG kits The faulty import of CNG vehicle cylinders of Faber brand has put the lives of hundreds of PSMCL customers at risk and the issue flared up when 1998 model of Suzuki, Mehran burst on December 2009, while refueling at Four Star Enterprises in Mirpurkhas, resulting in a loss of four lives.

A leadin g auto manufacturer h as managed to get a favourable decision from the Sindh High Court (SHC), Karachi for allowing the company to get released stuck up faulty CNG kits when the two statuary bodies deliberately avoid submission of statements of not contesting CIE observation, sources said on Wednesday.

Pak Suzuki Motor Company Limited (PSMCL) has maneuvered the two main statuary bodies, Oil and Gas Regulatory Authority (OGRA) and Hydrocarbon Developme nt Institute of Pakistan (HDIP) of not submitting relevant statement in the court, making it possibl e for the company to ge t a favourable decision, an official of the authority familiar with the development told The News on the condition of anonymity.

Faber PSA of Italy, which is headed by a former General Manager of HDIP, Noshab Sarwar, has managed not to submit statement from HDIP operation office, Karachi by validating the report and authority of the Chief Inspector of Explosive, an attached department of the Ministry of Industries, on faulty imports of CNG vehicle cylinders, a source in the OGRA said.

The imported CNG cylinder vehicles of Faber Industries did not comply with the HDIP’s manufacturing standards, NZS 5454, 1989, but the PSMCL also deliberately ignoring the defective CNG kits, he added.

The faulty impo rt of CNG vehicle cylinders of Faber brand has put the lives of hundreds of PSMCL customers at risk and the issue flared up when 1998 model of Suzuki, Mehran burst on December 2009, while refueling at Four S tar Enterprises in Mirpu rkh as, resulting in a loss of four lives.

On the request of OGRA, the Federal Board of Revenue (FBR) has suspended the import of Faber Industries Brand

CNG vehicles cylinders on November 2, 2 010 and all the Cu stoms field formations were informed to carry out the orders, a circular of the FBR said.

“The honourable court had already sorted and finished this case, so there is no need to further discuss this issue from Pak Suzuki side,” PSMCL official Spokesman Shafiq Ahmed Shaikh told The News.

The Sindh High Court, Karachi, while disposing of a petition filed against PSMCL and Faber for importing faulty CNG vehicle cylinders, directed the Customs authorities for clearance of the goods, which have been impounded in respect of consignments of cylinders on the payment of the relevant duties and taxes.

Interestingly, the viewpoint of HDIP, a statuary authority under the provision of Pakistan CNG (Production an d Marketing) Rules 1992, was not taken into confidence, while the law officer of OGRA withdrew its earlier stance by producin g a copy of letter date d February addressed to secretary (Machinery), FBR, in which they have said that the imported cylinders of CNG vehicle will be released.

When asked to comment on the subject, OGRA Spokesman Jawad Nasim said that he is only authorised to speak with the media on the subject of POL prices and he has not been mandated to speak on other issues.

HDIP Director General/Chief Executive Shaukat Ahmed when asked for not submitting statement of department said that the HDIP wrote to the Ministry of Law for the provision of Deputy Attorney General for the case, but it did not reply.

After getting no response from the Ministry of Law, they verbally asked the law officer of OGRA to submit their replies on their behalf, but could not produce any written evidence for

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submitting the HDIP statement in the court, Ahmed said.

The Department of Explosive, Ministry of Industries, vide its letter dated January has intimated the approval of CNG cylinders manufactured by Faber Industries, Italy under the Rule 129 of the Mineral and Industrial Gases Safety Rules, 2010.

Similarly, the Engineering Development Board (EDB) dated letter January also requested the revenue body to direct the concerned field formation to facilitate clearance of pending consignments of PSMCL without further delay, as the company had already suffered a heavy financial loss on account of demurrage charges, besides production of CNG vehicles manufactured by PSMCL has come to a halt due to unavailability of CNG cylinders, a letter of the EDB said.

Attorney of PSMCL pleaded before the court that during the riots, which erupted after the Shahadat of Mohtarma Benazir Bhutto on December 27, 2007, a car being Suzuki Baleno was burnt.

The CNG cylinder installed in the car was manufactured by Faber and fitted

by PSMCL. However, the said cylinder was thereafter installed in some other vehicle and due to explosion of this cylinder a number of human lives were lost.

Hydrocarbon Development Institute of Pakis tan in vestigate d th e matter separately in Mirpurkhas and Jhelum and it was revealed that the cylinder installed in the cars belonged to Faber Industries, a letter of the HDIP said.

Deputy Chief Inspector of Explosive Muhammad Hussain Channa visited the National Physical Laboratory (NPL), the UK and said, “Burnt CNG cylinders should not be used in any vehicle, which could lead to happenin g of such incidents.”

Curtsey : The Daily News

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Automotive Sector - Update

Non-inclusion of proposals in budget Pama, Paapam protest against FBR decision The Pakis tan Auto Man ufacturers Association (Pama) and Pak is tan Associatio n of Parts Accessor ie s M an u fac t u r er s (Pa a p am ) h a ve reportedly protested over non-inclusion of their recommendations in the federal budget for second consecutive year.

The issues faced by the local auto industry were discussed in detail at the 9 th m eeti ng of A ut o Ind u str y Development Committee (AIDC), held in the Engineering Development Board (EDB).

Official documents of EDB, available with press media, show that the Board carried out competitiveness and efficiency improvement exercise for budget 2011-12 for all engineering sectors, including automobile sector.

A detailed consultative process was carried out involving PAMA, PAAPAM and oth er stakeh old ers p rior to submission of tariff proposals to FBR for implementation. The subcommittee representing PAMA and PAAPAM forwarded the tariff recommendations to EDB. After detailed deliberations in a daylong session, EDB short-listed the proposals for submission to FBR, but the proposals were not entertained by the FBR. The stakeholders, including PAMA and PAAPAM, have shown serious concern that the recomme ndations, jo intly compiled by the industry and EDB, had not been considered by FBR for the second consecutive year, the documents added.

An official told this scribe that the committee has agreed to take up this issue with the FBR to address tariff related issues.

The AIDC did not concur with some of the proposals of PAAPAM, with the argument that the Chairman of the Association already enjoys tariff benefits.

The documents further show that the

meeting also discussed replacement of Tariff Bas ed System (TBS) as the committee had decided in its 8th meeting to have detailed deliberations on alternative system to replace Tariff Based System (TBS) to be carried out in the u pcoming meeting of AIDC. With respect to the generic parts relating to conversion of vehicles to Euro-II standards recommended by PAMA and PAAPAM for import at zero percent rate of duty, the industry was asked to prepare justification for inclusion of such parts in generic list for review and approval by technical committee of EDB. PAMA and PAAPAM had been asked to

update the committee on their mutual d i sc u ssi ons. B ot h a u to s ec tor Associations, sources said, did not bring feas ible pro posals in this regard.

The meeting was also updated on status of minimum in-house facilities to be forwarded to FBR. According to documents, it was decided in the 8th AIDC meeting that the list of minimum in-house facilities, finalised with the inputs from the industry, would be forwarded to budget coordination cell of FBR to incorporate in the relevant SRO. Millat Tractors had raised a query regarding the design/drawing aspect.

The committee had decided in the 8th AIDC meeting that the design/drawing aspect as highlighted by Millat Tractors would be given due consideration by EDB during the review of relevant SRO. A proposal regarding replacement of marking fee, being charged by PSQCA on the number of units produced by the motorcycle industry with fixed fee on existing and new models, was approved

by AIDC's subcommittee on Safety, Quality and Environmental Standards (SQES) in its 4th meeting held on June 13, 2011. The issue will be forwarded to the FBR.....

Automark’s sub-editor Raja Irfan Sabir successfully defends post-doctoral thesis With great pleasure we inform our readers that Automark magazine’s subeditor Mr. Raja Irfan Sabir has successfully defended his post-doctoral thesis.

He is currently enrolled as a postdoctoral candidate in the ChineseGerman Institute for Intellectual Property, Sch ool of Man agement, Huazhong University of Science and Technology, Wuhan, China.

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Before that he has comple ted his doctorate (Phd) from the same university.

Mr. Irfan joined the panel of editors of Automark three years ago.

Whole Automark’s team is proud of Mr. Irfan’s accomplishment and wishes him the best of the luck in the future.

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Automotive Corporate - Update

5th Toyota Dream Car Art Contest Celebrating winners from Pakistan Indus Motor Company organized a prize distribution ceremony at its plant to honour winners of ‘’5th Toyota Dream Car Art Contest’’ which was conducted between November 2010 and February 2011.

More than 5,500 entries were sent by young students from all over Pakistan for the contest, out of which the top 15 were selected by a national jury and then sent to Toyota Motor Corporation (TMC), Japan for ‘’World/Global Art Contest 2010-11’’.

Out of more than 120,000 entries from 50 countries received by TMC Japan, 30 were selected as the best artworks within their specific categories. Fatima Noor’s artwork entitled ‘’Monkey Car’’ from Rawalpindi, Pakistan made it to the top 30. She has won a 4 days and 3 nights trip to Japan.

To celebrate this achievement, all the winning students along with their parents were invited to the awards ceremony followed by a plant tour where t h e k i d s w i t n e s se d t h e c a r manufacturing process and interacted with the IMC team.

Mr. Parvez Ghias, CEO, Indus Motor, presenting the prize to ‘’Global Dream Car Art Contest’’ participant Fatima Noor from Rawalpindi, Pakistan Speaking on the occasion, Mr. Parvez Ghias, CEO IMC said, “This activity is in line with our ‘Concern Beyond Cars’ philosophy. Toyota is proud to recognize the artistic talent of children. We are

also extremely pleased that a student from Pakistan has won and will be representing her country in Japan.”

Japanese Ambassador to Pak assures assistance in Auto Industry His Excellency Mr. Hiroshi Oe, Ambassador of Japan in Pakistan assured assistance of Government of J ap an to pl ea d w ith P akista ni Government in firming up long term policies for local au to in du stry.

He said this during his visit to Indus Motor Company (IM C) here on Saturday. He was given a detailed presentation by the Indus management team followed by a tour of the

manufacturing facilities wherein he closely examined the plant and reviewed the company’s progress, says a press statement.

He commended Indus Motor and Toyota Motor Corporation for bringing the latest automotive technology to Pakistan and contribute towards its progress.

M r. Hir osh i Oe noted notab le contributions made by auto industry; p articu larly IM C in tra nsfer of

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technology, localization, increasing employment, etc. and acknowledged the challenges faced by the local auto industry. Mr Ali S Habib, Chairman, Indus Motor Company thanked Mr. Hiroshi Oe and appreciated Japanese Government role in supporting IMC and Pakistan , both in becoming a major automobile manufacturer as well as a significant contributor to the economy of Pakistan ....

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Energy Sector - Update

Refinery sales down 4pc in FY11 Overall refinery sales decreased by 4 per cent during the year ended June 30, 2011, compared to the earlier year, which analysts attributed to the floods in first half of the year as well as refinery turnarounds and maintenance outages in fourth quarter of the year.

Refineries recorded volume of 7.7 million tons during FY1 1 (39pc of country’s total oil product sales) compared to 8.1 million tons last year.

In terms of products, gasoline and furnace oil (FO) sales were down by 8 per cent and 3 per cent YoY, respectively, while volumes were supported by 1.7pc

YoY increase in HSD, enabling the sector to maintain high yield, stated head of research at brokerage InvestCap Khurram Shehzad and analyst Farhan Bashir Khan in their report released on Thursday.

Besides, the 4 per cent decline in volume in FY 11, the Gross Refinery Margins (GRMs) also thinned down in 4Q FY11.

Petroleum consumption fall w as restricted to one per cent in FY11 over the previous year.

In terms of performance by individual refineries, analysts noted that Attock Refinery had posted flat trend in its

Byco Petroleum to convert loans into equity Byco Petroleum Pakis tan Limited (BPPL)--the stock mar ket listed company-- announced the intention of the board of directors to re-organise loans and capital structure of the company.

The essence of it all appears to be to pass on the Byco loans to another associated company and in turn issue that company the majority equity in Byco . After all is down; Byco Oil Company Limited (BOPL) would go on to hold 851 million shares in Byco, representing 87 per cent of the listed company’s shareholding.

Byco would thus be able to kick off the huge loans and mark-up that spoils its b a l a nc e s h e e t. T h e c o m p a n y announcement unveiled salient features of the intended clean-up of financial statements . It said that Byco Oil Company Limited (BOPL) -- an unlisted public company, incorporated in Pakistan and wholly owned subsidiary of Byco Industries Limited (BII) would become the major shareholder of Byco, instead of BII, which is incorporated under the laws of Mauritius and which currently owns approximately 67.52 per cent shares of Byco.

Secondly, various intercompany loans given to Byco would be converted into equity of the company. The process would be achieved through the following steps: One that the various associated co mpany loans (local and foreign) availed by Byco would be converted such

that BOPL replaces Byco as borrower; secondly, in consideration for the novation (meaning: substitution of new contract in place of old one) of loans, BOPL (as lender) and Byco (as borrower) would, on a back to back basis, enter into a corresponding rupee loan agreement in terms of which Byco would owe BOPL such rupee equivalent amounts which prior to the novation of loans were owned by Byco to its inter company lender, and finally, the payment obligations under the BOPLByco loan agreement and another rupee loan agreement of a similar nature already entered into by BOPL and Byco, would be satisfied by Byco through conversion of loan (including accrued mark-up thereon) into equity by issuing 586 million new shares without a rights offering to BOPL. The novation of the aforesaid associated company loans and the issue of ordinary shares at par value of Rs10, by Byco without a rights issue pursuant to the first proviso to Sub-section 1 of Section 86 of the Companies Ordinance, 1984, have been approved by Byco’s Board of Directors and shareholders at their meetings on December 7 and 31, 2010, respectively.

The annou ncement by the lis ted co mp any By co sai d t h at u p on completion of the three steps notified above, BOPL would go on to hold 851 million shares of Byco translating into 87 per cent shares of the listed company.

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sales, which stood static at 1.4 million tons du ring FY11. T he refi nery maintained market share at 18 per cent.

National Refinery, on the other hand, showed healthy growth in volumes with its sales up by 18 per cent over the earlier year to 1.5 million tons. ”However, growth in National Refinery volume was attributable to higher FO sales, which rose by massive 57 per cent over the year before; Refinery’s white oil yield deteriorated by 27 per cent during the year. Byco refinery recorded sizeable decline of 36 per cent yearonyear (YoY) in volumes while its share in industry sales remained thin at 5 per cent.

Overall sales of the Refinery sector on quarter-onquarter (QoQ) basis, declined by 5 per cent to 1.9 million tons from 2 mil lion tons recorded in 3QFY11.

Major decline was visible in gasoline and HOBC sales, which receded by 18 and 21 per cent QoQ, respectively owing to outages in the platformer units of major refineries.

With regard to GRMs, the margins during 4QFY11 appeared to have thinned down owing to both narrowed spreads as well as deterioration in white oil yield.

As per the analysts’ estimate, 4QFY11 industry GRMs went down by 39 per cent QoQ and 33 per cent YoY to $1.7 per barrel.

Over the full year, the refinery sector booked much better GRMs amounting to $2.7 per barrel, enabling them to reap higher profits.

Petroleum consumption in the country slid by one per cent in FY11. The main reasons for such stagnancy in growth of the petroleum products consumption was attributed by analysts to number of factors, which included: Flash floods that swept through the country in 1H11, affecting diesel as well as furnace oil consumption (which contribute more than 80 per cent on average to the consumption basket).

Secondly, around 20 per cent year-onyear (YoY) price increase during FY11 at retail level and third, slow overall economic activity with dismal growth observed during the year.

Thus, the total petroleum consumption volume during the year stood at 19.9 million tons against 20.1 million tons recorded in FY10.

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Automotive Sector - Exclusive Article

by Muhammad Danish Automobile Technician

Street Racing in Pakistan The trend of car customization and modification is rapidly growing in the young generation all over the Country. And with the young generation, some middle age people are also showing very keen interest in the motorsports and playing a very important role in promoting this sport in the country.

Today, we are liv ing in the age of technology. New and latest technology has been introduced in every discipline.

Same thing is here with the automotive industry. Every now and then, latest technologies are introduced in the market so as to get maximum power from the car’s engine in less fuel. But what, if you want more power then the sto ck engine installed in your car.

The trend of car customization and modification is rapidly growing in the young generation all over the Country.

And with the young generation, some middle age people are also showing very keen interest in the motorsports and play ing a very important role in promoting this sport in the country. The entire motorsports enthusiasts gather all together on weekends or on some special events to compete with different cars on the busy streets of the city, which is very dangerous for the normal traffic.

I strongly believe that the street racing should be made legal but not on public roads. Because you all know better that the traffic here is not under the control of our traffic police, so how can they control such high speed machines? The first event was organized by the City Government known as Humara Karachi Race Competition, held on 1st March 2009 at Hyderi Main Road. Before the proper Race was started, there were two

accidents, just because of the lack of control on public traffic. So, there must be separate closed circuit tracks made specially for racing enthusiasts where they can practice all types of driving and perform all the stunts within that track area.

Every training starts from the basics.

Like a child is taught from his childhood about the basic origins of ISLAM, in the same way, if the young drivers are properly trained about all the tips and tricks used in race and high speed driving, it wil l surely boost up the motorsports in Pakistan. As you can see the cars here, which a person could not imagine that these cars would be present in Pakistan for example corvette, Nissan Skyline, Toyota Supra, Nissan Fairlady, Cadillac, Hummer and sports bikes such as Suzuki Hayabusa, Yamaha R1 etc.

Basically, the trend of this sport in Pakistan was started after the launch of movie Fast and the Furious in 2001. In this movie, they have shown all the exotic. Muscle and tuners cars with eye catching colors and there high speed engines grabbed the attention of the people of our country towards this sport.

The young generation got a great deal of knowledge. After that, some car racing games launched by EA Sports such as the whole series of Need for Speed was very informat ive for th e you ng

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generation, because o n e c a n ea s i l y customize the car in the game, and tune it to his desire. The proper race drivers may have a positive im pact on ou r economy because if the drivers have the caliber to represent their country all over the world, it would be a great honor for Pakistani people.

In the end, I would like to conclude that the street racing could be very successful in our country, only if all the technicians working on the cars should have proper knowledge about each and everything from a simple engine to a very high performance engine such as RB26 used in Nissan Skyline. They must know the basics or turbo charging, supercharging, the use of Nitrous Oxide injection system, how to swap the engine in different cars, and whether the car can bear the load and vibration of the high speed engine you are going to swap?

These all are the key points to success. I am myself a Toyota Technician in a TOYOTA dealership. And I want to say that if anyone wants to join this automotive field, one should b crazy about cars and all the stuff, otherwise, it’s the wastage of time as well as money.

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Automotive Sector - Exclusive

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by Omar Rashdi Review from St. Patrick’s Technical Institute

Four-wheel drive (4WD) There are almost as many different types of four-wheel-drive systems as there are four-wheel-drive vehicles. It seems that every manufacturer has several different schemes for providing power to all of the wheels. The language used by the different carmakers can sometimes be a little confusing Four-wheel drive, 4WD, or 4×4 ("four by four") is a four-wheeled vehicle with a drive train that allows all four wheels to receiv e torque from the engine simultaneously. While many people associate the term with off-road vehicles and Sport utility vehicles, powering all four wheels provides better control than normal road cars on many surfaces, and is an important part in the sport of rallying.

In short: 4WD and AWD (all wheel drive) provide increased vehicle stability.

In case vehicle stability is about to be lost due to slipping tires, despite 4WD or AWD, traction control and stability control assure directional stability however, none of them can defy the laws of physics. In plain English: if you are too fast for the road conditions - none of the features will keep you on the road.

4x4 (four by four) Translates to a vehicle with 4 wheels powered by 4 wheels so, its a 4WD or AWD (four wheel drive or all wheel drive)

4x2 (four by two) Translates to a vehicle with 4 wheels powered by 2 wheels so, its a 2WD (two wh eel drive) There are almost as many different types of four-wheel-drive systems as there are four-wheel-drive vehicles. It seems that every manufacturer has several different schemes for providing power to all of the wheels. The language used by the different carmakers can sometimes be a little confusing, so before we get started explaining how they work, let's clear up some terminology: Four-wheel drive - Usually, when carmakers say that a car has four-wheel drive, they are referring to a part-time system. These systems are meant only

for use in low-traction conditions, such as off-road or on snow or ice.

All-wheel drive - These systems are sometimes called full-time fourwheel drive. All-wheel-drive systems are designed to function on all types of surfaces, both on- and off-road, and most of them cannot be switched off.

Part-time and full-time four-wheel-drive systems can be evaluated using the same criteria. The best system will send exactly the right amount of torque to each wheel, which is the maximum torque that won't cause that tire to slip.

Four-wheel Drive Differential Wh e n po w e rin g tw o wh e e ls simultaneously the wheels must be allowed to rotate at different speeds as the vehicle goes around curves. The problem is even more complicated when driving all four wheels. A design that fails to account for this will cause the vehicle to handle poorly on turns, fighting the driver as the tires slip and skid from the mismatched speeds.

A differential allows one input shaft to drive two output shafts independently with different speeds. The differential distributes torque (angular force) evenly, while distributing angular velocity (turning speed) such that the average for the two output shafts is equal to that of the differential rin g gear. Each powered axle requires a differential to

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d istr ibu te pow er between the left and the right sides. When all four wheels are d r i v e n, a t h i r d differential can be used to dis tribute power between the front and the rear axles.

The described system handles extremely well, as it is able to accommodate various forces of movement, and distribute power evenly and smoothly; making slippage unlikely. Once it does slip, however, recovery is difficult. If the left front wheel of a 4WD vehicle slips on an icy patch of road, for instance, the slipping wheel will spin faster than the other wheels due to the lower traction at that wheel. Although the amount of torque applied to each wheel will be identical, the amount of traction at each driven wheel will be limited to that of the wheel with the least traction (at least one wheel on ice in this case). These problems can happen in both 2WD and 4WD vehicles, whenever a driven wheel is placed on a surface with little traction or raised off the ground. The simplistic design works acceptably well for 2WD vehicles. It is much less acceptable for 4WD vehicles because 4WD vehicles have twice as many wheels to lose traction, increasing the likelihood that it will happen. 4WD vehicles may also be more likely to be driven on surfaces with reduced traction.

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Automotive Technology - Exclusive Review

by Saad Saleem from NED University, Karachi

Computer Aided Designing in Automotive sector CAD plays a major role for streamline design processes, manufacturing of products, and for researching. It is being used in nearly every industry like Automotive, Aerospace, shipbuilding, architectural designs e.t.c. Automotive industry has significantly shown growth, because nearly everyday new designs of car are being made, all thanks to this innovative technology.

Computer Aided Designing (CAD) is a c omput er tec hnolo gy for designing/drafting the products desired, fast, reliably, flexibility and economically low cost as compared to man ual designing by hands, which is time consuming and requires hand tools like rulers, T-scales, curves e.t.c. Designing and manu facturing today is very demanding, no matter what industry you are in. That is why CAD software is very important for making the task less complex and more efficient. In this articl e CAD is discussed here for engineering applications. In CAD soft wares we can simulate real time factors li ke fl u id an d for c es eff ec ts , aerodynamics of an object, and other environmental effect on an object designed, virtually.

CAD plays a major role for streamline design processes, manufacturing of products, and for researching. It is being used in nearly every industry like Automotive, Aerospace, shipbuilding, architectural designs e.t.c. Automotive industry has significantly shown growth,

because nearly everyday new designs of car are being made, all thanks to this innovative technology. Auto industries are in competition of making concept cars, concept car means which are to be built in future, more appealing, attractive, sleeker, efficient an d aerodynamic designs as much as possible.

Some of the common engineering CAD softwares which are popular and are widely used in auto industries are Solid Works/edge, Auto-desk, Pro-engineer (Pro-E), Unigraphics NX, Catia, I-Deas and Mi cro-station. Most of th e companies d eveloped th eir ow n softwares for designing but now they have switched to commercially available softwares like some mentioned above.

Some OEM’s (Original Engineering Manufacturers) which are using these softwares is listed here: General Motors (GM), Ford, Fiat, Nissan, Chrysler, Suzuki Japan: UG NX (Unigraphics and I-Deas have joined toget her and is known as NX).

Another one which is widely in used is Catia. Although most of the OEMs are using one or more packages for different purposes example: Toyota is using Catia for body and Pro-E for power-train.

More you can know about CAD packages being used by OEMs here: h t t p : / / w w w . e n g tips.com/viewthread.cfm?qid=45579 Some information about these softwares and their functions usage, these packages are available having wide ranging options for performing different engineering applications and other usage. Mostly, these softwares consist of CAD, CAM (Comp uter Aided Manufacturing), CFD (Computational Fluid Dynamics), and FEA (Finite Element Analysis). CAD is use for modeling/designing/drafting/dimensi oning. CAM mode is mostly used in manufacturing/fabrication facilities.

CFD is an engineering function use for

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thermal/fluid flow analysis on a model and i s a very i m p o r t a n t a ppl ic a t i on in automotive. FEA is another mode for en gine ering study/obs ervation and data analysis.

In Pakistan, for those who are interested in engineering design careers, courses on these softwares are widely available mostly on AutoCAD, Pro-E, Catia and Solid works. In international market UG NX is a direct competitor of the above mentioned softwares in view of being used in auto companies. It’s a product of Siemens Company, and provides advance and wide variety of functions and it is a dedicated Automotive CAD package. Currently, its courses are not much available in Pakistan except few places like KTDMC (Karachi Tool Mould Die centre); it is also being taught, advanced level of functions of this software, at NED University, Karachi in Automotive Engineering Department as a subject. Engineering Designing and utilization of talent really needs support (in the form of sponsorships for students participating in international projects events which our university students design themselves, investment on their higher studies/or their ideas) in Pakistan which can lead to establishment of our country’s own industries so can compete with internatio nal companies.....

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Automotive Sector - Update

International Automotive News in Brief

T

oyota sticks to 12% sales growth target in Chin a Toyota Motor Corp. is sticking with its t arg et for Chi na p assenger-vehicle sales to increase 12 percent in 2011 despite the production slowdown caused by the March 11 earthquake in Japan . "Regarding Toyota's sales in China for the calendar year of 2011, Toyota will continue working together with its partners to strive to realize the initial target," Toyota said in a statement posted on its China Web site. Late last year, Toyota targeted China sales of 900,000 units in 2011, up 11.8 percent from 2010.

F

ord starts work on $500M engine plant

For d Motor Co. br ok e gro und Thursday on a $500 million (3.2 billion yuan) engine factory in southwest China as the automaker seeks to boost global sales 50 percent in four years. The plant in Chongqing will more than double engin e capacity for joint venture Changan Ford Mazda Automobile Co. to 750,000 units when output starts in 2013, according to an e-m ailed statement. Last week, Ford forecast that growth in Asia will help boost global sales 50 percent to 8 million vehicles a year by 2015.

GM

China names B ie rzy nsk i chief o f EV strategy

General Motors China has named Ray Bierzynski executive director of its electric vehicle strategy.

Bierzynski, who will be based in Shanghai, will work closely with the automaker's

partners, government organizations, u niv ersi ties and infr ast ru ct ur e stak eholders, GM China said in a statement. The 33-year GM veteran will help coordinate EV standards, work with suppliers , organiz e demonstration programs an d generate business strategies for China's emerging EV market.

FAW

-VW to build small cars in Nanhai FAW-Volksw agen A ut om ot iv e Co., Volksw agen AG' s joint venture with China FAW Group Corp., will build subcompact cars at its new plant in Nanhai in south China's Guangdong province. The seventhgeneration Golf and Audi A3 will be among the first products the new plant will make, according to the Nanhai government's Web site. In May, the central government approved FAWVolkswagen's plan to build an electric vehicle for the partnership's newly created brand Kaili. But it's unclear whether the EV will be produced at the Nanhai plant.

BYD

ships EV test fleet to Rotterdam BYD Co. says it has si gned a dea l w ith Rotterdam to deliver a fleet of e6 electric cars to th e Dutch city. The privately held Chinese automaker did not indicate how many units it will deliver. The municipality intends to purchase various types of electric cars for its test fleet of 75 vehicles. The e6 is a five-seat crossover vehicle; BYD claims it has a daily range of 300 kilometers.

Last year, BYD delivered a fleet of 50 e6 cars to a taxi company in its hometown of Shenzhen.

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C

hery more than doubles vehicle exports in April

Chery Automobile Co. says it exported 12,521 vehicles in April, up 134 percent from a year earlier.

In the month, the indigenous Chinese auto brand sold 3,735 vehicles in Brazil, making the country its largest export market. Russia is Chery's second largest export market with 2,168 vehicles sold there, acco rding to figures Chery released last week. The Tiggo SUV and the QQ micro-car accounted for most of Chery's exports. The company exported 3,933 Tiggos and 3,351 QQs in April.

The rest of the exports were contributed by the A1 and A3 compact cars.

GM

Says Demand for Four-Cylinder Engines Driving Plant Investments.

General Motors said that the additional demand for Ecotec four-cylinder engines in a range of its vehicles is behind the company’s $65 million investment in plants in New York and Tennessee.

GM is adding additional production capacity at its Tonawanda, N.Y., plant for engines for the Chevrolet Equinox and GMC Terrain crossovers. GM said it is investing $33M in this plant.

The automaker said it is adding production capacity at its Spring Hill, Tenn. plant for direct-injection fourcylinder engines for the 2013 Chevrolet Malibu. The company is investing $32M. The automaker said the investments in the Tonawanda and Spring Hill plants ar e p art of $2 b illi on in U.S. m anu fa ct u ri ng inv estm ent G M announced May 10 that will create or retain 4,000 jobs in 17 facilities in eight states.

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Alternative Energy Sector - Update

Solar power getting cheaper

Prices of solar panels are falling so fast that by 2013 they will be half of what they cost in 2009, according to a new report from Ernst & Young that argues solar electricity could play “an important role” in meeting the UK’s renewable energy targets.

The average cost of solar photovoltaic (PV) panels — usually described in terms of the dollar price of each watt of peak capacity — has already dropped from more than $2 in 2009 to around $1.50 in 2011. Based on broker reports and industry analysis, the report forecasts that those rates of decline will continue, with prices falling close to the $1 mark in 2013.

At present, solar PV is economically viable in the UK for homeowners, businesses and investors only because of government subsidies given out via feed-in tariffs (Fits). But the new analysis suggests that due to falling PV panel prices and rising fossil fuel prices, largescale solar could be cost-competitive capabilities in their specific line of equipments and not manufacturing everything without any standards of design and quality. Gradually we will be able to develop a host of agricultural manufacturers producing complete range of equipments in Pakistan maintaining acceptable international standards. Pakistan Agricultural Research Council and Provincial Agricultural Departments could help them in getting licensing/know-how agreements with foreign companies.

They can gain permission to export to specific markets. The subsidy can be withdrawn or reduced once the industry

without government support within a decade — sooner th an is usually assumed.

The report was commissioned by the Solar Trade Association (STA) from E r ns t & Y ou n g ’s e ne r g y a nd environmental infrastructure advisory unit in response to the recent shake-up of the Fits, which saw government supp or t for large solar systems significantly reduced. The cuts were enacted as a result of the government’s decision to cap the total amount that could be spent via Fits and skew the limited budget in favour of domestic an d other smallscale installations.

The chairman of the STA, Howard Johns, said the new analysis backed up the industry line that government support for all types of solar systems in the next few years made good economic sense as it would build capacity and enable unsubsidised solar to be as widely deployed as possible as prices come down. “This reinforces the case we have laid out in our Solar Revolutio n strategy,” he said, “and it comes from an independent consultancy.” The report coincides with new data from Bloomberg New Energy Finance that shows a drastic 28 per cent month-on-month drop in the spot price of high-grade silicon, the raw material used in most PV panels.

The conclusions of the Ernst and Young’s report contrasts with the view

of the government’s advisers , the Committee on Climate Change (CCC).

The committee recently argued that solar remained too expensive to warrant serious consideration in the short term and that Britain should instead “buy in from overseas later”.The lead author of the new report, Ben Warren, said the CCC’s view failed to consider the wider economic benefits of solar. “Being a laggard has never been very successful in terms of capturing the greater share of the value added for the economy. If you create a sustainable market, you will achieve cost savings and drive economic benefits in terms of tax income and job creation.” To compare the relative cost of solar and other energy sources, analysts consider factors such as upfront expenditure, fuel prices, maintenance and discount rates to calculate the “levelised cost” of each unit of energy.

The report predicts that, with continued support in the short term, the levelised cost of large-scale solar will be no higher than retail energy prices by 2016-19. In the run-up to the announcement of the Fits cuts, climate minister Greg Barker told the Guardian that Britain had underestimated the potential of solar energy and in light of falling prices he hoped to find “new pathways” for supporting large-scale solar.

reached to a point to take care of itself and can find easily a place for their products in the local and international market.

At this stage, leaving them alone is no service to the nation. Small black smith shops which were started with small furnace and anvil to manufacture small iron products in the seventies have attained a level to produce machines like thresher, reaper, straw chopper, and Rotavator in their workshops. In the last 30 years their children have attained university qualifications unlike their parents who had basic or no education.

This new generation of implement manufacturers are fully ready and enthusiastic to move their manufacturing units to a new place or to re-design existing set up to improve their production facility in line with modern requirements to produce standardized equipments.

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It could be rightly said that implement manufacturers have reached a mile stone that can be a turning point towards modernization provided that these young entrepreneurs will receive proper and timely government sup port.

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Company Introduction

TYRE SALES Corporation

TYRE SALES Corporation is a Pakistan based distribution house of tyres and is a part of Th e Charania Group of Companies.

TYRE SALES started its business in 1960 and has completed 50 years' Golden Jubilee in 2010. In the last 50 years TYRE SALES, which started as a small outfit in the interior of Sindh in Pakistan, has successfully distributed worlds leading tyre brands in and out of Pakistan.

Today, Tyre Sales boasts of having offices in Pakistan, UAE, USA, Kenya and China from where it distributes mainly in the Middle East, Africa and some parts of Asia.

TYRE SALES distributes variou s segments of tyres like Passenger Car Radials, Truck & Bus Bias & Radials, Farm, Light Truck Tyres & Off-TheRoad tyres.

TYRE SALES distributes brands like APOLLO, BOTO, AEOLUS, DOUBLE HAPPINESS, OVATION, COOPER, YOKOHAMA, and CONTINENTAL in various countries & markets.

The group also owns and distributes its private labels in commercial tyres by the name of GREEN DRAGON, TUFFSTONE & SHAHEEN. These brands have become very popular in the markets that they serve.

Tyre Sales created history by taking the largest ever group over 100 of its high achieving dealers to Malaysia in April 2011.

These 108 dealers were invited from many parts of the world to Malaysia for a six-day excursion trip. The tour included a fun trip to Sunway Lagoon Park in Kuala Lumpur, fabulous Genting Highlands, majestic Batu Caves & other pla ces of inter est in Malaysia .

These dealers came from countries like Pakistan, UAE, USA, Kenya, China, Yemen, Somalia, Iraq, Egypt and India.

The high point of the tour was Apollo Vista - Tyre Sales Dealers Convention.

The convention was attended Apollo’s export team led by Mr. Rajesh Kumar, Head of International Sales & Mr. Rajesh Uday Kumar, Regional Manager International Sales Apollo Tyres Ltd., India. They shared the plans of Apollo Tyres to become one of the world's top ten manufacturers in the next five years.

Apollo plans to become a US $6 Billion company. In the last few years Apollo has acquired Dunlop Tyres of South Afric a and Vred estein T yres of Netherlands.

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Dr. Barkat Charania, Chairman of Charania Group of Companies, Mr. Nuruddin Abjani, CEO of Tire Sales, Mr. Imr an Ch ar ania, Ch ief of UAE operations, Mr. Feisal Shariff, Chief of USA operations & Mr. Harrison Mungai, Chief of African operations also shared their views about Global economy and plans about future of TYRE SALES' future projected activities in different parts of the world.

All dealers from different parts of the world had a very good opportunity to know each other and learn about foreign lands and ways of doing businesses....

Advertise your products and services in Monthly AutoMotive Magazine

The only ONLINE automotive magazine in Pakistan visit: www.automark.pk Please Contact: E-mail: automarkpk@gmail.com

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Automotive Technology - Review

by Khurram Sohail

High Speed Super Car A model driven by a superstar like Tom Cruise, couldn’t name itself cheap, raising the Bugatti Veyron to a price tag of $1,700,000, a price that measures up to its quality.

The first thing that comes to mind when most people think about cars is SPEED. The mind gripping and fascinating feature of automotive, which motivates engineers to build cars that touch’s the peak of speed.

Technically, a high speed super car should have a powerful engine that can tow the vehicle to its limit along with the aerodynamic design that is responsible for its stability on normal roads.

This article is featuring up to the date the world’s fas test production car “Bugatti Veyron 16.4.”. It has the fastest acceleration speed, reaching 60 mph in 2.5 second s. If w e ta lk abo ut performance we are dazzled by this super car power to reach 200 and 300 km/h (124 and 186 mph) in 7.3 and 16.7 seconds respectively, wining for herself the name of the quickest-accelerating production car in history. If we count the fact that the top speed of Bugatti Veyron is 429.6 km/h, a speed limited electronically to prevent tire damage (it can run even faster). we can understand why this spectacular car must consume 40.4 L/100 km (4.82 mpg) when it is running at top speed and in city driving 24.1 L/100 km.

The original company founded in 1909

by Ettore Bugatti produced some of the most exclusive cars in the world, as well as some of the fastest. The original Bugatti brand failed with the coming of World War II, like many high-end marques of the time. The death of Ettore's son Jean Bugatti was also a

co ntributory facto r. The company struggled financially, and released one last m odel in the 1950s, befor e eventually being purchased for its airplane parts business in the 1960s.

Today the name is owned by the Volkswagen Group , who has revived it as a builder of limited production exclusive sports cars.

Bugatti Veyron 16.4’s enormous power is made visible by its impressive midengine, which is elevated majestically beneath the chassis; the exclusive W-

configuration 16-cylinder engine is used for the first time in a passenger vehicle.

W16 engine has 16 cylinders in 4 banks of 4 cylinders fed by four turbochargers, a dual-clutch DSG computer-controlled manual transmission. Counting a sum of 10 radiators, for the engine cooling system, for transmission oil, a heat

exchanger for the air to liquid intercoolers, for engine oil etc., the car has a power to weight ratio of 529 bhp/ton.

Veyron 16.4 8.0L W16 T with 7-speed automated manual transmission and AWD Horsepower 1001/6000 rpm Torque 922/2200 rpm 0-6 mph 2.5 sec The Veyron has a length of 4.47 m, a wide of 2 m and height of 1.2 m. With its luxurious length of 4.47 m, the Veyron is a perfectly b alanced c om b i na t i on o f h i g h -p o w er ed performance and sleek, racy design. The classic two-tone color scheme reveals every detail of Bughatti.

The beaut iful aerodynamic shape is responsible for great road stability at high speed. The Bugatti hunkers down, lowering its normal ride height in two steps, which helps reduce force and drag coefficient, two factors that consume the most amount of power. So with this improvement, more power is available for acceleration.

Air brake at rear trial.

To develop tires that withstand 250plus mph while supporting up to 4800 pounds of car, occupants, and down force was the major challenge. That was solved by special Michelin PAX System Pilot Sport tires.

A model driven by a superstar like Tom Cruise, couldn’t name itself cheap, raising the Bugatti Veyron to a price tag of $1,700,000, a price that measures up to its quality. Many new designs have been released since 2006, the color m ig h t h av e c h an ge d , bu t t h e performance and power remain the same....

www.automark.pk | July-2011 39

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Corporate Event - Update

Chairman SDC Mian Akram Farid visited Islamabad Women Chamber of Commerce & Industry

ISLAMABAD: Mian Akram Farid, Chairman, Skill Development Council (SDC) on T uesday said w omen entrepreneurs will be provided training on subsidized rates. Speaking at a function organ iz ed by Islamabad Women Chamber of Commerce and Industry (IWCCI), Mian Akram Farid said; Established by the Government of Pakistan, Skill Development Council (SDC) Islamabad is a quality training provider for students and professionals for continuous skill up gradation and to promote skills which help Pakistan to b ec o m e g lo b a ll y c om p et i t i ve .

He further added; SDC Islamabad identify the training needs, design and d ev elo p tr a ini ng p r og r am s i n consultation with experts from the relevant industry and then arrange training on contractual basis at various training institutes in both public & private sector having requisite training facilities. These training Programs are need based, flexible, demand driven, cost effective and related with industry directly or indirectly with maximum

participation from the Employers.

SDC Islamabad focuses to maximize the potential of participants through the acquisition of knowledge and skill; it also provides extra ordinary on target training to develop the potential of work force by increasing their standard of skil l and basic education, so as to increase productivity, quality of product and to meet the needs of both domestic and International market.

M ia n A k ra m Fa r i d sa id S ki l l Development Council Islamabad has been very successful in catering to the needs of human capital development by arranging training to more than 17000 trainees since its inception.

SDC Islamabad offers a wide range of training courses to fill the skill gaps under its In-House Training Program at its premises for Students, Mid-Career Professionals and Employees of various Organizations like Air Weapon Complex, M ar it im e T ec h nolog i es, H eav y Mechanical Complex, KRL, National Development Complex (NDC), Project

www.automark.pk | July-2011 41

Management Organization (PMO), PAF, NESCOM, Inter nati onal Islamic University, Quaid-e-Azam University, Riphah International University, HIT Taxila, PAEC, NUST, UET Taxila, POF Wah, State Bank of Pakistan etc.

SDC also specializes in customized InHouse Training programs tailored to meet the specific training needs of our valued client organizations and to improve performance and effectiveness of its team of professionals.

SDC Islamabad also arrange a variety of trainings under its Institutional Training Program with collaboration of its partner institutes for boosting skills and knowledge of those al ready in employment and those about to enter the market and take the students up to the level of working with their own projects and with professional level work flow by covering important areas like Computer & IT, Technical & Vocational and Management.....

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Focus on Environment

Exclusive article by Raja Irfan Sabir

China and the Challenge of Environmental Degradation Intellectual Property Rights create a monopoly for the inventors / innovators and thus limiting social welfare and one of the challenges to be faced by Chinese Automobile Manufacturers in the process of developing Hybrid / electric Vehicles is Customer Orientation. civilization in the history of mankind [5 ], a nd , w a s t h e S c i ent i fi c , Technological and a Cultural bridge without which Europe could not had cro ssed over from barbarism into modernity [6].

Customer Orientation and Continuous Innovation

Continuing our discussion from our previous article (March, 2011), China has adopted numerous measures to cope th e ch allenge of environment al degradation for which the Automobile Industry is seen as a huge source. By developing Hybrid / Electric vehicles, China aims to deal with environmental degradation, and side by side achieve independent innovation and also solve the problem of intellectual property rights [1]. In this regard, we would like to suggest the following points for the development of Chinese, as well as any other automobile industry.

Balancing Intellectual Property Rights and Social welfare The concept of Intellectual Property Rights is of contradictory nature [2][3], yet, it is crucial that core technology should be protected. Therefore, there is a need to identify alternate methods to motivate Inventors and Innovators including Financial and Non-Financial benefits. And that a balance should be struck between Intellectual Property Rights and Social Welfare following the Model of Islamic Innovation Driven Civil ization / Economy [4], which proved to be the first ever truly universal

Intellectual Property Rights create a monopoly for the inventors / innovators and thus limiting social welfare [7], and, one of the challenges to be faced by Chinese Automobile Manufacturers in the process of developing Hybrid / el ec t r ic V eh i cl es is Cu st om er Orientation. Since customers are a huge source of continuous ideas so they need to be involved and rewarded in the process of realizing innovation; and who, tog et her w ith th e G over nment, Automobile Companies and Chinese Academia can jointly own Intellectual Property Rights for accelerating social welfare. And for that there is a need to develop a mechanism or an institute backed by the Chinese Government by using internet and telecom technologies, for example “innocentive.com” [8].

Global Warming Conspiracy Our research also shows a contrary view point regarding the Global Warming Theory, which forms the basis for “Green Technology” and ultimately has and continues to affect almost all industries and secto rs of lif e in cluding the automobile industry. “Climate Gate”: a popular word is used by scientists and researcher s opposing the Global Warmin g Theory. They state that Politicians, Academicians, and Business enterprises thirsty for money have joined hands to use the so called “Global

www.automark.pk | July-2011 42

Warming Theory” for personal gains only.

A nd t h at a ct u al scientific data has/is be i ng h idd e n , modified according to own needs, and mass media has/is being Raja Irfan Sabir used to exploit the common person, and is a part of the One World Government program / New World Order [9] having its basis in socialism / Marxism [10] [11] [12] .

In November, 2009, hackers broke into the East Anglia University computer system an d released e-mails and documents clearly showing that the data regarding Global Warming has and is being falsified for monetary gains and World domination purposes. And that the Intergovernmental Panel on Climate Change (IPCC) is not a reliable source of science on global warming [13].

Critics of the so called Global Warming policy an d trends stated that, the majority of Politicians and Scientists have now become so hostile that they do not allow anyone to criticise the Global Warming Theory and have closed all forms of negotiations/debates. But in reality they do not have any significant and valid data to support their stand.

Moreover, a letter, signed by Top 141 scientists from all over the world, was sent to the Secretary-General, United Nations in December, 2009, claiming that the Global Warming Theory is totally a fraud and without solid facts [14]. The letter further challenged the G l ob al W a rm i ng T h e or i st s t o demonstrate the following, who have utterly failed till this day: a) Variations in global climate in the last hundred years are significantly outside the natural range experienced in previous centuries.

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Focus on Environment

The propaganda of man-made global warming has been promoted by those with a political agenda by suppressing the truth and spreading fear. In this effort they have recruited academics, media, environmental groups, governments, the United Nations, even religions. b) Humanity’s emission of carbon dioxide and other “green house gases” (GHG) are having a dangerous impact on global climate; c) Comp uter-based m od els c an meaningfully replicate the impact of all the natural factors that may significantly influence the global climate; d) Sea levels are rising dangerously at a rate th at has accelerate d with increasing human GHG emissions, thereby threatening small islands and coastal communities; e) The incidence of malaria is increasing due to the recent climate changes; f) Hu man societies and natur al ecosystems cannot adapt to foreseeable climate change as they have done in the past; g) Worldwide glacier retreat, and sea ice melting in Polar regions, is unusual and related to increases in human GHG emissions; h) Polar bears and Arctic and Antarctic wild life are unable to adap t to anticipated local climate change effects, independent of the causes of those changes; i) Hurricanes, other tropical cyclones and associated extreme weather events are increasing in severity and frequency; j) Data recorded by ground based stations are a reliable indicator of surface temperature trends.

Furthermore, the opponents of Global Warming state that “The propaganda of man-made global warming has been promoted by those with a political agenda by suppressing the truth and spreading fear. In this effort they have r e c r u i t ed a c a d e m i c s , m e d i a , environmental groups, governments, the United Nations, even religions.

Scientific evidence supporting manmade global warming has now been investigated by scientists and found to be baseless. Examination of the data has revealed the theory of climate change for the propaganda it is, derived from

erroneous data, junk science, even scientific fraud” [15]. And moreover, High Frequency Active Auroral Research Program (HAARP) is often used to alter weather, trigger earthquakes and volcanoes to support the false theory of Global Warming [16] [17].

References: [1] Raja Irfan Sabir. IP Based Industrial Innovation System for the Chinese Automobile Industry: Implications of developing Green Cars for Sustainable Development. Post Doctoral Thesis, Huaz hong Univ ersity of Science & Technology, P.R. China. June, 2011.

[2] Michele Boldrin, David K. Levine.

Ag ai nst Int ellect ua l M onopol y.

Cambridge University Press. 2008.

[3] Wesley M. Cohen, Richard R. Nelson, John P. Walsh. Protecting th eir Intellectual Assets: Appropriability Conditions and Why U.S Manufacturing Firms Patent (or Not). Working Paper 7552, National Bureau of Economic Research, Cambridge, 2000.

[4] R. Irfan Sabir, Mijitaba Maman Moustapha, Muhammad Mudassir.

Islamic Model of an Innovation Driven Economy: Examining the Characteristics of the Islamic Civilization. Published in the proceedings of International Conference on Applied Social Sciences, Changsha. March, 2011. Vol. II, 69-74.

[5] Bernard Lewis. From Race and Slavery in the Middle East: An Historical Enquiry. In Kevin Reilly, Stephen Kaufman, Angela Bodino. Racism: A Global Reader. M.E. Sharpe. 2003. pp.

52–58.

[6] Y. G.-M. Lulat. A History of African Higher Education from Antiquity to the Present: A Critical Synthesis (Studies in Higher Education). Praeger, 2005. p.

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43

466.

[7] Mohamed Ben Ahmed. Talk in Trans Atlantic Consumer Dialogie (TACD) Conference on "Th e Po litics and Ideology of Intellectual Property", Brussels, 20-21 March 2006.

[8] Innocentive. http://www.innocentive.com. Accessed on 10th June, 2010.

[9] Jesse Ventura. Global Warming Conspiracy. True TV. http://www.trutv.com/shows/conspir acy_theory/index.html. Accessed on 31st May, 2011.

[10] Mattie Jax. Obamaism is Socialism.

Xlibris Corporation, 2010.

[11] Christopher C. Horner. Red Hot Lies: How Global Warming Alarmists Use Threats, Fraud, and Deception to Keep You Misinfor med. Regner y Publishing, 2008.

[12] Ral ph B. Alexander. Global Warming False Alarm: The Bad Science behind the United Nations' Assertion That Man-made CO2 Causes Global Warming. Canterbury Publishing, 2009.

[13] David E. Robinson. Climategate Deb u nked . Cr ea teS pa c e, 20 10 .

[14] Kris Axh oj, Jo hn P. Walker.

Resurrection of a Nation: Solving the Energy, Financial, & Political Crisis in A m er i c a. A u t h or H ou s e, 2 0 10 .

[15] Leo Johnson. Understanding the Global Warming Hoax. Elderberry Press, Incorporated, 2009.

[16] New NASA research points to possible HAARP connection in Japan E a r t h q u a k e , T s u n a m i h t tp : / / w w w .p a ka ler t p r ess .c om .

Acce ssed on 12th July, 2011.[17] http://www.tudou.com/playlist/p/l83 79839i48480784.html.

Accessed on 12th July, 2011.

About writer Dr. Raja Irfan Sabir, Post Doctoral candidateand Sub editor of monthly AutoMark Magazine. Chinese-German Institute for Intellectual Property, School of Management, Huazhong University of Science and Technology, Wuhan, China.

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Exclusive Review on Mega Event

by Shahzad Tabish from NED University

Shell ECO Marathon, the Past & the Present Spot Light on the Performance of Pakistani Teams in Shell ECO Marathon Asia 2011 It does not matter whether you are into b ra n ds o r n o t , everyone of us has driven into or walked p a ssed by a ga s station that has a distinctive yellow color assigned to it having a monogram that represents the name of the brand itself, as most of the people must have predicted by now, I am mentioning the brand Shell. The Dutch based oil & gas company is a world leader in energy sector, focusing not only towards the exploration & extraction of conventional fuels but also to alternatives of energy for instance bio-fuels, hydrogen, solar energy, wind energy etc.

Being a global giant Shell involves in many other activities that are basically targeted towards marketing of the brand itself via some particular creativ e activity. Shell ECO Marathon (SEM) is one such event organized by Shell international that encourages young undergraduate engineers around the globe to engage in designing, simulating, developing, testing & finally competing their vehicles in an international event in which students from multiple co untries participate with similar intentions i.e. to win. The motive of the event is basically to design such vehicles that consume minimal amount of energy for their propulsion. Winner walks away with the pride of developing the most

fuel efficient vehicle.

SE M emer g ed a s a la bor at ory experimental competition amongst scientists in the year 1939. With the passage of time it developed as a global event allowing students to utilize their innovative concepts to maximize efficiency . SEM is now a regional competition held for Am er ican, European & Asian parti cipants.

Th ere are two basic categorie s of participation classified as Urban & Prototype categories. Prototype category is assigned for the cars participating for the extreme mileage achievable, certain basic aspects of road going vehicles can be ignored to maximize the fuel economy through reduced aerodynamic drag & road friction. However in Urban category certain regulations have been set up that ensure that the developed vehicle possesses certain features that are necessary in modern day urban transportatio n vehicl es including particular ground clearance & vehicle height etc.

Various student groups or teams as they are called in the competition, from Pakistan have now participated in the Asian event for successive three years now. The trend began three years ago when a student team from NUST participated three years ago in SEM. This triggered a hustle of student groups

www.automark.pk | July-2011 44

from universitie s n a t io n w i d e in t ent i ona l t o participate in the event.

Last year a huge participation in the event was registered.

Around 30 student teams gathered for the registration process out of which 21 or 22 got the participation affirmation. Only form NEDUET a bulk of 7 teams registered to participate in the event. There were hu ge exp ectations from all th e participants of Pakistan. Sponsors & Media both backed the participants firmly to achieve what they had set out for. Automark magazine itself published ind ivi du a l r ep orts of di fferent participating teams & the event itself.

However all the hopes were shattered as most of the vehicles didn’t even made it on track in the event, those who made the cut didn’t register any official result.

A survey of this unsuccessful tour was also conducted by Automark which was compiled by the author to this very article & published in the very next edition which highlighted all the reasons behind the failure of the vehicles in the event.

Due to this catastrophic failure, limiting the number of participants for next yea r’ s ev ent w as su gg est ed & implemented in many engineering

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Exclusive Review on Mega Event institutes including NEDUET. This was done to improve the chances of success in the event of only the seriou s participants, who had done their proper h om ew or k bef or e & a ft er t h e development of vehicl e. Also, the sponsors were better assured due to limiting the number of teams to support only the most deserving & dedicated teams.

For the year 2011 a total of 20 teams were selected after passin g their technical submission from nation wide to participate in the event. The list of the selected teams has been mentioned as follows.

AIR University 1. Airians 2. Hexa-K 3. The Y-Nots!

College of Electrical and Mechanical Engineering - National University of Science and Technology

(CEME-NUST) 1. Emenents PT 2. Emenents UC 3. Pak-Wheelers Ghulam Ishaq Khan Institute of Engineering Sciences and Technology

(GIKI) 1. Aqua II 2. Infinity 3. Mech-Venturers

HITEC University 1. Iyaad 2. Pak Thunder NED Karachi 1. Paragon 2. Winmark Pakistan Navy Engineering College National Univ ersity of Science and T e c h n o l o g y ( PN EC - N US T) 1. Team Nust Pnec 01 2. Team Nust-Pnec 3. Team Nust Pnec-A University Of Engineering & Technology Lahore (UET Lahore) 1. Fireflies 2. Team Synergy 3. Team UET University Of Engineering & Technology Taxila (UET Taxila) 1. Pak Pacers The event was scheduled to happen from 6-9th July 2011, so as you read this article the event has already happened & results have been announced. From the selected 20 teams only 14 were

finally present to participate in the event.

Despite of all the hopes from this; consecutive 3rd year appearance of Pakistani teams in SEM, all seemed lost when results were reviewed. The list of all the teams & their respective performance has been mentioned in tabular form below.

As we can clearly see the results are far from satisfactory. Many teams haven’t even registered any results; some have made attempts but registered no mileage due to either failure of vehicle on track or due to non completion of assigned laps in allotted time or due to vehicle running out of assigned gas on track.

What ever the cause may be, the vehicles were not abl e to register mileage officially. Some teams out of the blue were able to register some mileage results but the economy was poor & no way near the mileage of the winners in their respective categories.

Before leaving Pakistan, many teams had claimed mileage as high as 200 km/l of gasoline. The award winner in the urban category has registered only 116 km/l of petrol, so there is only one big question, where were those claims lost on the Day of Judgment?

Team Winmark has complained after the event that most of Pakistani vehicles including theirs were delayed by Shell organizing committee. In accordance to them they got only four hours to do their five runs & that the time was insufficient to install the Efi setup into the vehicle.

Whatever the reason may be, the reality remains the delivery of an unsatisfactory result from them.

The real disappointment has come fr o m t h e te a ms wh o h av e participated two years in a row in SEM. Last years experience should have had some influence in this years result but sadly we don’t see any improvement.

One major co ncern due to these unsatisfactory results is the involvement of sponsors in the support of next year’s event. Sponsors will start loosing their trust in student teams & their abilities to deliver in the event, th is will d i r e c t l y correspond to the lack of funding due to th e la ck of sponsors interest in any fu rt h er events.

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45

Highlighting the major concerns over this lackluster performance of teams simply remains in a singular word i.e.

“Testing”. Car is a complex assembly that goes through the phases of design, design simulation, fabrication & finally testing. Simply taking a leaf out of the leading manufacturers of cars globally, the entire time they utilize to design, simulate & fabricate any of their vehicles is equivalent to the time they utilize to test this complex man made assembly.

We h ave to r emember th at th e simulations only work partially the real test comes in the real world of testing.

As we know that Car is a complex assembly, the reliability of this assembly has to be thoroughly tested before any claims about the mil eage can be recorded.

Similarly student teams utilize a lot of technical assistance in fabrication & repair of their vehicles at their bases, however all these repair & fabrication lessons have to be swallowed so that the team is abl e to ov ercom e any catastrophic failure itself at the eleventh hour.

Reaching towards the conclusion we have to say that the words mentioned have not been written to demoralize the youth, however it is our responsibility to learn from them. Youth of Pakistan is fortunate to have this immense talent within, with the capability of indulging in hard work but the misfortune comes in financial assistance. If the students keep on producing such results the financial aid will stop inevitably & the in novatio n will co nclu de with it.

Last year Automark highlighted all the aspects that led to the failure of teams in order to spread the awareness amongst this year’s team not to repeat any such mistakes again. This year we have again came up with all the negatives so that next year we can really hope to see dawn of an era with Pakistani teams registering respectable results in the event.

Hope for the very best. Cheers!

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Car / Light Vehicle Price List

SUZUKI

HONDA

Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L PETROL CULTUS Efi VXRI CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LE MT PETROL LIANA 1.3L LE (CNG) RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol BOLAN VAN VX CNG BOLAN VAN VTR PETROL BOLAN VAN VTR CNG SUZUKI VAN CARGO APV 1.5L JL SX MT (CBU) APV 1.5L JL DX MT (CBU)

Price Rs. 481,000 Rs. 533,000 Rs. 534,000 Rs. 584,000 Discontinued Discontinued Rs. 693,000 Rs. 748,000 Rs. 1,113,000 Rs. 891,000 Rs. 938,000 Rs. 1,205,000 Rs. 1,276,000 Rs. 1,175,000 Rs. 1,246,000 Rs. 508,000 Rs. 564,000 Rs. 562,000 Rs. 604,000 Rs. 620,000 Rs. 682,000 Rs. 537,000 Rs. 1,805,500 Rs. 1,956,000

Price Rs. 569,000 Rs. 539,000

NISSAN CARS Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG

Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000

NISSAN DIESEL TRUCKS Diesel Truck PKB 211 Diesel Truck PKD 411H Diesel Truck PKD 411E Diesel Truck PKD CD 411 Diesel Prime Mover CWM 454

Model CRV Automatic 2400cc Japan Accord Automatic 2400cc Japan City Manual HYUNDAI City Automatic Civic VTEC Manual Civic Oriel Manual Civic VTEC Prosmatec Civic Oriel Prosmatec

Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000

Price Rs. 5,566,000 Rs. 5,966,000 Rs. 1,379,000 Rs. 1,515,000 Rs. 1,735,000 Rs. 1,920,000 Rs. 1,860,000 Rs. 2,000,000

TOYOTA COROLLA Model XLi 1.3 VVT-i GLI 1.3 VVT-i GLI 1.3 VVT-i AT 2.OD STD 2000cc 2.OD SALOON MT 2.OD SAL SUNROOF ALTIS 1.6L Dual VVT-i ALTIS 1.6L Dual VVT-i ALTIS 1.6L Dual VVT-i ALTIS 1.6L Dual VVT-i

Rs. Rs. Rs. Rs. Rs. Rs. Rs. MT MT SUNROOF Rs. AT Rs. AT SUNROOF Rs.

Price 1,357,000 1,482,000 1,679,000 1,504,000 1,809,000 1,014,000 1,684,000 1,774,000 1,774,000 1,864,000

Hilux Pickup 4x2 Model

Price

Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled) Standard Model

CHEVROLET Model CHEVROLET JOY CNG CHEVROLET JOY Petrol

Honda Honda Honda Honda Honda Honda Honda Honda

Rs. 1,489,000

Hilux Pickup 4x4 D/C Model

Price

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

Rs. 2,359,000

CHERY QQ Model

Price

CHERY QQ Petrol CHERY QQ CNG

DAIHATSU Model CUORE CX CX ECO (CNG) CX AUTOMATIC

LAND ROVER

Model Price DEFENDER Rs. 7,59,000 (90 S/WJEEP STD) Rs. 8,09,000 (110 S/W A/C) Rs. 8,70,000 (90 Soft Top) Price updated July- 2011

Price Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260

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July

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Automotive Sector - Corporate Event

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Automotive Sector - Corporate Event

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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.

23.

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 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70

Retail Price Rs. 42,500/= Rs. 41,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 40,000/= Rs. 49,000/= Rs. 39,000/= Rs. 45,000/= Rs. 41,000/= Rs. 41,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 65,500/= Rs. 42,000/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 44,800/= Rs. 40,000/=

Sr./ No. 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 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Star DL-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70

www.automark.pk | July-2011 50

Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 41,000/= Rs. 41,000/= Rs. 42,500/= Rs. 41,500/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 40,500/= Rs. 40,500/= Rs. 45,000/= Rs. 41,000/= Rs. 40,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 42,000/=

Price updated July-2011

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MADE IN PAKISTAN MOTORCYCLES PRICE LIST

125cc Motorcycle No. 1.

2.

3.

4.

5.

6.

7.

8.

Brand & Model Name Habib HB-125 Sitara ST-125 Super Star SS-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II

Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 75,000/= Rs. 89,500/= Rs. 111,000/= Rs. 77,000/= Rs. 78,000/=

Yamaha Motorcycle Sr./ Product & Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale

Retail Price Rs. 75,900/= Rs. 72,000/= Rs. 72,900/=

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. 73,900/= Rs. 55,000/= Rs. 55,000/= Rs. 55,000/= Rs. 60,000/=

Suzuki Motorcycle Sr./ No. 1.

2.

3.

4.

5.

Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-125 Suzuki GS-150 Suzuki Shogan

www.automark.pk | July-2011 51 51

Retail Price Rs. 67,500/= Rs. 71,000/= Rs. 82,900/= Rs. 88,500/= Rs. 79,500/=

AUTOMARK MAGAZINE

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Corporate Event - Update

Fateh Group participated on Russian Day in Karachi

Mr. Aale Imran, Mr. Saleem A. Shaikh Chairman Diplomatic Committee HCCI with Kazi Asad Aabid Chairman/Cheif Editor, Ibrat Group of Publications

Naeem Sahib, Sharmila Farooqi and Asif Saddal (FTML) , Asst. Manager Marketing

Mr. Aale Imran, Sales Officer, Mr. Naeem uddin Khan, National Sales Manager, Mr. Waqar Ali, Incharge Advertisement and Mr. Ahmed Saeed, Sales Officer of Karachi Region.

Mr. Alexey SAVIN, Deputy Director and Vice-Consul of the Consulate General of Russia with Ms.Syeda Sana

Mr. Asif Saddal Asstt. Manager Export with Syeda Sana Co-Ordinator of M/s. Fateh Textile Mills Limited.

www.automark.pk | July-2011 52

AUTOMARK MAGAZINE

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