Automark magazine aug 2015 by Mustafa Hanif

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Contents

August-2015

Event

Article / Review 12

14 17 40 42 44 47 48

Auto Industry Policy 2005-06 to 2015-16 (One decade no change) Exclusive Article by AM Dealers of new vehicles enjoying unlimited support of assemblers Exclusive Article by M. Laman Samo Power Outage in Karachi Exclusive Article by Asif Masood

19 21 23 46

Defensive and Safe Driving... It’s all starts with you! Exclusive by Mohammad Shahzad Article on Chinese investment in Pakistan in Motorycle sector Exclusive by M. Yousuf Shaikh Urgent need for small engine power cars in Pakistan Exclusive Article by Owais Khan A Bolt from the Blue By Talal Hussain Malik Pakistan Biker Club - Lahore

Inside Statistics Vehicles production figures

Amreli Steel and Primetals Technologies sign accord for Steel bar manufacturing facility M-3 Industrial Estate Provision of gas, electricity a must says FIEDMC chief A.S. Auto Industries Launches Bionic Motorcycle’s Model 2015-2016

News Update 16

Automotive News in brief

Local Automoitve news - update

31 34

Why CCP cannot drive competition in car market Article on Passenger Car Sector

Car sales in Pakistan to achieve highest growth in three years International automotive news - update

Price List 38

Car/Light commercial vehicle price list

Motorcycle Price LIst

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August-2015 edition Volume 08, Issue 08

Pakistanâ&#x20AC;&#x2122;s premier magazine on automotive, engineering & energy sector

Monthly

AUTOMARK International Editor-in-chief Muhammed Hanif Memon Technical Editor

Advisors

Muhammad Shahzad

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

Advertising Manager Tahir Siddiqui

Circulation Manager Shahzad Raza

Graphic Designer Mustafa Hanif Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE M. Yousuf Shaikh M. Asif Masood Talal Hussain M. Hanif Memon Ali Hassan M. Laman Samo

Engr. IHT Farooqui Chief Operating Officer Karakoram Motors (pvt) Ltd. Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Mr. Ashfaq Memon Senior Manager Marketing Memon Motors (Pvt) Ltd. Maker of Super Star Motorcycles Hyderabad

Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Tel : 021-32603371 Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk

AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon The vi ews expressed by contri buti ng writers and com ments do not necessaril y refl ect the vi ews and poli cies of the M onthl y AutoM ark magazine' s m anagem ent

Historic nuclear agreement In the world of politics, you are supposed to presume that states act rationally in their own self-interest. Given Iran's place on the globe, it almost makes perverse sense for the Islamic Republic to pursue nuclear weapons. Look east and there's a nuclear Pakistan and India, look west for nuclear Israel, and look north for a nuclear Russia. Even Turkey, which directly borders Iran, is covered by the U.S. nuclear umbrella. Surrounded by nuclear weapons, with no superpower in its corner, Iran has been desperate for a way to assert its power. The nation already knows the risks that come from being out-gunned. Iran suffered more than 50,000 casualties from Iraq's use of chemical weapons during the Iran-Iraq War. The Middle East roils in conflict, and the power vacuum created by the U.S. invasion of Iraq has granted Iran plenty of opportunities to grow its sphere of influence while protecting itself from Saddam's fate. From the Iranian perspective, a nuclear weapon is practically a nobrainer. Yet to the rest of the world, a nuclear Iran would spark a Middle East arms race and serve as a destabilizing force throughout the globe while granting the destructive power of the atom to one of the top state sponsors of terrorism. That is why usually disparate interests, including the United States, Russia, China and the European Union, were able to unite in a sanctions regime that forced Iran to the negotiating table. This solid show of diplomatic consensus will go down in history as one of the most powerful demonstrations of global strength, and it happened without firing a single bullet. On last month, diplomats in Vienna finally announced a deal to lift sanctions in exchange for Iran delaying its nuclear program for a decade or more. The agreement's language poses plenty of technical issues that we'll wait for nuclear and diplomatic experts to sort out. On the surface, however, the terms don't seem strong enough to accurately verify whether Iran abides by the agreement. It has not been an honest player in the past, and Iran's habit of hiding nuclear progress makes it difficult to confirm whether the nation is moving forward or backward. Furthermore, bureaucratic processes will likely hamper that promise of snap-back sanctions. The United States needs to maintain strong diplomatic ties with the rest of the sanctioning nations if we hope to maintain unity in the face of an Iranian breach. Cracks were already starting to appear, with China thirsting for Iranian oil and Russia and several European nations hoping to restart economic relations with the secondlargest nation in the Middle East. Even U.S. industry groups, such as automotive manufacturers, have been eyeing Iran's growing middle class as potential new customers.

Exclusive Article on Bike Sector

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Auto Industry Policy 2005-06 to 2015-16 (One decade no change) “Sabir Shaikh said a strange phenomenon has arrived in the market in the last two years in which buyers were seen shifting towards 100-150cc bikes from 70cc bikes. He said people have fed up using low power engine bike as only 70cc bikes have been ruling the roads since late 1970s. “ Almost a decade is gone, the auto industry is in hot waters especially small and medium sized bike assemblers. At the end of last century, in Pakistan only three Japanese players were dominating the market, Atlas Honda, Dawood Yamaha and Pak Suzuki. In the start of new century, three Chinese bike assemblers namely Qingqi, Sohrab and Hero were also in bike production. By 2001, some motorcycle dealers also started import and assembling with Chinese principals without approval of government of Pakistan. But in 2002, the then finance minister Shaukat Aziz opened the two wheeler market by decreasing the duties and taxes on CBUs and also allowed five companies – Dewan Star, Sitara Guangta, Memon Super Star, Shafiq Jinan and Khalid Rocket to start local production after the approval of so called deletion programs. The entire bike industry flourished in

the Musharraf era due to low exchange rate, low taxes and duties, full support of government departments and above all sharp difference between Japanese and Chinese bike. As a result, the bike production which was less 100,000 units went up to 1.5 million units in 2007-2008. Consumers highly benefitted from the low price of bikes and due to surging demand the total bike unit manufacturing swelled to more than 50 assemblers as compared to only three Japanese assemblers. After change in government in 2008, local rupee started to losing the strength against the various currencies especially the US Dollar, Japanese Yen and Chinese Yuan. Moreover purchasing power of people started declining. As a result, the Chinese bike assemblers failed to push up the rates due to intense competition among themselves. Less than 10 assemblers managed to succeed in the stiff competition while around 40

units have been struggling to survive while some had packed up their business. There is a dire need that the Government must allow reduction in taxes in existing tariff which could encourage assemblers to produce 100cc and above bikes in the country at affordable prices. It will be a level playing for the entire bike industry. Sabir said that currently the small bike making units are highly perturbed owing to tough competition and dollar appreciation against the rupee while the tax structure is same. As a result the assemblers could not raise the prices to offset high cost of production. Motorcycle buyer’s mainly low income and medium income group especially in urban areas. In big cities especially in Karachi the snatching and theft of new bikes including Chinese had taken new heights, while the insurance companies had become reluctant in

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Monthly AutoMark International

There is a dire need that the Government must allow reduction in taxes in existing tariff which could encourage assemblers to produce 100cc and above bikes in the country at affordable prices. It will be a level playing for the entire bike industry. insuring the bikes. Due to lack of mass transport project in Karachi and other big cities consumers dependent on two wheeler and around 50 per cent buyers purchase bikes on installment basis. He hailed the Metro Bus Project introduced in Lahore and Rawalpindi Islamabad recently which would benefit hugely to the general public. He urged the government to introduce similar project or circular railway for Karachi city. Sabir said he was much hopeful from the current government for being heard their grievances and suggestions in the policy making but the government maintained the same attitude which had been in vogue since 2006. “I guarantee if our suggestions are given due considerations in the auto sector then this will definitely end up corruption on imports and amount being spent in terrorism through

cent CKDs and marketing their products as locally made products. “The government has to announce a clear cut policy for every assembler as it would discourage smuggling and improve localization. From the last ten years big assemblers are misusing the SROs of 2006 while small assemblers have yet to get the permission,” Sabir said. He said that being in the field for the last 30 years at least the government should take some benefits from us to bring new changes in the system. In the last 10-15 years, Pakistan’s small and medium sized industries have developed with their own efforts. They are now involved in assembling of bikes in collaboration of Chinese assemblers. Currently, these small units are facing huge problems and struggling to survive due to multiple issues. The Federal Board of Revenue (FBR), whose active and pro-industry chairman is performing his duty, but the valuation

the palm of director SDC then the file of the assembler remains unmoved. Sabir Shaikh said that the prime minister of Pakistan should immediately appoint a permanent director general of PSQCA for resolving the issues of small industries. Due to pending issues of the industry, sales of bikes during the current financial year have been slow despite sharp price cut in petrol from September 2014 onward, but after many years this year Eid season was also good for m o t o r c y c l e d e a l e r s i n cl u d i n g assemblers. In the past four financial years, sales of bike remained pegged at 1.6 million units per year. Sabir Shaikh said a strange phenomenon has arrived in the market in the last two years in which buyers were seen shifting towards 100-150cc bikes from 70cc bikes. He said people have fed up using low power engine bike as only 70cc bikes have been ruling the roads since late

smuggling of auto parts will also stop,’ he said adding that uniform policy will lure foreign and private investments and the industry will grow. “The government has to end up the monopoly of Japanese car and bike assemblers in order to flourish the local industry otherwise the situation will remain the same,” Sabir said. When everything was going late and there are remote chances of clearance of draft policy, Finance Minister Ishaq Dar recently assured in Japan that new auto policy would be approved by the ECC v ery soon , b ut af t er t he announcement of Federal budget 20152016 no response about Auto Policy. For the import of CBU bikes, no separate policy had been announced for the last 25 years. This is a big segment which could generate more revenues for the government. Many assemblers are importing over 100cc bikes in 100 per

issue of motorcycle parts on which rulings are being issued every year since 2006 on higher side and nobody is serious in rectifying the issue. Chairman Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh said that if the government resolves the issue of valuation ruling on genuine prices then the menace of smuggling of bike parts can be curbed immediately.

1970s. Even today no serious efforts have been made to replace the 70cc whereas the production of this kind of two wheelers had been closed down all over the world especially in India. He said the 70cc model is highly unfit keeping in view the body structure of an human being. This bike is mainly meant for the youngsters and young girls but in Pakistan girls do not ride the bikes. People who use bike in Pakistan are over 80 kg for them the 70cc bike is not fit as long ride causes pain in back and shoulders. “I am sure that people have realized this issue and that is why they are shifting towards 125-150cc bikes despite their high prices,” Sabir said. He added unfortunately Pakistan does not any variety of 125-150cc models as compared to India and China...

Pakistan Standards and Quality Control Authority (PSQCA) also does not have any permanent director general on his top post due to which low grade directors especially director standards development centre take bribe for clearing CM licenses of small assemblers. In case an assembler does not grease

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Exclusive Article by M. Laman

Dealers of new vehicles enjoying unlimited support of assemblers Abroad the automakers and the dealers both are aware of the consequences they are going to face against a proper and justified report by any customer against them. Whether the individual owns a bike, sedan or a luxury five-door SUV. Last year more than 5 million vehicles were recalled in the US in which the recalling automaker included Honda

No exchange No refund policy has made our automakers exploit their end customers to the fullest. With increasing importance given to dealers by the automakers, the local citizens are being neglected.According to stats of 2010, there are 57 cars per 1000 people in Pakistan which turns out to be 0.057%, which is no doubt very low. If you see customers are exploited and misused in every possible manner. In Pakistan people really don’t have enough choices when they want to purchase a new car. It is very simple to purchase a car here in our country as the big three continue to rule buyers every year in line with the new budget. If you considering a local hatchback car, here you go, Suzuki Mehran it is. People having a budget higher than 1.5 million go for Toyota Corolla and Honda City; it’s just simple as that.

What options are we left with? In fact let’s put it in this way, “Do we even have options left?” I guess the answer is obvious to all, none. Companies are holding conferences and get-to-gather at Bangkok and Dubai for their respective dealers just to make them happy while some companies are taking them for Umrah visits. Where can you see the general customers? People who actually buy those cars? The opinion of customers is not at all taken. It seems as what matters to the automakers are the dealers and vice versa. There is no after sales service offered by the dealers. The automakers give the most to the dealers so that they can sell as many cars as they could. Let me put you in a situation. To be honest considering advices from people is surely going to increase the sales of automakers and attain loyalty from the customers. It would have been better for Suzuki to start a campaign in which they asked the local citizens

whether to introduce Suzuki Kizashi or not. They would surely have saved a lot of cost and introduced a better car. Anyways the case is same with Honda and Toyota. With continuous success relation with dealers of both four-wheeler and twowheeler segments the customers have developed a negative image. Despite the sector being one of the largest employing sector and a high tax contributor it is still professed as anti-customers. The lack of communication between the

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Monthly AutoMark International automaker and consumers is one of the biggest reasons. The supply of automakers and the demand of consumers are not met at an equilibrium point in fact they are met at a dealer which is a turn off for customers. All around the world recalls of thousands of cars is done if there is even a slightest issue in the vehicle but here once you sign the delivery paper, no one is going to look at you. We surely are not going to blame at automakers and dealers in this matter as government plays a major role in it. There are no strict rules and laws made by the government so that the automakers and dealers can obey. Abroad the automakers and the dealers both are aware of the consequences they are going to face against a proper and justified report by any customer against them. Whether the individual owns a bike, sedan or a luxury five-door SUV. Last year more than 5 million vehicles were recalled in the United States in which the recalling automaker included Honda. Honda recalled its 2001-2005 Civic, 2001-2007 Accord and 20022006 CR-V. Is there any such act taken by automakers here in Pakistan? The answer is a big NO. The relation of an automaker and a dealer is like a mother and her baby. Where the automaker acts like a mother and trains her children to behave properly with people and respect them accordingly but I guess automakers in Pakistan have failed big time to train their children into a good one. Recently Competition Commission of Pakistan (CCP) has passed an order in which a penalty of Rs140 million is imposed on the Pakistan Automobile Manufacturers Authorized Dealers Association (PAMADA) for cartelization

in the three relevant markets of body repairs and paint jobs, genuine automobile spare parts, and trained and experienced sales and technical staff. If such steps are taken continuously, the dealers who are living in a world of fantasies are surely going to realize and feel for the pain customers have to bear in the end. On the other hand people indulge in illegal imports of used vehicles when their demands are ignored and when they feel that the auto industry just comprises of the automaker and their respective dealer. More than 39,000 vehicles were brought into the country through different schemes in the FY 1415 turning out to be a threat to the local automakers. These schemes which are made to benefit the overseas Pakistanis were used by the dealers for their personal gains. So it can be seen that the dealers are in a win-win situation and consumers are stuck in an opposite situation. It’s been ages we’re hearing that the government is trying to break the mon op ol y o f t he e xi st i ng car manufactures and remove the barriers to open it up for new players to enter the industry. Government still faces strong resistance against such steps. Recently a good vide was aired all around the country when Volkswagen decided to plant its seeds in the soil of Pakistan, but again the situation tends to become calm ever since. The government faces resistance and strikes by automakers and dealers when it comes to reducing the import duty and increasing the age. It is true that although unemployment will be seen in the country if the duties are decreased but there will be a greater part of the country with a happy face. With better

A delegation of 14 sale dealers of Metro Motorbikes arrived at Sun Island, Maldives on Monday, 27-07-2015 for a holiday & pleasure trip accompanied by Waqas Ahmad Butt, Chief Executive of Ohad Motors (Pvt.) Ltd (manufacturer of Metro Motorbikes)

cars to ride and easily affordable the 0.057% is surely going to rise to an unbelievable point. The CCP on the other hand is focusing on the entry restrictions and the role of the local automakers to resist. Huge resistance is seen in the car segment as compared to the bike segment as there were no major issues evolving from the side of local automakers such as Unique and Super Power. A senior CCP official stated that the regulator took notice after continuous complaints that the dealers of the three car manufacturers had fixed the same rates of vehicle and left no choice for the consumers. The regulator is said to have noticed that the car manufacturers had an agreement under which they did not hire human resource of each other; the CCP will issue its order against this act as well. On the other hand PAAPAM has dismissed the findings of CCP defending it by stating that the CCP doesn’t understand the dynamics of Pakistan’s auto industry and the huge investment that has already been made by them. Recently Toyota launched a new program named Sure in which the customers can purchase used cars from Toyota with 6 months warranty. This is exploiting the local car markets and people who deal in used cars. Under this Scheme, Toyota accepts all kinds of cars and in cases of exchange they even go for non-Toyota cars. The facility is offered initially in major cities of Pakistan namely Karachi, Lahore and Faisalabad while expanding it nationwide is surely under process.Through Toyota Sure program people are obviously going to tilt more towards a place where a warranty of 6 months is given but this surely is exploiting the people already dealing in used cars. No matter how much we point out, automakers are going to give more importance to the dealers and to consider the customers they surely will need to awaken sense of responsibility in them. Not only this once the automakers start looking at the perspective of the consumers, they are no doubt going to benefit out of it...

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Automotive News - Update

Illegal import of used vehicles Auto industry seeks strict steps in Trade Policy Local auto industry has urged the government to take strict measures in new Trade Policy, which is expected to be announced during first half of current fiscal year, to avert illegal import of used vehicles. According to market sources, more than 39,000 used vehicles were brought into the country under various schemes in FY 2014-15, depicting around 10 percent increase as compared to FY 2013-14. However, these schemes, which were meant to assist overseas Pakistanis, were exploited by used cars dealers for personal gains. They said the local auto industry was one of the few manufacturing sectors, which showed phenomenal progress during last few decades as around 3,200 manufacturing units of the allied automotive industry with an investment

of Rs 100 billion were established in the country. The magnitude of this industry can further be judged by its contribution to the national exchequer which is nearly Rs 90 billion per annum. The sector provides employment to 2 million people and plays a pivotal role in sustaining a blossoming vendor industry. However with all its glory there are daunting challenges which are undermining the growth of this sector. In the latest report of Pakistan Association of Automotive Parts Accessories Manufacturers PAPAAM, the schemes introduced for overseas Pakistanis for imported used vehicles were misused in an organised manner that endangered local manufacturers' investments amounting in billions.

Car sales cross 150,000 mark Car manufacturers had a blissful 201415 as they saw sales jump to 151,134 units from 118,102 in the preceding fiscal year, media reports said on Saturday. The launch of new Toyota Corolla brought a big relief to its assembler, pushing up the company’s sales to 51,398 units from 29,087 and also making a positive impact in overall sales f i g u r e s , P a k i s t a n A u t o mo t i v e Manufacturers Association (PAMA) said on Friday. Another uplift in overall sales came from Punjab government’s taxi scheme that helped sales of Suzuki Bolan rise to 23,582 units from 14,088, and that of Suzuki Ravi to 22,815 from 12,419. Even increase in car prices by the manufacturers did not dampen buyers’ enthusiasm. Moreover, a decline in interest rates to seven per cent from 10pc by the State Bank of Pakistan (SBP) in the last one year also pushed up sales by at least 10pc on cars being sold under bank financing. Launched in March 2014, Suzuki Wagon R compensated the 32pc sales loss in Swift. Wagon R’s sales more than tripled to 5,246 units in FY15 from 1,621 a year ago, while Swift sales dropped to 3,490 from 5,128. Facing stiff competition with thriving used-car imports of small engine power,

Suzuki Mehran sales slightly inched up to 29,886 from 29,509 units, while Cultus sales fell to 13,837 from 14,682. The just-ended fiscal year proved a bit difficult for Honda Civic in the wake of Toyota Corolla’s launch, as its sales dropped to 7,806 units from 9,933 in FY14. Pak Suzuki Motor Company Limited (PSMCL) did not officially announce halt in Liana production despite the fact that no car was rolled out during FY15. However, sales from old stocks stood at 23 units in 2014-15 compared to 161 a year earlier. Only 72 Lianas were produced each in October and December 2013. Hyundai Santro also faced the same fate as only 82 and 128 units were produced in January and February 2014, respectively, while no car was assembled in the 2014-15. Its sales from some old stocks were 50 units in FY15 compared to 152 in FY14. Muhammad Tahir Saeed of Topline Securities told Dawn that local car assemblers registered “an excellent” year-on-year growth of 31pc during FY15 versus just 1pc growth in FY14 and a compound annual growth rate (CAGR) of 5.3pc during the last five years (FY1115)...

They said that countries with indigenous auto industries always discouraged auto imports by applying various tariff and non-tariff barriers to safeguard local industry. Moreover, they said that as per Pakistan's Import Policy Order 201215, second-hand vehicles could not be imported for sale while new foreign cars could be imported if the trader was willing to pay a certain amount of duty and added that this was a sound policy that prevented the sale of used vehicles within Pakistan but it was not implemented. They claimed that every single vehicle imported in Pakistan had inflicted a loss of around Rs 400,000 to national exchequer whereas cumulative loss was around Rs 100 billion during past 10 years.

Auto sector PAAPAM conveys concerns to FBR The Federal Board of Revenue (FBR) has assured Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) of giving due consideration to the case of regulatory duty (RD) with reference to the auto sector. Paapam’s Senior Vice Chairman Mumshad Ali held a meeting with the FBR chief and expressed concern over the imposition of 15 per cent regulatory duty on imports of auto parts, calling it unjustified. “In case of hardening steels, the 15 per cent RD is in addition to 5 per cent import duty and 15 percent protection duty. “These items are imported by auto parts manufacturers under SRO 655(I)/2006, and not manufactured in Pakistan. In case of alloy steels produced in the country, this duty is on top of existing slabs bringing the total impact on price to 30 per cent,” he said. Former chairman Munir Bana added that as the P C T c o d e s o f r a w m at e r i a l s manufactured by Pakistan Steel Mills (PSM) are common for auto grade material...

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Exclusive Article by Asif Masood

Power Outage in Karachi

K-Electric even after privatization has a monopoly although it may have changed hands. The monopoly does not have to worry about the competition. It can therefore continue to operate with neglect and inefficiency. Since the market is guaranteed for the monopoly, it does not have to worry about its customers or their problems

A heat wave has killed at least more than thousand people in Pakistan's largest city of Karachi During the last month blistering tripledigit temperature continued to play havoc across Pakistan especially in Karachi, which is experiencing what many experts are possibly calling one of its hottest summers. A heat wave has killed at least more than thousand people in Pakistan's largest city of Karachi. The city saw temperatures reach as high as 44.8 Celsius (111 degrees Fahrenheit) & on 21 June 2015 (Longest Day in Year) was 43 Degree Celsius recorded, simply in need of associate incomparable high within the metropolis of forty seven degrees (47C) in 1979. The unprecedented and prolonged power cuts have played the fiendish role of accessory, tested the nerves of the masses. In rural areas, the duration of

electricity load-shedding has reached a total of 18 hours while a number of urban areas endured 14 hours of loadshedding. Karachi has an arid climate, albeit a moderate version of this climate. Karachi is located on the coast and as a result has a relatively mild climate. Karachi has two main seasons Summer & Winter, while spring and autumn are very short. Summer season persists for longest period during the year. The level of precipitation is low for most of the year. Less precipitation during summer is due to inversion layer. Karachi also receives the monsoon rains from July to September. But what happened as Karachi received its first spell of monsoon rain, over 120

out of 1400 feeders of K-Electricâ&#x20AC;&#x2122;s were affected, resulting in power outages in a number of areas across the city. Electricity was suspended in many areas of the city including those of Nazimabad, Gulshan-e-Iqbal, Gulistan-e-Jauhar, Lyari, Kharadar and Saddar. The city has also seen two major breakdowns in K-Electric system in less than 24 hours. The reason for the power o ut ag e w a s , powerful jerk r e c e i v e d backwards by HUBCO plant.

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Asif Masood

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Analysis of Major Breakdown Now, there is a need to analyze why this happen and what all measures to adopt to prevent it. The following are few reasons of power outage:

• Mismanagement • Theft (Kunda System) • Technical Faults • Monopolization Mismanagement While analyzing, one of the major reasons for the collapse of the power grid is the major gap between demand and supply. There is an urgent need to reform the power sector and bring about infrastructural improvements to meet the new challenges of the growing economy. These power outages can easily be prevented by the following measures: • To stabilize the grid, to sustain all types of jerks. For that K-Electric has to work out and develop a proper strategy • Integrated network of micro grids and distributed generation connected seamlessly with the main grid via a superior smart grid technology, which includes automated fault detection, islanding and self-healing of the network •Weak in t er - reg io nal p o wer transmission corridors due to multiple existing outages (both scheduled and

forced)

• Removal of Illegal Connections

Theft (Kunda System) All over Karachi, jumbles of hooks connect overhead lines to homes, adding the threat of electrocution to the perils of life in Pakistan’s crowded, violent metropolis. The theft accounts for about 30 percent in our system inflicting heavy financial losses to K-Electric Company. Stealing electricity and gas adversely affects our society. People across the country steal electricity. From cities to v i l l ag es , fr o m s l ums t o p o sh neighborhood people steal electricity every day. They steal electricity by means of a metal hook which is known as “Kunda” connecting the house directly to power lines in the street, bypassing the meter. Another common way to steal electricity is disabling the meter with a length of electrical wire.

Technical Faults Power distribution systems play an important role in present society. When outages occur, fast and proper restorations are crucial to improve system reliability. Proper outage root cause identification is often essential for effective restorations. Some of the common faults are: • Distribution system faults occur on above ground distribution lines. In most cases these faults are caused by trees coming in contact with a

distribution lines, or rodents coming in contact with phase connections. Usually, these faults can be cleared by the system, quickly restoring power with the use of auto-reclosers • Fault conditions can also be caused by the contamination of connections and insulators. When the insulation in the connection degrades, the insulation properties are lost and may cause a flashover between phases or to ground. Common causes of insulation failure are salt, air pollution and water • System transformer faults can also interrupt the distribution system. As transformers become older and insulating material de-grades from age, overload conditions, weather, etc. these may cause a fault in the distribution system

Monopolization K-Electric even after privatization has a monopoly although it may have changed hands. The monopoly does not have to worry about the competition. It can therefore continue to operate with neglect and inefficiency. Since the market is guaranteed for the monopoly, it does not have to worry about its customers or their problems. It has no incentives to respond to them and their problems. And since it has no one to answer to, it works with complete impunity, responding only to the interests of an elite class and neglecting the masses...

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Automotive News - Update

Government fails to attract investment: SBP report The State Bank of Pakistan has drawn the attention of the government towards its promises to increase investment, which could not be fulfilled. “The Annual Plan for fiscal year 201415 envisaged better energy supplies, visible increase in investment, political stability and favourable weather conditions. None of these factors could mark a noticeable improvement, which continued to limit economic growth during the year,” said the SBP in its third quarterly report. The report praised the government for the steps taken by it for improvement of economy, but it also pointed towards some critical issues in its detailed report. The report disclosed that services sector performed better than last year during the first nine months, but it was all owing to government’s involvement, and not to private sector. The services sector grew in the current fiscal year because it was mainly pushed by higher salaries and pensions of government servants and growth in financial and insurance sector; it was also because of their investment in government papers. “Despite lower growth in commodity producing sectors

(agriculture and industry), services managed to grow by 5 per cent in the fiscal year 2015, which was higher than 4.4pc of last year. The impetus came from general government services, reflecting an increase in salaries and pensions of government employees,” said the SBP. Another push was a healthy growth in finance and insurance, primarily driven by financial institutions investment in government securities, said the report. Commercial banks invested Rs1.2 trillion in government papers in the first nine months which was an all-time high. Total investment by the end of March 2015 stood at Rs5.3tr. This huge investment by financial services sector in government papers boosted services growth. The performance of private sector in the services category was disappointing. Within services, performance of wholesale and retail trade, with 18.3pc share in GDP, is closely linked to growth in commodity producing sector. “The wholesale and retail trade posted relatively low growth of 3.4pc in fiscal year 2015 compared with 4pc in the

previous year,” said the report. Another reason was slow growth in transport, storage and communications. Details indicate that visible improvement in Railways and air transport was eclipsed by negative growth in communications. “Cellular subscribers were lower as s e r v i c e p ro v i d e r s f o cu se d o n authentication of SIM cards. With the introduction of innovative packages based on 3G/4G spectrums, the communication services are likely to rebound in the coming year,” said the report. How the rising domestic debt is eating up revenues is also indicated in the report. The report mentioned that interest payments further increased in the first nine months of the current fiscal year. “Interest payments which accounted for over 40pc of the federal government’s current expenditures increased by 7.2pc in July-March of fiscal year 2015,” said the report. However, interest payments grew by 17.7pc in July-March of fiscal year 2014. “The deceleration was largely attributed to semiannual coupon payments on PIBs which have changed the schedule of debt-servicing.”

FWO sets tone for participation of financial institutions in public projects Engineer-in-Chief Pakistan Army Lieutenant General Khalid Asghar has said that foreign and local investment climate has markedly improved in the country, and the partnership between strategic and financial institutions of the country in mega construction projects of the public sector is a welcome step. He said that FWO has set the tone for participation of the country’s financial institutions in public projects and it will go a long way in the country’s development and self-reliance, he added. He said that participation of our banks in Karachi-Lahore Motorway and Karachi-Hyderabad Motorways is a great milestone. He expressed these views while addressing the Iftar dinner hosted in honour of officials of National

Financial Institutions, scheduled banks and construction and PPP experts. Other guests of honour on the occasion were NHA Chairman Shahid Ashraf Tarar and President UBL Wajahat Hussan, whereas, Director General FWO Major General Muhammad Afzal was the host and Brigadier Sultan conducted the ceremony. Major General Khalid Asghar said that Pak-China Economic Corridor will serve 1/3rd of the world’s population and will give a boost to the economies of all the countries of South Asia. Chairman NHA Shahid Ashraf Tarar said that our aim is to double the highways and motorways network through completing more projects on Public-Private Partnership basis and so far projects worth 90 billion rupees have

been completed with the support of the private sector. Earlier, DG FWO Major General Muhammad Afzal in his keynote address said that completion of development projects without the participation of private sector will be impossible and FWO has brought the country’s financial institutions, scheduled banks and the private sector closer through BOT projects that will accelerate the country’s progress. He said that now Pakistan has become an attractive foreign investment destination in the world and BOT policy will be further expanded to smaller ventures as well, and hence dependence on nati onal exchequer wi ll be minimized. —PR

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Cooperate Sector - Update

Amreli Steel and Primetals Technologies sign accord for Steel bar manufacturing facility Abbas Akberali, CEO Amreli Steels, said that financing the project through an Initial Public Offering that is scheduled sometime in August. “Amreli is looking to implement the new plant at a discounted project cost of only Rs3 billion because the company has already invested in creating the plant’s infrastructure over the past few years” he added. Amreli Steels Limited, Pakistan’s one of the leading steel bar manufacturers, has signed a contract with Primetals Technologies to build the country’s largest steel bar manufacturing facility with a capacity of 300,000 tons, per year. After the expansion, Amreli’s total steel bar capacity will be at 0.5 million tons, per year. Primetals Technologies is a joint venture between Siemens, VAI, Mitsubishi-a giant international conglomerate that provides steel manufacturing solutions across the value chain; right from the raw materials to the finished products. Having manufacturing facilities in the USA, Italy and China, Primetals is the largest supplier of equipment to prestigious steel manufacturers in the world. Amreli Steels expansion is being engineered and executed by the Primetals Technologies’ Long Products division in Milan, Italy that has a record number of 500 installed plants worldwide. “We selected Primetals because they are able to provide the kind of cutting edge technology to obtain unparalleled cost and quality benchmarks that will translate into a better bottom line”, said Shayan Akberali, managing director of Amreli Steels Limited. This investment is in line with our mission of providing the best quality steel products, he added. Amreli hoped energy consumption and wastage in manufacturing steel bars will be reduced drastically by adopting this pioneering new technology in Pakistan. He said that the expansion was coming at a time when the industry outlook is very robust and steel demand for construction is at record levels as demonstrated by the 36 per cent growth in the iron and steel sector in FY15.

Many large infrastructure, housing and commercial project s have been announced and these projects will be constructed over the next 5-10 years, Shayan said and added: We want to ensure Amreli captures the maximum share of the growing demand by investing in capacity expansion.” “Primetals is very excited about partnering with Amreli Steels for our first project in Pakistan. We are

providing a state-of-the-art-plant that is comparable in standards to any steel bar facility in the world and we believe Amreli’s management has the capability and experience to run this plant very efficiently,” remarked Sergio Galimberti, senior Sales Manager at Primetals Technologies. Abbas Akberali, CEO Amreli Steels, said that financing the project through an Initial Public Offering that is scheduled sometime in August. “Amreli is looking to implement the new plant at a discounted project cost of only Rs3 billion because the company has already invested in creating the plant’s infrastructure over the past few years” he added. He said that preliminary civil works have already started on site and engineering works have also begun and as such the plant will be commissioned in December 2016...

Sayan Albarali, MD Amreli Steel and Paloo Tassinari, Sales Director Perimetals Technologies, exchanging documents along with Abbas Akbarali, CEO Amreli Steel and Srgio Galimberti of Perimetals Technologies www.automark.pk | August-2015 | Page 21

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News in Brief - Update

LCCI, FPCCI decide to share research work The Lahore Chamber of Commerce and Industry and the Federation of Chambers of Commerce and Industry have decided to share research work for the economic development. The decision came up in a meeting between the two’s office-holders at the Lahore Chamber of Commerce and Industry also drawing in Lahore Chamber President Ijaz Mumtaz, Senior Vice President Mian Nauman Kabir, Vi ce President Syed Mahmood Ghaznavi, Federation of Chambers of Commerce and Industry President Mian Muhammad Adrees, Regional Chairman Khawaja Zarrar Kaleem, Vice Presidents SM Naseer and Hameed Akhter Chadda. In a speech, Federation of Chambers of Commerce and Industry President Adrees stressed the need for maximising interaction between his and the Lahore Chamber and its constituent trade bodies to get resolved the issues being faced by the trade and the industry. “There is a dire need to jointly work to improve Pakistan’s perception that has been tarnished by the country’s enemies for their ulterior motives. All the chambers of commerce and industry and trade bodies will have to work hand in hand to achieve that goal,” he added. Lahore Chamber President Mumtaz

then gave a detailed briefing to his counterpart’s office-holders on a string of measures by the Lahore Chamber to supplement the government efforts for the economic revival. He also talked about the current economic challenges and stressed the need for collective approach to take the country out of these. He said, “Pakistan cannot make a global impact only because of lack of awareness about latest business methodologies. Had awareness been there for the business community, the situation would have been far better today. The Lahore Chamber is also spending a considerable amount of energy on collection of necessary business-related data that will help bring convert certain disorganised sectors into organised ones.” Former Federation of Chambers of Commerce and Industry President Iftikhar Ali Malik said, “The Federation of Chambers of Commerce and Indu st ry’s strength lies in the strengthening of its constituent institutions therefore all the chambers should work for the promotion of trade and industry. Collaboration between the public-private sector, academia and intelligentsia are a prerequisite to achieve the goal of progress and prosperity.”

Shell encouraging customers to make pledge toward fuel-efficient Pakistan Shell Pakistan is encouraging its customers to pledge toward a fuel efficient Pakistan. In its new initiative, the oil marketing company is telling customers that the right behaviours, with the right fuel, can help improve fuel economy. The pledge can be made on the purchase of Shell Super Unleaded worth Rs 500 and Rs 1500 for motorcyclists and motorists respectively. Customers who take the pledge will be eligible to win free fuel for a month or for a year. Shell Super Unleaded is the company’s main grade fuel, which has been developed by the company’s global team of scientists. The fuel is designed to provide extra kilometres by preventing build-up of deposits that can damage the engine’s performance over time.

Mazhar-Uddin, GM Retail, Shell Pakistan, said, “We have observed that the majority of people in Pakistan want to save fuel but are often unaware or misinformed about the right behaviours needed to achieve that goal. Hence, we are providing customers practical and tested fuel efficiency tips, alongside a specially formulated fuel, which is designed for extra kilometres.” “We are asking our customers to make a pledge that they will be committed to the cause of fuel efficiency for Pakistan and its future,” he added. Shell Pakistan recently conducted a survey titled Fact or Fiction, which revealed that 71 percent of drivers consider fuel efficiency to be important. —PR

DAP to hold SAARC trade fair, WEXNET in Dec-2015 Trade Development Authority of Pakistan (TDAP) will organise 12th SAARC Trade Fair 2015 and WEXNET 2015 at Expo Centre Lahore from December 4 to 6, 2015. It will be a mega event of TDAP which provides a unique opportunity to the Pakistani exporters and export houses to showcase their products and service sector. According to TDAP sources, exhibitors from SAARC countries and women entrepreneurs from Pakistan will participate in this expo by displaying their products including textile items, leather garments, footwear, handicrafts, gift items, beauty care items, food products, pharmaceuticals, herbal medicines, jewellery, furniture, cutlery, sports goods, carpets, marble and granite etc. The fee will be Rs 10,000 for the participants from Lahore and Rs 5,000 for the participants from other cities. However, fee for participants from SAARC countries will be US 100 dollars. The intending participants can apply up to August 25...

PSO gets another acting MD The Ministry of Petroleum and Natural Resources has terminated the services of Shahid Islam as managing director of the Pakistan State Oil (PSO). Administrative affairs at the country’s largest state-run oil supplier are being run on ad hoc basis ever since the federal government had sent packing the entire management of PSO in the wake of petroleum crisis in January. “Acting Charge appointment of Mr Shahid Islam as MD PSO stands terminated with immediate effect,” said the ministry in a stock filing on last month. Yacoob Sattar, a senior general manager at PSO, has been assigned to look after the work of the company in addition to his own duties. The newly-designated managing director, who also is the MD of Asia Petroleum Limited, would be serving at PSO’s top slot till the joining of regular incumbent...

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Pakistan Industrial News - Update

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M-3 Industrial Estate Provision of gas, electricity a must says FIEDMC chief The provision of basic amenities in cl ud ing gas is imperative for rapid colonization of M-3 Industrial Estate and in this connection collaborated efforts would be made on top priority basis. This was stated by Main Muhammad Adrees chairman Faisalabad Industrial Estate Development and Management Company (FIEDMC) while addressing the first meeting of the reconstituted Board of Directors of FIEDMC at FCCI complex here on last week He said, “I shall personally talk to Prime Minister Mian Muhammad Nawaz Sharif to get reasonable quota of gas for its expeditious colonization. He was also appreciative of the vision

and administrative capabilities of Chief Minister Shahbaz Sharif for the systematic and planned industrialization of Faisalabad and assured full cooperative in achieving objective at the earliest. He also thanked the chief minister for reposing confidence and nominating him to head the BoD of FIEDMC. He directed the officials of FIEDMC to prepare a comprehensive report on the missing facilities in M-3 Industrial Estate including gas so that this issue could be taken up with the Prime Minister. He said that efforts would be made at all levels to make M-3 Industrial Estate fully functional within the shortest possible time. Engineer Rizwan Ashraf, President FCCI said that provision of gas, electricity and

steam is must to attract processing units housed in thickly populated urban areas of Faisalabad. He said that these units will prefer to be shifted to FIEDMC if these facilities are ensured. The BoD also discussed other related issues including environment related problems. The meeting was also attended by Shahid Arshad, Nazim Shahzad, Muzammal Sultan, Maj Shahnawaz(retd), Ms Sharmin Asem and Ms Nighat Shahid in addition to the secretaries of different provincial departments. Earlier, Amer Saleem Chief Operating Officer FIEDMC gave a briefing to the newly constituted BOD of FIEDMC.

Agriculture sector Pakistan, Belarus to sign three agreements Pakistan and Belarus will sign three agreements related to agriculture machinery, promotion of biotechnology and betterment of livestock sector for strengthening agricultural cooperation between the two countries. The pacts to be signed during the upcoming visit of Prime Minister Nawaz Sharif to Belarus next month. Dr Iftikhar Ahmad chairman Pakistan Agriculture Research Council (PARC) said this during the visit of four-member delegation of Belarus scientists. “NARC has prepared the contents of three agreements which would be signed with Belarus during next month” he said. However, the three agreements would be finalized after the end of discussion between scientists of two countries”, Dr Iftikhar said. He said that the main objectives of signing of three agreements with Belarus to promote agriculture on modern lines. PARC chairman further said that in Belarus there were about 16000 scientists for 10 million people while in Pakistan there are only 600 scientists

for over 200 million. He urged the Belarus delegation to highlight the importance of agriculture sector during the upcoming visit of Prime Minister to Belarus. He said that agriculture cooperation with Belarus would ensure exchange of Knowledge and latest technology. The cooperation with Belarus would also help Pakistan to take full advantage of Pak-China Economic Corridor and establish agricultural sciences parks on the thoroughfare. Belarus delegate Academician Secretary, Department of Biological Sciences of National Academy of Sciences (NAS) Belarus, Mikhail Nikiforov during his presentation said that Belarus has developed several crop technologies that could be utilized for the betterment of Pakistan agriculture sector. Cooperation in science and technology would benefit both the countries, he said. DG Scientific Practical Centre NAS for Agriculture Mechanization, Siarhei Yakouchik said that Belarus farmers use 80 percent homemade agriculture

machinery. Belarus scientists have produced 200 agriculture machines during past seven years, he added. Yakouchik said that Belarus is ready to share knowledge and technology with Pakistan. Deputy Director General NASB Scientific Practical Center on Animal Breeding, Piatrushka Ihar during his presentation on efficient animal breeding via innovation said that the his country has developed livestock on modern lines and offered cooperation in fish, meat, milk and poultry. The Belarus scientist’s delegation has reached Pakistan on July 27 and the delegation will hold discussion with scientists of PARC. An official of NARC said that the scientists of PARC and Belarus have held detailed discussions on last week. The discussion would continue for the next two days for identification of common areas of interest as well as exploration of the areas of agriculture and livestock cooperation....

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Karachi Transportation - Update

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In a rare first, govt asks city’s architects to weigh in on Karachi BRTS After EA’s Tahir Soomro presented the design, the main feedback from the planners was that an overarching authority is essential to manage all the BRTS lines. But the Sindh Mass Transit Authority law is in limbo for now. A centralised IT system to coordinate all bus fleet timings and other moving parts is needed. The elevated parts of the Green line should not destroy 60-year-old trees along the route A Sindh government official heading a project asks Karachi’s best architects and planners to give their input on it? Your chances of sighting a unicorn on Sunset Boulevard are higher. But this is precisely what unfolded at the EOBI office on last month with its chairman Sualeh Faruqui at the head. The project he wanted feedback on is the Green bus-rapid transit line from Surjani to Quaid-e-Azam’s Mazaar. This mass transit is the internationally accepted transport solution today and the Green line is one of nine lines the Japanese aid agency mapped for the city. Bahria is eyeing the Blue line and the Chinese the Yellow one. The Japanese have long been interested in the black Karachi Circular Railway. The ADB and ITDP have been involved on the Red line. Karachi is the only megacity in the world that doesn’t have mass transit and Nawaz Sharif gave the city Rs16 billion to do it. Almost half of this money is in the accounts of the company created to run development in the city: the Karachi Development Company Ltd. Using a public limited company means that these funds won’t lapse if not used in government coffers by the end of the fiscal year. The prime minister has tasked Faruqui, who used to work with him as secretary of economic affairs, to push through this project upon his posting back to Karachi. The Green line has been designed by EA Consultants (Pvt) Ltd., which has submitted the environment impact assessment to the Sindh environment protection agency. They hope to start building in September and finish in one year. The design will be placed before the steering committee in a week’s time and if all goes well, the bidding for

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The prime minister has tasked Faruqui, who used to work with him as secretary of economic affairs, to push through this project upon his posting back to Karachi. The Green line has been designed by EA Consultants (Pvt) Ltd., which has submitted the environment impact assessment to the Sindh environment protection agency the contract to build it will open at the end of this month, Faruqui told media. Given that the Green line’s design is being run through its final stages, Faruqui agreed to take feedback from the city’s key planning minds. Invited to the discussion were architects Yawar Jilani of Arcop, Syed Akeel Bilgrami, Husnain Lotia and Shaista Khaliq, EA’s Khawar Ghani, Aqeel Kapadia, Dr M Tahir Soomro (also a former director of Karachi’s mass transit cell) and Tanveer Ahmed, the Institute of Architects of Pakistan’s Komal Parvez and Shahab G hani , Farid a Ghaffar of NED University, Nooruddin Ahmed of the Institute of Engineers of Pakistan, Mumtaz Jilani of Nespak, Roland deSouza of Shehri-CBE, Zahid Farooq of the Urban Resource Centre, development specialist Fazal Noor and several architects from Arcop. “We have been looking forward to this interface and it’s unfortunate that presentations of this nature don’t happen,” remarked Yawar Jilani. Karachi is a city starved for planning but generally requests to the government from private planners have not been entertained. After EA’s Tahir Soomro presented the design, the main feedback from the planners was that an overarching authority is essential to manage all the BRTS lines. But the Sindh Mass Transit Authority law is in limbo for now. A centralised IT system to coordinate all bus fleet timings and other moving parts is needed. The elevated parts of the Green line should not destroy 60-yearold trees along the route. The architects also asked if there was a park-and-ride element to the design around the bus stations so people could leave their motorcycles and use the BRTS. Fazal Noor pointed out that the design didn’t seem to integrate local traffic and the mass transit. What about people who want to come from beyond the 500metre catchment area? Will they take chingchis or buses to the BRTS stations? And more importantly, given that these areas have been declared high-density

zones where real-estate development is exp ect ed, i s t he BRT built to accommodate future population capacities? But most of all, the experts stressed that the bus stations should not be built in isolation but factor in the culture and social needs of their surrounding environment. What’s the plan?: The EA’s design for the Green Line The Green line, which is expected to attract the highest ridership from the nine lines, has 10 major intersections. Sakhi Hasan intersection alone gets 380,000 vehicles daily. So EA Consultants Pvt Ltd is designing to ease the congestion by giving priority to BRT buses. According to EA’s Tahir Soomro, the buses have to compete with the existing public transport or the enterprise fails. The buses are airconditioned. For tickets, no money will physically changes hands as passengers will use smart cards. EA’s Khawar Ghani spoke about using structures that are “easy to build and cheap to construct and maintain or could be fabricated”. “We are not going to build monuments,” he said, “Something for which you need to give billions of rupees.” Sustainability is key. For example, EA has decided against using

glass as dividers at the bus stations because no one will be able to clean it. Ghani pointed out this mistake being made in Islamabad’s BRT stations. “It traps heat and who will clean it,” he said. The challenges for the Green line design are the electric pylons, existing U-turns, intersections and water lines. But EA is trying to come up with solutions. Another challenge is for the government to create an IT system that manages the entire BRTS network. Faruqui was cognisant of this crucial element. Integration, so that all the moving parts work in unison and standardisation, are essential for BRTS to work in Karachi, he said, adding, for example, “You can’t have a coin-operated system being used by one line and a card on another.” Follow-up sessions with the private bus operators and city planners and architects are planned with the Sindh government teams working on the BRTS projects. Curtesy: Published in The Express Tribune, July 25th, 2015.

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Automotive News - Update

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‘Conditional’ approval of Orange Line project EIA The environment department has approved the Environment Impact Assessment (EIA) report of the Lahore Orange Line Metro Train Project on certain conditions. Accordingly, it has asked the executing agencies to spend one per cent of the total scheme cost on tree plantation and address other environment-related issues. Meanwhile, the Lahore Development Authority (LDA) and its subsidiary Traffic Engineering and Transport Planning Agency (Tepa) are set to complete the project piling load tests within next 15 days or so as the requisite work is under way under technical assistance of the China Railways (CR) and Norinko, an international joint venture that has to accomplish the Rs165 billion project. Officials claim that since the EIA report f u lf il led all requ ir eme nt s, the department approved it after it was presented before the public at large in a hearing and two committees of experts studied it recommending various mitigation measures to be taken by the project executing agencies. “We have approv ed the report conditionally. Under these conditions, the agencies (LDA, Tepa and others) are liable to spend Rs1.65 billion (one per cent of the total project cost) to address the environment-related issues,” Naseemur Rehman, Environment Department’s director.

Process of pile load test afoot As for other conditions, he said the agencies would follow the entire National Environmental Quality Standards and other measures while implementing the project. During all construction phases right from piling tests to civil work to mechanical works etc., the agencies would be liable to ensure proper safety of construction workers and the people living near the sites/camp offices, waste management, water, sanitation and

drainage, traffic management, uprooting or cutting of trees and replacement with more tree plantation, safety of buildings and heritage sites on the project road (from Ali Town to Dera Gujran via Multan Road and Railway Station), land acqu isi ti on, comp ensat ion an d resettlement or rehabilitation of the affected people. “We have advised the government to minimise acquisition of land for the project as it badly affects routine business/life of a common person. The government has already acted upon this and minimised it after it changed design of the project by keeping all the train stations (except two that would be underground while crossing The Mall) elevated. And now the land acquisition will only be for the stairs at grade (ground) to reach the stations,” he said. He said the department had also sought total coordination between the executors and the line departments such as Lesco, Wasa, ar cheol ogy et c. , d uri ng construction phases. He said since the department in the light of the EIA’s public hearing had recommended offering market rates to those whose land would be acquired, the government had committed to so by constituting an assessment committee. The LDA and Tepa are conducting

project pile tests (each of 1,000 ton) at various locations of the route including one near Shahnoor Studio (Multan Road). Besides Multan Road, the pile tests, according to officials, are being done near GPO Chowk (The Mall) and some other important locations. Pile load test facilitates the engineers in having information on ultimate bearing capacity but not settlement behaviour besides determining that if the load is taken up by the stratum designed or if the centre of resistance is at the design location in piles as suggested or required. “We hope that the pile load test exercise will complete soon after which the engineering officials will start the civil work,” Tepa Additional Chief Engineer Khalid Alvi said. He said detail design of the project had been completed by CR-Norinko in collaboration with Nespak, LDA and Tepa. He said the entire civil nature infrastructural work would be completed by the LDA. And the mechanical /electrical works related to laying of track, bringing and running trains, signals, control room, operations would be done by the joint venture. Curtesy: Daily Dawn

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Automotive News - Update

Gas processing plants BoI invites Chinese firm to invest The Board of Investment (BoI) invited on last month China Petroleum Company (CPE) to participate in the bidding process to establish gas processing plants in South Punjab and Hyderabad where 700MQF gas will be provided by the government of Pakistan per day. Chi Shangdaong, Chairman, CPE with his six-member delegation visited BoI and met with Chairman Dr Miftah Ismail, Dr Raania Ahsan, Acting Secretary and Executive Director General, BoI Saleem Ahmed Ranjah were also present. The Chairman BoI informed the Chinese that Pakistan was committed to provide an investment-friendly regime to investors by offering lucrative fiscal incentives and conducive business environment. The Chairman BoI briefed the delegation regarding the available investment opportunities in oil and gas and power sector of Pakistan.

The CPE is an international engineering company focusing on surface facilities of petroleum upstream industry, headquartered in Beijing with eight branches and subsidiaries in China, as well as 12 main overseas branches and subsidiaries. Chi Shangdaong thanked the BoI for coo pe rat io n an d p ro vi d i ng an opportunity to discuss the available investment opportunities in petroleum sector in Pakistan. Chi Shangdaong gave a detailed presentation on the capacity and working experience of the company and briefed that their company was the biggest petroleum engineering company of China. He informed that China Petroleum was already working in Pakistan and their two projects were almost functional and looking forward for further investment in Pakistan. CPE has completed over 25,000 projects in China and abroad, and the overseas

projects are distributed in countries of Middle East, Central Asia, North Africa, America, Australia, Europe etc. He further briefed t hat C hi na and Pakistan have entered into a comprehensive multi-fold plan of economic development project between the two nations. The ChinaPakistan Economic Corridor is a $ 46 billion gift from the Chinese nation to Pakistan. High-level infrastructure development will link Kashgar in Western China to Pakistani centres of Lahore, Islamabad, Karachi and ultimately the Gwadar Port. The Chinese Economic Corridor will link Western China to Middle East and Africa through a 3,000km long motorway and has immense economic potential in services especially transportation, energy and industrial development. Dr Miftah Ismail, Chairman, BoI assured them full cooperation and appreciated their interest in further investment in Pakistan. —APP

Pakistan Customs, State Bank join hands to monitor export proceeds, facilitate global trade In order to plug loss of precious foreign exchange because of non-realization of export proceeds and use of fake FormE, the Pakistan Customs and State Bank of Pakistan are collaborating to ensure proper monitoring of flow of money and facilitate global trade. It may be mentioned here that manual Form-E are being discontinued by the end of July 2015 and electronic E-Forms and BCAs have been jointly prepared by SBP and Pakistan Customs, which will be implemented from August 01, 2015. An official said the two organizations had joined hands considering the need to adopt and align with the new international standards and enhance speed of transactions with minimum human interaction. Realizing the importance of fool proof trade & facilitating the movement of international cargo through Customs; need to harmonize national Customs , banks and State Bank’s legislation and cargo movement with the WCO standards; Pakistan Customs and State Bank of Pakistan would soon enter into an agreement. Sources informed Customnews.pk, that Customs and the central bank have

agreed to cooperate with each other in the implementation of hassle free, electronic E-form and BCA standards in the launch of the new automated manifestation framework for the commercial banks operating in Pakistan. Both organizations will also cooperate in the implementation of exports transactions information exchange standards. In order to facilitate smooth transition to electronic E-form and BCA, State Bank of Pakistan would provide a review of the technical documentation prepared by Pakistan Customs to map out its electronic connectivity in conformity with State Bank of Pakistan rules and procedures; Provision of technical guidance on the incorporation of the various business standard operating procedures by Pakistan Customs in its automated customs clearance platform pertaining to air cargo, sea cargo and land border stations cargo thus facilitating its successful roll-out; Resolution of technical issues faced by Pakistan Customs development team in the course of coding the relevant set financial procedures standards into its

electronic application; Rendering assistance to Pakistan Customs in testing out the exchange of XML messages in a live environment with various commercial banks for validation of the development process. For implementati on of exports transactions information exchange standards, State Bank will provide information on the existing and emerging international standards, best practices, and technical resources to Pakistan Customs; render assistance to Pakistan Customs in testing out the actions, reactions and interactions messages in a live environment with an airline for validation of the development process. State Bank of Pakistan’s will technically assist Pakistan Customs in harmonizing its Cargo movement legislation with best international monetary transaction standards by reviewing the draft legislation prepared by Pakistan Customs in this regard. SBP would also share existing legislation of other Customs Administrations for identification of the prevailing practices and precedents....

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Transportation News - Update

Monthly AutoMark International

Pakistan Railways prepares for tougher challenges ahead Though the company is recovering and increasing its locomotive strength by rehabilitating and purchasing new engines from the most trusted name – General Electric – mostly for freight operations, its assets are deteriorating. “The railways lacks technical and infrastructural expertise as it didn’t hire the required technical staff due to small number of express and branch line trains,” the official said. The biggest challenge for the railways is to meet expectations of China, which is providing $3.69 billion under the China-Pakistan Economic Corridor. As part of the programme, the Karachi-Peshawar (Havelian) track, also called Main line-I, will be rehabilitated to run trains on a fast track of 160 km. Pakistan Railways, one of the most important strategic assets of the country, is struggling to make up for the lost momentum by removing the huge dent it received on finances and credibility in the near past. However, the challenges ahead are even tougher as the management will have to undertake and complete some key projects within a set timeframe as well as meet passenger expectations and boost freight strength. According to railway officials, the company had gone past its debacle period (2008-13) and what the current ma na ge me n t i s d oi n g f o r i t s rehabilitation is quite satisfactory. “Don’t trust our claims, just check the revenues, they will tell how much we have recovered in the past two years,” said Javed Anwar, Senior General Manager Operations of Pakistan Railways, while talking to media. “We have put the company on track again and are hopeful about the future.” After a span of eight years, the railways managed to beat targets in fiscal year 2013-14 and earned Rs2.38 billion more than the target of Rs21.6 billion. The income was also higher by Rs5.91 billion compared to a year earlier. For 2014-15, the revenue target was set at Rs28 billion and Anwar voiced the hope that the figure would reach Rs31 billion. However, another railway official pointed out that though earnings would be much better, the company was likely to face a deficit of around Rs12 billion in 2014-15.

In the past two years, the railways has managed to bring down the deficit to Rs18 billion, which stood at around Rs30 billion earlier. “We are focusing on freight operations, the main source of revenue generation, and hope that the operating ratio will fall below 100% in about three years, which will turn the railways into a profitearning company,” said Anwar. The ratio currently stands at around 138%. The number of freight trains has gone up to 10 per day from the low of one per day. Freight revenues are also likely to touch Rs8 billion this year, the highest ever in the history of Pakistan Railways.

Assets deteriorating Though the company is recovering and increasing its locomotive strength by rehabilitating and purchasing new engines from the most trusted name – General Electric – mostly for freight operations, its assets are deteriorating. “The railways lacks technical and infrastructural expertise as it didn’t hire the required technical staff due to small number of express and branch line trains,” the official said. Apart from this, the tracks and bridges are in a dilapidated condition. Of the total 13,841 bridges, most have crossed their life span. Signalling system too has not been upgraded, which may lead to an unpleasant situation. “We are working with a small number of technical workers since the financial health of railways is not allowing the recruitment of new staff,” said Inayat Ali, President of the Railways Workers Union. “It is now looking for more

government support like in the case of purchasing new coaches.” Pakistan Railways also has to play an important role in the shipment of coal to some power plants, which are currently being developed. “It is true that some tracks and bridges are in poor health, but we have put in place engineering restrictions wherever the infrastructure is weak,” Anwar said. “This means that the train should cross those points at a slow speed, but we have to strengthen the tracks to travel at a fast pace.”

For coal transportation, the railways can use existing infrastructure for Sahiwal and Jamshoro power stations. For other projects, the company would have to invest in infrastructure development, he said.

CPEC project The biggest challenge for the railways is to meet expectations of China, which is providing $3.69 billion under the China-Pakistan Economic Corridor. As part of the programme, the KarachiPeshawar (Havelian) track, also called Main line-I, will be rehabilitated to run trains on a fast track of 160 km. “I don’t think railways can go for rehabilitation and upgrading of the new track alone. We have limited powers and have the expertise to only repair or lay short-distance tracks,” Anwar said. Curtesy: The Express Tribune

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City Bike News - Review

Monthly AutoMark International

Helmet-wearing drive withers away in just 30 days!

Karachi traffic police’s ‘helmet compulsory’ drive has lost momentum just within a month, Pakistan Today has learnt through reliable sources. As per details, Traffic Police DIG Ameer Sheikh had announced that wearing helmets would become mandatory for motorcycle-riders in the metropolis from June 1 otherwise he warned to taking strict action against the violators. He had further directed that those traveling along with the rider would also be compelled to wear helmets besides the women. However, the date of implementation of helmet mandatory drive was extended till June 8 because of pressure from the city residents. Later, Sindh Inspector General (IG) Ghulam Haider Jamali announced to exempt women from the traffic regulation under which wearing helmet was declared mandatory for all motorcycle riders as well as pillions. The drive which was implemented from 8th June 2015 already faced a lot of criticism in its initial stages. With the exemption of ladies to wear helmet, the policy was provoking racism issues. Safety is for every gender, weather one is a male or female, it is the right of every individual to have basic safety features. Th e t ra ffi c p ol i ce w ar ne d a ll motorcyclists to ensure they have their helmets on otherwise pay the fine. They also stressed that not just the rider, but the ones sitting behind him would also have to wear safety helmets. According to a traffic police official, “Three people cannot ride a motorcycle

as per the law, but usually we give the commuters benefit considering the shortage of public vehicles.” “The ‘helmet-compulsory’ drive will be for everyone. Violators will be fined Rs 150 under Section 89-A of the Motor Vehicle Ordinance, 1965,” he said. “This law says that no person shall drive, or ride the pillion seat of a two-wheeled motor vehicle except when he is wearing a crash helmet, even children on motorcycles will have to wear helmets,” he further added. With the news of this campaign on air, bike riders headed towards the market. As expected, helmet vendors became the first beneficiary with the launch of this drive. The city’s prime location for helmet vendors, Akbar Road in Saddar, boomed with this activity a month ago. According to Lucky Helmets, a helmet vendor located at Akbar Road, their sales for helmets witnessed a dramatic increase since the drive started but it went down after few weeks. According to one of the young buyers, Nisar, who claimed to have made his way to the market after watching the news on TV, the prices of helmets had doubled overnight. “The Chinesemanufactured helmets which cost around Rs 500 to Rs 700 now cost Rs 1,200,” adding that the traffic police had provided the helmet vendors a way to loot the public at the start of drive. “Despite all this, we manage helmets to avoid challan, but the traffic police drive ag ains t vi ol ato rs has los t the momentum,” he claimed. If you notice, throughout the world law

is only enforced when there is a pressurizing head over the citizens, a case not found in our beloved country. There are mainly two types of bike riders, first are those who don’t bother to purchase a helmet rather just fill the pocket of the guy in white uniform with Rs 50 note. Then there are people who have purchased a helmet but don’t make use of it due to the lenient law enforcement authority. Another segment of bikers which is almost equal to zero are those who actually wear helmets and are sensible enough to secure themselves from any unfortunate incident. Now, if you visit the entire metropolis without helmet, no one would stop you for not carrying the safety gadget. This in the end provokes a question for the law enforcement authority. We citizens need to change our mindset too. Whenever an action is taken for the benefit of people, a nation cry is heard stating that the particular action is looting them. Instead of benefiting from it people started criticizing the campaign tagging it as a way to collect Eidi before Eid. This particular campaign was a good step taken by the government for the citizens to play safe. With the upcoming monsoon season, the bike riders are the ones most affected so having a helmet on saves from a major injury. It is true that the lack of efficiency of law enforcement authority wiped off the campaign but also the negative attitude of the people turned out to be a reason for its failure too...

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Monthly AutoMark International

Japan-only Toyota Sienta launched Toyota has launched its secondgeneration version of the Sienta peoplemover for the Japanese domestic market. New from the ground up the compact people-mover adopts the old car's practical sliding doors. Created, Toyota says, to be the antithesis of boxy minivans, the seven-seater boasts stadium-style seating inside to give everyone inside a better view. Said to have a ‘high-grade’ interior, the clean expansive dash is dominated by a new 4.3-inch infotainment system. For the new model there’s a greater level of customisation available in the cabin with three different interior colour schemes that include orange accents with unusual piano black trim. With a flat, low floor, the Sienta can be opted with five, six or seven seats and Toyota even makes a version for wheelchair users. Under the bonnet there’s the option of a 54kW 1.5-litre or a 73kW 1.5-litre hybrid. There’s also the option of allwheel drive for Japan’s notoriously bad winters in the north. The Sienta also comes equipped with autonomous braking, lane departure warning and high-beam assist. Instead, the Sienta will continue to be available in Japan and Kenya, of all places, with domestic pricing starting from just $18,500.

Toyota recalls 625,000 hybrid cars worldwide because of a glitch that can shut down the entire system while driving Toyota Motor Corp said on Wednesday it would recall about 625,000 hybrid cars globally to fix a software glitch that could, in limited cases, shut down the hybrid system while the car is being driven. Models affected are certain Prius v minivans, called Prius alpha and Prius+ in some markets, among other models, produced between May 2010 and November 2014, the automaker said. About 340,000 vehicles of the total are in Japan, 160,000 in Europe, and 120,000 in North America, it said, adding there had been no reports of crashes or injuries...

Toyota’s Turkey unit exports fall 30 percent as Russia bites: CEO The Turkish unit of Toyota Motor Corp saw first-half exports slump by 30 percent to 42,433 units after a weaker ruble hit Russia’s car market, but it hopes to pare losses with sales domestically and to Europe, the unit’s chief executive has said. Toyota Turkey has been one of the 10 biggest production facilities of Toyota Corp outside Japan, with an annual production capacity of 150,000 units. “We saw a significant decrease in our exports this year due to the economic problems in Russia and the loss of value in ruble … Russia is the largest market for our Corolla brand. We had originally planned to sell almost a quarter of our Corollas to Russia, but we have yet to sell even 10 percent,” Orhan Özer told Reuters on July 8. He noted that Russia’s automotive imports decline by 45 percent this year, and the Russian market had shrunk by 41.5 percent. “Many investors have revised, postponed or canceled their production and investment plans. Our exports and production volume have been affected in this vein,” he said. The company expects to finish this year with a 9 percent decline in sales, or about

120,000 vehicles, by increasing sales to Turkey, Poland, Britain and partially Israelmarkets, said Özer. Toyota Turkey sent around 33 percent of its Corollas toRussia and 18 percent to Israel last year, Özer said, adding that some 16 percent of total sales were made in the Turkish market. In the first half of this year, Toyota Turkey has made the highest volume of automotive sales to Israel with 7,669 units, to Russia with 4,464 units, to Egypt with 3,900 units, to France with 3,161 units and to Spain with 2,780 units. Özer said the Japanese automaker would also be very interested in selling vehicles to neighboring Iran, if the market opens up in the wake of a prospective nuclear deal between Tehran and world powers. “We expect the second half of the year would be better than the first half for the automotive exports. Despite several global risks and some domestic uncertainties, I believe stability will be maintained and further positive developments will take place in the second half of the year,” he said.

Driverless cars have close call in California Hey, my algorithm indicates that I am driving here! Two autonomous cars made history this week when one cut off the other on a Palo Alto, Calif., street. According to Reuters, a self-driving Audi Q5 prototype built by automotive supplier Delphi was attempting to make a lane change when a similar car owned by Google abruptly pulled in front of it, causing the Audi to abort its maneuver. There was no robot road rage reported. The Delphi car “took appropriate action,” said the company’s Silicon Valley Director, John Absmeier, who was a passenger in the car at the time

of the near-miss, during which no accident occurred. Google had no comment on the incident. To date, no autonomous car operating under its own control has been involved in a collision on public roads in California, where testing is permitted with state approval. Earlier this year one of Delphi’s Q5s completed a coast-to-coast trip driving itself 99 percent of the way. It reports encountering several aggressive drivers along the way, all of them human, but it looks like the times are quickly changing.

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International Automotive News - Update

Monthly AutoMark International

Japanese Automaker Mitsubishi Motors to End U.S. Production

Annual production at the plant, which makes the Outlander SUV, has fallen to 64,000 vehicles from more than 200,000 in 2002. The company sold only 82,000 vehicles in the U.S. last year â&#x20AC;&#x201D; less than 1 percent of the total market. Mitsubishi Motors confirmed on last week that it plans to stop production at its only U.S. factory and sell the plant in central Illinois that has more than 1,200 workers. The Japanese automaker reviewed its global supply chain and decided it was necessary to end production at the plant and find a buyer, said Dan Irvin, the company's North American spokesman. The announcement came after Japanese media reported the automaker had decided to end production in the U.S. to focus on Asian markets. Irvin said Mitsubishi's board will soon make a formal decision on what will happen to the plant in Normal, Illinois, about 100 miles southwest of Chicago. Company officials hope to find a buyer that will maintain the factory's employment. The president of UAW Local 2488, Rod DeVary, said workers were told that the plant will cease production on Nov. 30. Annual production at the plant, which makes the Outlander SUV, has fallen to 64,000 vehicles from more than 200,000 in 2002. The company sold only 82,000 vehicles in the U.S. last year â&#x20AC;&#x201D; less than 1 percent of the total market. Japan's leading business newspaper, the Nikkei, reported that Mitsubishi would be the first major Japanese automaker to end production in both the U.S. and Europe. The company has built a plant in Thailand, bought one from Ford in the Philippines, and is building one in Indonesia. Illinois state Sen. Bill Brady, whose district includes Normal, said he and other state officials were already working on a plan to find another manufacturer to buy the factory. "We are going to do everything we can to make sure people know that Mitsubishi no longer needs the facility,

but that this is a facility that has a very efficient, world-class workforce and a supplier network that's second to none," he said. Brady also said he has talked to Mitsubishi officials have assured him that "Mitsubishi's effort to sell the plant "will not be about getting top dollar for the sale but about doing the right thing." The plant is the only Japanese-owned auto factory with UAW representation. The union contract at the plant expires next month, with negotiations set to begin in earnest on Monday, said DeVary. Both Brady and Normal Mayor Chris Koos stressed that Mitsubishi's decision was not about labor issues but because of dramatically falling sales. Brady said the hope now is that the closure of the plant, which had been not been used to capacity as sales fell, "may bring the opportunity to more fully use the capacity of the plant and bring more jobs." State and local officials would not identify specific companies they plan to recruit, but said they would not limit

their outreach efforts to automakers. "We're confident that we will be able to attract a replacement company in relatively short order," Koos said. One industry analyst said factors such as the location of the plant and its proximity to a network of suppliers for the Detroit automobile industry could make it attractive to another automaker. But Karl Brauer, a senior analyst for Kelley Blue Book, also said that given Mitsubishi's the financial straits over the past decade, he doubts the company has invested much in technology to bring the plant up to date. Still, "it is a foundation, a footprint, and there is already a process in place to ship cars from (the plant) and components to it," he said, adding that another company might do as electronic car maker Tesla Motors did a few years ago when it retooled a shuttered plant in Fremont, California. "They had to basically start from scratch and now it is a very vibrant plant," he said...

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International Automotive Industry - Update

Yamaha India to launch YRF-R3 in August Yamaha, the Japanese motorcycle marque is gearing up to launch is much awaited bike YRF-R3 in India. While there was a speculation going around that Yamaha might launch the YRF-R25 instead of the R3, but as per some new information received that is not the case. Now it is believed that Yamaha India will launch the new YRF-R3 next month in August. Reports state that Yamaha is likely to bring in the 2015 YRF-R3 in India via CKD route. This indicates that Yamaha might assemble the bike at its Chennai facility, which will allow the bike maker to imply more aggressive pricing strategy. We are expecting the 2015 YRF-R3 to come with a price tag of INR 2.8 - 3 lakh (ex-showroom Delhi). In terms of design the Yamaha R3 comes with the same aggressive styling and design language that you’ll find in the R family. In India Yamaha will offer the R3 in three colour options – Red, Blue and Black.

Nissan, Honda to Ship More Cars from Home Japanese auto makers look to take advantage of weaker yen. Japanese auto makers are preparing to ship more cars to North America from Japan to take advantage of the yen’s weakness, after years of moving production to local markets. Nissan Motor Co. and Honda Motor Co. both plan to increase shipments from Japan to the U.S., their biggest market. That means auto exports to the U.S., which fell 4% during the first five months of this year, could start to rise in coming months. For years most Japanese auto makers, faced with a strong yen, sought to produce more cars in local markets overseas to take advantage of lower production costs there. Now, the yen’s nearly three-year decline against the U.S. dollar, which has already inflated profits by driving up the value of overseas earnings in yen terms, has also made it cheaper in many cases to make the cars in Japan...

English will be Honda’s official work language by 2020 Even though in 2010, Takanobu Ito, Honda Motor Corporation’s CEO, denied the necessity of making English the official work language of the company, Japan’s third biggest carmaker is changing its mind. In a sustainability report released at the end of June, English was said to become the inter-regional official language of the brand’s workspace by 2020. The decision stands for a global human resources management initiative that would encourage the development of an international workforce that represents the automaker’s diverse customer base and production operations. Manufacturing 81% of its vehicles outside of Japan, Honda wishes to create a management system controlled by local associates so as to enable a closer communication between associates in six regions worldwide. Therefore, by 2020, all employees will have to conduct their business in English as well as all international documents, presentations

and interoffice queries. When it comes to Honda’s global work force, Japanese employees represent 32% of a total of 204,730 and last year, the carmaker hired only 719 full-time employees in Japan, while adding 4,778 in North America. In order to make sure the outcome meets the expectations, employees will attend language training classes and proficiency in English will become a requirement for management level promotion. Even though in the past the Honda CEO considered that forcing Japanese engineers to speak English to one another is not a recipe for success, he now admits it is important to encourage the development of international relations in the company. With Takanobu Ito stepping down and handing the reins over to Takahiro Hachigo, who has worked on three continents, Honda is ready to embrace English as the Company’s international work language...

Maruti overtakes Japanese parent Suzuki in market value Maruti Suzuki has achieved a feat no other Indian company with a foreign parent has ever done. The nation's No. 1 automaker has outgrown Suzuki Motor in market value. Maruti's stock surged 65% in the past year, swelling its market capitalisation to $19.73 billion (Rs 1.26 lakh crore) based on Tuesday's closing stock price of Rs 4,158.80 on the Bombay Stock Exchange. Japanese parent Suzuki is valued at $19 billion. Maruti has recently also ousted Tata Motors as India's most valuable automotive company. Its stellar operational and financial performance and rosy outlook in a sluggish automobile market have driven Maruti's stock rally. On the other hand, Suzuki had a bumpy ride in recent years with sales weakening in all major markets except Asia. For the Japanese company, the brightest spot is the Indian unit, which has turned into its biggest money-spinner, accounting for a quarter

of revenue and a chunk of profit. Maruti's earnings per share is expected to more than double to Rs 278 in fiscal 2018 from Rs 126 in fiscal 2015, according to estimates compiled by Bloomberg. Suzuki's earnings performance, meanwhile, has been weighed by its weak performance in Japan and markets outside Asia. It reported a 4% decline in operating profit for the fourth quarter of fiscal 2015 and its outlook for a 6% increase in the operating profit estimate for fiscal 2016 was below consensus estimate. Analysts don't expect any major improvement in its stock price in the near future. "Our historic valuation analysis suggests that all the good news is already in Suzuki's share price, and, relative to peers, the stock looks quite expensive," CLSA analyst Christopher Richter wrote in a May 12 note, while advising clients to sell the stock.

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Car / Light Vehicle Price List

SUZUKI Model Model

WAGON-R VX 1000cc Euro II WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX 800cc E2 BOLAN VAN VX 800ccm (M)E2 SUZUKI VAN CARGO Euro II RAVI PICK-UP STD 800cc E2 RAVI PICK-UP STD 800cc (M) E2

APV 1.5L GLX MT (Petrol)

HONDA Price Price Rs. 919,000 Rs. 1074,000 Rs. 1114,000 Rs. 635,000 Rs. 688,000 Rs. 1,321,000 Rs. 1,382,000 Rs. 1,518,000 Rs. 1,059,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 695,000 Rs. 700,000 Rs. 666,000 Rs. 637,000 Rs. 642,000 Rs. 2,418,000

Model Price Honda Aspire Manual 1.3L Rs. 1,652,000 Honda Aspire Prosmatec 1.3L Rs. 1,794,000 Honda City Manual 1300cc Rs. 1,522,500 Honda City Prosmatec 1300cc HYUNDAI Rs. 1,794,000 Honda Civic VTI Manual 1800cc Rs. 2,035,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,267,000 Rs. 2,156,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,388,000 Honda Civic VTI Prosmatec SR (Oriel) Honda CR-Z Sports Hybird Manual Rs. 3,286,000 Honda CR-Z Sports Hybird Automatic Rs. 3,366,000 Advance Withholding Tax For Filer Active For Non-Filer Non-Active Tax Payer Tax Payer City 1.3 L 30,000 City 1.3 L 40,000 City 1.5 L 50,000 City1.5 L Aspire 100,000 Civic 1.8 L 75,000 Civic 1.8 L 150,000 All Variants All Variants

TOYOTA COROLLA

PM Auto Industries (Pvt) Ltd. Model Faw Truck Super 3 Ton (3200cc) Faw Truck Prime 2 Ton (2600cc)

Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 A/T 1299cc Petrol GLI VVT-i 1299cc LE ALTIS 1.6L Dual VVT-i M/T ALTIS 1.8L Dual VVT-i MT GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T CVT-i FORTUNER 2.7L A/T Petrol

Price Rs. 1,260,000 Rs. 1,034,000

Sokon - Mini Truck (1050cc) DFSK - Mini Truck 2700MM Deck DFSK - Mini Truck 2500MM Deck DFSK - Mini Truck (Double Cabin-AC) 1400MM Deck Introductory Price DFSK - Mini Truck (Double Cabin Non-AC) 1400MM Deck Introductory Price

Rs. 763,000 Rs. 731,000 Rs. 950,000 Rs. 900,000

Sokon - MPV 11 Seater (1300cc) DFSK - MPV 11 Seater (Without AC) Rs. 1,034,000 Rs. 1,084,000 11 Seater (Dual AC) 11 Seater (Dual AC-Power Steering) Rs. 1,134,000

Model

Dual AC - Power Steering+ Power Window Sokon - Cargo Van 1050cc DFSK

Rs. 938,000 Rs. 840,000 Rs. 977,000 Rs. 740,000 Rs. 685,000

Tractor Euro Ford 85 HP Tractor Euro Ford 60 HP Tractor Euro Ford 50 HP Price List - Ex Factory (Hyderabad)

Price

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

Rs. 1,859,000

Hilux Pickup 4x4 E

Rs. 1,145,000

Sokon - MPV 07 Seater (1050cc) DFSK Without AC Rs. 817,000 Rs. 887,000 With Dual AC Dual AC - Power Steering Rs. 928,000

Price 1,627,500 1,752,500 1,827,500 1,712,500 1,952,500 2,027,500 2,152,500 2,302,500 5,748,500

Hilux Pickup 4x2 sc

DAIHATSU

11 Seater (Dual AC - Power Price Model Steering +Power Window)

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

Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,129,500

AL-HAJ FAW MOTORS Price

Model

Vigo Champ-V MT Rs. 3,453,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c Vigo Champ-G AT Rs. 3,653,500 Sirius S80 1300cc (WHITE ,BLACK,STRONG BLUE & SILVER) Sirius Grand 1500cc

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

724,000 824,000 875,000 1705,000 1885,000

Price updated April- 2015

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Product & Model Name Crown CR-70 Hero RF-70 Model 2015 Hero Plus 90, 90cc Honda CD-70 Honda CD Dream Hi-Speed SR-70 Ravi Premium R1 Road Prince bullet Road Prince 70cc United US 70 United Extreme 70

Retail Price Rs. 42,000/= Rs. 46,000/= Rs. 48,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,000/= Rs. 46,950/= Rs. 45,000/= Rs. 39,000/= Rs. 42,000/= Rs. 44,500/=

125cc Motorcycle No. Brand & Model Name 1. Crown CR-125 2. Super Star SS-125 3. Super Star SS-125 DLX 4. Honda CG-125 std Euro II 5. Honda CG-125 DX 6. Hero Prince 125 7. Ravi Piaggio Storm 125 8. United US-125 Euro 2 9. Yamaha YBR-125cc 10. Road Prince 125cc

Retail Price Rs. 65,000/= Rs. 59,000/= Rs. 67,000/= Rs. 102,900/= Rs. 124,000/= Rs. 96,000/= Rs. 112,000/= Rs. 69,500/= Rs. 129,400/= Rs. 68,000/=

Suzuki Motorcycle (Heavy Bikes) Sr./ No. 1. 2. 3. 4.

Product & Model Name Inazuma GW 250 Intruder M800 Hayasuba GSX1300R Bandit GSF650SA

Retail Price

Sr./ No. 9. 10. 11. 12. 13. 14. 15.

Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70 Bionic AS-70

Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,000/= Rs. 44,500/=

100cc Motorcycle No. Brand &Model Name 1. Crown CR-100 2. Hero Splander Model 2015 3. Honda Pridor 4. Super Star SS-100 5. Super Power SP-100 6. Road Price Jackpot 110cc 7. United US-100 Euro 2 8. United Regular

Retail Price Rs. 52,000/= Rs. 56,000/= Rs. 86,000/= Rs. 57,000/= Rs. 60,000/= Rs. 44,000/= Rs. 49,500/= Rs. 48,500/=

Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6.

Retail Price

Product & Model Name SD110 Sprinter ECO SD110 Sprinter ECO Del

SD110 Raider GS-150 Euro-II GD 110 Euro-II GD 110s Euro-II

Rs. 101,400/= Rs. 88,400/= Rs. 98,400/= Rs. 128,500/= Rs. 114,000/= Rs. 122,000/=

Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/=

Price update: Aug-2015 www.automark.pk | August-2015 | Page 39

By Mohammad Shahzad S.A.E; D.M.P

Safe Driving!

SAFE MOTORING

“Accidents are caused, NOT just happend.” MOHAMMAD SHAHZAD S.A.E; D.M.P Automotive Engineer & Doctor of Motors

It’s in your hands

Defensive and Safe Driving... It’s all starts with you! Defensive driving is defined as “minimizing risks by anticipating the action s and errors of others”. Further more , it can i ncl ude considerations of lighting or day light, weather, road surface and most important your own mental and physical condition. Defensive driving is much more than just manoeuvring skill, depth perception, and the ability to accelerate and brake. It's mechanical and physical techniques hover in the realm of attitude and mental condition.

Safe driving is a defensive driving Every time you step into a vehicle, you face potential driving hazards. Your car may not seem as complex as a big rig, but it is equally prone to accidents and collisions unless it is driven with safety in mind. Following traffic rules and signals, looking out for the other driver, and adapting your driving to special conditions like adverse weather, poor roads, even your frame of mind. Safe driving also means never operating your vehicle under the influence of alcohol, drugs or medications.

Distractive driving is rated very high on root causes of vehicle accidents. Avoid use of mobiles phone or texting SMS message or even just checking emails while driving. (Next time more details on Distractive Driving)

Your vehicle is a tool Making sure your vehicle is in good operating condition, check your vehicle

a safe following distance. If you can’t count to four before passing the same object, you’re driving too close to the vehicle in front of you especially at high speed at motor way. To maintain safe distance ahead of you, front tires of front car must be seen touching road while at city driving or you should see rear tires touching on road when stop behind to maintain buffer zone.

frequently - at least once a week - to be sure that the brakes, tires, accelerator (gas pedal), belts, radiator coolant condition, oil, fluid, battery, headlights, wipers and brake lights are all in good working condition. If you notice anything abnormal in the way your vehicle sounds or operates, have it checked and repaired by a qualified mechanic immediately.

Watch the other driver While you may be an excellent driver, there’s no way of knowing, if the other drivers on the road are as safe as you. Maintain your distance and never try to pass vehicles that swerve in and out of traffic, brake inconsistently, fail to signal, drive very slowly or very fast, or those do not respond to traffic signals. Pay special attention at intersections. Use the “four second rule” for establishing

React to special conditions Road and weather conditions can affect the way you drive. When roads are slick from rain, snow or ice, reduce your speed and proceed cautiously. Its take four times to stop your car on snow and ten times more time to stop on black ice compared to stopping on a dry road. However, if you skid, do not brake. Instead, take your foot off the gas pedal, and turn the car in the direction of the skid. In dense fog or heavy rain where the visibility is poor, pull over to the side of the road and wait until conditions improve, keeping your emergency flashers on so that oncoming drivers can see you. When you start to drive again, use your low beams and proceed with caution.

Stay alert! The best defence you have against auto accidents is your own ability to remain alert and aware while driving. That’s why alcohol, drugs, or medications can be lethal when you drive. They affect your ability to concentrate and impair your reaction time, which can lead to

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injury, disability and all too often, death not only of the driver, but of innocent victims as well. If you are angry, distracted or tired, don’t get behind the wheel - you’ll be less able to react to dangerous situations. Be alert, be aware, and be safe. Defensive driving is everybody’s business, it starts with you!

Safety Tips for the Drivers Before Driving: Make sure you have enough fuel, never allow the fuel gauge to fall below halfway. Cars have a way of running out of gas at the worst possible moment and this could invite unwanted rescuer.Make sure your car is in good working condition. Dead battery, flat tire and empty windshield washer fluid (in mushy/messy weather) and an empty GAS tank are common causes of breakdown on the road and could create unsafe situations. Make sure you know in advance where you are going and how to get there; getting lost on the road can cause you to end up in an unknown dead or dark end. (a GPS can be very useful) Be sure to keep your cell phone/ blue toot h d evice fully charged f or emergencies. And always wear seat belt,they do safe lives, it’s a proven fact.

While Driving: Driving with a clear, clean windshield is critical not just for your safety, but also for the safety of others. 90% of driving decisions are based solely on vision. Keep your windshield and wind ows clean for clear view. Keep your doors locked and your windows closed. If you find an egg yolk on your windshield (This could be carjacker’s trick) do not use your windshield wiper or washer as this could turn into a milky-mess. Instead, try and see through the windshield’s clear spots and pull over slowly to the closest fuel station for proper cleaning. Keep an eye on rear and side view mirrors to lookout for those nearby and if you are being followed. Allow room between your car and the car in front of you so you can maneuver quickly if you need to get away. Avoid the curb-side lane whenever possible. Fast operators can break a car window, unlock the door and be inside

within seconds. Avoid idling your car in neutral. You might have to move quickly. Be careful at stoplights and on expressway off ramps. Car-Jackers often bump into the back of a car to get the driver to pull over. If you are bumped from behind and it seems suspicious, motion to the driver to follow you. Move at a slow but steady pace to the nearest gas station, police station or well-lit wellpopulated area. A car-jacker will disappear quickly. Always put your child in the front seat, if it is safe as per age. Keep a toddler seat booster in the back seat to show that you have a family. Keep your valuables out of view while driving. Never leave it on the seat next to you. Experienced purse gabbers can reach and grab a purse and be gone within seconds. The best place to keep valuables is in the locked glove compartment or rear trunk.

When a pproaching or parking your car: Always try to park near busy and lighted areas. Avoid curb side/end spots; these are very easy to access for burglars to break-in. Check for any sales flyers on front or windshield/windows. Watch around and remove all when safe to do. Some carhackers intentionally place such sales flyers with drowsy perfume to make you unconscious. When park your car, make sure you can open the driver door widely; tight spot parking can cause hardship during re-entry. Keep your car locked at all times, whether you are inside the vehicle or not Do not leave your car keys inside the ignition or in running condition without an adult occupant. Do not leave kids unattended in your car. Don’t dawdle. Move quickly. Have your car ignition lock/door key ready in your hand. Do not use key less entry until you get near to your car. Too early action can invite unwanted guests on the back seat or in the trunk. If you are alone look around first and open the driver side door only. Use a cell phone camera to take pictures if you find suspicious activities near your car.

Check to make sure no one is hiding in or under your car. Carry a small flashlight to check dark areas. Be aware of any occupied cars nearby. If you find suspicious situations wait until it is safe to move. Drive into your garage front first so the headlights illuminate the total area. Your own garage is a perfect place to get mugged. When entering the house door, make sure no one unknown is behind you.

If someone tries to take your car: If your windows are up, your car is locked and you can maneuver out of the way, hit your horn and step on the gas. Move quickly and safely. If the perpetrator has a weapon, give up your car immediately. Do not fight or argue. Your life is more precious than the car. If your child is in the car and you are forced out and cannot grab the child, immediately yell, “There’s a baby in the car!” to warn everyone around. Take a note of the full fresh description of the suspect such as age, height, weight, ethnicity, and call your local emergency phone number at once to report the incident to police or local law enforcement authorities. Remember: Be alert, be aware and be safe. Don’t drink and drive! And avoid distractive driving practices. You live only once, enjoy the mostout of your life. “You can’t bring back the past…But can learn from your past experiences, which you can put into practice today for tomorrow’s success” Have a safe & secure drive…It’s all starts with you!

This exclusive article on ‘Safe Motoring’ has been assisted by Zahid Mehmood and written by Mohammad Shahzad S.A.E., D.M.P., specially for Monthly AutoMark Magazine - International. (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not he si t at e t o co nt a ct h i m a t shah@brimelltoyota.com or automarkcanada@gmail.com

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Exclusive Article by M. Yousuf Shaikh

The Pakistani Consumers are tired of the same old version motorcycles (Part I) This is the reason that Yamaha enjoy Pakistan market beyond their sell targets which is also landmark of opportunities for latest design motorcycle manufacturers Pakistan rich with exciting opportunities is an emerging market for global investment in auto sectors particularly motorcycle sector. "Pakistan is now open to Global auto trade & Industry with best atmosphere of investment which provides significant possibilities for foreigners." Pakistan is ideally located geographically with immediate access to the Central Asian Republics and has a competitively affordable and expanding work force of 36 million. Pakistan's foreign investment policy was open and liberal, which was good news for global motorcycle manufacturing companies interested in doing business here. Politically Pakistan is now a substantially more stable environment than it has been for the last 20 years Government that is very pro-business oriented It has set in place reform packages to stimulate

the economy and to promote domestic growth The economy has achieved one of the highest annual growth rates in South Asia. The Pakistani government is making allout efforts to take its economic relations with the world to a new height by aggressively exploring opportunities for investment and joint ventures in various sectors of the economy. Many foreign investors investing in mining, marble, and energy, chemical and many other industrial sectors but motorcycle and small cars manufacturing sector still ignored by global investors as Yamaha, a Japanese auto company, would in vest $ 150 million to establish manufacturing plant of motorcycles in Pakistan.

is still unable to design and produce its own motorcy cl e esp ecially t he motorcycle engines and key parts. This makes it difficult for the industry to develop and enhance the export volume to compete in international market. In recent years, we have witnessed that the industrialization of many Asian countries greatly depend on the development of their automotive industry consecutively motorcycle industry. Similarly, automotive industry acted as a catalyst in the overall growth of the industry in China, India, Pakistan and Koreas and the consequent wellbeing of their citizens. It is indeed heartening that the motorcycle industry has smiled at Pakistan. Fortunately the last few years have witnessed phenomenal growth in the industry in terms of production and sale. Today the customers have choice to pick from a wide range of motorcycle brands at very competitive prices. Pakistani Consumer are tired and their preference moves to new Design as

“The Pakistan motorcycle market, which is dominated by bikes having an engine of 70cc, has started to see a change in consumer preferences. Nowadays, customers prefer motorcycles with an engine of 100cc or above while the bikes with 70cc engines have seen a fall in market share, as the trend suggests.”

Muhammad Yousuf Shaikh, An Au t o I n du st r y Co n su lt a nt , Motorcycle Industry Expert, Motorcycle Designer, China Sourcing E xpert, Serial The Pakistan Motorcycle Industryhas several years, the motorcycle industry Entrepreneur and the Founder & been around for more than 50 years, in Pakistan has seen the old 90’s style Chairman of Pakistan China and today is considered an industry that looking motorcycles. Any investor with Motorcycle Industry Council is highly important to the Pakistan less or no experience has developed and (PCMIC), offers his analysis of the economy. The motorcycle industry sold motorcycles in the market and the employs an estimated 100,000 people. industry has been in a haphazard motorcycle trade & industry trends Over 2 million motorcycles are situation with no controls yet never from Pakistan & China. The manufactured annually, with negligible decreasing demand. There are a very Chairman PCMIC working with quantity being exported. All motorcycle few choices given to the end users in motorcycle trade & industry for over assemblers cum manufacturers at design, quality and features. Despite the two decades. present are Pakistani. But all Pakistan ever increasing demand of motorcycle For further details and fo r motorcycle manufacturers still depend (last year recorded 2 Million motorcycles ass is ta nce p lea se e mai l at on foreign technology and the country sold), there is no R&D on developing pakc hina .mic @gmail .com www.automark.pk | August-2015 | Page 42

Monthly AutoMark International

motorcycles with a better aesthetic appeal which is highly in demand. Consumers spend 1/4th of the new motorcycle costs trying to modify their motorcycles aesthetic appeal and give it value. PCMIC vision is to revolutionize this industry by bringing in different types of motorcycles that fulfill the current demand in terms of quality, appearance and value with in an affordable price. The Pakistan motorcycle market, which is dominated by bikes having an engine of 70 cubic centimeters (cc), has started to see a change in consumer preferences. Nowa days, c ustomers pref er motorcycles with an engine of 100cc or above while the bikes with 70cc engines have seen a fall in market share, as the trend suggests. The 100cc and above bike segment witnessed a record growth, while the growth in sales of bikes having 70cc engines posted decline. The changing consumer choices have forced the local motorcycle assemblers to begin focusing on production of bikes with engines of 100cc and above. Last year, over 1.5 million motorcycles were produced in the country, of which production of 70cc bikes were the bulk. However, analysis of segment-wise data shows that production of bikes having engines of 100cc and 125cc and above grew 34% and 20%, respectively, while production of the previously mostpopular 70cc bikes shrunk 10%. Bikes having engines of 70cc still make up 80% of the total market share. Changes in consumer preference patterns is not new to the automotive industry as India is an example where the demand for bikes with engines of 100cc and above jumped from 48% in 2005 to 65% in 2012. The real change in the industry has come with the transformation of Pakistan, and the phenomenal jump (in motorcycle production) from 100,000 motorcycles in 2000-01 to two million a year presently is a testimony to this transformation. When per capita income touches the $3,000-barrier, the Pakistani auto

market will experience a change in consumer behavior where the customer will opt for both luxury motorcycles and trendy bikes like scooters and so on. Per capita income is a very important factor in the development of the automotive industry of any country as it results in healthier competition when the economic situation is unfavorable. According to data from the Pakistan Bureau of Statistics, the country’s per capita income clocked in at $1,290 in 2012 – much lower compared to other developing nations. High economic growth rate raises the standard of living of the population, which in turn creates more demand for higher-end automobiles. Eventually, the rising standard of living when per capita income touches $3,000-

stage, the motorcycle industry will also shift focus from being a necessity market to somewhat luxury or sports-oriented market. This transformation will start bringing in bigger-engine bikes into the Pakistani market, which will be a good sign not only for the automobile industry but for the economy as a whole. The advantage of 100% localization of 70cc motorcycles, which the Pakistani motorcycle assemblers enjoy, has not only helped the prices stabilize and become competitive with the region, but it has also allowed local assemblers to gain a foothold in foreign markets such as Bangladesh and Sri Lanka. The local industry is also seeking to introduce locally-made bikes to South African and Iranian markets. According to theReport of Production and Sales Requirements and Investment Analysis on China’s Motorcycle Manufacturing Industry in 2011 to 2015 (2012 Edition), China’s motorcycle consumption can be illustrated using a three-level pyramid structure. The lowest level consists of motorcycles whose prices are lower than 45,000 Rupees. These motorcycles are mostly sold in rural areas and account for 60% of the total sales volume. The middle

“The PCMIC should struggle and foster “embedded” linkages between the services cluster group, Assemblers, vendors, importers and banks as consortium that are willing to make the investment in mega project of new design and technology motorcycle with Chinese cooperation in Pakistan” $4,000 mark will drive consumers to shift from motorcycles to cars. At that

level consists of motorcycles whose prices are between 45,000 Rupees and 60,000 Rupees. These motorcycles are mostly sold in towns and counties and account for 30% of the total sales volume. The top level consists of motorcycles whose prices are higher than 60,000 Rupees. These motorcycles are mostly sold in prosperous coastal cities and areas and account for 10% of the total sales volume. Continued in next edition

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Exclusive Article by Owais Khan Corolla sales continued to remain in red. Even Suzuki Swift after a powerful start faced consumers’ reluctance who preferred used imported vehicles like Toyota Vitz, Toyota Passo, Daihatsu Mira, Nissan AD etc at the price of Suzuki Swift. From 2011-2012 sales of 4,977 units of Honda Civic, its overall sales jumped to 9,950 units in 2012-2013 and 9,933 units in 2013-2014. City sales swelled to 13,741 units in 2013-2014 from 11,285 units in 2012-2013 and 7,142 units in 2011-2012. Toyota Corolla remained a big loser with sales falling to 29,087 units in 20132014 from 32,608 in 2012-2013 and peak sales of 46,207 units in 2011-

Urgent need for small engine power cars in Pakistan Prime Minister Nawaz Sharif in his speech at 37th exports award of FPCCI on February 08, 2014 and PAPS auto show of PAPAM on March 6, 2014 in Lahore had expressed his wish for a complete Pakistani made car besides doubling exports oftoPakistan. People willing take a shift from two wheelers to owning of small cars do not have much options in 660-800cc vehicles since Daihatsu Cuore, Suzuki Alto, Hyundai Santro etc had become a history in the manufacturing book of the local auto industry. Pak Suzuki Motor Company Limited (PSMCL) had unveiled Wagon R 1,000cc from April 2014 after a gap of almost two years while consumers had still been awaiting any replacement of Cuore for the last two years. The existence of Hyundai Santro Plus holds no importance as its production remained suspended from 2010-2011 to 2012-2013. Its manuf acturer resumed its production with only 210 and 152 units produced and sold in 2013-2014. In the meantime used car imports mainly small cars proved a bit relief to some extent but after change of age limit to three from five years coupled with cut in depreciation limit the import of used vehicles had plunged sharply, thus

closing another option for the buyers of 660-800cc vehicles. Due to change in age limit, low engine power vehicles became unaffordable for many people owing to their high prices. The Indus Motor Company (IMC) appears so far reluctant in introducing new 800 or 1,000cc vehicle as its management feels that it is unfeasible to roll out low engine power vehicle because of high price factor. Pak Suzuki gave a substitute of famous Suzuki Alto in shape of Wagon R but it is premature to give any firm opinion about its future survival. Pak Suzuki closed down Suzuki Alto when its sales were thriving. It did not exist from 2012-2013 while in 2011-2012 its sales were hit at 16,288 units from 11,932 in 2010-2011 and 10,794 units in 2009-2010. Despite high prices and costly maintenance, good sales of cars like H on d a C i v i c an d H o nd a C i t y surprisingly improved earnings of Honda Atlas Cars while IMC’s Toyota

2012. Suzuki Swift achieved highest sales of 7,128 units in 2011-2012 which dropped to 6,096 units in 2012-2013 and to 5,128 units in 2013-2014. The above figures reveal that only Honda Civic and City remained the highest selling cars besides proving disastrous for struggling Toyota Corolla in terms of its flat sales. However, the IMC now looks more determined to recover its past glory of highest sales of Toyota Corolla by introducing new models of Corolla with a bang for which it invested $100 million in technology transfer and production facility improvements. IMC commenced taking customer’s order from July 16 for 1,800cc Corolla Altis Grande, the 11th generation Corolla which has been completely redesigned around the concepts of elegance and class-above prestige. IMC has announced booking for the new model Toyota Corolla on partial payment of Rs 500,000.

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The government did not have any second option to buy the small cars other than Mehran due to non availability of small cars in Pakistan. It is worth to mentioning here that people who take the opportunity of different government offer schemes also do not have any other option to use/buy locally assembled small car. High engine power car makers are more hopeful that the sales of such vehicles will remain ahead of low engine power cars in the current year and Corolla is expected to take a big slice from the market share of Honda cars initially. As long as demand from filthy rich class remains high, the future of costly locally assembled cars is bright but there are limited varieties for the middle income group who want to switch from two to four wheelers. IMC claims to have got overwhelming response for its costly Altis as buyers rushed to the showrooms to book the car despite subdued demand in Ramazan. Surprisingly, the most popular Suzuki Mehran 800cc sales faced turbulence from 2011-2012 (36,131 units), falling to 32,407 units in 2012-2013 and 29,509 units in 2013-2014. If the Punjab government would have not lifted Mehran under Punjab Taxi Scheme in 2012 then the sales figures would have been more depressing. However, it seems that nothing serious has been done so far which is evident from the Auto Industry Policy (AIP) which was lying in the cold storage for the last six to seven months. Due to slow pace of work at the ministries and other departments – it is too early to see the implementation of the PM’s dream for a complete Made in Pakistan car. Pak Suzuki, which is the oldest assembler, has failed to materialize this dream as Suzuki Mehran’s localization level has been stagnant at 70 per cent. Its price had been raised frequently due to change in rupee-yen-dollar parity. In contrast, the closure of Suzuki Alto had shifted 1,000cc buyers towards Suzuki Cultus which is visible from its improvement in sales to 14,682 units in 2013-2014 from 13,308 units in 20122013. After getting support of PAAPAM, Pak Suzuki has been taking up the case for many months urging the government to allow import of six HS Code, being CKD parts only, by removing them from the negative list of items importable from India.

PSMCL has informed that they do not desire any change in duty structure for import of CKD Parts from India. Specifically, import duties of CKD Parts and A-max parts under SRO 656 and SRO 693 should remain same whether import is made from Japan or India or any other country. The benefits highlighted by PSMCL are lower costs of CKD, Introduction of new models, technology transfer / joint ventures in parts manufacturing and possibility for exports. However, EDB is of the view that the above mentioned proposal is not specific to the vehicles of Pak Suzuki Motor Company Limited, as the afore-said HS Codes are universal for all vehicles. Hence removing of these HS Codes would imply opening up imports of aforesaid CKDs of all vehicles from India. Market sources said that Pak Suzuki has its own agenda regarding trade with India while other manufacturers offer different view. It means that there is no voice of the local car assemblers under the platform of Pakistan Automotive Manufacturers Association (PAMA). Market people feel that there is no harm if the government accepts Pak Suzuki’s proposal as it would at least bring down the prices of cars besides resulting in introduction of new models at par with Maruti Suzuki. Reduction in prices of small engine power will also help a number of people who want to move on four wheelers from two wheelers. The government, the concerned ministry and Board of Investment should reach those car assemblers either European, Korean or Chinese who are making 660cc cars. At least these cars can run 20-22km per liter of petrol almost equal to CNG consumption in brand new 800cc car. A number of people are plying used 660cc vehicle and they are happy enough due to its petrol consumption. However, Pak Suzuki is again lucky after getting orders for supply of 50,000 vehicles to Punjab government. PSMCL, having over 50 per cent market share, has entered into an agreement

The government, the concerned ministry and Board of Investment should reach those car assemblers either European, Korean or Chinese who are making 660cc cars. At least these cars can run 20-22km per liter of petrol almost equal to CNG consumption in brand new 800cc car. Market people feel that there is no harm if the government accepts Pak Suzuki’s proposal as it would at least bring down the prices of cars besides resulting in introduction of new models at par with Maruti Suzuki. Reduction in prices of small engine power will also help a number of people who want to move on four wheelers from two wheelers. with Bank of Punjab for sale of 50,000 units of Suzuki Ravi and Suzuki Bolan Van under “Apna Rozgar Scheme” of Punjab government. These vehicles will be supplied from October 2014 to October 2015 which is bound to improve the company’s earning by 13-20 per cent. Punjab government has allocated Rs 25 billion for the taxi scheme in its 20142015 budget. PSMCL has capacity to produce 3,000 units per month each of Ravi and Bolan on three shifts. The company sold 14,000 units of Bolan and 11,700 units of Ravi in calendar year 2013 (CY13). The company also produces 150,000 units (on double shift basis) and sold 76,000 cars/LCVs during CY13 compared to 96,000 cars/LCVs during 2012. Earlier in 2012, the Punjab government, under its taxi scheme, had given an order of 20,000 cabs to PSMCL. The cabs produced under the scheme had 60pc share (12,000 units) of Suzuki Mehran and 40pc (8,000 units) of Suzuki Bolan....

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Exclusive Article by Talal Hussain Malik

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A Bolt from the Blue At Pakistan Bikers Club, we decided to start a campaign against this stagnant situation in the motorcycle market and initially raised our voice through social media and motorcycle discussion forums at the internet Yamah a Paki st an st u n ned t he motorcycle lovers of the country earlier this year with the much-awaited launch of their YBR 125. Two aspects made this launch very special, one that it was the first Yamaha product in Pakistan that came without the prefix of Dawood and second that Yamaha introduced an entirely new design in the market, a product with some distinct features that differentiate it from the scores of other manufacturers, and considering the temperament of Pakistanâ&#x20AC;&#x2122;s motorcycle market, it really was a bold step. Honda and Suzuki are present in the market since long. Although Suzuki earns a good repute being one of the Big Four in the world motorcycle market, it failed to live up to that reputation in Pakistan where the company failed to manage its network across the country, introduced stereotype models, which too were not free from technical and mechanical issues with the result that sales of Suzuki motorbikes today is limited to the major cities only. Coming to Honda, stalwart in Pakistan, the company has done good business for decades, but this gave Atlas Honda a good excuse to continue with the decades old models like CD70 and CG125 with the slight change of graphics and make inflation an excuse to increase prices despite no improvement in their products. Literally we are riding the same CD70 and CG125 today as did our elder generation, while we are paying four times the price for a bit lower quality bikes. CD70 and CG125 are the two models that have remained

Print Media Partner unchanged throughout these years and to add insult to injury the scores of Chinese manufacturer that later entered the Pakistani market copied the same design giving the impression that perhaps these designs were so popular that the buyer would completely reject anything else or that these companies had no ability to design a bike of their own. At Pakistan Bikers Club, we decided to start a campaign against this stagnant situation in the motorcycle market and initially raised our voice through social media and motorcycle discussion forums at the internet. In January, 2013 when we got the opportunity to visit the Honda motorcycle factory at Sheikhupura we conveyed our concerns to the company officials about the typical design of the product and also did our part to convey

it to the company why the market needed new designs, better products and advanced technology. We were told about the ever-rising sales and the companyâ&#x20AC;&#x2122;s policy; that nothing would change as long as the sales were good. It was clear that Atlas Honda was in no mood of taking risks, the biker community of the country had to wait for a miracle till they could be able to get anything better, perhaps Yamaha will do that after the launch of its first model in 2015 with YBR 125, a motorbike that became the hot favorite even before it was officially launched, thanks to the stylish design and sporty looks. It would not be out of place to say that Yamaha also took some risk by introducing a motorbike that came with the one down four up or reverse gear pattern. Although this gear pattern is standard all across the world, it was something entirely new in Pakistan. YBR has been a success right after its launch and the increasing sales show that the rider community has shown its confidence in the new product. This has set forth a good base for Yamaha to introduce more advanced models in future, not only this it has also set a challenge for the giant like Honda. Perhaps it is time when Atlas Honda tells its team to rise to the occasion and bring something entirely new, not just to counter the rival Yamaha but also to keep hold of the buyer community, which has started to look away from it, now that a better option is readily available....

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Monthly AutoMark International

Automotive Sector - Review

Why CCP cannot drive competition in car market Late last year, the Competition Commission of Pakistan (CCP) initiated an inquiry against the three car assemblers; INDUS, PSMC and HCAR for colluding to limit competition in auto repairs, spare parts and paint job services as well as in hiring resources among the dealership network. When the case was decided by midMarch, the watchdog had imposed a cumulative fine of Rs140 million on the respondents after finding them guilty on all counts. Barely two months later, the CCP has the auto sector in its cross hairs again; this time for alleged "unfair trading conditions imposed by dominant manufacturers in the automobile industry", according to an official release. The regulators charge sheet against INDUS and PSMC (HCAR is not part of the inquiry) lists consistently rising trend of prices without technological improvements, "requirement of hefty advance payments for placing the order to book a car" and "delay in delivery of vehicles". Interestingly, the inquiry comes at a time when PSMC has recently reduced prices on its newest offering, Wagon R; while also holding steady on prices of other variants for many months. HCAR also announced that it will launch its new model at the current price of the existing variant. Of course during the same period, Japanese Yen has

weakened considerably, letting all domestic car assemblers earn a pretty penny. Although PSMC cars are not prone to delays in delivery (except Cultus whose production is being wound down this year), INDUS customers are contending with extended waiting times for delivery. But the company has a logical explanation to offer. During a press moot, chairman INDUS, Ali Habib explained that the company has received an unprecedented number of orders for the new model of Corrollla/Altis. This has led to extended waiting times for buyers. Regarding premium charges for early delivery, INDUS officials insist the company does not support any such practices. They also highlight that INDUS does not expect full payment for their cars until the time of delivery. Similarly, at least some PSMC variants are being sold at a discount to the listed price through the dealer network. These observations poke holes in the

allegations on the dominant companies of the auto sector. Yet these should not be interpreted as vindication for them. In fact, the collusive behavior of domestic car assemblers and their associated industries is undeniable. The government is also cognizant of the lack of competition in the domestic automotive market. In a recent interaction with media, Chairman Board of Investment, Miftah Ismail had commented that HCAR, INDSU and PSMC appear unwilling to compete with each other, particularly in segments below 1300cc. He drew attention to the lack of comparable models from the existing auto companies. Independent observers also view the dominance of domestic market by Japanese brands critically. A wider array of assemblers in the country would spur competition more effectively than any prod from CCP or any other watchdog. The auto sector is seemingly not ready to dole out the Rs140 million penalties imposed in the earlier case, so even an unfavorable judgment in the fresh case is unlikely to deter their behavior. On the other hand, announcing and implementing the much delayed Auto Policy would open up the domestic market place for new entrants. That move would be much more far reaching in terms of boosting competition and empowering consumers with wider choice in the auto market. Curtesy: BR

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