Automark magazine dec 2013 by Mustafa Hanif

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Pakistanâ&#x20AC;&#x2122;s premier magazine on automotive, engineering & energy sector December-2013 edition

Monthly

AUTOMARK Trade with India

Editor M. Hanif Memon Technical Editor Muhammad Shahzad

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE Muhammad Shazad M. Yousuf Shaikh Ali Hassan M. Owais Khan

Advisors Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad J. Pereira Genera Manager Customer Support Division Al-Haj Faw Motors (Pvt) Ltd. Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi Engr. IHT Farooqui GM Plant P.M. Auto Industries Hyderabad Mr. Ashfaq Memon Senior Manager Marketing Memon Motors (Pvt) Ltd. Maker of Super Star Motorcycles Hyderabad

The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management. AutoMark REGD: SC-1330

Published every month by M. Hanif Memon Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk E-mail: automarkpk@gmail.com Tel : 021-32218526 Mobile: 0321-2203815

Trade potential seen at $20bn India, Pakistan asked to remove barriers The trade potential between India and Pakistan is estimated to be around $20 billion against the current around $3bn, according to a working paper published by ICRIER. However, non-trade barriers (NTBs) and bureaucratic hurdles continue to impede growth in the bilateral trade. To foster dialogue in this regard, `Normalising India-Pakistan Trade 2nd Regional Chambers of Commerce Roundtable` was held last month. Evidence-based research was projected to be important for improving the situation and academic institutions can play a role in assisting business community in thrashing trade-related issues on the basis of data and policy analysis. Academic institutions were not in the advocacy mode but rather focusing on policy analysis. Both countries should work jointly to facilitate traders on each side of the border, ease visa regimes, improve customs clearance procedures, open more bank branches near the border, hold business-to-business meetings at sector level to improve understanding of requirements and invest in port infrastructure, among other things. As for agr icult ure, separate rout es for perishable goods and round-theclock operational border were suggested. For removal of barriers in textile trade, it was suggested that both countries should harmonise their customs procedures, remove specific duties and engage constantly for better understanding of regulatory regimes. Moreover, better rail connectivity and mechanisms for joint ventures without physical presence of the businessmen in the other country were also suggested by the participants.

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CONTENTS

Monthly AutoMark Indus Motor introduces Toyota Hybird Prius in Pakistan

Millat to start exporting tractors, parts from next year

Chinese investment to modernise trucking sector in Pakistan Exclusive Article by M. Owais Khan

13-14

Auto Industry Policy (AIP) for Auto Sector including 2/3 Wheelers Exclusive Article by Ali Hassan

17-19

RAHI TRACTORS 21-22 (A Joint Venture between Shifeng Group, China and RUBA Automotive Pakistan (Pvt.) Ltd.) COVER STORY International Automotive news

34-35

Chinese Trucks companies introduction

36-37

Passenger cars/light vehicle price list

Pakistan an emerging market for Chinese motorcycle Exclusive Article by M. Yousuf Shaikh

39-41

Motorcycle Prices

43rd Tokyo Motor Show bonanza

RUST… A Bitter Enemy! Your Car’s Skin Cancer By Mohammad Shahzad from Canada

44-45

visit: www.automark.pk

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Toyota Hybird Prius

Monthly AutoMark Magazine

Indus Motor introduces Toyota Hybird Prius in Pakistan Comparing Prius with used imported cars, company officials say IMC will provide complete warranty, comprehensive after sales support and parts to the customers — something they do not get when they import used vehicles in the country. The Indus Motor Company (IMC) unveiled its eco-friendly car, Prius, on last week, after a long period of extensive testing to make the vehicle customised to local conditions. The company believed it would easily sell around 100-150 Toyota Prius in a year, a top official said , adding that the launch is a success as it is launching hybrid technology for the first time in Pakistan. Company officials, speaking on the occasion, said that there are four key benefits of hybrid cars including high fuel efficiency, low emissions, driving performance and quietness. Speaking at a launching ceremony held at local hotel here, Parvez Ghias, CEO Indus Motors, said, `It is indeed a great milestone, not only in the history of the I MC, but of the entire n atio n,` `It is indeed a great milestone, not only in the history of the IMC, but of the entire nation,` said the company`s CEO Parvez Ghias. `The way people perceive cars is changing,` he said, adding that the IMC has introduced a car for the future.`The way people perceive cars is changing.` The company was working on the project for over a year-and-a-half as they see a huge demand for hybrid vehicles in Pakistan. “What w e request from the new government is to provide a level playing field,” IMC CEO Parvez Ghias said. “We want the government to support the local industry for introducing new vehicles including hybrid cars at an affordable price. We hope that it will take appropriate steps to promote and

en courage further investm en ts. ” “The customers have now an option to buy brand new latest generation Prius w it h c om p any w a rra nt y a nd comprehensive after sales support which will provide complete peace of mind to them.” He said that the OEMs had to charge 17 per cent sales tax on retail sales of hybrids from their customers, due to SRO 499. However, the importers of used cars pay only half of it and enjoy up to 36 per cent depreciation in duty at import stage. He requested the government to rectify it and increase valuation of used cars under SRO 577. He said that the government should support local industry to make them able to introducing n ew vehicles including hybrid cars at affordable price. But why people buy a car as expensive as Rs4.49 million when the same can be imported at a much lower price. Mr. Ghias agreed that it is a problem which faces the local car producers. He said carmakers are doing their job w ell an d no w it res ts w ith th e governmen t to make policies for promotin g eco-friendly vehicles. Toyota`s Chief Engineer Koji Toyoshima also spoke on the occasion, highlighting the key benefits of the car and the technology it uses.

December-2013 | Page 11

He said that Prius had futuristic design, advance styling, cutting edge features and technology that provided eco friendly comfort and intuitive driving experience to its users. The current generation Prius is globally known for its iconic shape and advance hybrid technology which enable its customers to achieve excellent fuel efficiency and enhanced performance with very little or almost negligible emissions. Therefore, these technological and environmen t friendly attributes have made Toyota enable to sell over 5 million hybrid vehicles across the globe. Comparing Prius with used imported cars, company officials say IMC will pr ovi de co mple te war r anty , comprehensive after sales support and parts to the customers — something they do not get when they import used vehicles in the country.

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Millat Tractors vendors conference

Monthly AutoMark Magazine

Millat to start exporting tractors, parts from next year “With a strong base of manufacturing quality and cheap tractors in Pakistan, we are ideally poised to enter in the global market,” Sikandar Mustafa Khan, chairman of the Millat Group of Companies, said, while addressing the 12th vendors conference. Millat Tractors organized a one-day conference titled as, ‘12th Vendor Conference 2013’ on 5, Dec-2013 at a local hotel. The focal point of discussion a t th e co n fer en c e w a s ‘G lo ba l Competitiveness’, aimed to develop strategy to survive through the current worldwide recession and future state of liberalized trade and tough international competition. P ak ist an is go in g t o en t er th e international engineering goods market, as one of the biggest local manufacturers on Thursday formally announced to launch exports of completely-built tractors, its engines and parts from 2014. “With a strong base of manufacturing quality and cheap tractors in Pakistan, we are ideally poised to enter in the global market,” Sikandar Mustafa Khan, chairman of the Millat Group of Companies, said, while addressing the 12th vendors conference on Dec 5, 2013. The focal point of discussion at the conference was various issues relating to global competitiveness, aiming at development of strategy to survive through the current worldwide recession and future state of liberalised trade and tough in ternational competition. The conference was part of the process of sensitising the vendor base for the commencement of export of Massey Ferguson to the international market through their principal, ie, AGCO. The conference was termed as a successful event, a s it ended with h ea lthy deliberations, interactive sessions and award giving ceremony. Explaining the company’s next vision, which is to reach the global market by exporting products, Khan said that ‘TIPEG International’, a subsidiary firm has also been set up in Dubai to deal with the exports and imports. “We are particularly geared up now to launch export business in a more formal manner,” he said. “We cannot think of becoming a player in the global tractor market unless we fully prepare for a fierce and cutthroat

competition. Manufacturing of quality products is a key to leave a lasting impression in the international market,” he said, adding: “We have completed o ur h omew o rk in t his reg a rd. ” “We are not in the phase where we are still exploring options of manufacturing various parts. As a team effort and in partnership with the vendors, we have excelled to the extent that the local industry now earned expertise in manufacturing a wide range of parts and quality products.” “From mid-80s to 2013, we have passed t hro ug h a pha se of c on tin uo us improvement and now Millat Tractors Ltd and vendors have reached a stage of pitching quality products in the global market,” he said. “We are in the process of exporting locally-manufactured tractors through Massy Ferguson, our international partner, as well as through our own network. We are working on various proposals in this regard.” In addition, Khan said, “We will export tractor engines given the fact that there is a huge market for this product line. Similarly, with close collaboration of vendors, we will also go for exporting parts of tractors,” he added. “Initially, we will select a few vendors an d sell tractor parts to various

markets,” he said. While discussing the success of tractor industry in Pakistan, Khan especially eulogised the role of the vending industry, saying Millat and vendors are like a family and both will touch every level of success together. He expressed his gratitude towards Millat’s entire team and exclusively CBA MTL President Maqsood-ur-Rahman who stood by the company in every moment. In his address of welcome, MTL CEO S M Irfan Aqueel said that Millat is proud of its rich heritage of indigenisation through tech nology transfer and development of local vending industry and is producing most reasonably priced tractors in the world. “Millat has once again taken the lead in the establishment of first of its kind engine testing laboratory for emission compliance certification according to the international standards,” he said. Among others, leading industrialist Almas Hyder, chairman, Pakistan Autoparts Ma nufa cturers Asso ciation (PAPAAM) Usman Ahmed Malik and PIAF Chairman Malik Tahir Javaid, s h a re d t h eir i n s ig h t r eg a rd in g competitiveness and achieving goal of excellence in the manufacturing sector.

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Exclusive Article by M. Owais Khan

Monthly AutoMark Magazine

Chinese investment to modernise trucking sector in Pakistan After experiencing the Japanese joint venture, a number of seasoned and organized players in the auto assembling business are now trying to ink agreements with leading Chinese truck makers. Time will tell how the new Chinese players will grab the share from the already existing players in light and heavy commercial trucks but one thing is certain the new players will definitely try to roll out latest engine technology as per European standards.

The heavy commercial vehicle scenario in Pakistan may witness a drastic changes in coming years as many Chinese and foreign brands are likely to test their luck in a volatile market. The new players are already dominated by Hinopak Motors, Ghandara Nissan, Ghandara Industries and Master Motors which cumulatively enjoy sizable market share. The aim to cut a slice from the old players’ share seems a gigantic task but the price difference may lure the price conscious people associated with goods’ carrier business. After experiencing the Japanese joint venture, a number of seasoned and organized players in the auto assembling busin es s a re n ow tryin g to in k agreements with leading Chinese truck makers. Market sources said that recent press reports said that Sinotruk truck (one company is bringing this brand from China) while Ghandara Industries are working on Dongfeng trucks from China and waiting for the approval from EDB. Sweden’s Volvo also plans to unveil a high quality trucks in Pakistan.One leading Japanese and one Swedish heavy

vehicle p layer are colla bo ra ting with Chinese DongFeng which is the world’s largest producer of heavy duty trucks. MAN Diesel and Turbo Pakistan expanded service facilities in Lahore and launched new MAN TGS WW truck. With a launch event on March 28, 2013, MAN Diesel and Turbo Pakistan announced the expansion of its premises in Lahore. At the same time the company joins hands with its sister company MAN

Truck and Bus for the launch of the commercial vehicles division in Pakistan and its latest product, the TGS WW. The MAN location in Lahore would be the first where the two sister companies reside under one roof. MAN Diesel and Turbo Pakistan’s exc eptio nal perform ance a nd impeccable credentials were key factors when MAN Truck and Bus decided to choose its representative in Pakistan. We see Pakistan as an important market with a lot of potential”, says David van Graan, Head of MAN Center Middle East and Vice President Sales and Marketing. Another press report said that the three giants, National Logistics Cell (NLC), Heavy Industries Taxila (HIT) and China North Industries Corporation Limited (NORINCO China) joined hands in an impressive joint venture agreement signing ceremony for setting up of truck assembly plant at HIT, which is likely to start production within a year. The plant will initially assemble 300 units of Euro compliant trucks and prime movers of various categories and will be scalable in production output as per market demand. The Joint Venture Agreement was signed by Quarter

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Exclusive Article on Truck Sector - continued

Monthly AutoMark Magazine

The aim to cut a slice from the old players’ share seems a gigantic task but the price difference may lure the price conscious people associated with goods’ carrier business. After experiencing the Japanese joint venture, a number of seasoned and organized players in the auto assembling business are now trying to ink agreements with leading Chinese truck makers. Master General who is also Officer Incharge NLC Lieutenant General Sajjad Ghani, Chairman HIT Lieutenant General Syed Wajid Hussain and Senior Vice President NORINCO Wang Lee, said an ISPR press release. Some of the existing companies in Pakistan are Hinopak, Ghandara, AlHaj Faw, Afzal Motors (Jac,King & Long van), PM Autos (Faw) Power brand light vehicle etc. Master Motors is a truck manufacturer based in Port Qasim, Karachi as a part of the Master Group of Industries. Master Motors signed an agreement with Mitsubishi Fuso Truck and Bus Corporation to manufacture and assemble Mitsubishi Fuso-based trucks and buses in Pakistan. It has developed into the leading brand in Pakistan in the 3 ton trucks (25% market share) and 3 1/2 and 4 1/2 ton trucks (50% share). Since its establishment, Daimler has come to hold 85% of the company. The present goods’ transport system fleet is in dilapidated condition and is crying up to be opened for new players especially Chinese as sizable quantity of import and export goods and locally produced goods move from one place to another on decades old trucks who only exist in Pakistan. Economy cannot grow without appropriate modernisation of trucking sector. Time will tell how the new Chinese players will grab the share from the already existing players in light and heavy commercial trucks but one thing is certain the new players will definitely try to roll out latest engine technology as per European standards. Economic conditions and import/export trade are considered as the life line for the production of light and heavy trucks as import and export trade is the barometer of country’s econ omy. The existing players had a nail biting experience from 2009-2010 onwards till 2012-2013. As per figures of Pakistan Automotive Manufacturers Association (PAMA), the overall sales of trucks plunged to 1,948 units in 2012-2013 from 2,394 units in 2011-2012, 2,942 units in 2010-2011 and 3,620 units in 2009-2010.

High truck prices of existing players can be blamed for low sales from 2009-2010 to 2012-2013 besides investors’ shift towards used trucks and Chinese light commercial vehicles. Even investors in goods carrier businesses also lifted only 10,734 units of Suzuki Ravi in 20122013 as compared to 17,015 units in 2011-2012. Hyundai Shehzore (Korean made) remained out of production from 2011-2012 to 2012-2013. However, the PAMA figures for JulyOctober 2013-2014 proved a bit relief for the truck makers as Hino sales stood at 263 units followed by Nissan’s 95 units, Master’s 125 units and Isuzu’s 90 units as compared to 264 units of Hino, 61 units of Nissan, 99 units of Master and 98 units of Isuzu in July-October 2012-2013.

Buyers of Hyundai Shehzore recieved a good news with start of its production from September 2013 with 150 units, swelling to 300 units in October 2013. One of the leading truck makers was not fully satisfied with JulyOctober 2013 sales figures saying that it did not mean that economy was on a recovery path. Cheaper Chinese trucks were still posing serious challenge to costly and big truck assemblers while arrival of used trucks continued to haunt the local industry. He said the Pak Rupee’s devaluation against major currencies had pushed up the cost of import of parts an d accessories thus pushing up cost of production in the last five years

especially from July 2013 onwards when one Dollar was equal to Rs 98.50 as compared to current hovering rate of Rs 108-110. He added that Chinese truck and commercial vehicle assemblers can sustain the currency parity impact due to cheap parts’ quality and low price of Chinese parts and accessories. He said that perhaps many big inventors also shifted to lift Chinese brands (light commercial vehicles) as they felt that high diesel prices in the last five years was proving unfeasible to their goods’ operation. As the Japanese assemblers are worried over the current heavy vehicle situation, the existing Chinese and Korean investors and upcoming new players must also be alarmed. The import policy permits import of used dump trucks, spraying lorries, waste disposal trucks and prime movers etc which find their way into the market for use as normal trucks. Others avenues also exist for import of used vehicles besides the baggage scheme for overseas Pakistanis which continue to be relaxed for heavy commercial vehicles with the age limit is five years and depreciation limit is two per cent. Smuggled and under invoiced heavy vehicles are also available in the market. With the above negative conditions, the government has imposed sales tax at the standard rate on locally produced heavy vehicles which has further hit the market. The assemblers under PAMA feel that the revival of heavy vehicle sector is not possible unless due measures are taken to curb the import of used vehicles for which age limit of used trucks being imported under baggage schemes be brought down to three from five years besides cut in depreciation limit to one from two per cent. PAMA feels that there is a need to comprehensively review all the schemes and appropriately pruning the same in the light of their misuse...

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International Automotive - New Technology

Monthly AutoMark Magazine

Hello Euro VI, buy buy Euro V But before any more work is done on trying to improve vehicle efficiency through technology, major improvements need to be made in process and management: up to 30% of the trailers on Europe’s roads are running empty. Euro VI is a “landmark technological achievement in emissions reduction”, delegates were told at Automotive World’s Megatrends Europe ’13, which kicked off in Brussels on 12 November. Day 1 was devoted to Commercial Vehicles, and the message was that there’s more to come – both from the industry side and from the regulatory side. So, with Euro VI as good as here, what will be regulated next, and how will any additional regulations be met? OEMs and fleets are concerned about investing in alternative power train technology, not only because of the up-front cost and uncertain return on investment, but also the resale value, the as-yet unproven long-term benefits, and the limited use cases. Electrification and fuel cell technology may be suitable in some circumstances, but these are restricted to particular applications, and the business case has yet to be made for hybrid technology. Natural gas could stand a chance, but the best way of getting CNG and LNG vehicles onto the roads is to...get them onto the roads. And the hesitation to invest in new technology isn’t limited to alternative powertrains: thanks to the considerable up-front and long-term running costs of Euro VI trucks, many OEMs are seeing pre-buy orders filling their books. One OEM suggested off the record that 50% of its current orders are for Euro V trucks. The European Commission says it develops regulations in partnership with OEMs, suppliers, and operators, yet private discussions with fleets, OEMs and suppliers suggested the level of dialogue is far from where it needs to be. As a result, attempts are being made to stimulate pan-industry debate, with

a view to creating a ‘voice of the industry’ to work with the EC to shape legislation, rather than fight against it. One size doesn't fit all when it comes to regulation, and there was agreement that usage-based and duty cycle-related assessment should be considered, instead of broadly-applied legislation. And although fuel efficiency, emissions and air quality are global problems, solutions aren’t being developed and applied on a global basis. Regulations are regional, and so are standards, yet some of the products to which they apply

- vehicles, fuels or lubricants - are sold globally. But before any more work is done on trying to improve vehicle efficiency through te chnology, major improvements need to be made in process and management: up to 30% of the trailers on Europe’s roads are running empty. Euro VI may be widely regarded as a major technological step forward in terms of emissions, but it’s here and yet even if every truck on the road was replaced with a Euro VI vehicle, there would still be an air pollution problem in Europe’s cities. Now that such advances have been made in truck technology, the commercial vehicle industry might be in a strong enough position to demand a similar level of improvement from other high polluting sectors, ranging from construction, aviation and marine right through to passenger cars....

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Monthly AutoMark Magazine

Automotive Sector - Update

Assurances needed ‘Opening road for India may hit our motorcycle industry’ While Ahmed added that Pakistan’s motorcycle industry was good enough and ready to compete with India ‘not only here but also in regional markets like Bangladesh and Sri Lanka’, he said the concern was whether the country would get a level playing field in liberal trade with India. He stressed on the need for the Pakistan government to analyse and determine the reservations of the country’s motorcycle industry. Karachi — the older plant from where or save regular government the company started assembling its duties through under motorcycles in the country in 1963. While Ahmed added that Pakistan’s invoicing and under motorcycle industry was good enough malpracticing. and ready to compete with India ‘not

An open-door trade policy with India may hit Pakistan’s motorcycle industry due to the former’s more complex laws for foreign entrants, said Atlas Honda Gen era l Ma n ag er Res earc h a nd Development Afaq Ahmed. Talking to a group of journalists, Ahmed said India’s vehicle emission standards are unique and complex, which most foreign players see as a deliberate attempt to discourage imports and penetration in their market. He added that Pakistan’s laws for foreign entrants are better in comparison as he voiced concerns amid talks about opening trade with India doing the rounds. “India’s emission standards are capable of discouraging Pakistan’s motorcycle exports even if both countries open the door for liberal trade and this is our major concern,” said Afaq, while showing different production processes of motorcycle manufacturing at Atlas Honda’s Sheikhupura plant. The company has another plant in

only here but also in regional markets like Bangladesh and Sri Lanka’, he said the concern was whether the country would get a level playing field in liberal trade with India. He stressed on the need for the Pakistan government to analyse and determine the reservations of the country’s motorcycle industry.

Use of Chinese parts When asked about the use of Chinese parts in Atlas Honda motorcycles, Ahmed said the company does import parts from China but only from the approved vendors of Honda Japan. “We do not compromise on the quality of the parts.” Atlas Honda also claimed that it is producing up to 94% of motorcycle parts in Pakistan and imported the remaining, which are cheap in other countries owing to their economies of scale. Chinese motorcycle assemblers in the country say Atlas Honda imports many of its parts from China but criticised them when they do the same to assemble motorcycles.

Big players like Atlas Honda believe that most Chinese motorcycle assemblers smuggle parts

Market share and profit situation

There are a 100 motorcycle makers in Pakistan out of which 80 are currently producing motorcycles. Atlas Honda is the largest motorcycle manufacturer in Pakistan and its current market share is 47%.

Atlas Honda, a part of Atlas Group, is financially sound with maker posting a net profit after tax of Rs1.6 billion during the last fiscal year that ended March 2013. This was in comparison to the Rs1.2 billion it made last year. The sales of the company stood at Rs42.3 billion, up 11.3% in the same period compared to previous year’s Rs38 billion. The company’s current annual production stands at 630,000 units but it is targeting 1 million per year. It recently invested Rs600 million in its production facilities to raise the installed capacity to 850,000 by June 2015, in an attempt to increase from the current 750,000 units per year.

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Exclusive Article by M. Ali Hassan

Auto Industry Policy (AIP) for Auto Sector including 2/3 Wheelers

Ministry of Industry Government of Pakis tan

The government invited PAMA, PAAPAM and APMA on November 13 in connection with AIP meeting to meet chairman BOI Mohammad Zubair and Secretary Ministry of Industries and Prodocution (MoIP) Shafaq Hussain Naghmi but due to shortage of time the top government officials only listened issues of three large car assemblers.

APMA chief Mohammad Sabir Shaikh said that the AIP meeting should focus on two points 1- Custom duty on spare parts of all k in d o f ve hicl es in cl u d in g motorcycles @ 25% (All kinds of Parts, Localized, Non Localized, Assemblies, Sub assemblies, Components, Sub component for replacement market and for the assembly or manufacturing of motorcycles etc). 2- CBU rate of Custom duty for all kind of vehicles including two wheelers should be fixed @ 45% (CBU motorcycles, 100% CKD of new models or in 100% SKD condition. It will encourage introduction of new models and new technologies in the country.

The government finally woke up late to address auto assemblers issues and finalize Auto Industry Policy (AIP) but the meetings with the stakeholders so far had so far remained confined to d isc us sio n s an d t ak ing feed back. The government invited Pakistan Automotive Manufacturers Association (PAMA), PAAPAM and Association of Pakista n M otorcycle Ass em blers (APMA) on November 13 in connection with AIP meeting to meet chairman BOI Mohammad Zubair and Secretary Ministry of Industries and Prodocution (MoIP) Shafaq Hussain Naghmi but due to shortage of time the top government officials only listened issues of three large car assemblers. The car makers were represented by Chief Executive Officer (CEO) Indus Motor Company (IMC) Pervez Ghias, Jamil Ahmed from Pak Suzuki, Raziur Rehman from Atlas Honda and Honda cars and Director General PAMA Abdul Waheed Khan. APMA Chairman Mohammad Sabir Shaikh represented the Chinese-based bike assemblers but due to paucity of time he could not present his point of view. This was the third meeting of AIP w h ic h r em a i n e d i n c o n c l u s i v e . Auto stakeholders belonging to various

segments had so far failed to meet face to face with the convener AIP Khawja Asif. The first meeting held on October 12 in the committee room of MoIP but due to heavy presence of PAMA and PAAPAM members the meeting with Khawaja Asif postponed. The November 13 meeting with BOI chief an d depu ty con ven er AI P committee also proved fruitles s. By end of November no further meeting of AIP was held. The ECC had given 45 days to finalize the AIP draft. More than 60 days had gone from the deadline given on October 2.

APMA chief Mohammad Sabir Shaikh said that the AIP meeting should focus on two points. What we need, he said, only two types of duty structure which the government must introduce immediately, otherwise no one can save the national exchequer. 1- Custom duty on spare parts of all kind of vehicles including motorcycles @ 25% (All kinds of Parts, Localized, Non Localized, Assemblies, Sub assemblies, Componen ts, Sub componen t for replacemen t market and for the a s s em b ly o r m an uf a ct u ri n g o f motorcycles etc). 2- CBU rate of Custom duty for all kind

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Monthly AutoMark Magazine of vehicles including two wheelers s ho u ld be fix ed @ 45 % (C B U motorcycles, 1 00% CKD of new models or in 100% SKD condition. It will encourage introduction of new models and new technologies in the country. Pakistani-Cum-Chinese Brands enjoy more than 60 per cent share in the market. “W e believe a ny policy developed without representation of local industry having more than 60 per cent market share will be unfair,” APMA chief said.

Minimum in house facilities • Facilities like paint shop and welding are outsourced to other vendors by OEM than vendor should have same facilities as mentioned. • At least two years time to be given to existing vendors in case of shortfall in the required facilities. Tariff for next five years

Background The SRO 693/2006 or A-Max List was issued when country’s bike production was less than 300,000 units. Keeping this requirement those components which are locally manufactured and the respective vendors are meeting this demand by 65 per cent of the country production are classified as indigenous thus taken into SRO 693/2006 or AMax List for providing protection to local vending industry. This exercise was carried out at EDB level. In this exercise those items were also included which are manufactured by OEMs and their associates but not supplying to other OEMs. Now country’s annual bike production is touching two million units but instead of increasing the vendor capacity to that extent their capacity has been reduced an d they are unable to meet the country’s demand. On the other hand, an Auto Industry Development Plan (AIDP) was prepared in which following incentives were given to the investors to make investment in the high precision items and project requiring heavy investment;

• Human Resource Development through Auto Industry Skill Development Company. • Proper Statutory Rules and Regulation for qualifying under PAII. • Allocation of Funds for TASS • Area allocation for Auto Cluster

Development • Statutory backing of Auto Industry Investment Policy. Other side of plan is that a schedule has been given to AIDP to delete the parts specified therein within five years for higher duty under SRO 693/2006 or AMax List but not developed in the country as yet. EDB unable to provide the legal backing to the incentives mentioned in the AIDP therefore no investor is ready to make investment therein while EDB is putting the parts in SRO 693/2006 or A-Max List. Vendors are also facing the problems due to non availability of some of the components locally which is used in manufacturing of parts. They are forced to import it at high rate of duty. In SRO 693/2006 or A-Max List no distinction has been given for different horse power motorcycles. Development of localized parts of 70cc motorcycles has been applied to all motorcycles which are different from 70cc. As a consequence motorcycles of horse powers of other than 70cc has not been developed and no improvement in 70cc motorcycles as well.

The government should investigate the achievement in localization by all vehicle assemblers especially as consumers are not getting any benefit of higher localization and they are purchasing Japanese assembled 70cc bike at very high price. Some assemblers have been raising the prices on rupee-dollar parity due to rising cost of imports on non localized parts

APMA Proposal

M.Sabir Shaik APMA chief

Rules/criteria need to be defined for inclusion/deletion in SRO 693/2006 or A-Max List or make SRO 693/2006 or A-Max List as part of CGO 11/2007 with vendor name where such criteria have already been laid down. • SRO 693/2006 or A-Max List needs to be revisited on the basis of Rules/Criteria laid down as proposed above. • Auto parts which are meeting the 75 per cent of country’s demand and ha ve achieved qu alit y excellence should be kept at high duty and remaining parts to be deleted. • Components used in EURO II compliant vehicles to be addressed separately in SRO 693/2006 or AMax List. • On the other hand incentives given in AIDP should be made available to investors legally. In the meantime, components which are taken in SRO 693 in the last three years to be reversed and duty under SRO 693/2006 or A-Max List to be reduced to 25 per cent. • Components of motorcycles of 70cc, 100cc and 125cc should be separately identified under SRO 693/2006 or A-Max List which is localized so specific emphasis can be given.

“ The above are our comments on the proposed policy which should be considered in the next meeting and circulated amongst the members of your committee. ”

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In our opinion, he said the Auto Industry Policy (AIP) needs drastic changes because for the last eight years, institutions involved in auto sector have been taking decisions on their own without understanding the law and market situation.

“Sabir said he understands that there is a dire need to save the local industry and this can only happen by increasing prices by the Chinese assemblers, decrease in tax rates, easy policy by the government and revamping of customs valuation system, scrapping of Tariff Based System including IORC’s system, importable lists loaded in the custom system by the EDB which is totally a fraud system prevailing for the last eight yars.”

To remove corruption from imports, Sabir said issuance of production certificates and importable lists by the EDB is wasting of time of the in dus try es pec ially to th e bike assemblers. There should be no role of EDB in any imports procedure, only FBR and its direct related departments are enough.

Localisation

Import of Auto Parts Custom Duty Structure: 1. Imports under SRO 656/2006 custom duty @ 10% (for non localized parts). 2. Commercial Imports by the OEM’s and importers @ 50% customs duty. 3. Import under SRO 693/2006 custom duty @ 10+28.75 = 38.75% (for localized parts). 4. Import under SRO 655/2006 custom duty @ 05%, 10% & 20% (by changing the name of the parts as sub assemblies, components and sub components). 5. Import by the importers / OEM’s th rou gh mis -dec la ra tion , u n der Invoicing, mis-declaration of total weight because on motorcycle parts customs issued higher valuation ruling but on same parts made by same materials and technology for cars and other vehicles the valuation ruling is on very lower side and importers are taking the benefit of lower valuation of car parts declaring car parts but importing motorcycles parts. 6. Open smuggling at all dry ports. 7. Import through Afghan Transit Trade. 8. Import under SRO 655/2006 of Raw m at er ia ls @ 0 % c us t o m d ut y .

Sabir said he understands that there is a dire need to save the local industry and this can only happen by increasing prices by the Chinese assemblers, decrease in tax rates, easy policy by the government and revamping of customs valuation system, scrapping of Tariff Based System including IORC’s system, importable lists loaded in the custom system by the EDB which is totally a fraud system prevailing for the last eight yars. The industry badly needs an AIP excluding the role of IORC by the EDB. There should be no SRO from the government and the government should also ensure uniformity for importing part from respective principles on one customs duty rate. For example, for localized parts lists there is different customs duty rates while different rates prevail on non localized parts list. There are also different rates on assemblies and subassemblies. “We have to understand that all these parts are same and all the lists made by EDB / FBR for local parts in the past are not correct,” he said.

He also questioned the policy makers and the government as what has been achieved in terms of localization of parts and accessories in the last 15 years. For example, a leading bike assembler claims to have achieved over 94 per cent parts localization including engine parts. If Japanese principles close their activities in Pakistan then the Japanese assembler can easily make a bike on their own as per pattern of Hero Honda of India which is now Hero which has same expertise and technology which it had when Honda was with them. The government should investigate the achievement in localization by all vehicle assemblers especially as consumers are not getting any benefit of higher localization and they are purchasing Japanese assembled 70cc bike at very high price. Some assemblers have been raising the prices on rupee-dollar parity due to rising cost of imports on non localized parts.....

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AIP draft finalization delayed, PAMA, PAAPAM outburst over APMDA Director General Pakistan Automotive Manufacturers Association (PAMA) Abdul Waheed and Chairman Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) Usman Malik said “the importers of used cars should be punished and held accountable by the government for violating the constitution of Pakistan as they are involved in illegal activities and working against the national interest.” The finalisation of the Auto Industry Plan (AIP) draft has been delayed despite getting feedback and proposals from the auto sector in two meetings with the government. The Economic Coordination Committee (ECC) in its October 2 meeting had set up a committee tasking it to finalise the AIP draft within 45 days, however more than 60 days had passed. Two meetings were held on October 28 a n d N ov em b er 1 3 w it h s e n io r government officials on the AIP issue but failed to deliver any results. All autosector related bodies had submitted their proposals to the government prior to the meetings. Chairman Association of Pakistan M ot or cyc le As s em blers (Ap ma ) Mohammad Sabir Shaikh termed the delay in the preparation of the final draft to the Rawalpindi Ashura incident, illness of Federal Finance Minister Ishaq Dar, Muharram and busy schedule of Committee Convener Khawaja Asif, the new defence minister. Shaikh said that so far the stakeholders have failed to meet Khawaja Asif but were able to hold meetings with deputy convener and Board of Investment chairman Muhammad Zubair and Secretary Ministry of Industries and Production Shafqat Hussain Naghmi. Before the AIP draft finalisation and submission to the ECC for approval, the car assemblers/vendors and used car dealers have started spitting venom on each other. Chairman All Pakistan Motor Dealers Association (APMDA) H.M. Shahzad said that that car makers and vendors had stepped up their campaign against his association to distract policy makers from making a realistic AIP.

He said the assemblers of Suzuki, Toyota and Honda had been in business for the last 20-30 years and were allowed huge concessions to incentivise indigenisation.

“They have been given continuous relaxation in the deletion program by the government until they were successful to completely shelve the deletion program in the garb of Tariff Based System (TBS),” he said. Shahzad said huge amount of foreign exchange is being spent on import of completely knocked down (CKD) kits as there is practically no import substitution even after 30 years. “Even the vendors are importing parts of their products,” he said. He said there should have been more localization especially in one of the leading Japanese cars which is more than 20 years old. In 201 3, car assemblers had raised the prices by at least four times.

Meanwhile, car assemblers demand a long term consistent policy in the new AIP which would go a long way in giving impetus for future growth. They also want proper implementation of some of the best laid out legislation and tariff structure. Assemmblers said the government should ensure that after announcement of AIP after mutual understanding, the policy would remain unchanged for the next five years so that the industries and vendors could pla n their future programs without any fear. Director General Pakistan Automotive Manufacturers Association (PAMA) Abdul Waheed and Chairman Pakistan As sociation of Automotive Parts Accessories Manufacturers (PAAPAM) Usman Malik said “the importers of used cars should be punished and held accountable by the government for violating the constitution of Pakistan as they are involved in illegal activities and working against the national interest.” Th e u s ed c ars im po rte rs forg e documents to import used cars, evade taxes, sell old junk cars at prices equal to loca lly produced new cars to the customer, and do many gimmickries to harm the national interest, they added. Mr. Abdul Waheed emphasized that it is high time the government should take action against this dealer mafia as they are doin g a hefty damage to the employment base of the country through the import of thousands of used cars and help the national economy by patronizing local industry. He also mentioned that the local auto industry is working in lin e with government policies while keeping the

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Cover Story

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RAHI TRACTORS

(A Joint Venture between Shifeng Group, China and RUBA Automotive Pakistan (Pvt.) Ltd.) A New Horizon in Agricultural Mechanization in Pakistan Presently, the Pakistan tractor market is dominated by two major tractor manufacturers, who are marketing tractors with up to 90% deletion with locally manufactured parts and therefore been able to maintain low prices of Tract ors as co mpared to imported Completely Built Units (CBU). In the process of maintain in g a competitive manufacturing cost of these tractors, they over looked to invest appropriately on upg rading their manufacturing machinery/equipment or strive for an improvement in quality of indigenized local parts. Resultantly, the manufacturers could not ensure the overall quality of tractors, despite a desire to do so as a result of customers’ negative feedback. As long as quality tractors are imported CBU as a trading option rather than gradually manufacturing them locally, the CBU tractors would remain too expensive and virtually out of range of local farmers. On the other hand, importing a cheaper tractor CBU, would adversely affect its quality and therefore, unacceptable. Credit goes to the Government of Pakistan for initiating a new AIDP (Auto I ndust ry Dev elopment Program) whereby the new auto (tractor) entrants are now being encouraged to come forwa rd w it h qua lity and latest technology products. RUBA Automotive is one such Company.

RUBA Automotive Pakistan (Pvt.) Ltd. as part of RUBA-SEZ

Mr. Shah Faisal CEO-President

Group has endeavored to introduce qu alit y t rac to rs i n P ak is ta n at competitive prices. This has been made possible through a Joint Venture with

Shandong Shifeng Group, China, without compromising on quality as they plan to go into a joint CKD production soon. RUBA SEZ Group s tarted operations in 1971 and as years passed by, the new generation continued the legacy of the generation before. The business, thus, developed into a dynamic Group of Companies with a common goal of contributing to the economic and social growth of Pakistan. Today, the group includes Electronics, Automotive, Investment, Special Economic Zone and consumer divisions working diligently to produce, market and distribute world-class products and services. RUBA Automotive, as part of R u ba Se z G ro up , w as rec en tly incorporated in February 2012 and commenced its strategic operations immediately thereafter. The company’s business activities include Importing / M an ufa cturin g / As semblin g o f Agricultura l Tractors an d Allied Equipment initially and subsequently, p lan s t o in t ro du ce L CV (L igh t Commercial Vehicle), Electric Car, Industrial Tyres, Diesel Generators and Forklift Trucks, to the Pakistan market o ver th e n ext c ou ple o f years . Their dedicated and highly skilled team of professionals take pride in their work and pledge to create the best Farming,

Water and Energy Solutions for the Farmers, Communities, Governments, Companies and Individuals to help to achieve their goals. In the First Phase, RUBA Automotive offers a range of “RAHI” tractors; the most well designed modern EURO II compliant tractors in Pakistan so . The tractor assembly plant is presently located at Raiwind Road, Lahore. The tractors are being imported in SKD condition and the process will be gradually upgraded from assembly to regular production, from CKD. “RAHI” is a leading product of the new century that adapts European technology and optimized 3-D design technology and is fully adaptable with characteristics of Pakistan’s agriculture. It is a multipurpose machine with a higher horse power, torque and road speed as compared to the local tractors and suitable for both commercial and agricultural purpose. It is proudly claimed that these tractors are being operated successfully in many European a nd Africa n m arkets un der th e SHIFENG brand name winning the confidence of thousands of customers worldwide.

Shandong Shifeng Group was founded on May 18th of 1993; the manufacturing area covering 400 Hectare, with 30000 employees. There are 5 subsidiary Divisions in Shifeng G r o u p ; Ag ri c u lt u r a l V eh ic l e, Agricultural Equipment, LCV & Electric Car, Nylon Chemical Fiber & Tire, and Coal-fired Power Plant. With 1500

Mr. Shah Faisal CEO with Shifeng Group President

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Anomalies in sales tax laws impede Hybrid cars imports

Industry sources said that approximately 90 used Hybrid vehicles were imported under used cars policy in July 2013 which does not provide any warranty or after sales support to the consumers. In addition to this more 1000 cars were imported during the month of October. Anomalies in the sales tax laws are holding back local car manufacturers from introducing Hybrid Electric Vehicle (HEV) in Pakistan as the tax relief recently announced by the government is only applicable at the import stage for Hybrid vehicles and not on subsequent sales, according to stakeholders here. This has put car assemblers at a disadvantage when compared with the relief provided to commercial importers; assemblers said adding that this has put them at a disadvantage in view of the fact that importers are abusing the used car import policy meant for overseas Pakistani. SRO 499 (1) /2013 only provides a tax benefit at the import stage for HEVs and not on retail stage and since assemblers will be importing the vehicles and then selling them subsequently to end users, they will have to pay full sales tax at the prevailing rate of 17 percent, whereas a commercial importer will only have to pay 50 percent i.e. 8.5 percent sales tax at import stage instead of 17 percent. Resultantly local assemblers, who are

Engineers, Technology & Research Center, Strict Quality Control, and Advanced Equipment, the group is confident to supply efficient Products & Services. Their annual turnover for the year 2011-2012 was over 5 billion USD.

RAHI tractors are being offered in 55-HP, 65-HP and 75-HP ranges and some important technical features, which merit

fully documented, will not be able to benefit from government’s announced tax relief to the end customers on imported HEVs. Car assemblers, it is learnt, have requested the Ministry of Finance to rectify this anomaly as soon as possible and ensure a level playing field for them. Assemblers have already planned that brand new Hybrid vehicles will be provided with complete warranty and after sales support, thereby providing peace of mind to customers. Indus Motor Company (IMC) has already introduced imported brand new hybrid car last week while Honda Atlas Cars are also reportedly considering

attention, are: • Euro 2 Compliant Engine. • Fuel economy/efficiency up to 40%. • Power steering in all models. • Higher road speed (33 km/h max.). • Efficient disc brakes. • More comfortable seat and platform. These tractors were launched in Pakistan market in the first week of January 2013. The Company plans to establish a comprehensive After Sales and Dealer’s network by June 2013. Pr es en t ly , 25 3 - S D ea l er s h ip s

introducing hybrid cars in the country. In FY2012-13, around 2,800 used Toyota Prius had arrived in the country. I n th e b ud g e t 20 1 3 - 20 1 4, th e government put import duty and sales tax on hybrid cars up to 1,200cc at zero percent sales tax while there was 50 percent off in duty on hybrid cars for 1,201-1, 800cc followed by 25 percent off in 1,801-2,500cc. Industry sources said that approximately 90 used Hybrid vehicles were imported under used cars policy in July 2013 which does not provide any warranty or after sales support to the consumers. In addition to this more 1000 cars were imported during the month of October. Contrary to this, car assemblers importing new Hybrid vehicles will be providing full backup support including spare parts, after sales service and warranty. Government should take the manufacturers on board to finalize a policy regarding hybrid vehicles to provide benefits to the consumers, they said...

are established through the country, with a mission to provide prompt After Sale Services at customers’ doorstep. Due to fu tu re C KD pr odu ct ion requirements, a comprehensive supply chain network is also on the cards. Like many other imported tractors having entered the local market during the last ten years and then fading away, RAHI tractors are here to stay and support the agriculture sec tor and economy of Pa k is ta n fo r ti me s t o c o me .. ..

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Tractor sales still in red A total of 3,524 and 4,763 units of Fiat and Massey Ferguson tractors were sold as against 5,827 and 8,156 units. Tractor makers appeared happy on recovery in sales from October 2013 to 3,292 units from 1,756 units in September. The market already has a huge left-over stock of old price which has started depleting now, according to a truck maker. Tractor sales continued to remain in the red while sale of buses, trucks, jeeps and pick-ups improved in July-October 2013 as compared to the same period last year. Figures released by Pakistan Automotive Manufacturers Association (PAMA) stated that a total of 8,287 tractors were sold in the first four months of current fiscal year as compared to 13,983 units in sa me period last fiscal year. A total of 3,524 and 4,763 units of Fiat and Massey Ferguson tractors were sold as against 5,827 and 8,156 units. Tractor makers appeared happy on recovery in sales from October 2013 to 3,292 units from 1,756 units in September. The market already has a huge left-over stock of old price which has started depleting now, according to a truck maker. He said November and December may show positive sales growth after return of farmers to the market to lift farm machinery on fears of increase in GST from January 2014 to 17pc from the current 11pc. Total sale of trucks slightly rose to 573 units as compared to 522 units .

Hino, Nissan, Master and Isuzu trucks sales stood at 263, 95, 125 and 90 units in July-October 2013 as compared to 264, 61, 99 and 98 units, respectively. Total sale of buses improved to 191 units from 155. Hino bus sales went up to 155 units as against 147 units. Isuzu bus sales rose to 27 from eight units. A bus/truck assembler said that increase in truck sales, which is considered as a barometer of import/export trade, does not mean that economy is reviving as sales figure are not very impressive. He said cheaper Chinese trucks are giving tough time to big trucks while used trucks also continue to arrive. In buses, no significant improvement was seen despite rising inter-provincial movement of people in buses as compared to railways.

One of the factors that hit investor sentiment was high prices of buses and rising diesel prices. A total of 183 units of Sigma Defender jeeps were sold as compared to 166 units while Suzuki Ravi pick-up and Toyota Hilux sales was recorded at 3,692 and 1,489 units which were 3,030 and 1,745 units earlier. Only six units of Master pick-up were sold as compared to seven units earlier. PAMA figures reveal start in production of Hyundai Shazore pick-up from 150 units in September to 300 units in October. Last month, the manufacturer of pickup sold 47 units. Hyundai Shahzore had remained out of the market from 20112012. In two-wheeler segment, Honda bike sales stood at 212,751 units in JulyOctober 2013-2014 which were 213,262 un its . Su zu ki tw o-wh eeler s ales increased to 7,950 units from 5,349 units. Habib bike sales stood at 8,139 units as compared to 7,430 units. Sazgar three-wheeler sales grew to 3,658 units as compared to 3,188 units.

Pakistan Railways executing project for rehabilitation of HGMU-30 locomotives

Pakistan Railways, as part of measures to improve its overall performance,is executing a project for rehabilitation of H G M U-3 0 loco m ot ives , as fiv e locomotives are expected to be available by June next. Two locomotives per month after that will be rehabilitated and inducted in freight operation. Accordin g official sources in the Department,a separate project-Special Repair of 150 Running Locomotives was approved during 2012-13 under Public Sector Development Programme (PSDP) as it will decrease the burden of locomotive maintenance on revenue

budget. I t h a s a l s o i n d uc t ed G M U- 3 0 locomotives in its system by to help generate revenue of Rs. 4.416 million per annum by transportation of oil. It is expected that freight trains will be increased to 8-10 on daily basis on availability of locomotives at the end of current financial year. It said in case of offering of less oil traffic, Pakistan Railways will focus on operation of container trains to generate revenue of Rs.3.8 billion per annum. The revenue earning during July 2013 has increased to the tune of Rs. 178.724 million over the corresponding period

of previous financial year i.e July 2012.The increase in earnings is mainly due to reduction in fares of passenger trains. Punctuality of trains has been improved by 3 percent in July 2013 and constantly being observed while efforts are also underway to improve the punctuality fu rt he r w it h a va ila bilit y o f fit locomotives. All non-productive expenses have been stopped and expenditures are being incurred in accordance with available resources i.e revenue generation and government subsidy...

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Why PAMA criticize APMA’s registration in DTO Mohammad Sabir Shaikh APMA chief explains as to why APMA was formed to represent the issues of assemblers of Pakistani Brand Motorcycles (which represent 60 per cent of the market). P a k is t a n Automoti ve Manufacturers Association (P AM A ) h as locked horns on t h e representative body of Chinese bike assemblers over its registration in Director Trade Organization (DTO). Association of Pakistan Motorcycles Assemblers (APMA) claims that the body has over 60 per cent market share in terms of assembling bikes in the country and it is a dire need that it should be registered with the Ministry o f C o m m e rc e l ik e o t h er a u t o stakeholders’ bodies. FPCCI should also accept APMA as a main representative body of Chinese bike assemblers. Mohammad Sabir Shaikh APMA chief explains as to why APMA was formed to represent the issues of assemblers of Pakistani Brand Motorcycles (which represent 60 per cent of the market).

• PAMA was formed to represent the issues of automobile assemblers but it had only confined its role to represent the issues of Japanese car assemblers. As a consequence to which separate associations are formed to protect their interest, like PARMA for Rickshaw As s em b ler s , T AA fo r T ra c t o rs Assemblers and APMA for motorcycles assemblers etc. If anyone wants to know about PAMA’s history of their top office bearers one will find that they are also from Ja pa n es e ca r as s em blers . • In case of motorcycles assemblers PAMA mainly focusses in taking care the interest of Japanese branded motorcycles assemblers which are only two in numbers. They are not allowing membership to Pakistani brand assemblers. N J Auto Industries (Private) Limited, assembler of Super Power motorcycles, Memon Motors (Private) Limited, assemblers of Super Star bike

Car sales rise by 6.4pc Sales of locally produced cars rose by 6.4 per cent to 37,229 units in JulyOctober 2013 compared to 34,990 units in the same period a year earlier. Month-on-month (MoM) car sales fell slightly in October to 8,690 from 9,659. But year-on-year (YoY) car sales saw a paltry rise in the month as they were 8,184 units in October 2012. Data released by Pakistan Automotive Manufacturers Association (Pama)

revealed that YoY sales of Honda Civic and City increased to 3,492 and 4,532 from 2,290 and 3,719 in the four-month period. A total of 9,375 units of Toyota Corolla were sold compared to 9,187 units. Sales of Suzuki Liana and Swift fell to 61 and 1,757 from 86 and 2,402. Suzuki Cultus and Bolan sales grew to 4,609 and 4,249 from 4,317 and 3,484, while sales of Suzuki Mehran dropped

Honda raises car prices Honda Atlas Cars Pakistan has increased the car prices by Rs 20,000 for its model City and Rs 30,000 for Civic from December 1, 2013. A company official attributed the price

hike to rupee depreciation against the dollar. In the second week of this month, the maker of Toyota Corolla cars had raised the prices by Rs 21,000 to Rs 75,000.

and D S Motors Private Limited, assembler of Unique bike, were applied for the PAMA membership but PAMA refused their membership or not responded on their application by giving irrelevant objections. N J Auto was filed complaint against them to the Director General Trade Organization but they used their Japanese influence and stopped the hearing. Their complaint has been pending for the last three years with DTO.

• APMA has also applied to DTO being representative body in 2006 but here they also used their Japanese influence and APMA’s application was initially rejected. AP M A c h ie f s a i d E n g in e e ri n g Development Board has also recognized our status and chairman and vice chairman are representatives of the AIDC. This clearly clarifies the existence and importance of APMA. He hoped that that the government departments would accept our active role in formulation on new AIP and other auto related policies.

USAID hands over 70 rickshaws, 30 Ravi vehicles to Pesco The United States is working with the Peshawar Electric Supply Company (Pesco) to improve the supply of electricity to customers by extensively s t r en g t h en in g t h e ca pa ci t y o f distribution compa ny lin e staff. As part of this effort, the US Agency for International Development (USAID) on Wednesday handed over 70 rickshaws and 30 Ravi vehicles along with the linemen equipment, to the Peshawar Electric Supply Company (Pesco).

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Import of used cars plunges he APMDA chief urged the government to bring used cars/vehicles under the ambit of commercial import with a five to 10 years age limit by .amending Sr.No.10 of Appendix-C of Import Policy Order 2013. This would generate more revenues,` he said. Imports of used cars up to 1,000cc plunged sharply to 4,974 units in JulyOctober 2013 as compared to 10,174 units in the same period last year. All Pakistan Motor Dealers Association (APMDA) Chairman H. M. Shahzad attributed the big drop to the cut in age limit of used cars to three years from five years in December 2012, followed by another cut in depreciation limit to two years from three years. He said the importers/dealers of used cars are getting deprecation of two years but the cars being imported are of three years age limit. Used car prices of threeyear-old are higher as compared to fiveyear-old cars. Shahzad said that consumers had a wide choice for purchasin g used cars, particularly of lower engine power vehicles when imports were thriving. They now have limited options while the local car industry offers decades-old models of Suzuki Mehran and Suzuki Cultus at very high prices.

He suggested that importers should get three years depreciation which would improve imports and revenues.Figures provided by the APMDA reveal that import of cars from 1,001 to 1,300cc stood at 14 units as compared to 1,079 units while from 1,301cc to 1,500cc only 783 units arrived as compared to 6,236 units. Arrival of 1,601 to 1,800cc vehicles shrank to 661 units from 1,279 units. However, import of jeeps (4x4) went up to 388 units from 275 units. Based on the above figures, the total

Import of agriculture machinery, tools fall 61pc: PBS According to official figures, Pakistanâ&#x20AC;&#x2122;s import of agriculture machinery and implements fell 61 percent to $20.122 million during July-Oct period of the current fiscal year. Accordin g to Pakistan Bureau of Statistics (PBS) report, import of agriculture machinery and implements showed a decline of $31.115 million during the first five months of the current fiscal year as compared the machinery import of $51.237 million in the same period of last fiscal year. However, import of construction and mining machinery grew by $84.398 million or just over 90 percent to

$144.140 million in the first five months as compared to the machinery import of $59.742 million in the same period of last year. On the other hand, import of textile machinery went up by $20.28 million over 15 percent to $153.793 million in July-Oct, 2013-14 as compared to the machinery import of $133.513 million in the same period of 2012-13. Import of other machinery posted a $13.673 million or 3 percent rise to $483.539 m illio n in July-Oct , 2013 -14 as compared to the machinery import of $469.866 million in same period of last year....

imports of cars up to 1,000cc to 3,000cc and (4x4) jeeps fell to 6,842 units in July-Oct 2013 (Rs3 billion customs duty) as compared to 19,129 units (Rs6.6bn customs duty) in same period last year. Meanwhile, the Pakistan Bureau of Statistics (PBS) data showed 58 per cent drop in car imports, which went down to $58 million in July-October 2013 from $136m the same period last year. The PBS figures did not mention number of vehicles imported in the last four months. Shahzad recalled that when five years old cars were allowed, almost 80 per cent imports comprised of 660cc to 1,000cc vehicles of different models. The government is in the process of finalising the new auto industry policy ( AI P ) a n d h a s i n vi te d a ll t h e stakeholders to give their feedback including used cars dealers. The APMDA chief urged the government to bring used cars/vehicles under the ambit of commercial import with a five to 10 years age limit by amending Sr.No.10 of Appendix-C of Import Policy Order 2013. `This would generate more revenues,` he said. He also suggested the government to allow certified members of APMDA to import the used vehicles on commercial basis for the sake of transparency of the trade. The import of used cars permitted under various schemes to facilitate overseas Pakistanis should continue but most the vehicles are being imported under transfer of residence and personal baggage schemes. He said all ad hoc schemes such as the infamous amnesty scheme` should be banned for ever. `Smugglers should be dealt with under the law instead of giving amnesty,` he said...

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China is battleground for automotive electric vs hydrogen The two Japanese heavyweights plan to start selling their hydrogen vehicles in 2015, brushing off electric technology as being good enough only to power tiny city cars. German auto giants Volkswagen AG, BMW and Daimler see China's future as being electric - encouraged by generous government subsidies - but that bet puts them at odds with some of their Asian rivals. While the Europeans were heralding the all-electric vehicle at the Guangzhou auto show this week, Toyota Motor and Honda Motor were unveiling hydrogen fuel cell cars at shows in Tokyo and Los Angeles. The two Japanese heavyweights plan to start selling their hydrogen vehicles in 2015, brushing off electric technology as being good enough only to power tiny city cars. One of the most ambitious in betting on electric cars in China, the world's largest auto market, is Volkswagen. On the eve of the Guangzhou show, Volkswagen said its brands, including Volkswagen and Audi, plan to launch a total of more than 15 near-all-electric plug-in cars by 2018, many of which will be locally produced. "We forecast high volumes in this area," Jochem Heizmann, head of Volkswagen Group China, told reporters this week. BMW and its local partner Brilliance Auto unveiled a jointly developed allelectric battery car in Guangzhou. The two companies plan to start leasing the car next year under a new jointly run China-on ly brand called Zinoro. Daimler said it was also on track to launch an all-electric car next year under a new China-only brand called Denza, which the German company operates jointly with Chinese battery and car producer BYD Co. The rush into all-electric cars comes as Beijing ramps up a programme to put 5 million new energy vehicles - defined as all-electric battery vehicles and heavily electrified "near all-electric" plug-in hybrids - on the road by 2020. China this year expanded the definition of new energy cars to include fuel cell cars. The two concepts have polarised the

industry. Fuel cell cars can run up to five times longer than their all-electric counterparts, but come with a heftier price tag. But unlike electric vehicles which can be recharged from home as well as charging stations, fuel cell cars must stop at refilling stations. The hydrogen stations are costly to build, at about $6 million (RM19.2 million) apiece. Call for flexibility Some industry insiders and experts believe China is too focused on allelectric cars or plug-ins. "Toyota believes the industry isn't likely to come up with breakthroughs to make all-electric cars a viable solution any time soon," said Yale Zhang, head of Sh an gh ai-bas ed co ns ultin g firm Automotive Foresight. "Unlike China, some countries have taken a more flexible approach, rather than setting the path on one solution too early." Toyota, in particular, thinks all-electric car technology is good enough to power only tiny city cars - not powerful enough for larger cars. At this week's Tokyo Motor Show, Toyota unveiled a fuel cell concept sedan with two hydrogen tanks and a driving range of 500 km. The car, it said, would sell for 5 million to 10 million yen (up

to RM320,000) when it goes on sale in 2015. Honda also unveiled a five-passenger hydrogen fuel cell vehicle at the Los Angeles Auto Show this week. By his own admission, the company's chief executive of its US business, Tetsuo Iwamura, expects uptake to be slow due to poor infrastructure. In China's congested and bustling cities, electric charging or hydrogen fuelling stations are a rare sight. Volkswagen says the infrastructure is not good enough, and believes plug-in hybrid technology is the solution. Plug-in cars come equipped with a small gasoline engine that can power the car when it is drained of electricity. Nissan Motor plans to sell a fuel cell car in Japan and North America starting in 2017, but like Volkswagen, sees electric technology as the future in China, according to Ren Yon g, a s enior executive of Dongfeng Nissan Passenger Vehicle Co, Nissan's Chinese venture with a local partner. Nissan plans to start selling a locally developed electric car in China under the Venucia brand as early as next year. - Reuters, November 22, 2013.....

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Automotive Sector - Update

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Government urged to probe used cars scam The government has been urged to in ves tig ate th e us ed cars s ca m thoroughly so that the country’s auto in du s t ry c o ul d g ro w pr o pe rly . Pakistan Association of Automotive Parts Acces sories Manufacturers (PAAPAM) Chairman Usman Malik la u d e d t h e eff o rt s o f F ed e ra l Investigation Agency (FIA) for digging out the recent scam. He also sought the verification of the record of all vehicles imported after relaxation of used cars import policy because dealers were grossly misusing the import policy concessions. He said that the FIA should investigate unsold stocks at used cars dealerships, verify their ownership details, scrutinise immigration database and the entry or exit stamps affixed on the passports. “All these malpractices are critically hu rting th e l oc al aut o part s manufacturers and their volumes and profit margins have been eroded by such

illegal imports, while on the other hand used car dealers are reaping bumper profits from the abuse of import policy order.” Describing details of the scam, he said that an FIR was lodged on the basis of a written complaint by a passenger regarding misuse of his passport by an agent dealing with the issuance of visa, alleging that the customs clearing agent had imported a vehicle on his passport fraudulently under the personal baggage sch eme with out t he pas sen ger’s knowledge. The investigation agency scrutinised immigration database, finding it to be forged and concluded that the clearing agent had committed a fraud with the complainant, whose passport was used for the issuance of fake visa. The PAAPAM chairman pointed out that used cars dealers are abusing the auto import policy, which is meant only for expatriate Pakistanis, by importing huge

quantities of used vehicles through m a n ip ula t io n o f d o cu m en t s of Pakistanis returning from abroad. About 95 percent of used cars are imported from Japan under personal baggage and transfer of residence scheme but these vehicles have been cleared through documents of Pakistanis retu rn in g from M idd le E as tern countries. PAAPAM Senior Vice Chairman Aslam Rayaz said that as per Import Policy Order 2012-15, minimum stay abroad for import of personal baggage shall be 180 days within the last seven months preceding the date of application and minimum stay abroad requirement for gifting a vehicle or importing under transfer of residence shall be at least 700 days during the past three years. A vehicle may be gifted only to a family member normally a resident in Pakistan.

national interest intact, which in turn helps the customers, national economy, employment base, huge ven d in g in du s try , an d in d irect employment base. He sa id th at o n o ne h an d th e government is promoting import of fuel efficien t H ybrid vehic les a s a n alternative to CNG fuelled vehicles by giving substantial relief in duty and taxes and on other hand it continues to allow imports of up to five year old high end SUVs with very high fuel consumption for which they are considered as gas guzzlers. They also do not pay full import duty a s law allows depreciation allowance of up to 50 per cent, a concession which makes these luxury vehicles affordable for ruling elites and landlords of this country – who are usually the buyers. These paradoxical policies do raise lot of questions for the new government as they took some symbolic measures when they announced their first budget aimed at increasing the tax net by taxing the rich more and bring tax evaders into tax net. On the contrary, no measures are being taken to increase tax on luxury goods consumption or discourage their imports such as

imported SUVs. “The local auto industry is doing this big favor to the government and society despite facing many hardships and at a time reaching crisis points due to abrupt chan g es in t he ap proac hes a nd implementation of the bad policies by the government,” reasoned Mr. Usman Malik, Chairman PAAPAM.

traders at the cost of local industry and resulting in significant loss of revenue to the Government that ranges from $4,475 to 7,337 on import of used cars. The used car dealers has made billions of rupees due to their influence in Government circles, and from misuse of import policy meant for Pakistanis living abroad. The importers of the used cars pay the duty and taxes of $4,400 on 800cc, fixed in SRO 577, which is $11,392 under the normal regime.With the depreciation allowance of 36 per cent duty and taxes on upto 800cc car under SRO 577 comes to $2,816 as compared to duty and taxes under normal regime of $7291, therefore inflicting a loss of $4,475 to national exchequer on import of every upto 800cc car. Similarly the government is losing $7337 on 1,000cc, $6,420 on 1,300cc, $6,879 on 1,500cc, and $ 5,653 on import of 1,800cc used car. They insisted that the government should protect and encourage local auto industry as it would give boost to the national economy, while at the same time nab the dealer mafia that is working again st th e nat ion al interes t.....

“It is encouraging that Customs Department is not allowing the import of used cars on forged documents to stop the illegal activities of the dealer mafia which is boding well for the local auto industry as it resulted in reduction of used cars import and this should be carried on,” he added. Mr Usman Malik stated that PAAPAM h a s r ep e a t ed ly r e q u e s t e d t h e government to rescind or at least review fixed duty and taxes rates in SRO 577, but still PAAPAM ’s voice is unheard. The rates fixed in dollar term in SRO 577 back in year 2005 are very low, thus giving an undue advantage to used car

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International Automotive Industry - Update

Monthly AutoMark Magazine

FEATURE

How European motorbikes are taking over China It is no secret that motorbikes are a firm favourite amongst commuters across many different parts of the globe. However, in some heavily regulated countries their popularity is really quite surprising. De sp it e c itie s lik e G ua n g zh ou , Hangzhou and even parts of Beijing and Sh an g ha i ha vin g a ban a ga ins t motorbikes, there still appears to be a strong demand for two-wheelers in China. In fact, it has been claimed that over 99% of motorcycles within China are used as commuting tools. At the recent International Motorcycle Trade Exhibition or CIMA Motor show in Chongqing, KTM became the latest European brand to enter the Chinese market. Popular models such as the 1190 Adventure, 1190 Adventure R, RC8 R, 690 Duke, 690 Duke R are among the first batch, and were all displayed on the Austrian manufacturer's stand. Clearly enthused, Hubert Trunkenpolz, Director of KTM, believes that: "With the rapid economic development in China, China's motorcycle market will see an increasing demand for high-end and personalised products. "We believe that it is a great opportunity for KTM. We are very excited and have begun to build KTM's Chinese market with a long-term view." Chongquing, which is the fourth largest city and the main centre for motorcycle production in China, is a motorbike enthusiasts' hub and this year's show offered motorcycle exhibitors a useful promotion platform. Indeed, the CIMA Motor show 2013 had at least 400 major manufacturers and suppliers from China and beyond. T hese exh ibito rs were no t on ly interested in selling their products to new export markets but also wished to show their new and existing products within China. Honda's high hopes It's not just European manufacturers who are seeing the potential of the Chinese market, though. The importance of the Chongquing show

was further underlined by, Honda's decision to unveil its latest model, the 2014 CBR 300R, at the CIMA show, instead of the more traditional EICMA Mila n launch fa voured by many competitors. This new model appears to be an updated, sportier version of the previous 250cc, which was regarded as Honda as their "world" motorcycle. The compact dimensions of the CBR 300R enable it to perform to the best of its ability. These developments at Honda also at tracted th e at tention of Joh n Chatterton-Ross, the Director of Public Affairs at Federation Internationale de M oto cyclis me an d FI M Eu rope. Referring to the CIMA show, he said: "You can see how important this show has become to the motorcycle market with Honda choosing it as the place to launch their new CBR300R model." At the same time as launching their new motorcycle in China, Honda's other models also continue to do very well in the People's Republic. One very good example is the Freedom Today model, which is essentially a small-displacement scooter. These s coot ers are lig ht, co mforta ble, fashionable and make for very practical commuting devices. Dawn of Ducati Another major brand making waves in China has been Ducati, which broke

onto the scene in October 2009 and has dealerships and service centres across Shanghai, Beijing, Chengdu, Jiangmen, Dalian, Zhengzhou and Chongqing. Evan Mak, the General Manager of Ducati China has noted that there has been a dramatic growth of sales and interest towards the Ducati brand here. Regarding the future plans of Ducati, Evan mentioned that Ducati plans to build and increase their Chinese market share. Ducati has been key in bringing the leisure aspect in to Chinese riding culture, he explains. Ducati China's 2013 product range in clu d es th e n e w M u lt is t ra d a , Hypermotard, Hyperstrada and 1199 Panigale models. As a result, although there appears to have been a 12% drop in motorcycle sales due to the banning of motorcycles within China, big brands are still willing to invest their time and money in China. This shows that there is a never-ending demand for two-wheelers, particularly as they help you cut through urban traffic. It seems like the Chinese government will have to get used to them, as European motorbikes look set to get more and more popular in the People's Republic.

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International Automotive Industry - Update

Maruti to launch facelifted Swift hatchback in 2014 While the competition level in the B+ segment is getting furious, carmakers are ready with their facelifts and new year models of existing vehicle. Suzuki had unveiled the iV4 SUC concept and 2014 Swift hatchback at the 2013 Indian Auto Expo. The company's top selling hatchback has received some cosmetic changes, a range of new features and the diesel version of the vehicle gets more fuel efficient. The same will also make its way to India by the next year, as a mid career refresh. The facelifted Ritz is also in the pipeline, but it will not come before 2015. The 2014 Maruti Swift will get LED day time running lights mounted into the fog lamp, restyled front bumper, and the LED treatment continues to the roof mounted stop lamp at the rear. The current model is available with 14-inch steel wheels and 15-inch alloy wheels, however, the 2014 model is expected to feature the 16-inch alloy wheels for top

variants. A new Boost Blue Pearl metallic color will also be offered in the lineup. Talking about interiors, the dashboard of the new Swift will remain unchanged, however the 2014 Swift will get a new upholstery for the seats. It is also expected that the vehicle will feature an Auto-Up one touch function to the driver's side power window, automatic headlamps, electronically adjustable side mirrors and others. The new Swift will retain the 1.2-litre K-Series petrol engine and the 1.3-litre Fiat Multijet turbo diesel engine. Maruti Suzuki India will unveil new c om pa ct SUV , Y L1 sed an (SX4 replacement) and YL7 hatch (AStar/Estilo replacement) at the 2014 Indian Auto Expo. We expect that the company might also present the updated Swift at the same event. Recent media reports also suggest that it is also working on a new premium hatchback, which will be launched by 2015-16.

Toyota introduces new vehicle architecture TGNA for future models Japanese automaker Toyota Motors has introduced a new vehicle architecture Toyota New Global Architecture (TNGA) – for all its future cars starting with the next generation Prius in 2015. response to several recalls in the last decade as well as increasing competition from Japanese rival Honda and stiff competition from Ford and GM in the US. Using this architecture, similarly sized cars such as the C-segment Corolla, Prius and Auris will share development paths sharing under-the-skin designs

and componentry. Apart from reducing weight and bulk, the architecture will save up to 30% on development times and costs, claims the company. The company plans to reinvest th es e sa ving s in prod uct development. Toyota board member Mitsuhisa Kato said that TNGA will help lower the height of the centre of gravity of Toyota cars, which has been getting lower across the industry. "TNGA will set performance targets," Kato added.

Mahindra Tractors sells 37,532 units in domestic market during October 2013 Mahindra & Mahindra Ltd.’s Farm Equipment Sector (FES), a part of the USD 16.2 billion Mahindra Group, recently announced its tractor sales numbers for October 2013 which stood at ¬37,532 units in the domestic market, as against 28,872 units during October 2012, a growth of 30%. The company’s overall sales have also grown by 29%, standing at 38,263 units during October 2013 as against 29,565 units in October 2012. Exports for the month stood at

731 units. Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra Ltd said, “The tractor industry continues to do well overall and has seen a healthy growth this fiscal. At Mahindra, we are happy to maintain a robust growth momentum with a 30% domestic growth during October 2013.

Monthly AutoMark Magazine

AkzoNobel launches new coatings plant in India The eco-efficient Greenfield facility -AkzoNobel's sixth factory in India -- will supply a range of decorative paints and create improved distribution channels for the Dulux brand. The company believes the new site will also help speed up transportation times and reduce the cost of logistics. Ak zoN obel h as streng thened its manufacturing footprint in India by opening a new €20 million decorative paints plant in Gwalior, which will have a capacity of 55 million liters/year. The eco-efficient Greenfield facility -AkzoNobel's sixth factory in India -- will supply a range of decorative paints and create improved distribution channels for the Dulux brand. The new site will also help speed up transportation times and reduce the cost of logistics . “India plays an extremely important role in our growth strategy and the new Gwalior site underlines our commitment to cre at in g a lea d in g co a tin g s powerhouse in India,” said AkzoNobel CEO Ton Buchner, who spoke Monday at an inauguration ceremony for the new facility. “As a global leader in sustainability, I'm also pleased that the plant has focused so heavily on energy, water and resource conservation, which will be vital in helping us to create more value from fewer resources,” Buchner added. AkzoNobel added tha provisions were also ma de to ac commo date key suppliers, allowing for a smoother manufacturing process. “The Gwalior plant will provide costeffective access to key markets in the northern and central areas of India,” said Amit Jain, managing firector of AkzoNobel India. “This will greatly reinforce our strategy of expanding Dulux distribution, as well as improving customer service in these high growth regions.” Special sustainability features include rainwater harvesting an d energy efficient pumping systems, while 20% of the roofing area allows natural daylight to flood in, reducing the need for artificial lighting. AkzoNobel currently employs around 1,800 people in India...

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International Automotive Industry - Update

The New Honda Civic Hybrid (1.5L) Here we go! The ninth generation Honda Civic or the second generation petrol/electric all new Honda Civic Hybrid in a cool white orchid pearl paint job. Sticker price: 1.095 million baht for th e ran g e-top per, H ybrid Na vi. Honda’s new compact hybrid’s styling cues are subtle. You’ll notice the clear blue accents for the grill and the headlights. And there’s a tad more chrome. The posterior sports the Hybrid badge (in blue) on the trunk lid. The new LED-taillights are larger and more protruding. Apart from that the looks are very Honda Civic. But it’s a hybrid. Part fossil fuel part electric vehicle. So is it complicated to drive? Not at all! Just hop in and press the brake pedal and the push the start button. Slide the shifter in “D”. Then press the green “ECON” button. You’re

now in the “economy” fuel-saving mode. Honda’s new compact Civic Hybrid is powered by Honda’s Integrated Motor Assist (IMA) parallel hybrid system which combines a 1.5-litre SOHC inline 4-cylinder, i-VTEC engine pumping out 91 horse power. The IMA hybrid system works like this: during braking, the engine stops as braking energy is dynamically converted into electric power and stored in the hybrid lithiumion battery for future use. When the vehicle is stationary, the engine and electric motor automatically switch to standby in idling stop to reduce fuel con su mption an d decreas e CO 2 emissions. And when the driving speed is slow and steady, the engine stops and the vehicle moves into EV mode, powered solely by the electric motor.

Suzuki Alto Eco unveiled at Tokyo Motor Show The past few years in India have seen a substantial rise in fuel prices. This hike in fuel rates has taken a toll on both car makers and buyers. It must be noted th at cu st om ers ha ve beco me increasingly reluctant in going for a new car, owing to the high running cost. As a result of this, sales figures have dropped down significantly, which has made sustenance quite tough for few. In times like these, for a car to be a success on a large scale, fuel economy and affordability are two things it has to live up to. There is no other brand that knows this better than Maruti Suzuki as it produces vehicles that are highly fuel efficient. Now, according to reports, Suzuki, its parent company, is planning to launch a new version of the Alto, called Alto Eco. If reports are to

be believed then this car is going to deliver a fuel economy of around 35 kmpl. This new model was unveiled at the 2013 Tokyo Motor Show and attracted a significant amount of attention. As of now, no timeline has been set by the manufacturer regarding its Indian launch but experts feel that it could happen soon. Suzuki, as per analysts, will be looking to introduce this car in Southeast Asian markets, such as Japan and Indonesia. Considering the design and expected specifications of this model, experts feel that the launch of this car in India is highly anticipated. It is being said that Alto Eco will be powered by a 660 cc engine that will be highly efficient.

Volvo sales up 6% in Nov. on China, Europe boost Volvo Car Corp. said that global sales of its vehicles rose 6 percent in November, its fifth straight month of growth, as demand in China remained strong and European deliveries bounced back from a 4 percent drop in October. The company said it sold 37,945 cars last month as deliveries in China, the home of its parent Zhejiang Geely H oldin g Group Co., and V olvo’s European market more than offset a continued slide in the United States.

‘’Sweden and China are very strong, Europe shows a positive trend and in the U.S. we now have the right tools to get back on track,” Alain Visser, sales and marketing chief, said in the statement. The automaker, which ran a loss in the first half of the year, is banking on a rapid expansion in China to lift it toward a target of roughly doubling sales to 800,000 cars by 2020.

Monthly AutoMark Magazine

China approves $1.3bn RenaultDongfeng joint venture

China has approved a long-awaited $1.3 billion joint venture between its carmaker Don gfeng and France's Renault, the o nly g lobal top 10 automaker not producing in the world's biggest market, the firms said on last week. The deal was announced as French Prime Minister Jean-Marc Ayrault arrived in China for a five-day visit expected to be dominated by trade issues. Analysts said the merger appeared to be a move by the Renault-Nissan alliance to secure its position in China, where Japanese brands often fall victim to fiery nationalism when ties between Beijing and Tokyo turn sour. Renault and Dongfeng will each have a 50 percent share in the new company, the Chinese firm said, adding the government had approved the deal and "the production of 150,000 multiplepurpose vehicles and engines per year". The two will invest a total of 7.8 billion yuan or $1.3 billion in the joint venture, which will be based in the central city of Wuhan, said Dongfeng, China's second-biggest carmaker. Renault is Nissan's largest shareholder, with a 43.4 percent stake, while Japan's number two automaker has around 15 percent of the French compan y. Nissan, which operates in China in a partnership with Dongfeng, depends on the country for about one-quarter of its global sales. Renault began operations with China Space Sanjiang Group in 1993 to manufacture the Traffic minibus, but production stopped in 2003. Dongfeng and Renault have been in talks since then. The company has so far trailed rivals such as US auto giant General Motors and Volkswagen of Germany, which have both been running multiple joint ventures in China for decades ...

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Chinese Trucks companies introduction

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China National Heavy Duty Truck Group (SINOTRUK) As the largest dealer of Chinese heavy truck, relying on the local advantage, S I N O T R UK i n t e g ra t e d v a ri o u s resources, and established the extensive and close cooperation relationship with dozen of domestic well-known heavy duty truck manufacturers and the refitting factories, such as Sinotruk Group, Shandong Zhongji, Taian Lufeng, Jining Dongyue, Liaocheng Xunli, Qingdao Zhongji and Zhu Madian Huajun etc.; its sales achievement has been in the stable fron t rank in co ns ecutiv e y ea rs a mo ng gro up branches, with annual sales of more than 3,000 vehicles.

Management Model Currently, on the promise of expanding the domestic market share continuously, SINOTRUK vigorously develops the overseas market and pays a close atten tion to Ch in a’s fo reign aid programs, exported engineering vehicles to the large state-owned enterprise such as Sinohydro Bureau 13 Co., Ltd and Do n g y in g Sh en g li O ilfi eld et c. successively; meanwhile, the company actively develops the end-customers groups, exported hundreds of heavy duty trucks to dozens of countries such as Ghana, Angola, Congo, Tanzania, Kenya, Indonesia, an d accumulated rich experience in exportation. Company will

take “standardization, management, development and win-win” as the guideline, establish perfect rules and regulations and a scientific and efficient incentive mechanism, service for the most middle and end users in all aspects, to make a greater contribution to the development of China heavy duty truck industry.

Company Background Times Tiancheng Auto Sales Group Co., Ltd. is registered approved by the state adm in is tration for in dust ry a nd commerce; it is an independent registered company which combining entire vehicle sales, spare parts supply, vehicle maintenance, vehicle refitting and supporting service as integration. Since established in 2001, Times Tiancheng Auto Sales Group Co., Ltd has obtained the first class brand agency for Sinotruk and Shaanxi Heavy Duty Truck in succession, and won the first in annual sales of Sinotruk and Shanxi Heavy Duty Truck.for 4 consecutive years. In 2007, annual sales have exceeded 20,000, with annual sales of 4.6 billion RMB.

Ma na ge ment F ea tu res Group Company has a sound domestic m a rk et i n g n e tw or k , a n d m a de investment and set up 19 heavy duty trucks branches in 12 regions around

China, and formed a stable business cooperation relationship with a great majority of dealers and system large users; meanwhile, the company also actively explored overseas markets, set up branch companies and offices in Vietnam, Sudan, Ukraine, and Angola successively. The export sale has a trend of progressive increasing per year. Times Tiancheng Group has gradually become the largest mainstream distributor among the domestic heavy duty trucks.

FAW Group Corporation FAW Group Corporation is China's oldest and largest truck manufacturer. Foun ded o n July 15 , 1953 , t he company’s Jiefang Commercial Truck Division quickly earned a reputation for producing light, medium, and heavy trucks of tremendous strength and reliability. With over 4 million units sold since the first model CA10 4-ton commercial truck rolled off the assembly line in 1956, FAW Group’s Jiefang unit has remained the leader in China's truck industry. Today, Jiefang has evolved into a global vehicle producer with sales of complete vehicles (CBUs) an d CKD/SKD vehicle kits to over 70 countries around the world. Supporting the company’s rapidly expanding international sales, Jiefang brand trucks

are also manufactured at overseas production facilities in Pakistan, South Africa, Tanzania, Ukraine and Vietnam. By incorporating the latest technologies and market-leading designs with the company's rich 50 years of truck manufacturing experience, Jiefang offers an unparalleled line of light, medium and heavy trucks with load capacities from 1 to 50 tons. The company's Dalian and Wuxi diesel engine divisions offer a diverse range of diesel engines from 13 0 to 460 horsepower that combine performance with legendary FAW dependability. Jiefang’s fuel-efficient class-leading 260-460 horsepower 4-valve head electronically controlled CA6DL and CA6DN series heavy truck engines,

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Chinese Trucks companies introduction

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Dongfeng Motor Corporation Founded in 1969, Dongfeng Motor Corporation (hereafter referred to as DFM ), fo rm erly n a med Seco n d Automobile Works Co., is one of the 3 giant auto makers in China. Its main businesses include passenger vehicles, commercial vehicles, engine, auto parts & components, and equipment. Through over 40 years of development, a set of R&D and manufacturing facilities have been established as well as an extensive distribution and after-sales network, which unfolds a business display of footed in Hubei while radiating the whole nation. The major business facilities are located in Shiyan, Xiangfan, W uhan and Guang zho u. In addition, several branches are placed in Shanghai, Liuzhou (Guangxi), Yancheng (Jiangsu), Nan ch ong (Sichua n), Zheng zh ou (Henan), Urumchi (Xinjiang), Chaoyang (Liaoning), Hangzhou (Zhejiang), Kunming (Yunnan), etc. As of 2007, DFM has gained an annual output of 1,137,000 vehicles, a sales income of ?164,800,000,000, 12.94% market shares and 121,000 registered employees. The company ranks 20th in TOP 500 of domestic enterprises and 5 t h in T O P 5 0 0 o f d o m e s t i c manufacturers respectively. In 2007, th e do mes tic m ar ket s h ares of medium/heavy duty commercial vehicle and medium duty bus topped 1st; light duty commercial vehicle and SUV secured 2nd and car the 3rd. By the end of 2011, DFM’s total assets amounted

to RMB 232 billion yuan and has a staff number of 160,000. Dongfeng Motor Corporation (DFM) sold over 3,07,850 vehicles in 2011, achieving a sales revenue of RMB390.4 billion yuan. In 2012, Dongfeng Motor Corporation ranked No.142 among Fortune Global Top 500, ranked No.16 among top 500 Chinese enterprises, and ranked N o . 3 a m o n g t o p 50 0 C h in es e manufacturers. In 2011, Dongfeng own brand vehicle sales has lept over one-million-unit th re sh o ld, s o ld 11 26 50 0 un it s , representing a growth 10 ppt higher th an the in dus try avera ge. T he competitive edge of Dongfeng brand commercial vehicles was further consolidated, with total sales ranking in dus tr y N o. 1. Do n gfen g bra n d pas sen ger vehicle busin ess a ls o accelerates its growth momentum, with its product line-up further expanded and its sales growth ranking among top 6 in the own brand PV industry. On December 10th, 2011, DFM officially released its “Qian” D300 business plan for Dong fen g own brand vehicle business. The core objective of Qian plan is to sell 3 million units of own-brand vehicles in 2016, including 1 million units Dongfeng brand commercial vehicles, 1 million units Dongfeng brand passenger vehicles and 1 million units Dongfeng vehicles carrying other local brands. Meanwhile, DFM aims to further develop its CV business to be No.1 in China and maintain among top

featuring advanced Bosch high-pressure common rail fuel systems, have become t he en gin es of cho ice am on g st commercial operators since their introduction in 2006. The company's second generation of CA6DE and CA6DF mid-range engines, designed in cooperation with AVL List GmbH and FEV Motorentechnik GmbH, deliver o u ts t an d in g po w er a n d t o rqu e characteristics for higher performance and lower operating costs.

construction (dump, mixer, concrete pumping), refuse, utility, and other a pp licat ion s requirin g su perio r m aneuverability, brute s trength, m a x i mu m pa y lo a ds , a n d s o lid dependability.

FAW Medium and Heavy Trucks Available as tractors or rigids (with or without body), including 4x2, 6x2, 6x4 and 8x4 models with dual steer axle, pusher axle, and tag axle configurations. Vocational models are available for

Truck Range: • J6P Premium Long-Distance Heavy Tractors, Rigids, and Vocational Trucks • J5P Heavy Tractors, Rigids, and Vocational Trucks • J5M Regional Heavy Tractors, Rigids, and Vocational Trucks • J5R Conventional Cab Regional Heavy Tractors • J5K Medium-Duty Rigids • J4/FM Medium-Duty Tractors, R i g ids , a n d V o ca t io n al T ru c ks

3 in the world. DFM also unswervingly strives to develop its own brand PV business into the top league among all local brands. In 2012, Dongfeng own brand vehicles achieved an aggregate sales of 1,121,000 units, ranking among top three. Dongfeng own brand CV sales reached 606,000 units, continuing to take a leading position in PRC market. Among which, HDT and MDT ranked industry NO.1 for nine consecutive years. Dongfeng own brand PV sales reached 515,200 units, representing a yoy growth of 27.29%, higher than industry average by 21.94 percentage.

• J4/FK Medium-Duty Rigids, and Vocational Trucks • J4 Conventional Cab Medium-Duty Tractors, Rigids, and Vocational Trucks

FAW Light Trucks Available in standard, extended, and crew type low-cab-forward models with a variety of wheelbases and drivetrain configurations to suit any requirement. Including:

o CA1020 Series 1 Ton o CA1030 Series 1.5 Ton o CA1040 Series 2 Ton o CA1040A Series 2.5 Ton o CA1050 Series 3 Ton o CA1060 Series 3.5 Ton

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Rs. 2,142,000 Rs. 2,293,000

Karakoram Motors Model Chery Standard Petrol Chery Standard CNG Chery Deluxe Petrol Chery Deluxe CNG Gonow Victor Gonow Troy Standard Gonow Troy Deluxe Gilgit (Double Cabin) Pet. Gilgit (Double Cabin) CNG Kaghan XL Petrol Kaghan XL CNG

Price Rs. 7,20,000 Rs. 7,70,000 Rs. 7,70,000 Rs. 8,20,000 Rs. 1,499,000 Rs. 9,99,000 Rs. 1,049,000 Rs. 3,85,000 Rs. 4,20,000 Rs. 1,285,000 Rs. 1,375,000

MASTER MOTORS DAIHATSU Model Model

Price

Master Highland M-260 Rs. 1,188,000 Master Forland M-330 SUP Rs. 1,235,000 Master Grand M-410 SUP Rs. 1,720,000 Master Grande Bus Chassis YL41B Rs. 1,625,000 Fuso canter (Japan) Bus Chassis Rs. 2,950,000 Fuso canter (Japan) Rs. 3,025,000 Fuso Prime Mover (Japan) Rs. 9,450,000 Unit Price without Deck

Rs. 1,702,000 Price Rs. 1,844,000 Rs. 1,562,000 Rs. 1,703,000 Rs. 2,065,000 Rs. 2,297,000 Rs. 2,186,000 Rs. 2,418,000

Model Model XLI VVT-i 1.3 M/T 1299cc Petrol XLI VVT-i LE 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1299cc LE 2.OD STD 2000cc ALTIS 1.6L Dual VVT-i M/T ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Up Specfication) Hiace Commuter STD 3.0L Diesel Hiace Commuter STD 2.7L - GASLOLINE

Price Price Rs. 1,571,500 Rs. 1,586,500 Rs. 1,707,500 Rs. 1,732,500 Rs. 1,874,500 Rs. 1,952,500 Rs. 2,052,500 Rs. 2,052,500 Rs. 2,142,500 Rs. 2,575,000 Rs. 3,433,000 Rs. 3,433,500

Coster High Roof 26 Seater F/L Land Cruiser Prado Turbo M/T

Rs. 7,974,200 Rs. 13,757,000

Hilux Pickup 4x sc Model

Price

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

Rs. 1,779,000

Hilux Pickup 4x4 D/C Model

Price

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

TOYOTA VIGO DAIHATSU

Model Model

Price Price

Rs. 3,483,200

LAND ROVER Price

Model

Vigo Champ M/T Rs. 3,282,500 DEFENDER (WHITE ,BLACK,STRONG BLUE & SILVER )

STATION WAGON 90 Rs. 3,560,000

Vigo Champ A/T Rs. 3,483,500 STATION WAGON 110 Rs. 4,260,000 (WHITE ,BLACK,STRONG BLUE & SILVER )

(N/A)

Price updated Dec- 2013

Monthly AutoMark Magazine

Muhammad Yousuf Shaikh, An Auto Industry Consultant, Motorcycle Industry Expert, Motorcycle Designer, China Sourcing Expert, Serial Entrepreneur and the Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), offers his analysis of the motorcycle trade & industry trends from Pakistan & China. The Chairman PCMIC working with motorcycle trade & industry for over two decades, Yousuf believe that new projects could help Chinese motorcycle industry to design and produce new design motorcycles in Pakistan as Pakistan offered exclusive incentives in taxation on new entrant in motorcycle ma nufa cturing. Fo r further details: pakchina.mic@gmail.com

PAKISTAN CHINA MOTORCYCLE INDUSTRY CONCIL

PCMIC Pakistan Office;99/II, Suite # 1 First Floor, 3 rd Commercial Street, Phase IV. DHA. P. Code-75500, Karachi. Pakistan. Cell # +92 300 2613692 PCMIC China Office;????:????????????29#. 401331 ??: 0086 23 61729263 Skype live: yousufshaikh email:yousufshaikh@hotmail.com,pak china.mic@gmail.com www.globalautosources.com ww.facebook.com/PCMIC.org www.linkedin.com/in/yousufshaikh

Pakistan an emerging market for Chinese motorcycle where new low tariff policy on motorcycle industry awaiting Chinese manufacturers Pakistan China Motorcycle Industry Council would help Chinese Motorcycle sector to identify opportunities in Pakistan's fast growing Motorcycle sector of automotive industry.

Pakistan rich with exciting opportunities is an emerging market for Chinese investment in auto sectors particularly motorcycle sector. "Pakistan is now open to Chinese auto trade & Industry with best atmosphere of investment which provides significant possibilities for Chinese." 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 Chinese 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.

Rapidly Growing Market • Custom Duties Reforms – 0% custom duties on Raw Material used for reexport and equipment/machinery not available locally • Infrastructure D eve lopment • No restriction on payment of Royalty •Tax Free Industrial Zones •Liberal Investment Policy •1 00 % equit y sh ar e b y fo reig n companies •Lo cal Packaging & Distribution •Presence of Foreign Banks •Easy Transparent Payments, WireTransfer, Letter of Credits

•With Fast Moving Economy •strategically located in South Asia •Provide access to other countries, ie – Afghanistan, Iran, CIS countries S tro ng R eas on for es ta blis hin g Motorcycle assembling factory in Pakistan: PCMIC takes pleasure in portraying s everal investment opportunities pertainin g to rehabilitation and modernizing its member’s selected factories and establishment of new factories in the auto industrial sectors. This organization is a Pakistan & China Motorcycle trader & Industrial group network for Pakistanis, Chinese and their friends. In addition to being a Pakistan & China motorcycle trade & industry watcher, an investor, a business consultant and an avid follower of the Chinese Motorcycle Trade & Industry markets. Specialized International/Chinese C o m p a n i e s , B u s i n es s m en , a n d Financiers are invited to participate in o ppo rtun ities th at ma y a ch iev e economic viability and create rapid positive revenues. The concept is that the investors and their supporting teams would rehabilitate and manage the plant on their account against a share of production achieved; for a negotiated period of time.

Market Location with Great Potential www.automark.pk | December-2013 | Page 39

Exclusive Article by M. Yousuf Shaikh

Monthly AutoMark Magazine

At the start of commercial production by new entrants, localisation level shall be kept at a minimum of 25 percent. By the end of five years, localisation level shall reach a minimum of 85 percent. The new entrant committee shall be chaired by Secretary Industries comprising representatives of Board of Investment and Ministry of Commerce that shall receive and approve requests of new entrants in motorcycle sector and extension of benefits under new entrant policy. The strong points of these opportunities are: •Exclusive new low tariff Policy of Government of Pakistan for motorcycle industrial sector •High local demand of the products. •Availability of trained and experienced manpower. •Availability of local raw materials. •Adequate investment legislations and fav orable terms fo r a greem ent . •Fast return on investment. The PCMIC expresses its willingness to assist investors with all the necessary clarifications as well as facilitating essential visits to the factories (if required). In this regard the secretary general of China Chamber of Commerce For Motorcycle Mr. Wang and the chairman of Pakistan China Motorcycle industry Council Mr. Muhammad Yousuf Shaikh had a meeting in Beijing on the Pakistan’s motorcycle market conditions and maintaining a friendly relationship and strengthening the cooperation between each other. Being chairman PCMIC, I introduced the current situation of Pakistan’s motorcycle market, including the annual output, the condition of local motorcycle factories and foreign investment ,models and tariff ,etc ; I su gg es ted Chin ese m oto rcyc le enterprises to invest into Pakistan or acquired the local factory directly for further cost saving and Mr. Muhammad co u ld o ffer h elp th e y n e ed ed ; I would offer its investment related regulatory documents to CCCM and Mr.

Wang should give the introduction to its member enterprises; Bo th s ides m ain ta in a frien dly relationship and conduct in-depth discussion on the possible cooperation projects Introduction of Motorcycle Sector of Pakistan:

PCMIC recommends to Chinese automobile manufacturers to investment in Pakistan’s auto industrial sector as there are numerous investment opportunities in Pakistan. I would like to invite them to take part in the automotive sector. The avenues exist in setting up motorcycle and motorcycle engine manufacturing units and for their integral parts which are presently being imported, low priced small car units, manufacturing of car subassembly components which are also presently being imported and setting up of a tractor assembly plant. The PCMIC offers to assist Chinese manufacturers in finding local partners for them since the Government is interested in promoting competition in the auto sector. The government intends to make the existing policy regime more flexible for new entrants in order to attract foreign investment. An amended policy is already announced and it is emphasized that Chinese manufacturers would be persuaded to explore the Pakistani market.

• Undertake customized market research and statistical reports on the Pakistan Auto Industry market. • Identify automotive products; both vehicles and components for import and export. • Help find distributors and suppliers of automotive products. • Identify and evaluate poten tial cooperative or joint venture partners. •Help setup dependable business networks in Pakistan. •Con duct legal, financial, human resources, • Technical management and feasibility studies. •Help negotiate automotive business deals. •Help with liaison and management of bu s in es s ve n tu res in Pa k is ta n . •Help identify and locate local executives and employees. •Walk our customers through the Pa kist an i ma ze of burea ucrac y. •Services on a retainer basis are available. Our motorcycle industry is divided into two markets. The mainstream market consists of manufacturers who are from overseas joint ventures. The other market is the niche market, consisting of SMEs producing Chinese motorcycles. These are Pakistani-owned companies that depend on design and production technology from abroad. In this market most of the companies are Pakistani and products are sold domestically, where there is little foreign competition. Most of the involved parties have not been utilizing enough technology in terms of design, manufacture and engineering.

PCMIC is pleased to provide the following services to foreign or local Investors in the Auto Industrial sector. www.automark.pk | December-2013 | Page 40

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Exclusive Article by M. Yousuf Shaikh - continued

Monthly AutoMark Magazine

It will be a profitable and risk free investment for foreign investors which helps strengthen the niche market in the future and also provide technology for design, production and engineering for Pakistani parts-makers in order to raise their capabilities. The PCMIC seeks a strategic planning alliance in a public/private partnership that should be targeted at stand-alone parts design and manufacturing. Due to the importance of the Pakistan motorcycle industry, the Pakistan China Motorcycle Industry Council (PCMIC) has planned to invite foreign investors to set up a support programme for a Motorcycles and Parts Research and Development Institute & Production Facility under the industrial and services clus ter g roup . T his w ill en able specialized industries to have the capability to design and produce motorcycle engines and other parts which are still not indigenized in Pakistan. It will be a profitable and risk free investment for foreign investors which helps strengthen the niche market in the future and also provide technology for design, production and engineering for Pakistani parts-makers in order to raise their capabilities. The PCMIC seeks a strategic planning alliance in a public/private partnership that should be targeted at stand-alone parts design and manufacturing. The project is intended to create an automobile platform for Pakistan that would be relayed to the private sector. Exclusive new low tariff Policy of Government of Pakistan for motorcycle industrial sector to produce newly developed new technology motorcycle in Pakistan: New entrant would mean a potential assembler/manufacturer, whether local or foreign, bringing in new technology for the first time in Pakistan and have had no assembly/manufacturing of similar motorcycles in Pakistan in the past. Any existing player bringing in new technology would be eligible for tariff incentives to the extent of parts and components to new technology. New entrant policy for motorcycle of 100cc and above was notified by Federal Board of Revenue (FBR) vide SRO 09(I)/2013 on January 4, 2013 to encourage new investment and new t ec h n o lo g y in t h is s u b- s ec to r . As per decision of the economic coordination committee (ECC) of the Cabin et the ta riff st ru cture for motorcycle sector was defined as under which is applicable across the board and

are subject to review after one year. The tariff rates have been notified by FBR by amending relevant SROs. Raw materials, 0 percent duty; sub components/ components 7.5 percent duty; sub-assemblies, 15 percent duty; CBU (all engine capacities), 57.5 percent duty; CKD kits not manufactured locally, 10 per cen t d uty an d CKD k its manufactured locally, 38.75 percent duty.

The policy for new entrants was notified by FBR vide notification No SRO 09(1)/2013 dated 4th January 2013 stating that in line with summary on "Policy for New Entrants" submitted by Ministry of Commerce approved by the ECC of the Cabinet case No ECC-135/14/2012 dated 23rd October 2012 which specifies that the additional customs duty leviable under this notification shall not be charged on subcomponents and components imported in any kit form by a manufacturer declared to be a new entrant approved by the new entrant committee comprising representatives of Ministry of Industry, Ministry of Commerce and Board of Investment for the motorcycles of 100cc and above with new technology for a period of five years from start of commercial production subject to following major conditions.

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6. 7.

Product & Model Name Dhoom YD-70 Hero RF-70 Hero RF-70 Plus Honda CD-70 Honda CD Dream Hi-Speed SR-70 Ravi Premium R1

Retail Price Rs. 50,400/= Rs. 46,000/= Rs. 47,000/= Rs. 68,500/= Rs. 72,500/= Rs. 43,000/= Rs. 46,950/=

125cc Motorcycle No. Brand & Model Name 1. Super Star SS-125 2. Super Star SS-125 DLX 3. Honda CG-125 std Euro II 4. Honda CG-125 DX 5. Ravi Storm 125 6. YD Sports 125cc

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 99,000/= Rs. 119,000/= Rs. 101,000/= Rs. 10,6000/=

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

Product & Model Name Inazuma GW 250 Intruder M 800 Hayasuba GSX1300R

Retail Price Rs. 675,000/= Rs. 1,500,000/= Rs. 2,400,000/=

Sitara Auto Impex

Sr./ No. 8. 9. 10. 11. 12. 13. 14.

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. 1. 2. 3. 4. 5.

Brand &Model Name Honda Pridor Super Star SS-100 Super Power SP-100 Yamaha YD100 Mini Yamaha Junoon 100cc

Retail Price Rs. 84,000/= Rs. 57,000/= Rs. 60,000/= Rs. 65,500/= Rs. 79,300/=

Suzuki Motorcycle Sr./ Product & No. Model Name 1. Sprinter ECO Euro-II110cc 2. Raider Euro-II 110cc 3. GD 110 Euro-II 110cc 4. GS-150 Euro-11 150cc

Retail Price Rs. 81,400/= Rs. 89,400/= Rs. 105,000/= Rs. 111,500/=

website:www.motorcycleexport.com email: sitara786@hotmail.com

www.automark.pk | December-2013 | Page 42

International Automotive Exhibition - Review

Monthly AutoMark Magazine

43rd Tokyo Motor Show bonanza

Volvo trucks presented a variety of leading safety products and technologies, including one of the world’s most successful heavy-duty trucks, the Volvo FH 4x2 tractor, as well as the Volvo FMX roll-over safety cab.

The ingenuity and excellence and a vivid imagination of Japanese auto engineers was markedly visible at the 43rd Tokyo Motor Show bonanza, 5th largest in the world at Tokyo Big Sight (TBS). It is the same venue where TBS 2011 was held in 2011. In the six huge halls glittering models of cars, motorbikes and heavy trucks are a big attraction for the visitors to the show. Journalists from South Asian countries in cluding Pakistan who were invited by the Swedish Volvo Group to visit the show were flabbergasted at the pomp and glitter at the display halls and looking at the people making a bee-line to have a look and make a choice from a variety of vehicles, from motorbike to luxury cars and heavy duty vehicles. Automakers from around the world presented highly captivating, unique exhibits of the hottest new models about to be launched, through to the latest concept vehicles that portray a clear vision for the near future. The Japanese passenger vehicles on display are Honda, Niss an , To yota , Ma zd a, Suzuk i, Daihatsu, Mitsubishi, Subaru, Lexus, Volkswagen, Audi, Jaguar, Land Rover, Tesla Motors, BMW, Porsche, Volvo, Peugeot, Citroen, Yamaha, Kawasaki, Isuzu, UD Volvo trucks, Hino, KTM and a host of others. Acc ord in g to C ha ir ma n , Ja pa n Automobile Manufacturers Association, Inc (JAMA), Akio Toyoda “this year’s

motor show is special. From Oct 1st an exposition introducing cutting-edge electronics technologies, CEATWEC Japan was held. That was followed by the TTS world congress, a gathering of world’s TTS technologists from Oct 14.” Now the Japan Motor Show is about to wrap up a special year, particularly the second half , in which Japan has been the origin of a constant stream of information about technology carried to the world, he said. Another reason why this year is special is that Tokyo has been chosen to be the host city of the 2 02 0 Sum me r O l ym pics a nd Paralympics – the Tokyo brand is once again under the world’s spotlight. Some 76 vehicles have been given their world premieres at this year’s TMS, far exceeding the number at the 2011 show. Toyoda said: “Exhibitors’ expectations for the show are obvious, and we, as the org a n iser, loo k fo rw ard to th e ex citemen t t hat s o ma ny w orld premieres will ignite as we set out to establish our show as the top technology motor show in the world. Exhibitions, international symposiums and test rides showcased a clear vision of how society might evolve within its relationship to vehicles and should give visitors a sense for what the future mobility means for them. Coinciding with this year’s TMS, a number of car and motorcycle related events were held throughout the Odaiba

area, venue of TMS. This is the first time that su ch eve nts were held s im u lta n eo u s ly w it h t h e T M S. Volvo trucks presented a variety of lead in g sa fet y pr od uc ts an d technologies, including one of the world’s most successful heavy-duty trucks, the Volvo FH 4x2 tractor, as well as the Volvo FMX roll-over safety cab and the Volvo Trucks’ Active Safety Systems. For some 3,000 years, people in Sweden have had to cope with a severe climate and long, dark months for much of the year. Little by little, an innovative spirit and a straightforward approach to solving challenges made life easier. Functionality, simplicity, reliability, light, it’s all part of the Scandinavian soul. It also explains why As sar Gabrielsson and Gustaf Larson founded Volvo in 1927. “Safety has always been a basic principle at Volvo Trucks. We are dedicated to safety in every aspect of design,” says Director Norio Sekihara at Volvo Trucks Japan. “It is the standard for all our work and features in everything from accident avoidance to driver protection.” Volvo Trucks occupied 300m of display area in East 1 hall. With the latest products and technologies exhibited, visitors to the show experienced what make Volvo Trucks a lead provider of safety solution in the truck industry....

www.automark.pk | December-2013 | Page 43

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

Monthly AutoMark Magazine

RUST… A Bitter Enemy! Your Car’s Skin Cancer There are countless additional benefits of rust protection; it also enhances the life of undercarriage hardware, brake and fuel lines. Over time these expensive hardware seize-up and tend to break apart during removal or lose their useful life. The bodywork on your car can be compared to your skin. If you don't apply suntan lotion, sunscreen or body oil to protect it from burning while enjoying tanning in the sun, you can run the risk of having skin cancer from the solar ultra-violet rays. Similarly, your car’s bodywork can corrode leading to rust from elements due to wet environment such as rain, salty sea-breeze, if not treated properly to prevent it. The way you look after your body’s skin is similar to how you can prepare your car for weather conditions. Rust protection and prevention is your best weapon in the war against rust. By the time you first see the rust appearing, rainy water/salty sea-breeze (especially in sea port city Karachi) has already done the damage and sometimes it can be permanent. In many cases rust can lead to making the car not roadworthy a n d un s a fe d ue t o bo dy m eta l perforation. This can also lead to having carbon mono-oxide, a common poison exhaust gas, drawn into your car cabin. This highly toxic dangerous gas can cause serious health hazard or even death. If you ever notice any exhaust gas leakages into your car cabin, open all the windows, stop driving at once and take it for complete inspection and body repair. Do not take any chances, especially when you are driving with closed windows.

What is rust? B ef or e b at t lin g w i th t h e r us t ,

can stay one step ahead of the rust.

Pot holes… Pools and Puddles

understanding it is important. Rust is the substance formed when iron compounds corrode in the presence of oxygen and water. It is a mixture of iron oxide and hydroxides chemically known as ferrous-Oxides or Fe2O3. Rusting is a common term for corrosion and usually occurs with steel metals. The salt in the water/sea-breeze or acid rain speeds up the oxidation process by acting as a catalyst. The problem with salty water or sea-breeze is that once the water is gone, the salt in water lies in wait to restart the forming of rust once more when moisture is present.

Rainy Shower The joy or suffering effects of monsoon raining season may be over, but it has left visible and hidden long term ripple rusty effects on your car body especially in the flooded area of Pakistan. Oddly enough, the worst time for rust is during the rainy season. Warm weather and wet rains reactivate rust, even after the rain has ended. While driving in rain is unavoidable, simple steps can be taken to keep rust under control. If you don’t give the rainy water a chance to take hold, you and your car

Potholes are created when w ater penetrates the top layer of asphalt through cracks in the road. After the moisture freezes and expands, sections of the pavement are forced up. The weight of vehicles going over this section of road breaks the pavement and the asphalt is forced out. Potholes are also caused due to defective or poor quality material used in during road construction and these are more frequent in the spring and quite visible after the monsoon. But unfortunately, in Pakistan more than 60% roads network is with deep and danger potholes, especially in the rural areas. After the rain, these pot holes turn into bath tubs for your car. This bitter chemical collected in the puddles cause splash and work their way up into the undercarriage/chassis of your cars and act as catalyst to rust process. This action promotes the insidious destroyer of iron and steel known as rust. The same splashing action can also cause a dirty splash to nearby pedestrians, so please respect road users and just slow down w h en y o u en c o u n t e r p u d d le s .

R u st P ro tec t io n Prevention

and

Most cars manufactured or imported in P a k is t a n a re b ui lt o n g e n er a l en v iro n men t a l an d cli ma tic ally conditions. Nevertheless, all

www.automark.pk | December-2013 | Page 44

continued on next page

Monthly AutoMark Magazine

Exclusive Article - continuted

Cars can be an expensive purchase. You need to revive its beautiful look by effective treatments that will increase the longevity of your major investment. Rust never sleeps and can happen anytime and anywhere. manufacturers provides some basic factory rust protection, but the need of a dd it ion a l ru s t pr ot ec tio n a n d prevention is based on your domiciled zone, (such as northern snow mountain areas or city like Karachi near sea), to help keep your car looking showroomnew. There are many types of protection packages available. When shopping for a rust protection package, check for details such as material, chemical, tools, application process, warranty coverage and a yearly inspection with a touch-up and re-spray, before making your final decision. There are countless additional benefits of rust protection; it also enhances the life of undercarriage hardware, brake and fuel lines. Over time these expensive hardware seize-up and tend to break apart during removal or lose their useful life. Since most cars are now built with 65%-85% computer controls systems, rust protection provides additional shield to safe these expensive electronics units and electrical circuit corrosion.

rainy seasons or apply rust remover, if needed, before applying any rust protection on undercarriage, hood, trunk, inside door and all outer body panels. Close attention should be paid to the fender wells and undercarriage, where there are plenty of nooks and crannies for salty water to get trapped in. Make sure to check that all of the drain holes under the doors are clear, so that the water collected during the wash can drain.

Environmental Elements Acid rain, the heat from the sun, bird droppings, tree sap, road salt & grime, rail dust, brake pads dust, industrial fallout and salty sea breeze are the prime root causes and sources related to ruining the look of the body of your car and the color finish. Keeping your paint in top shape is also a top line of defense against environmental deposits and rust

Wax Protection… An auto tan lotion for car’s skin care Rubberized undercarriage protection also provides a sound barrier from road noise and reduces your driving stress. It also controls dust from being drawn into the car from body joints or seams with the rust inhibitor. If your car is ever involved in an accident, make sure to reapply rust protection to new sheet metal body parts. The best time to apply rust protection is before you take delivery of your new car. However, if you haven’t done so, it is not too late yet. Make sure to get a thorough complete power wash to remove all old mud and rust buildup into the rust motels during winter or

Everyone wants to drive a nice, clean and shiny car. Penetrating colour, higloss, immaculate finish and eyecatching sparkle are features that make your car look fantastic. Preserving these characteristics on your car is made possible with quality paint protection by sealing both paint and clear coat, blocking ultra-violet rays preventing fading and oxidation to maintain a great looking shine. A polished, glossy and shiny car body bounces back the hot sunny rays faster to keep cabin cool for your comfort. Paint prevents rust by protecting the steel beneath it. A quality wax will keep the paint flexible and thorough enough

to deflect all that dust can throw at it. Any paint chips due to stone or scratches that expose the underlying steel should be touched up immediately to prevent surface rust expansion. A clean shiny car also tends to reduce air drag, wind and friction noises in high speed and can provide a smooth ride. Paint protection is designed to ensure your car's paintwork that will continue to shine and present itself in the true manner that first attracted you to the car.

Watch Your Intake A good set of rubber floor mats designed an d re com men d ed by yo ur ca r manufacture can keep moisture or wet mud from getting through your carpet and causing expensive damage. Consider laying a plastic sheet to cover floor carpet, especially in a family van during the rainy weather. Cars can be an expensive purchase. You need to revive its beautiful look by effective treatments that will increase the longevity of your major investment. Rust never sleeps and can happen anytime and anywhere, yet it is easy to prevent it with a little extra tender loving care. Revive your car’s appearance to enhance safer motoring and rust free years, which will increase the resale value of your car, should you ever decide to sell or trade-in later. Look after your car’s Look, and enjoy the look of your car as new!

Have a safe and sound motoring! This exclusive article on Rust Protection has been written by Mohammad Shahzad S.A.E., D.M.P. , specially for M o n t h ly Au t o M a r k M a g a z in e . (Automo tive Eng in eer/Docto r of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at shah@bri me lltoyot a.com or automarkpk@automark.pk Next month’s article: “Imp ort an c e of Aut om ot iv e Technicians”

www.automark.pk | December-2013 | Page 45

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Automotive Industry - Update

Toyota chief pins auto industryâ&#x20AC;&#x2122;s hopes on young

Prime Minister Muhammad Nawaz Sharif said 'a five-year auto industry policy was in the offing' that would provide level playing field for all the auto manufacturers in the country. Talking to Kyoichi Tanada President Toyota Motors AsiaPacific here at the PM House, He said the government was providing incentives to the investors and hoped the car man ufacturin g in dustry w ill also benefit from it. Prime Minister appreciated the investment of Toyota Motors in Pakistan and hoped that the company will enhance its capacity utilization with the objective to decrease its cost of production. Kyoichi Tanada expressed his confidence that the manufacturers will benefit from the policies of the present government....

Mr. Kyoichi Tanada President Toyota Motors Asia-Pacific

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