Automark magazine feb2016 by Mustafa Hanif

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Contents

News / Event

Article / Review 14 16 19 22 35 38

Inside

February-2016

Bike Assemblers Enjoying Famous Brands, Instead of Releasing Quality New Models Exclusive Review by AM Karachi Circular Railway Review Luxury buses for intercity routes in Pakistan Exclusive Review by M. Laman

18 20 24 25

Poor sales cast gloom on tractor industry Tax issues holding up new Automotive Development Policy 2015-20 Tractor plants to extend shutdown Local Automotive news

Pakistan’s female motorcylists take to Lahoer’s streets

FPCCI acknowledge the contribution of Crown Group and rewarded the Export Award

31 Analysis of Pakistani

Predictions of the future for the Chinese motorcycle industry By Sean ‘Nostradamus’ Kerr and David McMullan

Vehicles Productions Fig. For year 2015

Automobile Industry – A Report

International automotive news

Corporate Sector - Glimpses

40 PBC Celebrates 9th birthday

Price List

Exclusive review by Talal Hussain Malik

Chambra Pass World Record by a PBCian and his team (Part-1) Exclusive report by Kamal Haider How to get more years and less trouble from your car By Mohammad Shahzad

Motorcycle Price List

Vehicle price list

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February-2016 edition Volume 09, Issue 02

Pakistan’s premier magazine on automotive, engineering & energy sector

Monthly

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

Advisors

Muhammad Shahzad

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

Advertising Manager

Government’s heavy reliance on foreign loans continues

Pakistan received $4.15 billion from the multilateral and bilateral donors and around $1 Circulation Manager billion from the International Monetary Fund Engr. IHT Farooqui Shahzad Raza (IMF) during July-December period of year 2015Chief Operating Officer 2016. The PML-N government is heavily relying Karakoram Motors (pvt) Ltd. Graphic Designer on foreign loans since coming into power in June Karachi Mustafa Hanif 2013. The government had received $18 billion Salman Hanif Muhammad Yousuf Shaikh foreign loans by September 30- 2015, which Founder & Chairman included $3.5b bonds and $4.77b from the IMF. Web Master Pakistan China Motorcycle Industry Council Murtaza Hanif Pakistan's foreign exchange reserves had touched Karachi the historic level of $21 billion a couple of weeks CONTRIBUTING IN back mainly due to the foreign loans. Asad Umar, Syed Mansoor Rizvi THIS ISSUE economic wizard of Pakistan Tehreek-e-Insaf Principal Officer Zahid Malik M/s. CNH Services (Pvt) Ltd. (PTI), has said PML-N government so far Imran Saeed Allah Wala Karachi contracted $28.6 billion of fresh loans while the M. Hanif Memon external debt is projected to grow to $104.6 Mohammad Laman Nadeem Ahmed Salmi billion by 2020. The government has added over Talal Hussain Malik Executive Director Operations David McMullan M/s. Al-Haj Faw Motors (Pvt) Ltd. Rs 4.7 trillion in public debt in just 28 months Sean ‘Nostradamus’ in power and consequently, he remarked. Karachi Kerr The government had projected to receive $9.18 billion loans to be received from multilateral and bilateral donors excluding IMF's tranches during ongoing financial year (from June 2015 to July Active Communications 2016). However, it received 45 percent of the Mailling Address: loans during July-December, according to the D-68, Block-9, Clifton, Karachi documents of the Economic Affairs Division Tel : 021-32603371 Mobile: 0321-2203815 (EAD). E-mail: automarkpk@gmail.com The Asian Development Bank (ADB) disbursed website: www.automark.pk $607.4 million, or 59.5 percent of the annual AutoMark Canada Office estimated foreign economic assistance of $1.02 Managing Editor billion, during first six months of the FY2016. Mohammad Shahzad S.A.E. D.M.P. Another larger component of the assistance was 41 Jordana Drive the auction of Eurobond of $500 million. The Markham (Toronto) government has still space to auction another Canada L3S 3N8 bond of same value before the end of June 2016, Phone: 905-472-8282 as it estimated to generate one billion dollars Email: automarkcanada@gmail.com from the auction of bond during present financial year. AutoMark REGD: MC-1330 Published every month by M. Hanif Memon China had given assistance worth $561.4 million to Pakistan against the yearly estimates of $3.04 The views expressed by contributing writers and comments do not billion. Pakistan had taken massive loans of $956 necessarily reflect the views and million from the consortium of the commercial policies of the Monthly AutoMark banks during July-December as the government magazine's management initially planned to get $200 million from these banks during entire current financial year. Tahir Siddiqui

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Exclusive Article by AM

Bike Assemblers Enjoying Famous Brands, Instead of Releasing Quality New Models Interestingly most bike assemblers have kept the prices unchanged despite one per cent increase in import duty on parts from December 1, 2015 under the Mini Budget. Shaikh said due to depressed sales, Pak Suzuki Motor Company Limited and the maker of Yamaha bikes are selling the bikes without taking any registration fee which ranges between Rs.4,000-5,000 per bike. These assemblers have kept the retail prices unchanged so far

Ministry of Industry Government of Pakistan

Tough competition starts in Auto

Sector cars and motorcycles specially in Karachi city after the re-launch of Pakistan’s second biggest brand “UNITED” said Chairman Association of Pakistan Motorcycle Assemblers, Muhammad Sabir Shaikh, UNIQUE & SUPER POWER brands also working hard for the better position of sales in Karachi City. The more important point is that if we check the registration data of excise and taxation department Sindh, the registration of two wheelers in the

month of Jan- 2016 is the highest figure in the history of Pakistan. In cars TOYOTA & HONDA’s sales are also highest in the country in the month of Jan.-2016. Delivery period of cars for booking is 04 to 05 months, for current delivery the dealers are charging highest own money in the history of Pakistan. The second important issue in the Auto Sector is the policy matter, Sabir Shaikh also added that the alarming feature in the auto sector is the length of time that the problem has been pending, having

been under discussion since 2006-07. This is similar to many other policy decisions that we have investigated in the auto sector: the AIDP, the valuation issue, smuggling, standards and export clearances have all been under discussion for years, with an inability of the government to take swift, decisive action. Some of this has to do with coordination between government departments, in this case the Ministry of Commerce and FBR. Other times it has to do with the limited capacity of the government, which comes under

Chairman APMA M. Sabir Shaikh said around 13 units in Karachi and Hyderabad have closed down or stopped production followed by same situation with around 26 units in Punjab, three in Khyber Pakhtunkhaw and two in Azad Jammu Kashmir. He said there was no need to allow more bike assemblers as most of the existing Chinese assemblers are already facing stiff competition and only 10 units are enjoying relatively good sales as compared to their competitors Association of Pakistan Motorcycle Assemblers (APMA)

AutoMark Magazine

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Monthly AutoMark International pressure from various interest groups who have an incentive to maintain the status quo. These include not just industry stakeholders but also customs and clearance officials. Developing a capacity to set and implement standards is crucial both for consumer protection and for industrial development. Two Japanese bike assemblers have introduced special schemes to entice customers, while the third one, a market leader, has increased the price and its dealers are demanding premium for immediate delivery as demand outstrips supply by a big margin. Suzuki and Yamaha are offering free bi ke registration to buyers but those who aspire to own Honda CG-125cc had to pay over and above already higher price.

bikes without taking any registration fee which ranges between Rs4,000-5,000 per bike. These assemblers have kept the retail prices unchanged so far. The maker of Yamaha bikes has been offering free registration from December 25 and the scheme would in the end of January 2016. “Chinese bike assemblers too have not passed on the impact of 1pc hike in import duty to buyers owing to tight market conditions,” said Shaikh. He added that only AHL sales were going strong while two other Japanese bike assemblers were facing problems. AHL had been producing over 70,000 units per month since Oct 2015. During July-Nov, the company sold 328,763 units as compared to 247,149 units in the same period last year. AHL sales in 2014-15 rose to 653,193 units as

Consumers have failed to get any benefit from the huge lot of assemblers as they have been producing more than three decades old 70cc models mainly and due to competition they are decreasing the quality of products.

allow more bike assemblers as most of the existing Chinese assemblers are already facing stiff competition and only 10 units are enjoying relatively good sales as compared to their competitors. Atlas Honda Limited (AHL) has the installed capacity of 750,000 units per annum and despite its higher price than Chinese bike, the company produced 639,506 units in 2013-2014 and 653,193 units in 2014-2015. Assemblers are producing lower number of bikes as per their installed capacity. The second highest bike producer is Lahore based United Auto Industries of United Bikes whose yearly installed capacity is 288,000 units while it assembled 215,897 in 2013-2014 and 230,837 in 2014-2015. N .J. Auto Industries (maker of Super Power bikes) produced 114,158 units in 2013-2014 as compared to 124,250 units in 2014-2015 as against its annual installed capacity of 205,000 units. The maker of Road Prince Bikes Omega Industries of Lahore made 134,612 units in 2014-2015 as compared to 117,108 units in 2013-2014 while its installed capacity is 150,000 units per annum. D.S. Motors Hyderabad, maker of Unique bike, produced 115,731 units in 2014-2015 as compared to 107,619 units in 2013-2014 as against its installed capacity of 157,000 units per year. In order to revive the production of closed units, Sabir said the current government has to fix sale and production quota of every assembler keeping in view last five years production and sales. Otherwise the government must close approval of new units for assembling 70cc bikes. If the government did not experiment the above, the industry would fail to produce quality two wheelers. Atlas Honda despite being its high price and producing same 70cc as Chinese are producing is enjoying good sales due to high quality. Pakistan produces around 1.6 to 1.7 million motorcycles every year (since last 5 years) out of which 1 million units are assembled with Chinese technology. Three Japanese motorcycle makers fill the remaining market share. The imported used cars sales in the end of 2015 and in the month of January 2016 is also very notable. These 660 cc imported cars are famous in big cites of Pakistan due to good fuel consumption. The low prices of petroleum products are also the reason for good market of new, used cars and bikes...

compared to 639,499 units in 2013-14. A random market survey at According to figures of Engineering Akbar Road, the hub of new and used Development Board - EDB, sales of bikes, revealed that authorised dealers Suzuki bikes had plunged to 7,080 units of Atlas Honda Limited (AHL) do not in July-November 2015 as compared to have CG-125 model even for display at 9,265 units in the corresponding period their showrooms. However, some 2014. Suzuki sales in 2014-15 dropped dealers while assuring buyers that the to 22,703 units from 24,356 units in 125cc model will be available for spot 2013-14. Yamaha arrived in the delivery, were demanding an additional Pakistani market in July 2015 and Rs 3,000-4,000 as ‘on money’. The went on to sell 7,601 units in July-Nov dealers said CG-125 is in short supply 2015. while the demand is high. Pakistan’s Motorcycle assemblers have These dealers are also readily booking a total installed capacity of 4 million for CG-125, assuring buyers of deliver motorcycles per annum, the production after 15 days. The dealers claim the for the last two fiscal years has reached situation is same in interior Sindh and to 1.7 million bikes per year, some Punjab for the popular Honda model. assemblers are in a precarious position However, the same dealers of Honda owing to which they are failing were seen offering discount of Rs500 to pay the outstanding amount on on the retail price on other Honda received parts for production from their models. vendors. Chairman Association of Pakistan Motor Consumers have failed to get any benefit Cycle Assemblers (APMA), Mohammad from the huge lot of assemblers as they Sabir Shaikh said AHL had raised the have been producing more than three price of CG-125 by Rs1,000 from decades old 70cc models mainly and November 2015 to Rs103,900 while the due to competition they are decreasing prices of other Honda bikes remained the quality of products. the same due to competition with Chairman Association of Pakistan Chinese assemblers. Motorcycle Assemblers (APMA) Interestingly most bike assemblers have Mohammad Sabir Shaikh said around kept the prices unchanged despite one 13 units in Karachi and Hyderabad have per cent increase in import duty on parts closed down or stopped production from December 1, 2015 under the Mini followed by same situation with around Budget. 26 units in Punjab, three in Khyber Shaikh said due to depressed sales, Pak Pakhtunkhaw and two in Azad Jammu Suzuki Motor Company Limited and the Kashmir. He said there was no need to maker of Yamaha bikes are selling the www.automark.pk | February-2016 | Page 15

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Public Transportation System - Update

Karachi Circular Railway Railways earmarks 250 acres of land for resettlement

here is a ray of hope for the revival of Karachi Circular Railway (KCR) as the Pakistan Railways have earmarked 250 acres of land to resettle the encroachers who have occupied the precious tracks of this vital urban transport project of Karachi Spadework on repair of the abandoned track is expected in next five months, say Pakistan Railways sources. They said the railway ministry is fully committed to repair and run the abandoned surface rail urban transport project utilizing its own resources and making a viable business plan to operate it sound commercial basis. Making operational the KCR would help in mitigating the sufferings of millions of Karachi commuter and also provide the Pakistan Railway a good operating profit as there

is huge demand of urban transport in the mega city of Pakistan. Encroachments patronized by politically backed land mafias have been considered the major hurdle in the revival of KCR, but now the railway ministry has allocated 250 acres of land to shift all encroachments from the route of KCR and resettle the squatters on this land. In this regard the National Assembly Committee on Railways has been officially informed that the land

has already been made available for an early start of the KCR repair and renov ati on. Tho ugh t he Si nd h government is still undecided whether to adopt the KCR or not, and the Karachi Urban Transport Corporation (KUTC) despite spending millions of rupees of the taxpayers of Sindh on its army of officers and employees has sadly done nothing concrete for the revival of the KCR, the Pakistan Railways under Khawaja Saad Rafique has been working silently and seriously on the revival of KCR. Insiders say the complete revival of KCR before the next general elections would be a gift for Karachiites by the Pakistan Muslim League-Nawaz (PMLN) and it would certainly help in improving the image of the party in Sindh including Karachi. Railway engineers and experts are of the opinion that the rulers wasted decades of Karachi on the lollipop of

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Monthly AutoMark International

In this regard the National Assembly Committee on Railways has been officially informed that the land has already been made available for an early start of the KCR repair and renovation. Though the Sindh government is still undecided whether to adopt the KCR or not modernizing the KCR with the loans of JICA; however, all the KCR needed repair of its abandoned tracks, signal system, local trains stations and assigning a dozen of old locomotives that are unfit for long hauls and sufficient rolling stock. They said the Karachi Urban Transport Corporation (KUTC) has proved itself yet another white elephant of Sindh treasury. It is wasting a huge budget without achieving any concrete result for last many years. The bureaucracy has been confusing the repair and making functional the KCR with upgrading it on modern lines; though they are too different concepts. The repair and making functional the KCR needs local technology, less financial resources and no costly foreign loan, while upgrading and modernizing of KCR would be dependent on borrowed technology and very costly loans from Japan, China or some other foreign country at their own terms and conditions. These countries would not give Karachi their modern railway systems, but rather old system and technologies discarded and abandoned in their own counties decades back.

However, at this stage all that is needed for making the KCR stand on its two feet is its ‘repair’. In future the KCR could be modernized and even made a metro or tube rail if the required funds are available. Presently, even old local trains would be sufficient to facilitate millions of Karachi commuters. The experts further say if the engineers and technicians of the Pakistan Railways are given the green signal the repair and running of the KCR successfully is a matter of just two months. It would not only be a gift for the commuters of Karachi and help Karachi being a respectable urban city in terms of public transport but it would also improve the leadership image of Khawaja Saad Rafique and his party. The sources said spade work on the KCR revival could be started in March 20016 and local trains would run on it by June 20016, provided the provincial government of Sindh and its white elephant Karachi Urban Transport Corp oration (K UTC) lent t heir cooperation for this vital project. Though there is no dearth of the lipservice by the Sindh government for the cause of urban transport system of Karachi including the KCR and even in

the budget for the year 2015-16, the provincial government promised the revival of KCR, besides five bus transit and two metro rail transit for the mega city, but sadly the Sindh government has yet to take a solid step for the revival of the KCR. It just waits for the Japanese or Chinese costly loans to initiate work on the KCR. The problem of the foreign funded projects is that they are the means to purchase the discarded foreign technologies on very high rates. For example, for a dual track of KCR with a length of 43.3 km with 24 stations at an average distance of 1.5 km, the estimated cost of the project funded through the foreign loans is US $ 2.6 billion, which is too high and unbearable burden on taxpayers’ money as these loans would have to be paid by the people of this country. Using even a fraction of this money the Pakistan Railways could make the KCR functional easily. It is necessary that the attractive foreign loan trap is avoided for the revival of the KCR and instead its repair and run is done with the indigenous resources and available technology with the Pakistan Railways, recommend the experts.

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Automotive News - Update

Monthly AutoMark International

Poor sales cast gloom on tractor industry As the entire auto sector turns into a big source of employment due to a boom in demand, the tractor industry in sharp contrast is downsizing in view of depressed sales. Senior Executive Director Millat Tractors Limited (MTL), Sohail Bashir Rana said his company had to lay off workers due to declining sales and surplus built-up inventory. The plant and related offices of MTL remained closed from Dec 12, 2015 to Jan 3, 2016 for annual maintenance. `Prior to the plant shutdown, we had 2,000 employees. Now we have resumed operations from Monday with 1,450 staff,` he said. He added the plant was now operating on single shift instead of two shifts earlier when demand and sales of tractors were high. MTL holds 64 per cent of market share in total tractor sales. Citing reasons, he said low production of cotton crop along with low prices for sugarcane, potatoes, rice, etc has forced growers to slow down purchasing of farm machinery. `The lack of implementation of provincial tractor schemes announced by Sindh and Punjab in Budget 2015-

2016 had shattered the hopes of farmers and growers who are already running short of cash due to poor returns from various crops,` he added. The Punjab Tractor Scheme was shelved last month owing to paucity of funds. According to sources, the funds allocated for the scheme in the budget 2015-16 announcement were being diverted to development programmes in the province. In a meeting last month, Punjab Finance Minister, Dr Ayesha Pasha had clearly hinted to the auto vendor industry that the scheme would be shelved due to lack of funds. However, so far the Punjab government has not notified about shelving the scheme which aimed at supplying 25,000 tractors to farmers.

Truck sales surge by 35pc Truck sales registered a 34.68 per cent increase during the first six months (July-Dec) of 2015-16 to 2,194 units from 1,629 units in the same period last year. According to Pakistan Automotive Manufacturers Association (PAMA) data, Hinopak Motors sold 1,007 units during the period as compared to 617 units, a year-on-year increase of 63.21pc. Sales of Nissan and Isuzu trucks rose to 336 and 525 units from 298 and 376 units in July-December 2014-15. However, sales of Master trucks slightly fell by 3.55pc to 326 from 338 units. Increase in truck sales can be attributed

to a positive growth in Large-Scale Manufacturing. However, country`s exports and imports during the period stood at $10.3 billion and $22.2bn, respectively, as compared to $12bn and $24bn in the same period last year. An analyst at Topline Securities linked the increaseintruck sales tothe rise in demand in the wake of China-Pakistan Economic Corridor (CPEC) and improving law and order situation. In buses, Hinopak sold 386 units in July-December 2015-16 as compared to 217 units in the same period last year. Isuzu bus sales increased to 64 units from 30 units in July-December 201415.

He urged Punjab Chief Minister Mian Shahbaz Sharif to officially announce the fate of scheme. À formal announcement in this regard would settle the unrest in the tractor manufacturing and vendor industry. It will also help farmers to resume farm machinery buying which they have put on hold in anticipation of subsidised tractors,` he added. The Sindh government had also announced a tractor scheme in July this year, with some 29,000 tractors. `The Sindh government too should clear the confusion whether the scheme is intact or it has been terminated, Tariq said. Ìnstead of such tractor subsidy scheme, the government should consider working on easy loans on attractive interest rates for the farmers,` he added. Òur vendors have offloaded around 50 per cent of workforce in the last four months,` Tariq claimed. He added that many units making only tractor parts had been closed down due to fast declining sales. Small tractor vending units employ 3040 persons in while big units have 400500 people...

Subdued demand hurting tractor industry When a firm expects stable demand for its product, it increases its production. By increasing production, the rate of capacity utilisation increases. The rate of capacity utilisation signals that the firm is operating at an optimal level of labour and capital. There are two big players (Millat and Al-Ghazi) and one smaller one (Orient) in an oligopolistic market of tractors in Pakistan. The two big players have around 97% market share, while the rest lies with the small one. The single shift capacity utilisation of tractors was around 60% in FY14 and shot up to 80% in FY15 and is declining again in FY2016. The tractor industry has always been a barometer of the state of the rural economy in any developing country.

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Exclusive Review by Mohammad Laman

Monthly AutoMark International

Luxury buses for intercity routes in Pakistan

Imagine travelling in a bus where you can’t find a proper place to sit, where your head hits the roof and you sweat because the air conditions don’t work properly. Yes, a major proportion of Pakistani population faces such issues and the rest lucky ones are unaware of them. The intercity transport system of the country is not up to the standards. Transport system which takes passenger from one place to another within a city is not even worth for a comment. Although the intercity is not up to mark but continuous efforts are done by investors to revolutionize the system with introducing latest models buses with highly advanced technological features along with damaging the environment least.Previously it was only Daewoo as the only assembler of luxury buses in Pakistan and it enjoyed being the only one for a long time. Lately the number of assemblers has increased three including Hino and Master to the list. Master entered the market in 2002 and improved the played a significant role in improving the transport system. With selling more than

10,000 vehicles it gave them a good image which further helped them having contracts with other local transporters to purchase buses from them. The luxury buses offered by Master are no less than a comfort zone. Hinopak also figured the increasing demand in safe and comfortable travelling, therefore came up with their luxury busses too. Recently Hinopak introduced their new product Kazay, which is witnessing good response and the sales are expected to increase in future too. With all this we come to the fact that passengers are willing to pay a higher price if they are given better services. It is noted that if the travelling is safe and secure along with good atmosphere and hygienic food, the intercity transport industry is going to account for a major proportion for the country’s income. Daewoo was not cooperating before as they were still making profits because of their established image and also people somehow had no other option. It is highly needed that people

get deserved comfort level for the amount they pay. With pressure from different group it was seen that Daewoo introduced their new luxury bus BH120 which received a very good response. The authorized distributor of Volvo in Pakistan also launched their new ultimate luxury bus tagged B11R. The latest B11R is highly fuel efficient which reduces the cost along with less carbon emission which means it has fewer negative impacts. VPL is surely going to set new, higher and better intercity travelling. Daewoo Express, the biggest bus operator of the country has booked 10 B11R which are expected to hit the streets in the mid of March. Using latest and luxury buses is not only going to increase the profits of the bus operators but also many people who tend to use their own cars for travelling just because the services are not up to standards will also start using the services, which is going to help using less scarce oil resources and have a healthy environment because of low carbon emission.

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Monthly AutoMark International

Automotive News - Review

Tax issues holding up new Automotive Development Policy 2015-20 An official source said that the Federal Board of Revenue (FBR) is strongly opposed to giving the same tax incentives to the incumbent players as are being offered to the new green field investors. The existing car manufacturers are lobbying hard for similar tax relief for manufacturing new models in the country. T ax a ut ho ri t i es hav e h eld u p implementation of the Automotive Development Policy 2015-20 for the last six months over flimsy grounds. The policy, if implemented, could significantly increase manufacturing of the much needed trucks, buses and tractors along with the cars in the country. An official source said that the Federal Board of Revenue (FBR) is strongly opposed to giving the same tax incentives to the incumbent players as are being offered to the new green field investors. The existing car manufacturers are lobbying hard for similar tax relief for manufacturing new models in the country. “The policy is ready but the government is not ready to implement it,” the source said, and added that the policy was to be implemented from the start of the current fiscal year but opposition of the tax authorities derailed the process. Government is under too much pressure from the auto giants as well as from their home countries to provide level playing field for all. The policy has lowered the entry threshold for new investment, provided an enabling tariff structure for development of the automotive sector, auto import policy has been rationalised and for the first time regulatory and enforcement mechanisms for quality, safety and environmental standards are provided. “An investor under Automotive Development Policy (2015-2020),

establishing maiden assembly facility will invariably need separate treatment and greater incentives in the early years to enable it to introduce its brand, develop a market niche and share, create a distribution and after-sales service net works and dev elop a p ar ts manufacturer base” the draft of the policy says.

The policy envisages three categories of new investment with different incentives The Category-A Investment is called Greenfield Investment and is defined as the construction of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of make not already being assembled in Pakistan. The Category-B investment is declared Brownfield Investment and is defined as the revival of existing non-

operational or closed assembly and manufacturing facilities since June 30, 2013 either independently by original owners or new investors or under joint venture agreement with foreign principal or by foreign principal independently through purchase of plant. The Category-C investment is the Greenfield investment by the auto parts makers. The policy extends the scope of new investment to auto parts makers in order to attract global Tier I and Tier II auto parts manufacturers to make inv est ment in Paki st an, either independently or in joint venture with Pakistani auto parts makers. Scope shall also be extended to local APMs investing in a new plant to produce critical components of engine, transmission and suspension not produced before for any APM/OEM in Pakistan

Special incentives for Category-A investors include: completely knocked down (CKD) operations, import of non-localized parts at 10 per cent rate of customs duty and localized parts at 25 per cent duty for a period of 4 years in respect of passenger cars and LCVs from 800 cc and above category, import of 100 per cent parts at 10 per cent customs duty for a period of 3 years in respect of passenger cars below 800 cc category, import of 100 per cent parts at prevailing customs duty applicable to non-localized parts for a period of 3 years in respect of buses, trucks, tractors and prime movers. For motorcycle industry, existing policy

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Automotive News - Update

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Italian investors ready to invest Italian investors are keen to invest in Pakistan’s marble and granite sector, said Ambassador of Italy Stefano Pontecorvo. During a meeting with Chief Executive Officer Pakistan Stone Development Company (PASDEC), Zahid Maqsood Sheikh, at Italian Embassy, he said that Pakistan has huge reserves of natural stone, marble and granite, and Italy possesses decades of experience in stone mining and processing. The collaboration of two countries will be beneficial for the two countries. The Italian ambassador further revealed that the Italian embassy will soon mobilize and schedule visit of a delegation of potential Italian investors to Pakistan for exploring avenues of investment and joint ventures in the

sector. Earlier, the CEO PASDEC gave a detailed presentation on potential of marble and granite sector of Pakistan, and initiatives taken by PASDEC for development of the sector. He informed that Pakistan is blessed with enormous marble and granite reserves spreading all over the country. Shiekh highlighted his department’s efforts for mechanization of quarries in the country as per international standards. He added that PASDEC has imported almost all the quarry machinery from Italy. The CEO PASDEC wished furtherance of mutual cooperation between Italy and Pakistan in achieving the targets for sector development....

as approved by the ECC and notified by FBR will continue. The incentives include: medium knocked Down (MKD) operations, import of 100 per cent MKD parts at 25 per cent rate of customs duty for a period of four years in respect of passenger cars after which CKD tariff regime shall apply. All incentives, facilities and tax exemptions available under Special Economic Zone Act shall be available to all Category-A investors, including 100 per cent exemption from custom duties and taxes on the import of plant, machinery, equipment and tooling such as dies, molds, jigs and fixtures for production, inspection and testing of vehicles on one time basis. An investor will be allowed to import 100 vehicles of same variant in CBU form at 25 per cent of the prevailing duty for test marketing after ground-breaking.

Category-B investor will be entitled to the following incentives: Import of non-localized parts at 10 per cent rate of customs duty and localized parts at 25 per cent duty for a period of three years in respect of passenger cars and LCVs from 800cc and above category, import of 100 per cent parts at 10 per cent custom duty for a period of two years in respect of passenger cars and LCVs from below 800 cc category. Other incentives include import of 100 per cent parts at prevailing customs duty applicable to non-localized parts for a period of two years in respect of buses, trucks, tractors and prime movers, 100 per cent exemption from customs duties on import of tooling such as dies, molds, jigs and fixtures for production, inspection and testing of vehicles. A Category C investor shall be entitled to all incentives under SEZ Act. The

On the recommendation of EDB, will approve the investor under the relevant category. AIDC and EDB will review results of the Investment Policy once every two years and will recommend modifications, if any.

UKTI hosted Dinner in Karachi

UK Trade and Investment (UKTI) Pakistan hosted a Business Networking Dinner for the Lahore-based business community on last month. The event highlighted the planned establishment of British Business Centres across Pakistan this year, starting in Karachi. Ms Malahat Awan was introduced as the incoming CEO of the British Business Centre. Ms Awan explained that the Centre will provide services to British and Pakistani companies to enable them to find new business in the UK and Pakistan. Mr Ben French, the UK Representative for Punjab, said: “The UK’s business engagements in Pakistan are important, and they are growing every day. There are more than 100 British companies operating in Pakistan today.

Category- C incentives include the following: The eligibility criteria for an investor would be to submit a detailed business plan and relevant documents for ma n uf ac t ur i n g o f v eh i c l es t o Engineering Development Board (EDB) for assessment. The EDB will verify the inve sto r’s in-house assembl y /manufacturing facilities for the manufacture of road worthy vehicles. The Board will determine eligibility of the applicant under the defined criteria to be declared as an Investor in any of the three categories. Ministry of Industries and Production, on the recommendation of EDB, will approve the investor under the relevant category. AIDC and EDB will review results of the Investment Policy once every two years and will recommend modifications, if any. In case of material deviation from the approved commercial operation schedule, withdrawal of incentives shall take effect. EDB will initiate suitable action after necessary verification that may lead to the stoppage or withdrawal of benefits allowed. Details and mechanism for this will be covered in the investment agreement to be signed between the government and the investor....

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Automotive Sector - Update

PAKISTAN’S FEMALE MOTORCYCLISTS TAKE TO LAHORE’S STREETS New Punjab government initiative hopes to empower country’s women On the crowded roads of teeming Lahore, Tayyaba Tariq zips through the rowdy traffic on her brand new motorcycle. In jeans and a bright jacket, with a white helmet clasped over her hair, the 22-year-old student is part of a new wave of female drivers in Pakistan who are pushing the boundaries set for them by men. The i dea of women strad dling motorcycles, clambering into the cabs of Pakistan’s iconic heavy trucks, or driving rickshaws for money is still taboo in the deeply conservative country of some 200 million, where gender discrimination is routine. There has been a slew of recent campaigns by women for greater access to public spaces to which they are often denied, such as roadside eateries—and the roads themselves. The importance of the issue is underscored by the fact that three quarters of Pakistani women do not participate in the labor market, mainly due to a lack of safe transportation, according to a study by the International Labor Organization. “If girls learn to ride a motorcycle, they can move freely, come and go independently,” says Tariq, who rides 25 kilometers to the border with India and back every day for her job as a customs officer on her motorbike, a far more affordable mode of transportation than a car. Sajjad Mehdi, a traffic police official in Lahore, said he had trained nearly 150 women to ride a motorbike recently. The campaign saw 150 women, who had completed a police-run motorbike training program, ride through the streets of Lahore on Sunday in a rally attended by diplomats and human rights lawyers, as it was revealed that 1,000 subsidized pink scooters would be given to working women and students under the scheme. Tariq may be able to avoid men harassing her by nipping through traffic, but women using Lahore’s many rickshaws are often not so fortunate: trapped by necessity in a tiny vehicle

with a male driver, getting from A to B can often be a hassle. For Zar Aslam, the solution was obvious: women-only rickshaws, driven by women for women, empowering both passengers and enterprising women who need a source of income. Aslam launched her Pink Rickshaws scheme in 2014 beginning with just five rickshaws, and paraded them through the streets of Lahore in October last year. “What we are doing is we are trying to help women become entrepreneurs and operators and owners of their own rickshaws,” she said. “Anyone over 18 and under 102 can drive this rickshaw from any class, from any background,” said act ress Nad ia J ameel, an ambassador for the scheme. “Some women will come out and drive because they have to. They need the money.” Money was also the driving force behind Shamim Akhter’s decision to become one of the first female drivers of Pakistan’s famous heavy trucks, chaotically decorated from top to bottom in merry “truck art.” Abandoned by her husband after the birth of their five children, Akhter struggled in odd jobs for years to feed her family before she clambered into the cab of a truck to make history. Now the 53-year-old works night and day to transport bricks in the capit al

Islamabad. “My husband doesn’t live with me, he lives with his second wife and I have to bear the expenses of my family alone,” she says. She learned to drive a car first, then heavy vehicles, and passed a test for the newly launched metro bus service in the capital—but was denied a job by the government because it was not policy to have female drivers. So, she contacted a local trucking company. “I get Rs. 1,000 for a longer trip outside Islamabad,” she told AFP, cleaning one of the cabs as she worked. The amount of trips she gets varies, she says, and her income each month usually falls below average for a worker in Islamabad. “It doesn’t meet [all of] my expenses but … one can’t sit idle,” she said. “If we need Rs. 10,000 rupees and get Rs. 7,000, it’s better than having nothing.” Learning to drive will hopefully give many women an economic boost but it will still take time for social attitudes to change—even in Lahore, arguably Pakistan’s most cosmopolitan city. “Many times boys follow us [on their bikes],” Tariq the motorcyclist admits. “They think that a girl can’t ride and will be frightened… But I have a message for boys. They should not consider girls inferior.”

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Qingqi rickshaws - Update

Qinqis’ registration likely to get delayed over engineering faults The process of fitness, safety and registration of Qinqi rickshaws could be delayed for one-year as the Sindh transport department has identified 17 engineering defects in these rickshaws which need to be rectified by their manufacturing companies for ensuring safety of commuters, and also that the transport department could issue them fitness certificates, said an official of the Sindh transport department on last week. The transport department has pointed out 17 engineering defects in Qinqis including lack of hydraulic brakes,

reverse brakes, and safe infrastructure, which is dangerous for commuters, particularly old men, women and

Supreme Court Removes Ban on Qingqi Rickshaws’ In Karachi Supreme Court of Pakistan has dissolved the restriction implemented on the Qingqi rickshaws in the economic capital of Pakistan, Karachi. A two-member bench consisting of Justice Gulzar Ahmad and Justice Dost Muhammad Khan have issued an order to the relevant government departments to start registering the Qingqi rickshaws nationwide within next three months. All Karachi Qingqi Welfare Association had contacted the Supreme Court to remove the restriction implemented on the three-wheelers previously by the apex court. The bench was listening to the points of both sides today on Wednesday as well. The court also showed its dissatisfaction on the lack of public transportation as an alternative to Qingqi rickshaws. The Court has ordered to make sure the registration is done after the complete due diligence, including the safety standards of the three-wheelers. Also, those interested in owning and running a Qingqi rickshaw must obtain a license before. The license will be given to the interested individual has taken a test. After this ruling, the Qingqi rickshaws will not be allowed on the public roads until proper registration and license. The Qingqi rickshaws were completely banned last year by the Sindh High Court. After that, Qingqi rickshaw

organizations and political parties contact the Supreme Court the turn the ruling of the high court. The case has been in the court for five months now, and a similar decision has already been issued before. The government promised to br ing an efficient public transportation system, and the court banned the rickshaws once again. When Supreme Court inquired the government about the alternatives, it announced the previously dropped projects of circular railway and solar-powered rickshaws. But the government of Sindh was unable to show any progress in its public transportation plans in today’s hearing and the court issued the ruling to register the rickshaws and operate on public roads. The next hearing will be after three months. The debate on the merits and demerits of Qingqi rickshaws in Karachi has been going on for ages now. The public of Karachi received Qingqi rickshaws with open arms after the attitude of local transport mafia. But private car and motorcycle owners have always held Qingqi rickshaw drivers responsible for most of the traffic problems, including one of the primary reason of road accidents. The latest ruling by the court can be considered a positive step to provid e the p ublic with cheap transportation...

children, said Sindh Transport Department’s Component Manager of PAKSTRAN Yar Muhammad while talking to PPI. Yar Muhammad said they had asked the manufacturing companies concerned to rectify safety issues in Qinqi rickshaws identified by the Sindh transport department so that the department could issue them fitness and registration certificates. The safety of commuters was more important than their transportation, he added. He said as per the Supreme Court orders they were working to give those rickshaws a proper look and would register them under the transport department, but the safety issue should be resolved before allowing them to operate in city’s roads. Yar Muhammad said after the fitness and registration of those bike rickshaws, only licensed drivers would be allowed to drive rickshaws in the city. It may be noted that shortage of doctors and equipment at all three branches of Karachi licenses department was causing trouble to new applicants who want their licenses. Only one doctor is working in the licenses department in place of four doctors to conduct the medical fitness tests of majority of applicants applying for learner and permanent licenses in all three licenses branches including Korongi licenses branch, Nazimabad licenses branch and Clifton licenses branch. The department will be unable to accommodate a large number of un licensed Qingqi rickshaw drivers who will shortly apply for their Motor Cab Rickshaw (MCR) License to run their Qingqi rickshaws in the city. The establishing of new 18 licenses centers at town level and four fullfledged licenses branches in the remaining districts of the city is in doldrums as the Sindh government has delayed the issuance of funds. As a result, the citizens are suffering inconvenience of standing in long queues for hours for applying their licenses.

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Automotive News - Update

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Tractor plants to extend shutdown No funds were allocated for tractor purchase in the 300 billion Kissan Package announced by the federal government, and the tractor subsidy schemes announced by Punjab and Sindh have also been side lined or cancelled, said paapam Chairman The tractor plants, which had halted their productions temporarily last month, are considering extending their shutdown plan mainly due to steep decline in sales. Pakistan Association of Automobile Parts & Accessories Manufacturers (PAAPAM) chairman Mumshad Ali said that Millat Tractor as well as Al-Ghazi will extend their shutdown plan though earlier they were closed temporarily. He stated that rest of the small tractor assemblers has also suspended their production, as new orders are not arriving from the cash starved farmers of the country. Due to high tractor prices this basic tool of agriculture is no longer within reach of even the large land holding farmers and there has been no support both at federal and provincial level in the new government setup. He said that lack of farm mechanization policy at federal and provincial level, high level of taxation on tractors as compared to the regional counties, high inflation, floods, devaluation of Rupee, and unprecedented hike in utility tariffs have dragged down the sale of tractors, leading to dead level production despite having capacity of producing 80,000 units annually. He said tractor manufacturers have suspended procurement of parts from their vendors as there are already several thousand unsold tractors dumped at their plants and countrywide dealership network. Pakistan Association Automotive Parts & Accessories Manufacturers has raised alarm bells at the closure of the tractor industry of Pakistan. This industry has a tier one supplier base of 500 units with an estimated skilled and semi skilled

base of 50,000 directly employed. Experts estimate that for 1 person directly employed 10 are indirectly associated in downstream suppliers and service providers taking the total figure to half a million work force working for the tractor industry. Mumshad Ali, chairman Paapam, when contacted inform this scribe that tax contribution last year by this industry was over Rs 6 billion and this is expected to drop to under 2 billion due to drying up of demand and therefore production. The drop in sales has been caused due to the erosion of the buying power of the Pakistani farmer due to drop in commodity prices. He said that no funds were allocated for tractor purchase in the 300 billion Kissan Package announced by the federal government, and the tractor subsidy schemes announced by Punjab and Sindh have also been side lined or cancelled. Ali commented that this industry has seen a cyclic boom and bust phenomena

due to inconsistent and short term government policies and lack of cohesion between the provincial and federal governments in the last 5 years. Going into detail of the problem Mr. Ali elaborated that GST regime has changed many times in the last 5-6 years, ZTBL loaning is also erratic and mark up rates are also as high as 12% -14%, where as current kibor is at 6.5% . The tractor subsidy schemes from the provinces are also short term and this results an artificial demand followed by artificial slump. Saeed Iqbal, leading tractor part maker said that such erratic demand pattern is detrimental for any industry and maintaining supply and quality becomes very difficult. He asked the government to take long term measures to ensure smooth demand for the tractor in the market so that the industry can have stable growth. Irfan Qureshi a heavy weight of the foundry sector of this industry said that, his sector is very labour intensive and once his work force leaves it will be very difficult to restart his foundry operations. Usman Malik, former chairman Paapam and a premier radiator manufacture for the tractor industry said that his business is heavily dependent on the tractor industry and if tractor sales do not pick up soon, lay offs at his plant will be eminent. Mohammad Saleem, and Razzak Gohar running two leading forging industries associated with the tractor industry said that, government should make long term plans to improve horse power available per hectare, which is less than half of neighboring India. This is not possible with short term and erratic tractor subsidy schemes currently in vogue.

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Automotive News - Update

Honda Atlas Launches Honda HR-V 2016 in Pakistan Honda Atlas has officially launched Honda HR-V (Hi-rider Revolutionary Vehicle) for the first time in Pakistan during an exclusive launching ceremony held in Lahore, yesterday 11th January 2016. The hi-tech Honda HR-V is a mini-SUV similar to the Japanese Vezel, but there are some alterations in relation to modern technology. It was reported last year that Honda Atlas is planning to launch HR-V in Pakistan. The launch of Honda HR-V was an effort to not only counter the

influx of the same kind of vehicles from Japan in the form of Vezel but it also aims to widen the portfolio as an automobile firm and increase their market share. Honda Atlas had witnessed a decline in the sales of its flagship brand Civic in the second half of the last fiscal year and since then it has planned to develop a car that could attract the Pakistani auto consumers. It is a matter of time that will prove how successful HR-V would be as compared to a hybrid car like the

Pakistan car sales jump as consumer confidence picks up Sales of new cars in Pakistan hit their highest level since at least 2007 in the second half of last year as consumer confidence rebounded, thanks to a drop in militant violence and lower inflation. Pakistan's economy, the world's 44th largest, has suffered under years of violence waged by various militant groups, large budget deficits and a chronic shortage of energy to fuel industry. Last fiscal year the economy grew 4.2 percent, slightly better than in 2014, but falling inflation and a drop in interest rates has put more money into consumers' pockets. Militant attacks also fell sharply last year, encouraging wealthier urban Pakistanis to spend more. Total cars sold in Pakistan, where levels of car ownership remain low, in the six months to Dec. 31 jumped 53 percent from a year earlier, data released this week by the Pakistan Automotive Manufacturers Association showed. Japananese manufacturers Toyota Motor Corp, Honda Motor Co Ltd and Suzuki Co Ltd, which dominate the Pakistani car market, sold a combined 89,824 passenger cars versus 58,727 in the second half of 2014, said PAMA, which calculates car sales for six-month periods ending in June and Dec. That level of sales is the highest for a July-Dec. period since at least 2007,

according to the data. "The purchasing power of the middle (class) has increased as oil prices have plunged and interest rates have gone down and overall inflation is very much under control," said Fawad Khan, head of research at KASB Securities Pvt. Ltd. Mumshad Ali, an automotive industry expert, said lower car financing costs and reduced crime in the violent metropolis of Karachi, Pakistan's largest and wealthiest city, had also helped. "The economy is doing better and people are buying cars. People in Karachi didn't change their cars very often. That has changed," he said. Sales of trucks also rose last year after the government launched an incentive scheme to boost demand, but tractor sales fell 40 percent as lower commodity prices squeezed incomes in rural areas, where most Pakistanis live. Ali said that while passenger vehicle sales were rising, tractor and motorcycle purchases in rural areas could fall further and offset rising demand for cars in cities. Pakistan's central bank said last month that the economy remains structurally weak. Sluggish private investment, low levels of tax collection and a struggling export sector have kept growth below the 6 percent-plus needed to absorb new entrants into the work force from an expanding population of 190 million.

Honda Vezel car. View some images from the launch ceremony event, held in Lahore below: Honda HR-V (Hi-rider Revolutionary Vehicle) is the second generation of the foreign version of HR-V; however it is the first one in Pakistan. HR-V platform has been based on the third-generation Honda Fit. Letâ&#x20AC;&#x2122;s have a look at the specs and salient features of Honda HR-V: DESIGN The solid and elegant wing face design blending the headlights in the grill is what looks bold when HR-V rolls on the roads. Its fog lights are specially placed for situations in which visibility is limited.

Bosan lauded for farmers support Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has praised the efforts of Sikandar Hayat Khan Bosan, Federal Minister for National Food Security & Research for his efforts to support the farmers through Kissan Package, the dividends of which will soon be felt in the rural economy of the country. The association also lauded Bosanâ&#x20AC;&#x2122;s efforts to reduce the GST on tractors in the finance bill 2014-15, from 17% to 10%. The Chairman, PAAPAM, Mumshad Ali, told this scribe that PAAPAM has had several meetings with the Federal Minister for National Food Security & Research and has always found him to be an intelligent and refined individual who avoids self publicity.

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Analysis of Pakistani Automobile Industry – A Report

he dictionary says that an automobile is a land vehicle equipped to carry a driver and several passengers, generally moving on four wheels and propelled by an engine that burns gasoline, and the companies that manufacture these automobiles are categorized under the automobile industry. So simple it seems. However, in the real substance, automobiles and the auto sector mean much more than this. It represents mob il ity, transpo rtation and communication. It represents an industry that has a strong impact on a dozen other sectors may it be steel, vending, petrol or even employment. Hence auto sales reflect not only the basic human desire for mobility but these are also an important economic indicator. The auto sector, like other industries of Pakistan, has its share of problems and issues. This part of the report firstly covers the analysis of the whole industry discussing the various mega environmental factors as well as other relevant issues. Then it will move on to discuss the theoretical companies’ analysis. The whole analysis, industry wise as well as company wise, would form the basis of the financial analysis that comprises of the second part of my report.

The companies I have chosen are Pak Suzuki Motors and Indus Motors Company. The objective of this study, besides to get a good grade in the subject, is to understand the basics of the automobile industry of Pakistan, discuss its pros and cons, find the reasons for its present state, present the future outlook and propose some ideas that might lead to better results. The sources of information primarily include articles from newspapers and magazines, reports from brokerage houses, interviews and some old research reports.

WHAT IS THE AUTOMOBILE INDUSTRY? The automobile industry in Pakistan includes companies involved the production/assembling of passenger cars, light commercial vehicles, trucks, buses, tractors and motorcycles. The auto spare parts industry is an allied of the auto industry. The auto & allied industry form a major sector in Pakistan.

MARKET STRUCTURE The market structure of the automobile industry in Pakistan is concentrated. In economics term, we could say its an oligopoly, which is characterized by imperfect competition in which the industry is dominated by a small number of suppliers. This is because the auto

industry is highly capital-intensive requiring high investments and the products are expensive. Hence the barriers to entry are high resulting in the presence of limited number of suppliers. Moreover, the market can also be categorized as price-oriented. As cars are luxury items, especially in developing countries (Pakistan being one of them), the demand for them is elastic. Any prices change affects the sales of the company to a great extent.

HISTORY OF THE PAKISTANI AUTO INDUSTRY When Pakistan was established in 1947, there were neither any automobile assembly plants nor any industrial capability available for this important manufacturing of cars, Light commercial vehicles, motorcycles, trucks and buses. Investment in the automobile industry in Pakistan started in the mid 50s when Kandawallah Industries established its units for assembling buses and trucks. The company’s name was later changed to Naya Daur Motors. National Motors took the challenge to produce locally manufactured automobiles in the 60s and is said to have reached above 80% deletion of the Bedford lorries and trucks b ef o r e i t c l o se d d o w n . T h e n Kandawallah Motors again made a breakthrough by introducing “Nishaan”, a jeep copied on the pattern of Willeys

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Automotive News - Update Jeep of USA used by the Pakistan army. However, the project died out before the commercial production began. Iran used the same blueprint and developed the automobile under a different brand name. The automobile industry took another turn in the early 70’s when the automobile industry in the country was taken over by the Government and placed under Public sector. Pakistan Automotive Corporation (PACO) was established in 1973 to regulate and supervise the automotive industry in the country. It was not until early 90’s that the industry could have any private participation. Today, Sind Engineering (Pvt) Ltd. is the only public sector enterprise in the automobile sector. Next in line of indigenization was “Proficient”, a brainchild of a road side mechanic, Khalil ur Rehman. This project died out due to lack of financial resources and an untimely policy of granting concession on the completely built units (CBU) of Suzuki pickups. Suzuki pickup had the same capacity as that of proficient, so the policy hurt the local project very badly.

MAJOR PLAYERS IN THE MARKET There are 12 automobile companies listed on the Karachi Stock Exchange under the sector of Auto & Allied. The car industry in Pakistan primarily comprises of four players, all of which are Japanese. These are Pak Suzuki Motor Company Ltd., Indus Motor Company Ltd., Honda Atlas Cars Ltd. And Ghandhara Nissan Ltd. Amongst these, the first players comprise the major position in the market. Naya daur Motors are the manufacturers of Kia. The market for Buses and trucks include Hino-Pak Motor, National Motor, Ghandhara Nissan Diesal etc. The tractors market comprises of Al-Ghazi Tractors, Millat Tractors. A brief profile

of the five major players is given as under:

PAK SUZUKI MOTOR COMPANY LIMITED This company was the first passenger car manufacturer in the industry. It was formed in August 1983 as a joint venture be t w e en Pa ki st a n A ut o mo b i l e Corporation Limited (PAC O) and Suzuki Motor Corporation (SMC)Japan. The former party represents the Government of Pakistan. The company started commercial production in 1984. The company was privatized in September 1992 and SMC progressively increased its equity to 72.8% by acquiring the stake of PACO. The company today is the largest player in the industry wit over 50% market share and a virtual monopoly in the fastest growing small car market. it represents 47& of the total installed capacity in the passenger cars segment.

INDUS MOTOR COMPANY LIMITED Indus motors is a joint venture amongst the house of Habib (50% equity), Toyota Motor company (12.5%) and Toyota Tsusho Corporation (12.5%) initiated in December 1989 for the assembling, progressive manufact uring and marketing of Toyota vehicles in Pakistan. IMC is also the sole distributor of Toyota vehicles in Pakistan. The company started commercial production in May 1993.

HONDA ATLAS CARS LIMITED Honda Atlas stepped into the Pakistani market in November 1992 as a joint venture bet ween Hond a Motor Company, Japan, and Atlas Group of Companies, Pakistan. Commercial production started from July 1994.

GHANDHARA NISSAN

LIMITED Ghandhara Nissan was established as a private limited company in August 1981 to import and market Nissan vehicles in Pakistan. It also has been marketing Nissan Diesel Trucks assembled in the country. It was converted into a public limited company in May 1992 to undertake production of Nissan vehicles. The company has a very low market share and its products are not doing so well in the Pakistani market. The reasons to which this state is attributed include lack of financial resources, internal strife in the company, and restructuring efforts. To handle this situation the company is considering to have their loans converted into equity, or to sell the stakes to a new group so that outstanding loans could be paid or rescheduled. The problems of Nissan are further aggravated by stiff competition from the large car market covered mainly by Toyota and Honda.

SIND ENGINEERING (Pvt.) LTD. This company has said to have played a pivotal role throughout the period. The company was incorporated under the Company’s Act in 1963, under the name M/s Wazir Ali Engineering ltd. The company was taken over by the government in 1972 under Economic reform order and was renamed and was placed under the newly formed Pakistan Automobile Corporation (PACO). 100% shares of the company were handed over to PACO. Sind engineering is the only remaining public sector enterprise in the automobile sector which is holding about 72-75% market share of the trucks (Mazda), vans and small trucks segment in the 3.5-6 tons GVW weight range. SEL is presently manufacturing the following brands of vehicles: Assembly of Mazda T3500 Truck chassis

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Automotive News - Update Assembly of Mazda T3500 bus chassis Fabrication of bus and truck bodies on Mazda T3500 chassis Import and sale of completely builtup (CBU) Mazda vehicles like pick-up and vans Fabrication of specialized vehicles i.e. dump trucks, refuse van, fire fighter, water bowzer, troop carrier etc. Spare parts and accessories SEL has offices at Lahore and Rawalpindi with dealership networks through out the country. Till 1998, the company had achieved 45% deletion in Mazda trucks.

HINOPAK Hinopak Motors Ltd. came into being as a result of a joint venture agreement b et we e n P ak i s t an A u t o mo b i l e Corporation (PACO), Al-Futtaim of Dubai, Hino Motors of Japan and Toyota Tsusho of Japan. This company has become a full-fledged member of the Hino and Toyota family as Al-Futtaim Group handed over its 59% stake to Hino Motors and Toyota Tsusho in 1998. This company has a strong presence in the market of buses and trucks. They have been facing competition from Sind Engineering when they started manufacturing Volvo trucks in 1997. Moreover, import of buses by Daewoo and Mercedes in CBU form served as a setback for the company. However, the brand of Hino is going strong in our country, especially in Punjab and NWFP.

NATIONAL MOTORS This company was established in Karachi by General Motor Overseas Distribution Corporation of USA. In 1953 Lt. Gen. (Rtd.) M. Habibullah Khan Khattak acquired these facilities from General Motors and renamed it Ghandhara industries Ltd. The Government of Pakisan nationalized Ghandhara industries in 1972 and renamed it National Motors. In 1992, M/s. Bibojee Services (Pvt.) Ltd. acquired it under the Privatization Policy of the Government. The major business activities of the company comprise of progressive manufacture, assembly and marketing of Isuzu truck and bus chassis.

PRODUCT LINE OF THE AUTOMOBILE INDUSTRY Though the high cost for new plants

Monthly AutoMark International discourages new entrants on the one hand, the average capacity leaves little room for new comer to take their chance on the other hand. The competitive environment has been explained in terms of the different segments of the market. It could be observed that in the upper segment, Toyota is the market leader whereas Suzuki leads in the lower segment.

AL-HAJ FAW First Automobile Works is a global contributor in the automotive industry with a 50 year history of innovation. The company FAW was established in 1953 and the name was changed to China FAW Group Corporation in 1992. It has been noticed that FAW has recently started doing great in the Pakistani market. Automobile market of Pakistan is very complex and it is not easy for a new investor to compete against the current established players of the market. Along with local production done, the market is also filled with imported cars which further increase the competition. Al-Haj FAW Motors was incorporated in July 2006 and launched first product in October 2006. Started with two variants of heavy duty trucks. They had signed a distribution license agreement with FAW in July 2006, which allowed them to import, distribute and sell FAW products in Pakistan.

MASTER MOTOR Master Motor Corporation Limited (MMCL) is an ISO certified automobile assembling; manufacturing company formed in 2002, and is part of Master Group of Companies. MMCL is authorized assembler/ manufacturer in Pakistan for leading Commercial Vehicles from Japan & China including world renowned Mitsubishi Fuso, Foton, Yuejin and Volkswagen. It is producing a wide range of Commercial Vehicles from 1.5 Ton loading capacity to 60 Ton GCW Prime Mover. More than 10,000 Master vehicles sold give us a very strong commercial base both in public and private sector organizations.

1. PASSENGER CARS The passenger cars are divided into 3 more segments. THE 2000 CC DIESEL SEGMENT This segment includes the various models of Toyota Corolla Diesel cars.

The company enjoys a virtual monopoly in this segment as there is presently no other manufacturer in Pakistan. For some time Nissan introduced its Diesel version of the car but it was discontinued as it was not able to penetrate the market successfully. THE 1300-1600 CC SEGMENT This includes Civic and City from Honda, Baleno from Suzuki, Corolla from Toyota and Sunny from Nissan. Competition exists in the higher segment of the market. This competition is stiff between Honda Civic and Toyota Corolla, while the additional competition comes from Nissan Sunny that had entered the market in early 1997. However, Toyota is the market leader in this segment and its biggest buyer is the Government. The demand for large cars is about 15000 units per annum. Toyota dominates by 8000 units (53%) while Honda follows with 4000 units (26%). Nissan Sunny has a minute share of less than 6%. Competition from Suzuki in this segment was offered by Baleno, which replaced Margalla in August 1998. Its share is about 2000-2500 units per year. THE 1000-1100 CC SEGMENT This includes the Kia Pride motor cars by Naya Daur Motors (under the Tawwakal group) and Khyber by Suzuki. Suzuki enjoys an eminent status in this segment as Kia Pride has been discontinued. THE 800-1000 CC SEGMENT This segment covers Mehran by Suzuki, which enjoys a monopoly up till now. New entrants in this segment have and are coming in, which will be discussed later in this report. The 800cc-1000cc segment has shown the fastest growth at 5.1 percent per annum from the mid 1980s largely because of economical prices. The former two can be categorized as large cars, whereas the latter one is known to be the small cars segment.

2.LIGHT COMMERCIAL VEHICLES In the light, commercial vehicle again the Suzuki’s 800cc pick up ‘Ravi’ is considered to be the best selling while ‘Bolan’ a light van fitted with the same 800cc engine also dominates this segment. Toyota with its locally produced Hilux pickup and imported Hiace van and

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Automotive News - Update Mazda’s T-series pickup fill most of the niche in the larger 1 ton segments. Other major pickup importers are Mitsubishi and Nissan.

Hence this segment includes three categories: JEEPS This segment includes Potohar Jeep man ufac t ure d b y Pak S u z u ki . VANS Here again Pak Suzuki enjoys a monopoly by producing Bolan. PICKUPS This segment involves some competition between Suzuki and Toyota. The products in this section include Hilux (4*4 and 4*2) and Ravi by Suzuki. Both the companies have comparable sales units in these products. However, it can be safely concluded that both the products are catering to two different niches.

3.TRUCKS Here the manufacturers include Hinopak, Nissan, Mazda (SEL), Yasoob, Volvo and Isuzu. Hino-Pak led the heavier commercial vehicle segment with its Hino trucks followed by Nissan Diesel, Isuzu and a newly entrant Volvo which commenced operations in 1997.

4. BUSES Here again Hino is the market leader followed by Nissan, Mazda (SEL) and Isuzu. Buses market is dominated by Hino, Mazda and Nissan diesel until the end of 1997 when Shahnawaz Limited decided to introduce Mercedes Benz vans and buses in CBU form to the market. In 1998, Daewoo also entered the market with its completely built Daewoo buses that are mostly plying on the Islamabad-Lahore Motorway (M2).

5. TRACTORS Two competing companies producing tractors are Al-Ghazi tractors (Fiat) and Millat tractors.

6. MOTOR CYCLES In this segment, Honda motorcycles lead, followed by Yamaha and Suzuki.

AUTOMOBILE INDUSTRY—SOME FACTS OWNERSHIP AND AFFORDABILITY IN PAKISTAN

One in 205 persons owns a car in Pakistan as compared to 40 persons in Asia, 4 persons in Europe and 3 persons in North America. The ratio of those who can afford to buy a car is much lower—one person in 2900. The analysis is based on a population of 131.4 million, car pop ul ati on of 638, 8 00[5].

SOME OTHER FACTS of motor vehicles registered 4.278million of motor vehicles on road 3.381 million The aggregate number of passenger cars on road 638million. Total market size for passenger cars 40,000units Demand of Automobiles at CAGR 68% Average Capacity utilization of cars industry 47 % Capacity utilization in 1998-99 53% Persons per car in Pakistan 120 Irregular imports of cars 75000 units Import of cars under transfer of residence 4000 units Investment in the auto industry 5.344 billion (Rs.1.532 billion foreign equity) Total installed capacity 110000 units Contribution to the Govt. revenue 7.233 billion/year Foreign exchange savings $95.5 million/year Source: Bank of America Research report & PAGE–1999

KEY DETERMINANTS OF DEMAND 1. ECONOMIC FACTORS 2. PRICE & DISPOSABLE INCOME As it was stated before, the demand for cars is price-elastic. The major determinant for the demand for cars is therefore price. If the purchasing power of the people is reduced due to either price increases or disposable income decreases, the demand for automobiles will be strongly affected. The price increases because of increase in costs. Since the deletion level is low in our country, most of the input material is imported from Japan. Hence any devaluation of Rupee, which is quite frequent, against yen would increase the costs of the auto assemblers in Pakistan.

Moreover, inflation would increase the cost of local inputs. Import duties and taxes also influence the costs. The structure of the automobile market is such that it allows the manufacturers to have greater power to influence the prices. Any cost increase as such is passed right on to the consumers, thereby reducing the demand growth for cars. The last few months are marked by p rice increases by the car manufacturers, due to a number of economic reasons. Moreover, due to the economic problems like devaluation and inflation, and other problems likehigher income taxes, the disposable income of the consumers is shrinking, having a negative effect on the demand of cars, especially the high-priced, larger cars segment. The price increases and reduction in disposable incomes have resulted in an increased demand for smaller cars that are also more fuel-efficient. The demand for larger cars has though no declined drastically, some effect on their sale can be observed. The economic issues related to the auto industry will be discussed in detail later in the discussion.

INDIRECT DETERMINANTS 1. POPULATION GROWTH With the population growth of 2.7% per annum and the changing lifestyles of the people, automobile sector has grown in the past. 2. DEMOGRAPHIC SHIFT Migration of the population from the rural to the urban areas affects the automobile sales indirectly. In cities, the need for travelling longer distances between places of residence and work has created the need for using automobiles. Moreover, urbanization of the country have also contributed to the growth of this industry. 3. STATE OF THE TRANSPORTATION SYSTEM The state of the transportation system also has its remote effects on this industry. The need for cars will be higher in countries where the transportation system is inefficient. The state of our public transportation is extremely poor, to say the least.

www.automark.pk | February-2016 | Page 34

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Monthly AutoMark International

Press Release

FPCCI acknowledge the contribution of Crown Group and rewarded the Export Award The Federation of Pakistan Chamber of Commerce & Industries (FPCCI) has awarded Export trophy to Crown Group for its contribution in the Pakistan’s automotive industry. The Honorable Prime Minister of Pakistan Nawaz Sharif participated as the chief guest and awarded the achievers. The FPCCI’s award ceremony was held at Pearl Continental Hotel, Karachi and was attended by bureaucrats, diplomats and elite of the business community. In this prestigious award ceremony, the Honorable Prime Minister of Pakistan Nawaz Sharif presented the award to Chairman of Crown Group Mr. Farhan Hanif. It is an incredible achievement because among the popular and trusted brands of Pakistan, Crown Group was selected for this export award. The FPCCI’s export award is the highest accolade which is conferred to those leading businessmen and business org ani z at io ns t hat h ave mad e outstanding achievements in socioeconomic sector.

Honorable Prime Minister of Pakistan Mr. Nawaz Sharif awarded Chairman Crown Group, Mr. Farhan Hanif, Merit Award at 39th Export Trophy Award Ceremony in the presence of Minister of Finance, Mr. Ishaq Dar, Governor of Sind Dr. Ishrat-ul-Ibad and President FPCCI Mr. Mian Muhammad Adress

Car owners face double payment of WHT A possible technical error in interdepartmental transfer of data is causing problems in vehicle tax settlement for a segment of car owners in Sindh. According to information received, many car owners who approached Sindh Excise and Taxation Department to pay tax on a year-old vehicle were asl (ed to pay withholding tax along with the motor vehicle tax. `The buyers who have already paid withholding tax (WHT) at the time of registration of vehicles ended up not paying even the regular tax because of an unjustified demand,` an insider told press media last month. A source in the provincial gov-ernment said that the Federal Board of Revenue (FBR) has provided a list of withholding

tax defaulters for the period November 2014 to January 2015 to the Sindh Excise and Taxation Department. Erroneously the list carries names of even those who paid WHT. As a result, the registration and engine numbers of even those vehicles whose owners already filed WHT had been seized for further transaction (like transfer of vehicles to other buyers). All Pakistan Motor Dealers Association (APMDA) Chairman H.M. Shahzad said a delegation of the association met Sindh excise and taxation`s secretary in November to resolve the issue, but the matter has yet to be resolved. Mr Shahzad said besides carowners the Sindh government must also be feeling the pinch.

In November 2015 a deputy director, motor registration, Karachi had written a letter to Director Excise, Taxation and Narcotic Control regarding recovery of default arrears of withholding tax for the remaining period under review in respect of Finance Act, 2014. In the letter the deputy director informed director excise that car owners were approaching his office with the complaint that their vehicles were registered in their names at the time of purchase after payment of withholding tax, therefore demand for payment of withholding tax is not justified. Several attempts to get input from secretary excise Sindh proved futile.

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Car / Light Vehicle Price List

SUZUKI Ex Factory Price

Model Model

WAGON-R VX 1000cc Euro II WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II CULTUS EFI VXR CNG LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX 800cc E2 BOLAN VAN VX 800ccm (M)E2 SUZUKI VAN CARGO Euro II RAVI PICK-UP STD 800cc E2 APV 1.5L GLX MT (Petrol)

Advance Tax

Rs. 854,000 Rs. 896,000 Rs. 1009,000 Rs. 630,000 Rs. 700,000 Rs. 683,000

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

25,000 25,000 25,000 10,000 10,000 10,000

Rs. 1,297,000 Rs. 1,433,000 Rs. 1,044,000 Rs. 1,119,000 Rs. 1,365,000 Rs. 1,444,000 Rs. 700,000

Rs. Rs. Rs. Rs.

50,000 50,000 25,000 25,000

Rs. Rs. Rs. Rs.

10,000 10,000 10,000 10,000

Rs. 671,000 Rs. 642,000 Rs. 2,418,000

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

HONDA Model Honda Aspire Manual 1.3L Honda Aspire Prosmatec 1.3L Honda City Manual 1300cc Honda City Prosmatec 1300cc HYUNDAI Honda Civic VTI Manual 1800cc Honda Civic VTI Manual SR (Oriel) Honda Civic VTI Prosmatec 1800cc Honda Civic VTI Prosmatec SR (Oriel)

Price Rs. 1,687,000 Rs. 1,809,000 Rs. 1,537,000 Rs. 1,678,000 Rs. 2,053,000 Rs. 2,285,000 Rs. 2,174,000 Rs. 2,406,000

TOYOTA COROLLA Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

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

Hilux Pickup 4x2 sc Model

Price

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

Rs. 1,859,000

Hilux Pickup 4x4 E Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,129,500

AL-HAJ FAW MOTORS Price

Model

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

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

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

Price updated Feb- 2016

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International Automotive Industry - Update

JAC S3 – the Sales Champion of Compact SUV in China 2015 At the end of 2015, JAC has achieved the annual sales target in advanced. The sales of JAC passenger vehicle successful broke through 351,900 units, which have passed the annual target of 300,000 units. In each segment market, JAC also made a big harvest. With the help of S3, the sales of JAC SUVs have broken through 250,000 units, up by 254% year-on-year. In November, the sales of S3 achieved 20,000 units and got the champion of compact SUV. Until now, S3 has won seven monthly sales champions, two quarterly sales champions and one semi-annual sales champion, which created the strongest champion record among compact SUV market. On December 16th, S3 was honored the ‘Best Reputation’ of C-NCAP 2015award from Tian Jing Crash Center. Before this, S3 has been elected as Chinese ‘SAFTY CAR OF 2015’ standing out from 50 candidates which have obtained CNCAP five star. The ‘Best Reputation’ award was elected through internet platform of ‘World Auto’- ‘Electing the best safety vehicle in your mind’ activity. At last, JAC S3 got 21547 votes and occupied 25% to rank the No.1, and obtained the highest acclamation from industry and customers.

Honda, GM consider joint fuel cell plant Honda Motor and General Motors are considering jointly building a fuel cell plant as the automakers try to cut the cost of developing electric cars, Japan's Asahi Shimbun daily reported on Saturday. They aim to start the mass production of fuel cells by 2025 at the latest, the paper reported. Honda and GM have been collaborating on developing fuel cells since 2013. While working jointly on fuel cells, the two companies continue to develop their own cars separately, Asahi reported. The huge cost required to develop fuel cells has prompted the world's carmakers to cooperate with their rivals. Daimler AG, Ford Motor and Nissan Motor jointly develop fuel cells while Toyota Motor is in partnership with BMW in the area.

Toyota to broaden small-car lineup with help from Daihatsu Toyota Motor plans to bolster its lineup of small cars through collaboration with subsidiary Daihatsu Motor. Toyota will release as early as this fall "tall wagon" vehicles with large cabin space. These cars, developed by Daihat su, will hav e an engi ne displacement of roughly 1 liter, and some will be equipped with a turbocharger for faster acceleration. Most will likely be priced at slightly over 1 million yen ($8,440), though no decisions have been made yet. The Japanese auto market has seen strong demand for cheap, lowmaintenance small cars, especially minivehicles, which are defined as having an engine displacement of no greater than 660cc. Honda Motor's N Box and Daihatsu's Tanto are some of Japan's most popular wagon-style mini vehicles, each averaging monthly sales of more than 10,000 units. Minicars currently account for about 40% of new-car sales in Japan, and the percentage has been rising despite a dip in 2015 due to the consumption tax hike. Daihatsu became a Toyota subsidiary in 1998, and they have since strengthened cooperation. Daihatsu supplies Toyota with four vehicles including the Passo compact car and the Rush SUV.

Monthly AutoMark

This is Honda’s new turbo 2.0-liter engine for hotter Civics The folks over at CivicX have managed to obtain an image of Honda’s new turbocharged 2.0-liter, four-cylinder engine. A detuned version of the motor will have around 230 horsepower in the Civic Si that will be offered exclusively with a six-speed manual transmission. Honda will install the same engine in the rangetopping Type R where it will obviously have a lot more power. While the Civic Si will be out in the late fall 2016 - early spring 2017 interval, the Civic Type R is bound to hit the market in the spring or summer of 2017. The Type R will be generally available as reports indicate Honda will sell it in almost all markets where the regular Civic is being offered. Before these two will be launched, Honda will sell the tenth-generation Civic Sedan andCoupe in the US with a naturally aspirated 2.0-liter producing 158 horsepower and 138 pound-feet of torque. A more appealing choice is the new turbocharged 1.5-liter with 174 hp and 162 lb-ft. The UK-developed Civic five-door hatchback set to be offered in Europe early 2017 will get a turbo threecylinder 1.0-liter engine which will have around 127 hp and 148 lb-ft. Source: civicx.com

Chinese car maker wins favor in Iranian market Now to Iran, which used to be an important transportation hub and trade center of the old Silk Road. Centuries have passed, and Iran has still retained its position on Asia-European trade routes. Yang Xiaowei visited Iran’s second-largest auto maker, and checks out the cooperation bwtween China and Iran on car making industry. Auto making is considered the industry with the biggest potential in Iran, and the production value accounts for about 10% of GDP. According to data from the international organization of motor vehicle manufacturers, Iran produced 1.1 million cars in 2014, a 46% increase over the previous year. Due to economic sanctions and high tariffs, the development of the industry has suffered constraints.

Facing such a booming market, many foreign companies have been preparing for a long time. Chinese automakers entered Iran back in 2002 and have gained their footholds. The largest cooperation project in recent years came from China's brilliance and Iran’s Saipa Group. "Iran is an important platform in the Middle East for the brilliance group. We follow the practice of “first trade, then invest” in overseas markets. We have developed trade with Saipa Group for many years. The transition to investment started in 2013. It took less than two years on the construction of the production lines," Qi Yumin, chairman of Brilliance China Automotive Holdings Ltd., said.

www.automark.pk | February-2016 | Page 37

By Sean ‘Nostradamus’ Kerr and David McMullan

Monthly AutoMark International

Predictions of the future for the Chinese motorcycle industry A few Chinese brands gain international acclaim among other industry leaders from around the globe. These companies have stepped out of the dark ages of small engined motorcycles and are on a level playing field in both technological advancements and innovation

First off, I’d like to categorically state that nobody on our staff writers’ team is psychic, at least as far as we know. The following piece is pure speculation and hope for what lies ahead for the industry as a whole. While the future is difficult to predict accurately without advanced computer modelling and trend observation we can use the progress of the motorcycle industry in general to make an educated guess as to what might be in store for us. The next few decades look to be very exciting for anybody involved in the scene and if any of these predictions are on the mark then it will be a great thing to be part of progress that gets us there whether by playing a small part or a large one. 10 years from now – 2026 A decade has passed since you would have read this article and the first noticeable difference is in customer services; factory agents now command advanced English skills and are on the ball and organised, Chinese company websites have been overhauled and brought into a functional, professional state, long gone are the days of miscommunication with contacts possessing the language skills of a three year old and website interfaces are now at an international industry standard. The powers-that-be have brought the hammer down on rouge Chinese factories scamming foreign customers or producing the lowest quality bikes. Instead, the first tier companies have moved into the high-end leisure market competing with the Japanese and European marques both on and off the track. Hints of carbon fibre and space grade aluminium are making their way onto top of the line models. Quality control has stepped up its game and is only allowing the most well build bikes onto the market. The second and third tier companies produce for the agrarian sector both home and abroad and even they are

i ncor po rati ng up to d at e fuel management systems and reliable tech and safety features like so many of the bikes from the 2010’s featured. 20 years from now -2036 A few Chinese brands gain international acclaim among other industry leaders from around the globe. These companies have stepped out of the dark ages of small engined motorcycles and are on a level playing field in both technological advancements and innovation. They do battle on the track and leisure riders take pride in owning a Chinese machine from one of the greats. The bikes are pushing forward in prowess; Dakar, Isle of Man, world circuits and the open road, they each claim their places in history. Production standards for these big marques are equal to any other and the quality of the smaller companies building regular commuter and farmer bikes levels out and in doing so the reputation of Chinese bikes being poor quality disappears. The lower end producers cut their losses and move into other industries leaving the building of motorcycles to a smaller, better qualified group of companies. As technology improves and bikes become more digitalised we see the introduction of electrichybrids and ethanol internal combustion engines. As the dino-juice becomes more expensive the industry moves to expand into new fuel systems employing engines designed for biofuel and electricity from on-board generators. Cheap metals are a thing of the past; high grade alloys and carbon fibre comprise the bodywork, engines are refined and durable while being low maintenance and stock from the factory the bike comes with world renowned rubber from Continental, Pirelli or Michelin. 30 year from now – 2046 Chinese motorcycles no longer bear a resemblance to the machines of the

decades passed and are only distant cousins, as close as a 1948 BSA Bantam is to a 2008 Honda CG. Technological improvements in suspen si on, fuel David McMullan systems, gearboxes, aerodynamics and electrical systems have made the bike into the most efficient vehicle next to a bicycle. It is now considered a tough choice to pick between a Japanese, European and Chinese motorcycle. Autonomous pilot systems have made driving a car as boring as taking a flight and motorcycles have become the go-to for those with a passion for tearing up the black top. Personal rockets ships of the modern age, perfectly balanced after decades of fine tuning and refinement. Companies merge internationally, sharing concepts and developments resulting in pristine products. Safety features and protective gear have come on leaps and bounds to make rider fatalities from traffic accidents a rare t hing i nd eed. Riding popularity increases across economic classes and motorcycles become as numerous as cars throughout the world. Thanks to the improvements in safety tech the motorcycle is now the safest way to travel and is still more reliable than the car. The leaders of the world declare that motorcycles are the saviour of humanity and throw down their arms, ending all wars and bringing global peace to mankind for the first time in millennia. Ok, so maybe the last bit was a tad too optimistic but world peace by way of motorcycles would be the coolest part of history ever written. Fantasy or not, the future of the Chinese motorcycle i ndust ry is await ed wi th high expectations and even higher hopes.

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International Automotive Industry - Update

Ford, Mazda, Mitsubishi, Toyota: all driving more Linux into cars The Ford Motor Company has for some time now been developing its open source Smart Device Link (SDL) middleware framework. The firm is now enjoying support from rival automotive manufacturer Toyota for this still-emerging technology. Toyota says it will integrate support for SDL into its cars' infotainment systems. SDL is an open source smartphone app platform that works on both your indash infotainment screen as well as a phone -- the technology is already fitted as a standard instal on five million Ford vehicles. According to a report on Forbes, SDL is an open source middleware framework developed and maintained by Livio - a recently acquired Ford subsidiary - that any car maker can integrate with their infotainment platform f or free. "This standard accelerates and st reamli nes the in- vehi cle ap p integration process by enabling app developers, such as Pandora and Spotify, to build once and reach all SDLintegrated infotainment systems," writes Liane Yvkoff.

Thailand industry auto sales seen down 10 pct in 2016 - Toyota Thailand's total domestic car sales are expected at 720,000 in 2016, down 10 percent from 2015, Toyota Motor Corp's Thai unit said on last week. Toyota, which commands about a third of the Thai market, sees a 9.8 percent fall from 2015 in its annual automotive sales in the Southeast Asian nation to 240,000 in 2016, it said at a news conference. Kyoichi Tanada, president of the Toyota Thai unit, said the reason for the fall in both domestic car sales and Toyota's own car sales were a weak global economy and a new Thai excise tax which would increase the retail prices of vehicles in 2016.

Monthly AutoMark

Honda recalls over 3 million vehicles The National Highway Traffic Safety A d min ist r at i on rep ort s H ond a (American Honda Motor Co.) is recalling certain model year vehicles because they have a passenger side frontal air bag that may be susceptible to moisture intrusion which, over time, could cause the inflator to rupture upon its deployment. he recalled models are year 2001-2005 Honda Civic vehicles manufactured March 21st, 2000, to January 20th, 2005, 2001-2004 Honda Civic GX vehicles manufactured June 14th, 2000, to August 19th, 2004, 2003-2005 H o n d a C i v i c H y b r i d v e hi cl e s

manufactured February 24th, 2002, to January 18th, 2005, 2003-2007 Honda Accord vehicles manufactured February 21st, 2002, to August 28th, 2007, 20022004 Honda CR-V vehicles, 2002-2003 Honda Odyssey vehicles manufactured June 19th, 2001, to July 12th, 2003, 2003 Acura MDX vehicles manufactured September 19th, 2002, to June 19th, 2003, 2003 Honda Element vehicles manufactured June 25th, 2002, to July 31st, 2003, and 2003 Honda Pilot vehicles manufactured November 26th, 2001, to August 21st, 2003.

This is what Bajaj Auto has planned for 2016 Bajaj Auto is trying to turn the wind in favour after facing a tough time in the last few quarters in terms of domestic sales. It has also recently introduced new Avenger series. Indian two wheeler manufacturer Bajaj Auto is going to launch a new brand in the current quarter. The brand, codenamed X, will be positioned in the executive segment, which has products like Discover. "Apart from the fact that we will be launching a new bike, as of now we call it 'brand X'; will be positioned in what we call the mature space in the executive segment , " Er ic Vas, Presi d ent (Motorcycle Business), Bajaj Auto told ETAuto in an interview. "As of now, the company is selling around 20,000 bikes a month in this segment. With the launch of this new product, our aim is to achieve at least a volume of 70,000 bikes per month", he added. Bajaj Auto is trying to turn the wind in favour after facing a tough time in the last few quarters in terms of domestic sales. It has also recently introduced new Avenger series. In the entry level and sports motorcycles segment the two-wheeler maker has a

market share of 36 percent and 46 percent, respectively. The company now intends to garner its presence in the executive segment. In the product range, priced between Rs 1-2 lakh, the company will most probably launch a completely new product in 2016. While, in the entry level, a new variant of an existing product is on the cards. Apart from domestic sales, where the company has achieved its set targets, the exports scenario is a cause of concern. The company's year-to-date (April-December, 2015) exports witnessed 4 percent decline. For the corresponding period previous fiscal, the motorcycle division of Bajaj Auto exported 12, 27,774 units. "There exists an issue of dollar availability which until unless gets smoothened out, such hiccups will be there. We expect this situation to get sort out by March. Apart from this, we are planning to open up for fresh economies. And moreover there is a product call Quadricycle. It has been shipped to 16 countries, and retail sales have already started in around 7-8 countries", concluded Vas.

Maruti Suzuki continues to hold sway in passenger vehicle segment Maruti SuzukiBSE 5.53 % India maintained its leadership position in the domestic passenger vehicle (PV) market in December, with six of its models featuring in the top 10 brands last month.

www.automark.pk | February-2016 | Page 39

Exclusive review by Talal Hussain Malik

Monthly AutoMark International

PBC CELEBRATES 9TH BIRTHDAY It was not just another afternoon on January 10, 2016 at Paragon City when the locality’s central park was brimming with bikers riding motorbikes from different eras as Pakistan Bikers Club celebrated its 9th birthday. The quiet surroundings of Paragon City were introduced with the roaring sound of bikes as different biker groups rode through the roads less traveled. Unlike any other biker group Pakistan Bikers Club was organized with clear aims of working for the betterment of the biker community, promote safe riding and to improve the image of a biker and unite the community and

PBC’s birthday was one of such occasions where riders from different groups joined us. Scores of different bikes were to be seen ranging from classics such as a 1941 BSA to a shining clean Suzuki S40 of the modern age, from locally manufactured 70cc to the 750cc mighty machine there was something for everyone followed by a delicious chocolate cake to further cheer them up. We are indebted to Mr. Farid Dogar from Team 69, Dr. Omar Khan from MAP, Mr. Sardar Rehman from Vintage Cars, Mr. Muhammad Shan Elahi from the Adventures League, and Mr. Ahmad

Zeeshan and Fowad who joined us along with their team members. We are also thankful to Paragon City for providing us space and security for organizing the function, Adventures League for designing the invitations cards for PBC, Automark Magazine for print media coverage of our event, and PBC Motor Sport for sponsoring refreshment. With the beginning of 2016 we look forward to a great year ahead, resolved to carry on with our work, united we ride. By Talal Hussain Malik, Head of Legal Dept. Pakistan Bikers Club

www.automark.pk | February-2016 | Page 40

Exclusive report by Kamal Haider for Monthly AutoMark Magazine

Chambra Pass World Record by a PBCian and his team (Part-1)

Mission Snow-Storm in Kaghan Valley By the grace of Allah Almighty, we have reached Lahore after a wonderful expedition in Kaghan valley KPK Pakistan. However, I perceived that this valley does not appear to be a part of peaceful place because the KPK government has imposed Section 144, whereas all over the world there is no such practice to keep tourist places under such a strict regulation. Kaghan valley is not treated as most wanted zone, still provincial government has banned the valley for visitors including trekking and climbing parties which are usually trained and well prepared for mountaineering activities. In my opinion, official authorities should consider the difference between Tourism and Terrorism before implementing the act. This extraordinary winters plan “Mission Snow-Storm” was arranged by Imran HaiderTahmeem. He contacted me just two days before because I had just come back after a tour from Neelum valley AJK Pakistan. His plan was very rich to get first attempt 3950m highest Shingri Peak and then 4600m Chambra

Peak after crossing the 4200m Chambra Pass. As schedule I joined him on 29th December 2015 Tuesday’s evening and we commenced our journey through motorway in his comfortable car. We are both mountaineering persons so naturally most part of our discussions were about mountains and treks as sharing this type of conversation quite enjoyable which also reduce undue burden of a long travelling. We reached Qalandrabad, a town near Abbottabad by midnight where we stayed at one of our team member Ubaid-ur-Rahman’s house. Other members FarrukhShahzad from Islamabad andNauman Ashraf from Abbottabad were already there. They offered us a great respect and a warm welcome.

Day 1: To Makh-Layian via Kaghan On the very next morning, we moved onto Kaghan via Mansehra and Balakot. Our first immediate destination was Makh-Layian 2640m which is almost an extension village of Kaghan. The local police had stopped us at Mahandri. It was expected due to Section 144. Imran Haider is a police inspector in Punjab

Police. He met S.H.O Mahandri KPK but he refused to allow us. He was insisting to get a phone call direct from D.P.O Mansehra. Imran had already requested in a written-form to relevant D.P.O much before leaving the Lahore. They responded that there was no need to issue any formal letter just reach there and get a permission on telephone. Unfortunately it did not materialize at the spot because D.P.O did not attend our phone calls even D.P.O Lahore was also trying to contact with them. Resultantly, we stuck up badly throughout the day. By the time being, I sat in Imran’s car and kept sticking my head out the check-post to watch the result where Imran and Ubaid were still busy in negotiations through their own sources. The day was now near to end. All were in a deep thought. We had burnt the ship and there was now no way to return for us. Unwillingly, after a concealed discussion, we took an unofficial step according to the situation. By Kamal Haider, Tourism Expert at Pakistan Bikers Club Continued in next issue (March-2016)

www.automark.pk | February-2016 | Page 41

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

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

Retail Price Rs. 42,000/= Rs. 46,000/= Rs. 48,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,000/= Rs. 45,600/= Rs. 46,950/= Rs. 45,000/= Rs. 39,000/= Rs. 42,000/= Rs. 44,500/=

125/150 cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Brand & Model Name Crown CR-125 Super Star SS-125 Super Star SS-125 DLX Honda CG-125 std Euro II Honda CG-125 DX Hero Prince 125 Metro MR-125 Regular Ravi Piaggio Storm 125 United US-125 Euro 2 Yamaha YBR-125cc

Retail Price Rs. 65,000/= Rs. 59,000/= Rs. 67,000/= Rs. 102,900/= Rs. 124,000/= Rs. 96,000/= Rs. 68,800/= Rs. 112,000/= Rs. 70,000/= Rs. 129,400/= Road Prince Twister 125cc Rs. 108,000/= Road Prince WEGO 150cc Rs. 180,000/=

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

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

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

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

Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 43,500/= Rs. 44,500/=

100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.

Brand &Model Name Crown CR-100 Hero Splander Model 2015 Honda Pridor Super Star SS-100 Super Power SP-100 Road Price Jackpot 110cc United US-100 Euro 2

Retail Price Rs. 52,000/= Rs. 56,000/= Rs. 86,000/= Rs. 57,000/= Rs. 60,000/= Rs. 44,000/= Rs. 50,000/=

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

Retail Price

Product & Model Name SD110 Sprinter ECO SD110 Sprinter ECO Del

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

Rs. 101,400/= Rs. 88,400/= Rs. 101,400/= Rs. 128,500/= Rs. 114,000/= Rs. 126,000/=

Retail Price Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/= Price update: Dec-2015

www.automark.pk | February-2016 | Page 42

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Corporate Sector - Glimpses

Monthly AutoMark International

Metro Motorbikes exhibit at Lahore expo center

State-of-the-art MBTS luxury coaches will insha'Allah soon be seen running on Lahore roads on a dedicated track. Revolutionizing public transport, these coaches will redefine "vip culture" as it will now be the ones travelling in brand new luxury cars who will envy those travelling uninterruptedly via MBTS and covering a distance of 32 Km from Kahna to Shahdra in just 40 minutes!

Inauguration of Road Show in Lahore by Zia Ullah Ch Director Marketing & Sales of United Motorcycles

www.automark.pk | February-2016 | Page 43

Monthly AutoMark International

By Mohammad Shahzad

How to get more years and less trouble from your car You already have the “Master Key” to increase the lifespan of your car. Chances are it’s buried in your glove compartment. That right, it’s your owner’s manual and chances are you’ve hardly glanced at it. Your car is the second biggest purchase you will ever make and keeping this proud passion of yours longer is really a simple proposition; just follow faithfully your car’s maintenance schedule or get one from your dealer. If you blend three vital factors with a little extra tender loving care and some timely preventive maintenance; your aging car can cruise past 300,000 km and last for about 15 years. 1) Well-Built, quality cars and replacement parts last longer. 2) Well-Safe Driven, keeping off pot holes/curbside hits or accidents. 3) Well-Cared & Maintained, faithfully following preventive maintenance.

What is Preventive Maintenance? Preventive maintenance is just like health care, if you brush your teeth, watch your diet and visit your dentist for regular check-ups, you can avoid a midnight tooth ache. Similarly, if you maintain your car as per preventive maintenance and take it to the auto shop for regular safety inspections before there is any sign of trouble, you can protect yourself from unexpected major repairs and avoidable breakdown and accidents. It also reduces pollution, saves lives, money and adds more trouble free

years to your car with the peace of mind safe motoring! Mind Your Maintenance for Safety, Performance and Appearance (SPA)

Safety First! - Your car’s bakes are the primary safety system and your life saver. Every so often, listen to your brakes for abnormal noise and get them looked at right awaythat could be the sound of seriously worn brakes, which can affect your stopping distance. Ignoring brake safety issues could cause accidents. ? Your cars tires are the only contact with the road, so look after them. If they are under inflated they‘ll wear out faster and hurt fuel economy. Over inflated tires will grip less, wear more and ride

rough. So once a month check tire condition and air when cold. Use snow tires in winter for safety. Rotate, balance and set alignment every year to improve life. Keep tires far-off of the curb, hitting could cause damage. Take your car for under carriage yearly safety inspection; replacing all required oil/fluids, aging and worn-out suspension/steering parts to avoid major breakdown, extra expense and unsafe operations. Keep an eye on your driveway for any fluid leaks, get it fix soon to avoid major repairs. Make sure all lights are working for safe driving operations, never ignore warning lights on dash everyone has an important safety message for you. Clear driving ahead; be good to your windshield. Driving with a clear, clean windshield is critical, not just for your safety, but for the safety of others. Check your windshield washer and wipers for clean/safe operation, and fix any ding or stone chip before it expend into a cracked windshield.

Performance: The engine is the heart of your car and the oil is its lifeblood. Changing the oil filter and air filter regularly is the single most important step and cheapest insurance to prolong your engines life. Most of the wear and tear on an engine happens when you turn your key, especially when the engine is stone cold. So start, and let the engine idle, don’t rev it- for at least 30 seconds and drive off slowly as soon as it sound

www.automark.pk | February-2016 | Page 44

PR Release

Monthly AutoMark International

Volvo Set to TransformInter City Bus Travel VPL Limited, the authorized distributor of Volvo Buses in Pakistan has introduced Volvo B11R to set a new dimension to intercity bus travel. Volvo B11R comes with highly fuel efficient engine that cuts operating cost and Volvo’s quality standards combine functionality with passenger comfort and lifecycle productivity. With the introduction of Volvo B11R, VPL is set to transform industry standards both for the travelling public and long distance bus operators in Pakistan. Volvo B11R is indeed welcome news for bus operators looking for enhancedprofitability through year on year operational reliability, economy and passenger preference. Daewoo Express, the country’s leading bus operator has already placed an order for ten Volvo B11R’s, with the first bus expected to arrive in the middle of March. The Volvo B11Rhas industry leading credentials to appeal to bus operators and passengers alike. It is powered by the tried and tested, fuel efficient 370 HP, D11A engine, whichis married to

V o l v o ’ s exclusive IShi ft , 12s p e e d aut omat ed mechani cal transmission with 4 reverse gears . T he absence of a clutch pedal e n ab l e s automatic, seamless shifting through the gears, making driving easier and helping to reduce driver workload and fatigue. Driver comfort and more importantly, fuel efficiency is further enhanced by the Cruise Control feature enabling the vehicle to run at constant speeds. The Volvo B11R is an excellent all round choice and a good example of Volvo’s famed global leadership in automotive engineering technology and design excellence; attributes that have made Volvo synonymous with enhanced onroad reliability, less downtime, economic operation, and proven passenger safety

smooth. Fuel is the food of your engine. It’s not healthy for your engine to constantly drive with the low fuel warning light glow. Driving with the fuel gauge near empty can cause clogging filters and wrecking the fuel injection system. Keep at least one-fourth to one–half full. There’s no more depressing sound than the “worr, worr, worr” of a tired battery trying to crank/start-up a cold engine. Replace weak battery to save wear and tear on your starter motor and alternator for worry free motoring. The cooling system is your engines life saver. So keep an eye on temperature gauge and any coolant leak. Neglecting your cooling system could cause overheating and engine major break down. Auto-Transmission, an expensive and important power-train unit of your car. Change ATF as recommended avoiding major breakdown. Avoid shifting into drive while you’re still rolling backwards. This could lead to an ailing transmission, so come to a complete stop before making a shift. When you want to park, don’t just throw it in to “Park”. Hold the car on the foot brake; apply the parking brake, and then

shift. Take extra care in the winter, when you are stuck in the snow, keep your wheels straight and rock your car backwards and forwards slowly. Don’t rev your engine high; instead use your brakes gently when shifting between Drive and Reverse. Better yet, dig out snow, use ballast in the trunk, and rubber floor mates under drive wheels, if all failed, tow your car. Drive it like you love it, skip rabbit start and screeching stops; there’s no quicker way to wear out your car. Avoid potholes and don’t bump over curbs either. Try not to use full steering lock –turning wheels to their extreme maximum angle-unless you have to. It scuffs tires and overloads the power steering pump.

Appearance: Rust is a bitter enemy of your cars exterior. The body of your vehicle can corrode leading to rust from elements in the wet environment, such as salt, acid rain, sea breeze, if not treated properly to prevent it. Rusty cars are also health hazard due to exhaust leak into cabin. Apply rust protection and touch-up stone chips before they turn into big rusty spots. Most motorists spend an average of

and comfort. The Volvo B11R’s streamlined coach work comes from Marcopolo, one of the world’s largest bus and coach manufacturers with a global foot print. It is designed to seat 45 passengers in the lap of Super Soft seats. Seating is available in the 2x2 or 2x1 configuration, with a wide middle aisle to ensure ease of access and movement. All in all the new Volvo B11R makes great business sense for bus operators looking for economy and reliability that di rect l y tr anslat es i nt o bet ter profitability. 3.5 hours daily in their cars, it’s due to long distance commuting and rush hours driving. Having a clean car cabin provides comfortable, stress-free and safe ride. Look after your cars exterior. Dirt, grime and road salt affects paint shine. So pass your car through the car wash more often during the winter months with wax/polish to retain shine. The hot sun will wrinkle your dashpot. Try to park in garage or find a shady spot or protect your car’s cabin with a reflective, fold-up sunshade. Vacuuming and wiping down the inside will also add years to your car’s interior and when it looks good, you will keep longer. Finally, just like finding a good doctor, who gets to know your aches and pains, find yourself a right and reliable certified technician, who gets to know your car’s creaks and groans-and can fix them. Find someone you trust who can provide best quality service, at fair price and deliver on promised time. Last but not least, DRIVE SAFE! “Keep your car up, it will never let you down”. Have a safe motoring!

www.automark.pk | February-2016 | Page 00

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International Automotive - Update

Monthly AutoMark International

Auto Expo 2016 Honda to Showcase 10 New Motorcycles The 2016 Auto Expo is just around the corner and we have been regularly updating you about the kind of cars and bike that you will be seeing this year. With just a little over a week remaining, Japanese 2-wheeler giant, Honda, has now revealed its line-up for the Auto Expo 2016. Honda has announcing that it will be showcasing 10 new models this year, which includes 6 new products for India & 4 concept models in addition to the Honda's MotoGP bike RC213V. Now, if you remember, on 1st January 2016 Honda's New Year wish went like this - Happy NAVI Year, along with the phrase "Here to change the way India plays with two wheels." Now if you though that it was simply world play and Honda was trying it throw in some Hinglish in there, then sadly you are mistaken. With this wish Honda teased the name of its all new upcoming motorcycle, which in fact will be called Navi and will be showcased at this year Auto Expo. Honda claims that with the development concept of 'New Additional Value for India', the NAVI is set to excite the young trendsetter of India and create a new segment in Indian 2wheeler landscape. Now were are not sure how far will this upcoming motorcycle live up to the claim, but one things is for sure, with Bajaj set to unveil its all-new executive commuter in February 1, Honda couldn't have chosen a better time. While Honda did not officially reveal the other five two-wheelers it has planned to launch in India in the statement, but we have a good idea as to what they could be. Starting with the scooter section, Honda will be introducing two all-new scooters this year - the Honda PCX 150 and Lead 125. The Honda PCX 150 will enter least populated higher displacement segment of scooter which currently only has the Vespa 150. The Honda PCX 150 might also start a new era in the Indian automobile industry making scooters more powerful than the commuters. On

the other hand the Honda Lead 125 won't be another derivative of the Activa, but an all-new scooter from Honda's stable. That being said, the engine will be sourced from the Activa 125 but the 125cc single-cylinder will now come with liquid-cooling technology delivering 11.33bhp. In the motorcycle section we will be seeing the new Honda CBR400R that share some of its style cues with the Honda CBR1000RR. Honda designers have paid special attention to make the bike look more visually appealing and it will be competing in India with the likes of KTM RC 390 and the upcoming Bajaj Pulsar RS400. We might also get to see the much anticipated racing spec, Honda CBR250RRm which was revealed earlier in 2015. Lastly, we are also expecting to see Honda's contender f or t he performance ad venture motorcycle class - Honda Africa Twin. The bike will be unveiled in India for

the first time. The Honda Africa Twin maintains a tall and slender stance and packs a 998cc parallel twin motor compared to the 52 degree V-twins on the older XRV bikes. But that is not all as we mentioned earlier Honda will also be showcasing its latest international concept models for the first time globally after Tokyo Motor Show, 2015. This means we will be seeing concepts like EV-Cub Concept (a short-distance environmentally friendly personal commuter) and NEOWING (a three wheeled hybrid wonder which expresses the new endeavors of Honda). The other two allnew concepts will be revealed at the Auto Expo. Despite of all these the biggest showstopper in Honda's stall will be the Japanese marque's ultimate racing machine, Honda's Moto GP weapon the RC213V. The bike will be coming to India for the first time and Indian biking enthusiasts will get the chance to mount & experience the thrill of Marquez's ultimate race machine. Moreover we will also get to see Honda Motorcycles India Ltd.'s brand ambassadors - Akshay Kumar and Taapsee Pannu at the pavilion.

www.automark.pk | February-2016 | Page 46

International Automotive Industry - Update

Monthly AutoMark International

India-bound Suzuki Ignis launched in Japan The Suzuki Ignis has been launched in its home market in Japan, with prices starting at 1.382 million Yen (INR 8 lakhs). With the market launch, Suzuki has also confirmed the features and specifications of its compact crossover. The Ignis measures 3,700 mm in length, 1,660 mm in width, 1,595 mm in height, 2435 mm in wheelbase and 180 mm in ground clearance. The Suzuki Ignis is available in three distinct variants – MG, MX and MZ with each variant being further available with standard 2WD or optional AWD. The top-end MZ 2WD weights 880 kg, whereas the AWD model is heftier by a mere 40 kg at 920 kg. All variants are powered by a 1,242 cc four-cylinder K12C DualJet with VVT with mild-hybrid technology. The result is that the engine develops 91 PS and 118 Nm of torque and a DC synchronous motor adds a further 3.1 PS and 50 Nm of torque. With a 32-liter fuel tank, the Ignis is rated at 28 km/l for the 2WD variant and 25.4 km/l for the 4WD version under the JC08 driving cycle. A CVT is the only gearbox option, though paddle shifters are included. The Suzuki Ignis gets a raft of safety equipment which include dual front, side and curtain airbags, ABS and EBD, lane departure warning, ESP, Hill-Hold, Hill Descent control, automatic headlights with automatic leveling, LED headli ght s and LED f ogl ight s. Other features include automatic climate control, cruise control, keyless entry with engine starter button, Bluetoothenabled music system, heated front seats, regenerative braking, UV- and IRcut glass and 175/60 tyres with 16-inch aluminium wheels. The Suzuki Ignis is priced as follows: 1. Suzuki Ignis MG 2WD – 1.382 million Yen (INR 8 lakhs) 2. Suzuki Ignis MG 4WD – 1.519 million Yen (INR 8.78 lakhs) 3. Suzuki Ignis MX 2WD – 1.501 million Yen (INR 8.68 lakhs) 4. Suzuki Ignis MX 4WD – 1.638 million

Yen (INR 9.47 lakhs) 5. Suzuki Ignis MZ 2WD – 1.641 million Yen (INR 9.49 lakhs) 6. Suzuki Ignis MZ 4WD – 1.778 million Yen (INR 10.29 lakhs) The Ignis is confirmed to have its Indian premiere at the Auto Expo 2016, which

starts on February 3, 2016. The Indian market launch of the Ignis is reported to take place in the festive period season this year. When launched, reports state it will be sold from Maruti’s NEXA outlets.

www.automark.pk | February-2016 | Page 47

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