Automark magazine jan 2014 by Mustafa Hanif

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CONTENTS

Monthly AutoMark Jan-2014 Delay in AIP irks low cost bike makers Exclusive Article by Ali Hassan

12-14

Bike sector current status Review by AM Research

APMA, EDB stance on production certificates, AIP Point of View

16-17

Pakistan Auto Show in March 2014 Pak Suzuki raises prices

Honda Atlas Cars celebrates 20th anniversary

Service Tyres - Jeed Ka Safar Event coverage

20-21

Crown Groupâ&#x20AC;&#x2122;s CEO awarded as the Youngest CEO of the year-2013

Honda launches first sport hybird CR-Z car in Pakistan

CBI Export coaching seminar for Bsos launched in Lahore

IMC anticipates good car sales in Jan-June 2014 31

by AM Research Pak-China Motorcycle Business Consortium 36 Exclusive Article by M. Yousuf Shaikh Importance of Automotive Technicians By Mohammad Shahzad from Canada Passenger cars/light vehicle price list Motorcycle Prices

38-40 42 43

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

Monthly

AUTOMARK 2014 declared production year

Editor M. Hanif Memon Technical Editor Muhammad Shahzad

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer Salman Hanif

Web Master Murtaza Hanif

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

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

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi

The government has declared 2014 as the `Year for Production and Quality` to boost economic performance of the country. The development minister shared the `Vision 2025` plan in detail and stressed that its implementation will usher true development in Pakistan. There is need for urgent action to jointly ponder and implement interventions in favor of the suffering masses of South Asia The future outlook of Pakistan`s economy, former finance minister Hafiz Pasha said that the country is `perilously poised at the knife-edge`.

He said that a number of economic challenges are due to non-economic factors, including terrorism, rising loadshedding, insurgency in Balochistan, and Engr. IHT Farooqui rise in sectarian violence. GM Plant `Given Pakistan`s poor balance of P.M. Auto Industries payments position there is a need to cut Hyderabad back on non-essential imports. Corruptive J. Pereira tax exemptions and concessions should GM After Sales Al-Haj Faw Motors (Pvt) Ltd. be withdrawn for a much needed increase Karachi in the Tax-GDP ratio,` he added.

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

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

In the panel on Reforms of Inclusive and Sustainable Growth in Pakistan, former deputy chairman Planning Commission of Pakistan Nadeemul Haque said that accelerating development progress and achieving the goal of inclusive growth in Pakistan requires research based policies. Mr Iqbal was speaking at the inaugural session of the 16th Sustainable Devel opm ent Co nf eren c e ( SDC) organi sed by the Sustai na bl e Development Policy Institute (SDPI). He further emphasised the need for regional cooperation in South Asia.

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Exclusive Article by Ali Hassan

Delay in AIP irks low cost bike makers APMA chief Mohammad Sabir Shaikh said only a two point agenda is enough “We need the following two types of duty structure that should be immediately implemented by government through its new Auto Industry Policy.” 1. A uniform rate of Custom duty on spare parts for all types of vehicles including motorcycles @25% for all kinds of parts, localized, non-localized, assemblies, sub assemblies, components, and sub component etc., for the after market and assembly of vehicles. 2. CBU rate of Custom duty @45% on all types of vehicles including motorcycles, to be applied whether it is 100% CKD of new models or in SKD condition the rate of duty should be the same.

Auto Industry Policy (AIP) has still been under discussion since October 2, 2013 after the decision taken by the ECC to finalize the draft of AIP within 45 days. In December 2013 meeting, the ECC again gave two weeks time to finalize the draft of AIP. Minister Industries and Production Mir Murtaza Jatoi had announced in a function at Lahore that the government would announce new AIP in January 2014. Earlier in November 2013, the Prime Minister Nawaz Sharif also announced that the AIP would be announced shortly. All the mi ni sters and relevant departments had been hinting about the new AIP saying it was in final stage. The auto industry has been waiting for the new AIP as the industry remained highly disturbed over the tariff based system (TBS) which expired two years back. Due to multiple taxes and duties on same parts and cumbersome policies by the government, all the concerned departments remained highly involved in the auto sector. As a result, this had encouraged corruption. It seems that lords have been sitting on the policies and other issues. APMA chief Mohammad Sabir Shaikh said only a two point agenda is enough. “We need the following two types of duty structure that should be immediately

implemented by government through its new Auto Industry Policy.” 1. A uniform rate of Custom duty on spare parts for all types of vehicles including motorcycles @25% for all kinds of parts, localized, non-localized, assemblies, sub assemblies, components, and sub component etc., for the after market and assembly of vehicles. 2. CBU rate of Custom duty @45% on all typ es of vehicles including motorcycles, to be applied whether it is 100% CKD of new models or in SKD condition the rate of duty should be the same. It will encourage introduction of new models in Pakistan.

“This is the only way out to end corruption, smuggling, under-invoicing and nepotism in the automobile sector of the country”, he said. Initially, this policy may be adopted for two years trial period I am sure after assessing its good results the government should make it on permanent policy basis, he added. Secretary, Ministry of Industries &

M.Sabir Shaikh

Production (MoIP) had called a meeting in Committee Room of (MoIP), Islamabad on October 28, 2013 and the ministry had invited 12 selected r e p r e s e n t a t i v e s fr o m l e a d i n g organizations of the over all auto industry. However, more than 50 people stormed the meeting place thus hitting the sentiments of real stakeholders. As a result, . Secretary Industries had to ask five leading auto bodies to submit two paged specific proposals October 31, 2013. In APMA’s written proposals for Auto Industry Policy (AIP) to secretary industries, the APMA Chairman Muhammad Sabir Shaikh strongly criticized the prevailing policies and urged for drastic changes in this system. He said there should be no role of EDB in any imports procedure, only FBR and its direct related departments should dela with import issues. Issuance of Production certificates and importable lists by the EDB are wasting time of industry especially for the bike assemblers and it is only promoting corruption. Citing the example of corruption he said there were eight different following processes of Custom Duty Structure for Import of auto parts in the prevailing

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Monthly AutoMark Magazine

The future production forecast on two wheeler’s sector by the PAMA and PAPAAM had been proved right. This was because of APMA, Sabir said. PAMA and PAPAAM also claimed that the production of cars and LCVs would cross 500,000 units in 2012-2013 but it did not happen. Sabir said there was no APMA so their fake claims continue to prevail and they continued to misguide the government on policy making issues

system:

Imports under SRO 656/2006 custom duty @15% (for non-localized parts), Commercial Imports by the OEM’s and importers @50% customs duty, Import under SRO 693/2006 custom duty @15+32.50 = 47.50% (for localized parts), Import under SRO 655/2006 custom duty @5%, 10% & 20% (by changing the name of the parts as sub assemblies, components and sub components), Import by the importers/ OEM’s through mis-declaration, under Invoicing, mis-declaration of total weight because on motorcycle parts custom issues higher valuation ruling but on same parts made by same materials and technology for cars and other vehicles the valuation ruling is on very lower side and importers were taking the benefit of lower valuation of car parts declaring car parts but importing motorcycles parts, open smuggling at Karachi and all dry ports, Import through Afghan Transit Trade, import under SRO 655/2006 of Raw materials @ 0% custom duty. And CBU rate of Duty on Motorcycles is @ 65%, which is very higher than small cars. The CBU rate of duty on small car is @ 50%.

There are many reasons for inadequate production of local auto parts like; high cost of labor, power and gas load shedding, law and order situation, lack of proper infrastructure, higher rate of t a xa t i o n u n d e r I MF an d WB conditionalities and in-efficient banking system in the country. Therefore, the ground reality is that large numbers of auto parts are being imported from China because they are cost effective in the present circumstances. He said the government should let import the auto parts on a uniform rate of duty for all segments of industry without any discrimination. With the passage of time and due to certain inside and outside pressures, it would be automatically localized. The industry badly needs an Auto Industry Policy (AIP) excluding the role of IORC by the EDB. There should be no SRO from the government ensuring uniformity for importing part from respective principles on one customs duty rate. For example, for localized parts lists there are different custom duty rates while different rates prevail on non-localized parts list. There are also different rates on assemblies and sub assemblies. We have to understand that all these parts are same and all the lists made by EDB/ FBR for local parts in the past are not correct. Sabir said if the government in new AIP did not check the valuation ruling issue

then the new AIP would prove futile. It is necessary that Valuation Ruling No 458/2012 on motorcycle parts in which customs department ordered 39 parts at the rate of $214 and all other parts can be imported by the importers or OEMs at the rate of $1.35 per kg. However, the C&F value of 70cc bikes (Chinese origin) is $235. Under this

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Exclusive Article - continued

ll the ministers and relevant departments had been hinting about the new AIP saying it was in final stage. The auto industry has been waiting for the new AIP as the industry remained highly disturbed over the tariff based system (TBS) which expired two years back. ruling market players prefer smuggling of parts due to higher values on 39 parts. Issuance of production certificates and importable lists approved by the EDB should be immediately be scrapped as it was also a main source of corruption. If this system is not abolished in new AIP then the government would not yield any fruitful results, he said. Where bikes stand in AIDP 20132018, where they were in AIDP (2007-2012) Chinese bike assemblers have recieved step motherly treatment from Ministry of Industries, Ministry of Commerce, FBR and Engineering Development Board (EDB).

In a surprise move, the Ministry of Industry called upon entire auto sector meeting for AIDP 20132018 but the Ministry did not invite Chinese Association of Pakistan Motor Cycle Assemblers. In the last eight years the bike industry especially small Chinese assemblers were under stress due to old and cumbersome policies. “Our Association was not invited in the meeting which was certainly a biased attitude of the Ministry for ignoring one of the main contributors in the total bike p ro d uc t i o n , ” C h ai r man A P MA Mohammad Sabir Shaikh. He recalled that the small units had faced this hostile attitude in the last 10 years. Like past practice, Sabir feared that majority of the industry representatives will again speak lie and misguide the new government and try to turn the SROs and notifications in their favor. As per past and current practice, the industry will continue to beg and will never give a clear and true picture of the industry. The industry people will never

try to encourage the government for providing a level playing policy. China and India are basically cheaper sources for procurement of CKDs and CBUs of auto sector as compared to other regional markets. There is no harm in bringing parts and accessories from these neighboring countries. As long as trade with India does not materialize practically then we cannot decide yet whether Pak-India is a threat or opportunity for both the countries, he said.

While taking consumer point of view, five year old used Japanese cars is better than brand new locally produced cars in Pakistan which are being produced by the same Japanese assemblers. In motorcycle industry, the list of AMax (SRO 693/2006) parts are not true because these lists made by one leading motorcycle assembler, while others do not have any single role. Due to wrong list of imported and local parts many assemblers are using smuggled parts for local assembly. When A-Max (SRO 693/2006) list was prepared, influential people of every sector tried hard to make the list as per their requirement due to

which the localization targets were not met in the last one decade. Sabir Shaikh said Pakistani auto sector is still standing on the same level of localization which was achieved in 2003-2004. The successive government and even the concerned departments left the auto sector to play havoc with localization and as a result the currency exchange impact is still being felt on the auto sector in the shape of frequent price hike by the local industry. The future production forecast on two wheeler’s sector by the PAMA and PAPAAM had been proved right. This was because of APMA, Sabir said. PAMA and PAPAAM also claimed that the production of cars and LCVs would cross 500,000 units in 2012-2013 but it did not happen. Sabir said there was no APMA so their fake claims continue to prevail and they continued to misguide the government on policy making issues.....

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Automotive Sector - Review by AM Research

Monthly AutoMark Magazine

Bike sector current status According to auto sector sources unfair competition has reached at a stage where the players are using all unlawful means to survive. The unorganised sector after exhausting all avenues of tax evasion is now engaged in supporting its credit circle through delaying, or in many cases, refusing payments to the vending industry More than 50 per cent of bike assemblers out of 81, having production certificates, have less than 5,000 units per year production Some 10 assemblers have production ranging between 5,000-10,000 units per year while eight units do not produce a single unit. Sources in auto sector said only six assemblers enjoy production of 50,000 units per year. Only two assemblers have production between 40,000-50,000 units a year while three assemblers have 30,000-40,000 units, five assemblers have 20,000-30,000 units and four assemblers have 10,000-20,000 units per year. Bike production stood at 1.6 million units in 2012-2013 while the cumulative

annual growth rate (CAGR) from 20012010 was 35 per cent. Sources said this growth has tapered off and currently more than 100 players have production certificate in which 81 are engaged in manufacturing activities at various levels. Presently, two wheeler industry has

Paapam sets up training centre for members The GM Engine ering, Tr ade Development Authority of Pakistan, Shahida Qaiser has observed that the world market for auto parts is around $452 billion, saying that the skills sets, i nf r ast ruct ur e an d man ager i al capabilities already exist in Pakistan to meet initial export target of $5-10 billion. She was addressing the inaugural ceremony of a training centre set up by the PAAPAM. Keeping in view the training needs of its member companies as well as the surrounding industrial areas of Karachi, Pakistan Association o f A ut o P ar t s & A c ce s s o r i e s Manufacturers has established a Training Centre at its regional office, in Korangi Industrial Area, Karachi. The GM Engineering, TD AP, spoke enthusiastically about the export possibilities of engineering products and au to parts from Pakistan. She congratulated PAAPAM in taking the lead towards development of export skills and creating a dedicated Training Centre for this purpose. PAAPAM

Chairman Usman Malik congratulated the members on the establishment of a training centre in Karachi, which will steer PAAPAM towards new directions of exports and skills training of its member companies, with the aim of achieving export led growth of automotive parts manufacturing industries. Speaking on the occasion, Munir K Bana, Immediate Past Chairman of PAAPAM, stated this training centre will be utilized for improving the skill levels of the technical teams of our members and go a long way in raising the quality standards of auto parts manufactured in our country. Several PAAPAM members have recently returned from a CBI sponsored EXPRO Seminar held at The Hague, Netherlands. The group consisted of Pakistan engineering sector companies as well as five representatives from business support organisations like EDB, TDAP, NPO, SMEDA, Pakistan Foundry Association and PAAPAM.

installed capacity of 2.5 million units. The capacity utilization of two wheelers in 2011-2012 was 60 per cent which means that 40 per cent of the capacity was still idle. Currently the bike sector success story is now facing tough time due to unfair competition in the market thus forcing out the organized sector from the industry. Few left in the organized sector may not be able to survive longer if rampant practice of under invoicing, outright smuggling and massive tax evasion is not checked. According to auto sector sources unfair competition has reached at a stage where the players are using all unlawful means to survive. The unorganised sector after exhausting all avenues of tax evasion is now engaged in supporting its credit circle through delaying, or in many cases, refusing payments to the vending industry. To be successful two wheeler export industry, economies of scales has to be achieved in domestic production through efficient utilization of existing production capacities by creating co mp et i t i o n am on g o r ga n i se d motorcycle assemblers. Many assemblers believe that in view of larger number of players in this sector and availability of more than 150 models in different engine category there was never a need for a new entrant in bike segment. In 2012, a need was felt to promote “New Technology” in this sector coupled with support to provide incentives to new investors who intend to bring new technology. A policy for new entrant was introduced in October 2013 and so far only one player “Yamaha Pakistan” was declared new entrant. Assemblers feel that the industry needs time to adjust to these changes and it should not be subject to any further jolts through further policy changes before the very recently introduced policy initiatives start bringing in the deemed results.....

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Business arguments - Point of View

APMA, EDB stance on production certificates, AIP Interesting debate between APMA, EDB APMA strongly urges the government to support small and medium sized assemblers, vendors, importers and genuine traders. Smuggling culture is being promoted due to red tapism and bureaucratic hurdles from the government’s lower staff.

An interesting debate has emerged between Chinese assemblers’ body chief Mohammad Sabir Shaikh and top official of Engineering Development Board (EDB) thus bringing many government mistakes into limelight for failing to formulate a comprehensive policy in the past. The EDB reply admitted that the AIDP had failed to deliver desired objectives forcing the government to prepare new Auto Industry Plan (AIP) by taking feedback from all the stakeholders including Chinese bike assemblers. The EDB after examining contents of the Association of Pakistan Motorcycle Assemblers (APMA) letter addressed to secretary industries Shafqat Husain Naghmi in details submitted the following comments: However, APMA chairman Mohammad Sabir Shaikh has shown reservation over the reply given by the EDB. He looks highly unsatisfied saying the EDB has failed to convince him especially from t he staff of t arif f department . EDB replies: The Ministry of Industries & Production / EDB formulated Auto Industry Development Plan (AIDP) through consultation with all major stakeholders to provide a consistant and predictable policy regime to the industry for achieving the objectives of technology enhancement, indigenization and growth of the sector. The agreed roadmap, however, could not deliver the desired objectives due to inconsistency in the effective implementation of its major policy components. Even the

agreed tariff roadmap could not be implemented at the behest of the industry and thus a status quo was maintained to give more time to the industry to achieve the borader objective of indigenization. Sabir: APMA understands that the EDB has accepted its own mistakes done by them for the last 10 years. EDB: The lesson learnt from AIDP necessiated to formulate a fresh Auto Industry Policy (AIP). As per decision of the ECC, all stakeholders including motor dealers associations have also been taken on board with a view to obtain inputs from all segments of automotive sector to develop a futuristic and coherent policy that would put the industry on growth pedestal in real terms. APMA: Only two meetings with reference to AIP draft preparation have been held since October 2 till to date which were not sufficient to understand the entire auto sector problems and proposals. The Ministry of Industries and EDB have not held any separate meetings with the stakeholders including APMA. E D B : Wi t h r e g a r d t o t a r i f f rationalization, through analysis of the TBS regime and its impact on indigenization and investment is being done in consultation with the industry to define a tariff roadmap that could prove instrumental in achieving the objectives elaborated above. Chairman APMA recalls here that all the policies made in the past were not formulated with the input from all the stakeholders including Chinese bike assemblers. EDB: Your valuable inputs solicited by the Ministry of Industries and Production/EDB on new auto policy clearly highlights the government’s desire to take all stakeholders on board

in the policy formulation process. APMA: We appreciate your gesture by t aki ng feed back fr om C hi nese assemblers for the AIP draft preparation. EDB: With regard to re-validation of manufacturing certificate and lists of importable inputs, it is inform that revalidation is accorded to the firms operating within the parameters p rescribed und er assembling / manufacturing 2/3 wheelers who violated the conditions of SRO 656(I)/2006 by procuring their entire inputs from the commercial importers / traders or showing “Nil” imports or having made imports outside the FBRPRAL system despite allocation of quote by EDB and remained engaged in illegal assembly of 2/3 wheelers, have not been re-validated for the year 20013-14. So for out of 90 operational units approved during the year 2012-13, 63 units of 2/3 wheelers have been re-validated for the year 2013-4 to facilitate their imports through newly established online WeBOC Module for assembling and registration of their vehicles. The figure of 80 OEMs waiting for EDB certificate for registration of their vehicles with the Excise & Taxation office, Karachi as quoted in the above referred letter is thus and unfounded. APMA: Sabir is not satisfied with the reply of EDB saying as under which grounds and criteria the 63 assemblers got certificates, Why the certificate distribution for remaining 27 units had

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EDB: With regard to re-validation of manufacturing certificate and lists of importable inputs, it is inform that re-validation is accorded to the firms operating within the parameters prescribed under assembling / manufacturing 2/3 wheelers who violated the conditions of SRO 656(I)/2006 by procuring their entire inputs from the commercial importers / traders or showing “Nil” imports or having made imports outside the FBR-PRAL system despite allocation of quote by EDB and remained engaged in illegal assembly of 2/3 wheelers, have not been re-validated for the year 20013-14 been held. He rejected the impression that 80 OEMs were waiting for certificate for registration. He clarified that from November 1 to November 10 2013, the registration of 80 assemblers were suspended by the Excise and Taxation Department and due to this pressure, all the assemblers approached the EDB and the Board started distributing the certificate. He said he could not understand the reason as to why the distribution of certificate was held and it were not released on time. He said timely distribution of certificate would have not created panic in the market besides causing hardships to the bike customers. EDB: In the above context, M/s Sitara Auto Impex, a unit belonging to Chairman APMA, has been found violative of SRO 656(I)2006, by operating outside the prescribed system and remained engaged in illegal assembly of motorcycles during 201213. The data/ records submitted by the firm were irreconciled and indicated gross violation of the following conditions of SRO 656(I)/2006. APMA: Sabir said he has submitted all the inputs including imports from respective principals to the EDB and M/s Sitara Auto Impex paid more tax then your SRO 656(I)/2006. According to SRO, importers have to pay 10 per cent and 38.75 per cent but Sitara Auto Impex paid 50 per cent customs duty on all imported parts. What is the v iolat ion in it , he qu esti oned . APMA chief also questioned EDB and FBR as to what they have done to eliminate the valuation ruling number 458/2012 dated May 24, 2012 (Ruling No. Misc/31/2007-VIIIA/6236). Due to existence of this ruling, smuggling of bike parts is thriving. EDB also quoted these conditions of SRO. What the government has practically done on the other aspects of

the SRO 656. i) As per condition (xii) of SRO 656(I)/2006, in case of violation of any condition of SRO 656(I)2006, EDB is authorized to suspend or not re-validate certificate for the assembly or manufacture of vehicles and list of importable components. ii) As per condition (iva), it is obligatory for an importer-cum-assembler or manufacturer to make direct import of components in accordance with the list approved by EDB or make procurement from the sales tax registered vendors manufacturing such components. iii) As per condition (v) of SRO 656(I)/2006 “the importer –cumassembler or manufacturer shall maintain record as prescribed under Annexure-B, such record along with reconciled account of all inputs used in assembly or manufacturer of vehicles shall be submitted to the EDB on annual basis” EDB: Above mentioned violations attract proceedings under relevant provisions of the Customs Act, 1969 which call for detailed scrutiny, audit and initiation of penal action. EDB thus bars non-compliant units from misusing its Manufacturing Certificate for the purpose of obtaining certificate of quality & Standard from PSQCA besides registering illegal vehicles with the Excise & Taxation Departments. EDB always strives to facilitate those vehicles assemblers who operate within the legal system as prescribed under STRO 656(I)/2006 and contribute to the

government revenues. APMA: I stand by my point in which I have claimed that issuance of production certificates and importable lists every year by the EDB have been creating corruption and promoting smuggling cult ure and sales tax evasi on. APMA strongly urges the government to support small and medium sized assemblers, vendors, importers and genuine traders. Smuggling culture is being promoted due to red tapism and bureaucrati c hurd les fro m the government’s lower staff.

As the Chairman APMA he urged the EDB to immediately release the production certificates of all the assemblers by ensuring validity up to September 30, 2014 as the industry has been deep crisis for the last 10 years. These issues, which had been creating hurdles, should now be resolved. He also requested the CEO EDB to invite him in the auto industry development committee meetings as in the last meeting the EDB did not invite him. Being the member of AIDC, this is a sheer violation of rules made by the EDB. AIDC was founded in 2007. This AIDC should be abolished immediately and new members be inducted if the EDB wants to run this system. He said the Customs Valuation System in all the auto sector must be checked immediately otherwise no AIDP, AIDC, AIP, FBR, EDB and MoIP can stop corruption in the country....

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Automotive Sector - Update

Pakistan Auto Show in March 2014 The Pakistan Association of Automotive Parts and Accessories Manufacturers will launch its annual three-day Pakistan Auto Show from March 6, 2014 at the Expo Centre, Lahore, showcasing the achievements of Pakistan’s automotive industry and auto parts manufacturing sectors. This was announced in a meeting of the PAA PAM Managing Committ ee presided over by chairman Usman Malik. The meeting was also attended by the vice chairman and former chairman Nabeel Hashmi who has also been given the responsibility of organizing the mega auto show. This mega event has now become a trademark for PAAPAM, as it regularly holds this auto exhibition in Pakistan under the logo of PAPS, on an annual basis, said Usman Malik. He said that each year the show grows bigger and the upcoming mega event will be held with a lot of changes. “Next year we intend to give it a new face by making

this show go international along with a lot of other new features”, Usman maintained. “This mega event will be visited by a large number of visitors and buyers from around the world, while hundreds of multinational and national companies will display their products at the exhibition,” PAAPAM chairman said. On this occasion, Chairman of the Organizing Committee, Nabeel Hashmi, strongly urged the government to ensure adequate and exclusive export promotions for the engineering sector. He stated that Pakistan’s Auto Engineering Sector is one of those sectors in Pakistan which is still surviving despite severe financial crunch and energy shortage in the country. He added that the Association has always played a pivotal role in safeguarding the rights, policy formulation of this sector and marketing it to the world through its annual auto exhibition.

PEC office-bearers elected Engineer Iftikhar Ahmad has been elected as the president of Pakistan Engineering Congress, while Engineer Akhtar Abbas Khawaja has been elected Vice President Sindh, according to the election results announced by the election commissioner of Pakistan Engineering Council. Engineer Muhammad Arif has been elected as the vice president Punjab, Engineer Rana Khursheed Anver, vice presi dent, Irrigation, Engi neer Chaudhry Ghulam Hussain, vice president Consultant, Engineer Dr Izhar-ul-Haq, vice president of Wapda and Engineer Tariq Rashid Wattoo has been elected as the vice president of Industries. The term of the office-bearers and the Executive Council members of Pakistan Engineering Congress will be two years.....

Pak Suzuki raises prices Pak Suzuki Motor Company Limited (PSMCL) on 01 Jan jacked up prices by Rs10,000 to Rs20,000 on different models. The new price of Suzuki Mehran VX and VXR is Rs620,000 and Rs678,000. Ravi, Bolan, Cargo van, Cultus, Swift DLX and Swift DX now cost Rs647,000, Rs700,000, Rs676,000, Rs1.044 million, Rs1.302 million and Rs1.221 million. In 2013, the local assemblers increased the prices three to four times despite the fact that the rupee gained 12.6 per cent against the Japanese yen making parts import cheaper. However, according to an analyst at JS Research, the rupee appreciated by 9pc against yen from October to December 2013. Similarly, the local currency had also gained 3pc versus the US dollar over the last one month. Pak Suzuki enhanced prices on January 2013 by Rs20,000 and on July 22 the prices were raised again by a minimum of Rs5,000 to a maximum of Rs70,000. In September 2013, the company again came out with price rise by Rs10,000-

20,000. The company made price surge by 3.15pc to 6.09pc, or from Rs35,000 to Rs140,000, during January to December 2013 on locally made and imported vehicles. I n d u s Mot or C o mp a n y (I MC ) announced price increase thrice which was raised between 1.8pc to 23.52pc for different products in the last one year that translates into an increase of Rs30,000 to Rs586,500 for cars and higher engi ne po wer v ehi cles. Honda Atlas Motors also pushed up prices by 3.34pc to 41.33pc, an increase of Rs55,000 to Rs400,000, in the same period on locally made and imported vehicles. All Pakistan Motor Dealers Association (APMDA) chairman H.M. Shahzad said the assemblers usually push up prices instantly whenever yen appreciates against the rupee but never pass on the impact to consumers when it is the other way round. “It suggests that the assemblers’ claim of achieving higher localisation of parts is just a hollow slogan and they are still dependent on imported parts,” he said.

Shahzad urged the government to find out why assemblers have never shared the benefit of rupee’s gain against the yen to the end users. He said that assemblers are basically cashing the increased demand of their vehicles after sharp drop in the arrival of used cars for the last few months and they also hope improved sales for the next six months. Muhammad Tahir Saeed of Top Line Securities said local car assemblers sales (including LCVs, Vans and Jeeps) during the first half (July-December) of the current fiscal year may reach around 60,900 units, up 5.8pc compared to 57,540 units in the corresponding period of the previous fiscal year. On monthly basis, locally manufactured car sales may decline by 11.3pc to 8,500 units in December 2013 compared to 9,588 units in November 2013 due to year-end phenomenon as buyer preferred buying New Year model car. On year-on-year basis, sales may remain slightly down by 0.7pc compared to 8,448 units in December 2012....

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Corporate Event - Update

Honda Atlas Cars Pakistan celebrated its 20th anniversary on 10thDecember, 2013. Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company was incorporated and a joint venture agreement was signed in 1993. The grand 20th anniversary event took place at the Honda Factory in Lahore. The guest of honour was Takanobu Ito,

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the President of Honda Japan, accompanied with Mr. Hiroshi Kobayashi President Asian Honda & Managing office Honda Japan and Mr. Yoshiyuki Matsumoto Managing officer Honda Motor Japan especially flown to Lahore to participate in the celebration Mr. Yusuf H. Shirazi, Chairman Honda Atlas Cars Pakistan and Mr. Takeharu Aoki, President of Honda Atlas Cars Pakistan Limited, welcomed the

distinguished guests along with the whole Honda familyfrom the associate workers, vendors to the dealers. Dignitaries, Customers and media were also present to attend the ceremony. Mr. Takeharu Aoki, President of Honda Atlas Cars Pakistan Limited appreciated the hard work and dedication of the entire Honda Team and all the people related to it, without whom this

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Monthly AutoMark Magazine

Corporate Sector - Event PR

On Remarkable Achievements in year 2012-13 Crown Group’s CEO Mr. Farhan Hanif awarded as the Youngest Chief Executive Officer (CEO) of the year-2013 In this event around 400/450 CEOs, CFOs, CIO and CTOs/ Leader of Pakistan’s from well reputed limited companies and registered Industries participated in this event. In 3rd CEO-CFO-CIO (Business, F i na nc e an d I C T Le ad e rs hi p ) Conference and Leadership corporate Awards Distribution ceremony and conference, CEO of Crown Group (CRLF) Mr. Farhan Hanif has been awarded as Youngest CEO of the year2013 and the best assemblers for the motor bikes in Pakistan, with this Director Mr. Kashif Qaseem received the award for sponsored that conference. The event conducted by Mass Human Resource Service in collaboration with Karachi Stock exchange, Lahore Stock Exchange, Islamabad Stock Exchange, Ministry of Commerce and Industries, Ministry of Science and Technology and other small industries. The ceremony held on 29th December, 2013 in Marriott Hotel, Karachi. In this event around 400/450 CEOs, CFOs, CIO and CTOs/ Leader of Pakistan’s from well reputed limited companies and registered Industries participated in this event but only Mr.

Farhan Hanif has selected for the category of Young CEO-2013 award for his incredible achievements in auto sector. He received this prestigious award from Deputy Governor, State

Bank of Pakistan Mr. Ashraf Mahmood Wathra and Vice Chairman BMG & Former President Mr. Anjum Nisar.s In this one-day conference, the speakers have share latest developments in management, best practices, thought leadership, and key success strategies, in a rapidly changing global economy to the attendees. The core purpose to arrange this conference and award distribution ceremony is to foster public sector development in Pakistan by providing motivational support to the leaders through competent policy advices and research which will be helpful for them in future. Issue By: Crown Group of Companies

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Automotive Industry - Tractor

Monthly AutoMark Magazine

Tractor industry The curse of faulty comparisons PAAPAM complain over inconsistent taxation doesn’t stand the test of facts either. As mentioned, it was only in response to manufacturer’s persistent plea to raise taxes progressively did the government reverse the regime in the first place, raising tax rate by 5 percent every year as per the agreement. Tractor manufacturing is the star of Pakistani automotive sector, there can be no doubt. In less than 30 years, farm tractor assemblers have achieved up to 95 percent indigenization of product parts, an astounding achievement compared to the paltry localization level achieved by passenger car assemblers in the same amount of time. High localization has allowed manufacturers to control product prices while also maintaining quality, at the same time gearing to enter the export markets. But, does good performance necessarily warrant a reward in the form of incentives from the government? In a recent press release to media, vendors and parts manufacturers for tractors appealed to the Federal Government to incentivize demand for farm tractors. Demand for the product has spiralled down in recent years, from more than 71,000 units in FY11, to a little over 50,000 in FY13. To recall, farming industry had witnessed a remarkable turn in fortunes during late 2000s. Later, preferential treatment of the rural economy (in response to floods devastation) further jacked up farmer’s income. The period marked the launch of Green Tractor Scheme and Benazir Tractor Scheme at Federal and provincial levels, as government transfers to rural populace took the form of incentivizing farm mechanization. As a result, average annual demand for tractors rose to 67,000 units during FY09 to FY11, with zero sales taxes on the purchase of product by the final consumer. But, as they say good times don’t lasts forever, the strain of budget deficit compelled the government to bring the level of GST on the farming automotive at par with other vehicles,

taking down tractor demand with it. Manufacturers revolted as vehicle demand slumped by nearly twenty thousand units the very next year, forcing the government to agree to a progressive annual rise in the level of indirect tax on the farmer’s four-wheeler. Now, the Pakistan Association of Automotive Parts & Accessories (PAAPAM) has raised concerns over lack of incentives for auto’s rising star, drawing comparison to low levels of GST in India and accusing the government of inconsistent policy making. By comparing tractor production in the country with our east ern (and i n cid en tal ly , t en - ti mes l arger ) neighbour, the association has suggested that the low level of farm mechanization is the major cause of relatively lower crop yield per hectare in Pakistan, which left unchecked could lead to food security challenges in the future. But oversimplification is the enemy of reason. At present, Pakistan adds a tractor for every four hundred hectares of arable land every year, compared to a little over a tractor for every three hundred hectares in India. While the mechanization level is lower, the difference is not stark enough to cause food security challenges, at least not ones very different from those facing the eastern neighbour. In any case, just

as food security has more to do with number of mouths to feed than number of vehicles on the farm, similarly, crop yield is more a function of efficiency of farming techniques and nature of crops sown. PAAPAM complain over inconsistent taxation doesn’t stand the test of facts either. As mentioned, it was only in response to manufacturer’s persistent plea to raise taxes progressively did the government reverse the regime in the first place, raising tax rate by 5 percent every year as per the agreement. Also, while the merits of indirect taxation are debatable, the fact remains that the largely tax-exempt status of agriculture income has played an important part in exacerbating the revenue situation for government’s kitty. As a matter of fairness, farmers should at least pay the same amount of GST on purchases as the rest of the country. Mor eover, privatel y industry participants concede that incentivization of tractors has become difficult for the government since the proportion of nonperforming loans (advanced to farmers as part of tractor buying schemes) on the books of Zarai Taraqiati Bank is very high. Put together, whether the demand for tractor has seen any abnormal slump capable of hurting the rural output is itself a matter of debate: tractor prices in the country are nearly half of those in India, even after taking the 17 percent GST in to account. In the absence of government schemes, tractor production volume has only returned back to the pre-incentives FY08 era. Is the economy worse off without all those additional tractors? That’s a question worth investigating! Curtsey: BR Research

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Chinese Motorcycle Industry

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Monthly AutoMark Magazine

Review of 2013

Looking Ahead to 2014 Since the onset of the economic “black hole” in 2008, Chinese motorcycle manufacture and sales had been in steady decline. Before 2008 the annual sales of Chinese bikes looked to climb above the 24 million mark but dropped beneath the 23 million mark in 2009 and suffered a slow decline from then onwards. After a slight upturn in the sales figures of Chinese motorcycles at the end of 2012, 2013 was earmarked as the year that would dictate the future trends of the industry. As with other years the best indicator of the shape of things to come is the spring season Canton fair. Happily for the industry April’s Canton Fair abounded with motorcycle and parts importers from all over the world. Familiar faces (some of whom had not been seen since 2008) mixed with new ones as a breath of optimism exhaled from the industry’s lungs. That phenomenon was seen again at the Autumn Canton fair and also at CIMAmotor which saw visitors in record numbers. China’s premier motorcycle exhibition CIMAmotor moved into bigger and more salubrious surroundings at the new Chongqing Exhibition centre which is one of the biggest expo centers in the world. Brazilian motorcycle importer Alberto Futre commented “I have been coming to this expo every year since 2007 and must comment that now CIMAmotor is on the verge of becoming one of the major motorcycle expos in the world; it really is a must see show now and has plenty of room to expand and evolve.” CIMAmotor was the scene of the two major joint venture announcements of 2013, from Loncin and BMW, CFMoto and KTM. Loncin, who were already a long term JV partner of BMW Motorrad, received an order for 30000 650cc engines. The nature of KTM’s needs in China was somewhat different with an agreement drawn up with top China brand CFMoto for the Chinese mainland distribution of 6 KTM models, utilizing CFMoto dealerships and networks. Although end of year figures are not yet

available preliminary reports suggest that most companies are stabilizing with regard to the sale of 2 wheelers, and enjoying sales increases with 3-wheelers and engines. Improvement is mainly due to increased efforts in the export markets and less attention paid to the ailing domestic trade which is still critically hit by the motorcycle ban affecting most of China’s urban centers. Among China’s best performing motorcycle companies were Wonjan who enjoyed a rise in sales of 47%. Bonnie Zhang of Wonjan happily reported “the domestic situation has affected the industry badly, so we at Wonjan d ed icated ourselv es to increasing our marketing for export. It was a difficult decision to make considering the costs involved in mass marketing but it really paid off in style.” Marketing is one of the aspects of the industry to be discussed at the new China Motorcycle Forum in Shanghai in April. Everyone in the industry has agreed that Chinese companies need to promote their own brands in order to get a grip on European, American and Oceanic markets. This new forum will become an annual fixture on the Chinese motorcycle industry calendar and will invite experts around the world to present their ideas to an audience made up of Chinese motorcycle industry CEO’s and head technical staff. Winston Guo remarks “China’s motorcycle chiefs are showing a lot of i nt erest in taking advice from international experts, especially in the products that we need to be developing such as marketing, brand recognition, engine systems, EFI and advanced braking. 2014 will be there year that China makes its mark on the western world with the essential help of western motorcycle industry experts. Another thing we are hoping to promote is the presence of Chinese motorcycle teams in international competition. 2013 saw the first Chinese motorcycle compete in the Isle of Man TT when Britain’s WK racing entered a CFMoto racer in the 600cc category and we are looking to expand on that with the expert

advice of FIM. One of those experts, legendary American motorcycle guru Frank White of ATK America revealed “the quality of Chinese motorcycles is now more than satisfactory for the US market. ATK is currently looking at developing joint ventures to allow Chinese motorcycle companies to market their brands here in the USA. We will offer our full support, including technical support, sales networks and brand recognition promotion as we feel that 2014 will be the year the Chinese finally break into the American market in a big way. American motorcycle magazines have been running the headline ‘the Chinese are coming’ for years now; we feel sure that this year they will be publishing the legend ‘the Chinese are here!’” One country that has already seemed to embrace the Chinese invasion is the UK. The implementation of the congestion tax in London brought a whole new market to the UK motorcycle retail industry. British importer Daniel Frost of British brands Lexmoto and Pulse stated “last year saw Chinese motorcycle sales overtake the Japanese unit for unit in the UK. This is mainly down to the general public’s acceptance of the ‘new wave’ of Chinese motorcycles. There are now very good aftermarket services for Chinese motorcycles in Europe and Chinese quality and price make these motorcycles an invincible proposition. Many new riders, especially commuters, have no brand favoritism for Japanese or European brands which means Chinese motorcycles will go from strength to strength on our market. To conclude, it is apparent that there has been an intrinsic optimism in the Chinese motorcycle industry this year, one that hasn’t been felt since pre 2008. As usual the spring session of the Canton fair will tell us the story of what to expect in 2014 but the Chinese industry isn’t bothering to hold its breath, it’s far too confident now!

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Honda Hybird CR-Z

Monthly AutoMark Magazine

Speaking on the occasion, President and Chief Executive Officer Honda Atlas Cars (Pakistan) Takehari Aoki said that CR-Z is an ideal balance of technology, performance and design and it will give an ultimate driving experience to Pakistani car-enthusiasts. It is an ideal car for those who recognise the value of advanced technology, he added.

Honda Atlas Cars had introduced CRZ sports hybrid 1,500cc at a price of Rs3.3-3.5m. The brand new CR-Z in Japan is available at over $20,000 which means its price in local currency comes to over Rs2.1m if calculated at Rs106 per dollar value. Honda Atlas become the second company had launches hybrid vehicle after Indus Motor Company (IMC), which has recently launched its hybrid car Toyota Prius. Of the big three automakers of Pakistan, only two have taken part in the race of hybrid cars, the of ficials said. CR-Z offers three drive modes; sort, normal and economy. Sport mode enhances the cars’ performance while economy mode maximi zes f uel economy. Speaking on the occasion, President and Chief Executive Officer Honda Atlas Cars (Pakistan) Takehari Aoki said that CR-Z is an ideal balance of technology, performance and design and it will give an ultimate driving experience to Pakistani car-enthusiasts. It is an ideal car for those who recognise the value of advanced technology, he added. He said the concept of developing the

CR-Z is to create a car that is fun and brings excitement to everyday life through the experience of owning and driving it. As part of our commitment to provide the best ownership experience and peace of mind to our valued customer, we are launching this first sports hybrid covered under warranty by Honda Atlas Cars (Pakistan) Limited. This also underlines our history of setting trends in our market. General Manager Sales and Marketing Ayaz Hafeez highlighted the salient features of the car while General Manager After-Sales, Nadeem Azam explained the working of IMA (hybrid system). On CR-Z, the government is also netting 30-40pc in terms of duties and taxes at retail price including 17pc GST which amounts to over Rs1m.

The automakers have started launching hybrid vehicles after the government announced tax exemption on such vehicles in its budget for FY14. The government had announced that HEVs up to 1200cc will be exempted from duties and other taxes. From 1,201cc to 1,800cc, 50 percent relief from duties and other taxes will be provided and from 1,801cc to 2,500cc, 25 percent relief has been proposed. No relief will be available for vehicles beyond 2,500cc. The government emphasised on the ecofriendly technology, owing to increasing burden of the oil import bill to meet the demand of petrol. However, so far, there is no hybrid vehicle with an engine capacity of 1 , 2 0 0 cc . Si n ce t he n al l au t o manufacturers are rushing towards introducing their own hybrid cars to compete with the imported hybrid cars, the officials said. The major price difference between the two vehicles is due to the reason that Prius is equipped with an engine capacity of 1,800cc for which the duty and taxes have only been slashed by 25 percent, while CR-Z hybrid sports has an engine capacity of 1,500cc, a category for which the government has slashed 50 percent in duty and taxes. The major issue with the hybrid technology lies with the battery that this technology runs on. There are battery re-fuelling stations and plug-in chargers in other countries and that is why people are turning their choices towards this eco-friendly technology. A Honda company official said that ‘all imports would be purely order-based’, adding: “Hopefully 250-300 cars may be imported in a year.” Meanwhile, a dealer of Honda cars said that the import of Honda hybrid is unlikely to cross 100 units a year due to very high price.

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Corporate Event - PR

CBI EXPORT COACHING SEMINAR FOR BSOs LAUNCHED The EXPRO in Lahore is taking place shortly after participants of CBI’s Export Coaching Program, from the Engineering Sector, have just returned from the CBI sponsored EXPRO Seminar held at The Hague , the Netherlands CBI, the Dutch Centre for Promotion Of Exports from Developing Countries today launched a four day seminar EXPRO designed for capacity building of Pakist an i Busi ness Sup port Organisations who are stakeholders in the drive to enhance Pakistani Exports. With the new government planning an exponential growth in Pakistan’s exports, the initiative from the Netherlands Ministry of Foreign Affairs is well programmed for achieving its goals. The BSOD EXPRO is designed to steering BSOs from Afghanistan and Pakistan into new directions of Exports and Skills Training of their member companies for improving skills levels of exporting staff and the owner managers for achieving export-led growth of the Pakistan economy. Participants of the EXPRO include BSOs from the Agriculture , Metal castings, auto parts, medical devices sectors. Government sector stake holders include participants from Afghanistan Export Promotion Agency (EPAA), TDAP, NPO, SMEDA and EDB. The four day Seminar is being conducted in Lahore by CBI Experts Fred Janssen, Imtiaz Rastgar, Zaheeruddin Dar, Jan

Elferink together with Don Van Luijn, CBI Country Program Manager for Pakistan. DART, headed by Mr. Zaheeruddin Dar is the local organizer of the EXPRO Seminar. The EXPRO in Lahore is taking place shortly after participants of CBI’s Export C o ac h i n g P r o g r am , f r o m t h e Engineering Sector, have just returned from the CBI sponsored EXPRO Seminar held at The Hague ,the Net herlands. The group in the Netherlands consisted of Pakistan

engineering sector companies as well as five representatives from Business Support Organisations EDB, TDAP, NPO, SMEDA, PAAPAM and Pakistan Foundry Association. This resulted in creating a core team of trained BSO Staff who are expected to make a nucleus for further development of capacity of each BSO. CBI works on behalf of the Dutch Ministry of Foreign Affairs, to promote exports from developing countries to Europe.

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Review by AM Research

IMC anticipates good car sales in Jan-June 2014 Chief Operating Officer (COO) of Indus Motor Company (IMC), Ali Asghar Jamali told AUTOMARK Magazine that July-March period usually proves a better period for the local auto sector as MNCs and Corporate Sector lift vehicles. Car assemblers and auto analysts are quite hopeful about improvement in locally made vehicles sales during January to June 2014. They are also sure that the new Auto Industry Policy (AIP), hopefully to be announced this month, will boost the local production and sales. Chief Operating Officer (COO) of Indus Motor Company (IMC), Ali Asghar Jamali told Monthly AUTOMARK Magazine that July-March period usually proves a better period for the local auto sector as MNCs and Corporate Sector lift vehicles. Arrival of new crops and their better prices in the said period will also provides impetus to local sales when growers/farmers will lift new vehicles, he added. Prior to June, the government buying of locally made vehicles will also also kicks off. “So overall January to June period can be termed satisfactory for the auto sector especially for car assemblers as sales prospects appear bright,” Jamali said. He said that from December 2013, there was also slight recovery in car sales through banks and car financing. The share of car sales through banks financing in overall total sales inched up over 20 per cent from 18-19 per cent which is a positive sign but it cannot be compared with sales of few years back in which the share of car sales through financing was more than 70 per cent out of total sales. He said that the industry is looking forward for the Auto Industry Policy (AIP) that could revive car production and sales. “Industry badly needs a long term policy which will go a long way in augmenting future growth of both assemblers and vendors.”

He said the government should take steps in curbing used car imports which had eroded the market share of local industry badly in the past. Despite age restriction to three from five years some 2,000-2,500 used cars and other vehicles are still arriving every month thus posing serious challenges t o the local assemblers’ sales. Research Analyst at Top Line Securities M oh am am d T a hi r S a ee d s ai d local car assemblers sales (including LCVs, Vans and Jeeps) during 1HFY14 are likely to reach around 60.9K units, up 5.8 per cent as compared to 57,540 u nits in corresp ond ing period . On monthly basis, locally manufactured car sales may decline by 11.3% to 8.5K units in Dec 2013 compared to 9,588 units in Nov 2013 due to year end phenomenon as buyer prefers to buy new year model car. On year on year basis, sales are slightly down by 0.7% compared to 8,448 units in Dec 2012. Amongst individual companies, Pak Suzuki (PSMC) sales may improve by 3.3% to approximately 35.5K units in 1HFY14 vs. 34,324 units in the same period last year. Alone in Dec 2013, stable sales of 5.8K-6.0K units as against 5,989 units in Nov 2013. IMC sales are likely to improve by one per cent to around 14.9K units in 1HFY14 compared to 14,699 units in 1HFY13. On monthly basis sales are

expected to remain to the tune of 1.7K units in Dec 2013 which is down 22%QoQ but up 8.2%YoY. Honda Altas Cars sales are expected to surge by 22%YoY to 10k units in 1HFY14. During Dec 2013, sales may decline to 700-800 units compared to 1,310 units in Nov 2013 and 864 units in Dec 2012. “We expect further improvement in car sales in the second half of current fiscal year,” Tahir Saeed said. Considering higher taxes, rising inflation a n d s l o w er ec o n o m i c g r o w t h projections, he was of the view that volumetric growth would remain restricted to around 6 per cent. Recent hike in car prices along with already incorporated increased taxes is likely to hurt the purchasing power of the buyers going forward. He said profits would be healthy for car assemblers in FY14. Weakness in JPY will be the major input in the growth in addition to efforts to maintain high gross mar gi ns by i ncr easi n g p ri ces . Some car analysts said they are waiting for clarity on the upcoming Auto Industry Development Plan 2 (AIDP-2) before turning bullish on the auto sector. They are keenly following developments in Islamabad, as any relaxation in the age limit of imported used cars in AIDP2 could badly hurt the interests of local assemblers. At present, importers can import only three year old used cars in the country – a policy that came into effect in December 2012 when the government reduced the limit from five years. This decision of the previous government resulted in a sharp fall in used car imports during 2013 but has raised the sales of locally assembled vehicles….

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Erdogan trip:

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Monthly AutoMark Magazine

Pakistan, Turkey eye investment bonanza Pakistan and Turkey signed three memorandums of understanding (MoUs) as their leaders pledged to boost trade cooperation and investment opportunities. Just as Prime Minister Nawaz Sharif p romised t o faci lit at e Tu rkish investments in Pakistan, Turkey’s Prime Minister Recept Tayyip Erdogan asked his country’s top businessmen, many of whom are accompanying him on his two-day trip, to invest in the Metro Bus services for two more cities Specifically, PM Nawaz invited the visiting entrepreneurs to invest in six sectors namely that of infrastructure, textile, tourism, agriculture and milk industries. He also assured them assistance from the revamped Board of Investments in this regard. Nawaz said Turkish entrepreneurs could expect a one window facility for all queries, issues and implementation of their projects. According to an official handout, both sides also inked three memorandums of understanding between the Punjab Industrial Department and Turkey Cooperation Agency; Pakistan Railways and Turkish Logistics Organisation; Pakistan Standards and Quality Control Authority (PSQCA) and Turkish Standards Institution. Both Nawaz and Erdogan addressed the Pak-Turk Business Forum at a local hotel, where the Punjab Chief Minister Shahbaz Sharif was present along with ministers from both cou nt ries. Nawaz welcomed the Turkish delegation

to invest in Pakistan. “We are open to competitive proposals for building infrastructure projects from roads to bridges in a public-private partnership modality and shall safeguard your investments in Pakistan,” he told the delegation. He said that Turkish and other European airlines are welcome to use Pakistan’s ‘state-of-the-art’ facilities at Karachi and Lahore International airports for layovers during onward flights to the Far East and Australia. Erdogan said that both he and Nawaz made a commitment to further enhance the bilateral trade and economic relations during his recent visit to Istanbul and that the current visit is also part of that process. ‘Preferential trade deal should be signed soon’ “The Turkish prime minister has asked

our businessmen to invest in the Metro Bus services for two more cities,” a Turkish official said, adding that their country’s biggest businessmen and exporters were part of the delegation. “Turkey’s trade minister made an emotional speech, and said that if Pakistan increases exports to Turkey – which is against the Turkish economy –he will support it,” he added.

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Monthly AutoMark Magazine

Pak India Trade - Update

Pakistan to seek technical help from Indian Railways Cash-strapped Pakistan Railways will seek "help and guidance" from India in or d er t o make i t s o p er at io n s economically viable, Railways Minister Khwaja Saad Rafique has said. A Pakistan Railways delegation will soon visit India to learn from the knowledge and experiences of the Indian rail system, which has been turned into a profitable entity while Pakistan was yet to achieve this goal due to lack of resources, Rafique said. A Pakistan Railways delegation will soon visit India to learn from the knowledge and experiences of the Indian rail system, which has been turned into a profitable entity while Pakistan was yet to achieve this goal due to lack of resources, Rafique said. "Pakistan needs to take help and guidance from the Indian Railways to make it (railways) economically viable and bring it on the right track," he said at railway headquarters in Lahore. Indian Railways is one of the world's largest railway networks comprising 115,000 km of track over a route of 65,000 km and 7,500 stations. Rafique further said, "We have to do away with the doctrine of enmity with

neighbours, especially India, as we cannot afford it today." Pakistan Railways is also searching for a foreign partner to invest in improving infrastructure. Speaking to reporters on the sidelines of a conference in Islamabad, Rafique said the opening of the KhokhraparMonabao link for trade with India was being examined. Pakistan-India trade is conducted through the Wagah border while the Khokarapar-Monabao sector's potential for trade is five times greater, he said. Trade could also be initiated through Ganda Singh Kasur and Amroka in Bhawalpur. Opening up trade routes to India was in Pakistan's favour as nations that buried centuries-old feuds had developed a lot, Rafique said. "But we are still lagging 200 years behind the developed world. Therefore, we have to shun orthodox thinking to move forward on all fronts," he said. Pakistan is also ready to offer its road and rail routes to all regional countries, i n cl u d i n g I n d i a , C hi n a, I r an , Afghanistan, Bangladesh and Central Asian states, he said. ...

India to assist in installing biomass power plant Punjab Agriculture Minister Dr Farrukh Javed has announced that 1,277 megawatts of electricity will be generated from 10.94 million tons of biomass available from the residue of crops. The minister was speaking at a ceremony marking the signing of a memorandum of understanding (MoU) for Indian technical assistance for installing a 15MW biomass power plant here on Friday. A company from Indian Punjab named Universal Biomass Energy will help Pakistan by providing necessary technical guidance for setting up the plant. The minister said the plant would be handed over to Pakistan in two years, after its successful installation and operation, adding the plant would be

linked to a 132-kva supply line. The MoU was inked by Universal Biomass Energy Private Limited Director Pareet Singh Badal, Punjab Agriculture Secretary Dr Ejaz Muneer and Punjab Energy Department chief engineer Iftikhar Ahmad Randhawa. Later talking to the media, the minister stressed that the Punjab government was committed to resolving the energy crisis. Responding to a question, he said talks with different countries were under way for establishing biomass power plants in Punjab. Pareet Singh Badal said the steps being taken by the Punjab government to t ack le t he en er gy c ri si s we re commendable. The Indian delegation later left via Wagah border. The agreement came after the recent

Pakistan keen to cooperate with India on energy projects: Shahbaz Sharif The government of Pakistan's Punjab province is keen to seek support from India's Punjab state to install bio-gas and bio-mass power generation plants, Chief Minister Shahbaz Sharif said. Sharif spoke about his government's plans to ramp up production of energy from alternative sources during a meeting here with a delegation of Indian energy experts, state-run Radio Pakistan reported. He said his government is committed to overcome the energy crisis and will seek assistance from every available quarter for this purpose. The head of the Indian delegation' Perveet Baadal, expressed his readiness t o coo per ate wi t h t he Pu nj ab government to set up power plants based on alternative sources. Pakistan has been holding talks with India on importing electricity. The two sides are likely to ink an MoU for electricity trade, a source said. India has offered to supply 500 MW and officials say the plan could be implemented within a year by laying a transmission line. A senior government official said Pakistan could import up to 2,000 MW from India to tackle an acute shortage of energy that has hit economic growth. Sharif, the younger brother of Prime Minister Nawaz Sharif, made a highprofile visit to Indian Punjab earlier this month to boost business cooperation between the two sides... visit of Punjab Chief Minister Shahbaz Sharif to India where he met with his Indian counterpart and other officials. The Punjab government has announced that Pakistan will seek Indian assistance in curbing the energy crisis, which has crippled life and business activities in the province and the whole country. The latest MoU will help Pakistan develop ability to switch f rom conventional oil-fired electricity generation to cheaper biomass. The government has also undertaken a massive project to shift some power plants from oil to coal.

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Monthly AutoMark Magazine

Energy Sector - Update

India admits its coal plants causing fog inside Pakistan E

very winter major parts Pakistan’s Punjab get exposed to a thick blanket of fog mainly because of coal based power houses in India and trans-boundary pollution is inflicting millions of dollars loss to the country’s environment and economy. This has been unveiled in a letter written by eminent climate expert Arshad H Abbasi, associated with SDPI, to Prime Minister Mian Muhammad Nawaz Sharif.“India has itself acknowledged in the international courts while defending the controversial hydropower project on Pakistan’s rivers, arguing that the thermal electric power generation based on co al is no t sustainable environmentally. India says: “Our coal based thermal power plants are emitting ash, causing serious pollution and helping to forming fog in the SubContinent.” “India further maintains in the international courts to justify the erection of hydropower projects on Pakistan’s rivers that the ash generation was not only polluting the environment but also adding fuel to global warming,” mentions the communication of Arshad Abbasi t o the pri me minist er. When contacted, former DG Met Office Dr Qamaruz Zaman Chaudhry, who is currently associated with LEADPakistan as Senior Adviser on Climate Change, confirmed that the carbon emissions from the coal based power houses in India is the main reason of fog in many areas of Pakistan’s Punjab. He said two years back the Met Office had conducted a study on fog and reached the conclusion that coal based power plants in India’s Punjab are contributing a lot in generating fog in eastern part of Pakistan’s Punjab. “We are witnessing extended fog in Pakistan and this phenomenon has started occurring in last 7-8 years.” However, in the letter to the chief executive of the country, Arshad Abbasi highlighted startling disclosures, saying that in South Asia, the total coal consumption was 685 million tones out of which 98% was in India, with the

majority of coal consumed in the power sector. The energy mix in India is heavily dependent on coal, and electricity generation on coal fuel is 71%, the highest in South Asia. Yet, the coal in India is of poor quality, with high ash content and low calorific value. He also quoted an interesting report by Centre f or Study of Science & Technology, Bangalore that reveals that the Indian coal’s quality is very poor having 35%-45% ash content, low heating value thus generation of one unit electricity emits one kilogram of Carbon Dioxide and almost annually, 200 million tons of ash is generated using coal in power sector. The Indian coal unlike the rest of the world has the highest arc contents, 25%-45%, with low heating value, thus to generate one unit electricity, coal power plants emit one kilogram of carbon dioxide. The emission of other more hazardous gasses, such as sulphur oxides, nitrogen, fly ash, and suspended particles are responsible for the greenhouse effect.Arshad Abbasi appreciated the PML-N government’s efforts in making peace with India, admitting that this is necessary for the future prosperity of our two nations. However, this should not be at the expense of our citizens’ health and environmental sustainability in the region. In fact, environmentalists in India are concerned about the negative

environmental effects of coal. Citizens in Saarc nations are concerned about trans-boundary externalities of coal and call for an agreement similar to the Asean Agreement on Trans-boundary Haze Pollution model in South Asia. Arshad Abbasi also mentioned that while it is a common error to think of climate change as something in the future, every single day we are affected by poor decisions that are leading to terrible environmental degradation. As a thick blanket of fog envelopes Pakistan, a phenomenon that only seems to increase every year, it is integral to understand the reasons why this is happening and take urgent action to mitigate its effects. It is a mistake to think of haze creation and fog formation in Pakistan as a natural effect of falling temperatures and relative humidity. The distinct fog formation in Pakistan — the persistence, and the intensity — signals a deeper p ro ble m: ai r po ll uti on . Whil e automobile exhaust and burning of dried leaves contribute to this effect in smaller doses, the single biggest factor is the use of coal in thermal power plants for electricity generation. Flying ash and trace elements in atmosphere after coal is burned is a major environmental hazard and public health concern, causing respiratory ailments like asthma, impairing the immune system and even causing cancer. Moreover, power plants running on coal emit carbon dioxide and other greenhouse gases.....

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Automotive Industry - Update

Toyota CEO Forecasts Slowdown as Ford Moves Ahead

As a weak yen offers Japanese automakers an advantage against competition from around the world, a slowing demand and political tensions in China are evening the score as the 2014 auto market takes shape. Bloomberg reports that Toyota’s president and CEO sees less-than-ideal results ahead in the world’s fastest growing auto markets as his company watches Ford overtake the Toyota brand in two crucial countries. Toyota, the world’s leading automaker in sales, encountered problems in the past few years that had little (if nothing) to do with the cars and trucks it showcased in emerging markets. Political tensions between Japan and China have sparked boycotts of automakers from Toyota to Honda and Nissan in the world’s biggest auto market, a trend that may continue in 2014. At the end of December, the Japanese prime minister’s visit to a war shrine drew stern criticism from Chinese government officials. Tensions of this nature allowed Ford to move in front of Toyota as the fifth best-selling brand in China in 2013. Other trends that worked against Toyota included a desire for car consumers to get increased style and performance out of small cars. The midsize Ford Fusion and the Ford Focus — the best-selling car in China and across the globe — delivered those attributes. However, Toyota CEO Akio Toyoda acknowledged simple realities about emerging market trends....

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by M. Yousuf Shaikh

Pak-China Motorcycle Business Consortium is the Way Forward to Power Funds for R&D for Motorcycle Industry of China & Pakistan to compete the Indian Industry

For

industrialist, finding the funds to support their R&D is becoming increasingly difficult; the challenge of finding a business or individual venture capitalist often remains elusive. For a business, it’s a large investment, during difficult economic times, usually to an industrial group or a company. So, how can we get businesses excited about being part of the action, how can we turn it on its head? Provide an option that supports numerous industrialists, at a much lower cost, but with all the benefits of a main sponsor. Here we introduce ‘The Pak-China Consortia Club’, the opportunity for 22 companies to commit to supporting multiple R&D, Products series and manufacturers, with a single lower cost investment. To reg ister your interest g o to www.globalautosources.com in this connection the secretary general of C hi n a C ha mb er of C o mme r ce For Motorcycle Mr. Wang and the chairman of Pakistan China Motorcycle industry Council Mr. Muhammad Yousuf Shaikh had a meeting in Beijing on the Pakistan’s Chinese motorcycle market conditions and maintaining a friendly relationship and strengthening t he coop erat io n bet ween each other. Chairman PCMIC introduced the current situation of Pakistan’s Chinese motorcycle market, including the annual output, the condition of local motorcycle factories and foreign investment, models and tariff,etcand s u gg es t ed C h in e se mo t or cy cl e enterprises to invest into Pakistan or acquired the local factory directly to compete with India’s Motorcycle industry from Paki-stan to the world for further cost saving and could offer help they needed; PCMIC would offer its investment related regulatory documents to CCCM and Mr. Wang should give the introductiontoits member enterprises; Both sides maintain a friendly relationship and conduct in-depth discussion on the possible cooperation projects;

The Chinese government also making all-out efforts to take its economic relations with Pakistan to a new height by aggressively exploring opportunities for investment and joint ventures in various sectors of the economy. The establishment of the ‘The Pak-China Cons ortia Club’ & Res earch &Development Centre (in Lahore) will go a long way in achieving this goal,”. the club is the latest example of joint efforts to increase links between Pakistani entrepreneurs and t heir Chin ese count erparts. “Connections like these are important because the entrepreneurs unlock growth.” I accepted the post on the condition that Chinese businessmen would invest in Pakistan if they were seeking competition with India’s Motorcycle Industry from Pakistan to the world. As Chinese investors are interested in investing in auto sectors. “Business-friendly environment is a prerequisite to foreign and local investment,”. The ‘The Pak-China Consortia Club’ &R&D Centre would organize events throughout the country in a bid to build skills of entrepreneurs, seek investment and exchange technologies. The ‘The Pak-China Consortia Club’ &Research &Development Centre would help strengthen economic relations between businessmen of the two countries. The ‘The Pak-China Consortia Club’ would connect Pakistani entrepreneurs with leading Chinese entrepreneurs and investors, who would be able to exchange experiences and discuss business trends, leading to investment in both countries. The promotion of commercial activities was of supreme importance for achieving economic stability in any country. Chinese automobile manufacturers avail themselv es of joint inv estment opportunities in Pakistan’s auto industrial sector to compete with Indian

Muhammad Auto industry. Yousuf Shaikh The council’s members, from China& Pakistan region are delighted on the establishment of the ‘The Pak-China Consortia Club’ and Research &Development Centre (in Lahore). It is decided to take an initiative proceeding and intends to visit soon to meet government official to speak about the possibility of Chinese manufacturers to exploring the Pakistan Auto industry and taking forward the long term strategic agenda in press reports that highlighted Pakistan must raise Chinese investment in automotive R&D and manufacturing to compete with Indian products. In order to make this happen, the Pakistan’s Chinese vehicle manufacturers/ assemblers need an ever more strategic, collaborative relationship with the Government to work with supply chain and other stakeholders to achieve long term goals. We want the Council to help make that happen. The Motorcycle Industry Council will be an opportunity for the Government and industry to work together on the long term strategic development of the sector.

Muhammad Yousuf Shaikh, An Auto Industry Consultant, Motorcycl e Industr y Expert, Motorcy cl e De s igne r, Ch ina Sourcing Expert, Serial Entrepreneur and the Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), offers his analysis of the motorcycle trade & industry trends from Pakistan & China. Yousuf believe that new projects could help Chinese motorcycle industry to design and produce new design motorcycles in Pakistan For f u r t h e r d e t a i l s : pakchina.mic@gmail.com PCMIC Pakistan Office;99/II, Suite # 1 First Floor, 3rd Commercial Street, Phase IV. DHA. P. Code-75500, Karachi. Pakistan. Cell # +92 300 2613692

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Indian Automotive Exhibition - Update

Monthly AutoMark Magazine

Auto Expo 2014 to be held in Greater Noida: SIAM

Event will be jointly organised by SIAM, CII and Automotive Component Manufacturers Association The 12th Edition of Auto Expo will be held at the India Expo Mart in Greater Noida during February 7-11. The event will be jointly organised by the Society of Indian Automobile Manufacturers (SIAM), the CII and the Automotive Component Manufacturers Association (ACMA). Besides, the 12th Auto Expo on Components will be held atPragati Maidan from 6-9 February, SIAM said. "The Auto Expo will be held in two venues in February 2014 -- The Motor Show is scheduled from 7 to 11 February at a new venue -- the India Expo Mart in Greater Noida, and the Component show will be held at Pragati Maidan

from 6-9 February 2014," a press release from SIAM said. The Auto Expo Motor Show will be held at a venue spreading across 58 acres of land. It will have display of cars, multiutility vehicles, two-wheelers, threewheelers, concept vehicles, commercial vehicles, vintage cars, super cars and

super bikes. Some of the exhibitors include Honda Cars India, Audi India,Ashok Leyland, Fiat Group Automobiles, Datsun, Eicher Motors, it said. "There will be six entry and six exit gates with adequate security arrangement, and for the first time the 12th edition of Auto Expo will have an online ticket booking facility," it said. Online portal Bookmyshow.Com is the official partner for SIAM and the online booking of tickets, priced between Rs 200 and Rs 500, will begin shortly, it said. At the Auto-Expo Component Show 2014, about 1,200 participants are expected. There will be specific country pavilions like China, Taiwan, UK, Canada, Germany, Korea and Japan, it added.....

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

Importance of Automotive Technicians Turning wheels of our economy by playing a valuable role in the society Auto-Tech working life under the vehicle After all, without the automotive technicians, who would keep the world rolling in a safe and comfortable fashion?

The old days have long passed, when Automotive Technician was called as a “grimy mechanic” or “greasy monkey” and ranged low on the occupational ladder. Indeed, every so often, some polling organization releases the results of a survey regarding professions and ethics, people trust most. Consistently at the top of the list are doctors, pilots, teachers, police and firefighters; lurking at the bottom are lawyers, politicians, insurance agents, used car salesmen, and yes, auto mechanics. Let’s face facts, unfortunately most automotive technicians employed in the au tomotiv e service industry in general–don’t have a great image due to some reasons. However, today, with the automobiles being an increasingly complex machine, tr eme ndo us hi- tech skill s and comprehensive updated trainings are required to keep up with ever-evolving automotive innovations. And as such, now new technology is supporting lost image and regaining reputation of past mechanics trades.

Importance of Automobile in our lives Before emphasising the valuable contributions of Auto Technicians to our society, let’s see first, the importance of automobile in our life. It’s all started with the invention of a stone “Wheel” which turns radial dimension into a linear distance, and sure, you wouldn’t be able to enjoying traveling today, without the birth of a Wheel. Indeed, the automobile has become a very complicated machine and emerged as an integral part of economy. It’s no longer a mere “horseless carriage”;

rather, a car is a “computer on wheels” given that about 80% of all functions are controlled by computer silicon chips. In fact, there’s more computing power found in a Toyota Prius than the Apollo 11 rocket. Alas, it’s been my experience that too many technicians suffer from selfesteem issues. They don’t realize that it is precisely because of their efforts and dedication to duty that so many motorists enjoy carefree motoring on a daily basis.

Few Factual Facts - The automobile is one of

the most important technological innovations and vital part of our society, to achieve transportation needs. It’s a very complex and mammoth industry which plays a very important role in our economy and our lives. - The automotive skill trade is the foundation of our economic future. A highly skilled workforce is essential to helping our businesses grow and compete in an increasingly skilled and knowledge based economy. - More than 30 million people around the world depend upon automotive industry for their jobs (direct and indirect) Over 10 million people in Canada rely on their automobiles to earn a livelihood or just commute short or long distances. - 25% of the work force is working in the automotive sector of society. Over a million automotive businesses are in operation. One out of every six workers is in an automotive-related profession. - 1.5 vehicles per household in major

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Monthly AutoMark Magazine

If you study closely between two bumpers of this two ton and twenty feet long big rig most sophisticated machine, you will find countless trades are involved before it ends up on road. An auto technician must also be a master and jack of several trades. Canadian cities. - 2.0 Licensed Driver per house hold in major Canadian cities - A recent study indicated that Canadian spend 20% of their income on automobile transportation and in large city, 74% people using vehicles, 23% public transport and 3% using other means to travel. - Canada has been aptly referred to as a “nation on wheels.” In fact, the very essence of our economic life and growth is dependent in a great part, upon this automobile.

Between Bumper to Bumper The modern automobile is made of many diversified materials, systems and with hundreds of components and thousands of parts; it covers every engineering and technological aspect, and wide range of trade’s skill within two bumpers. Think this way, your car a two toned and 20 feet big rig, state-of-art engineering and hi-tech sophisticated automobile-machine with over 17,000 moving parts, 86,000 non-moving parts, 18 kms -22 kms of wiring and up to 50 microprocessors, now consider this, your vehicles is exposed to extreme weather and harshly driving conditions, -50c chill cold to +50c hot like a hell, snow to sand, mud to mushy mulch, rough to tough roads, and blustery weather. There is no other machine on this planet compared to automobiles painful life. Despite suffering through all these adversities your well-maintained obedient car is still providing you safe, reliable, comfortable and speedy ride on demand at your convenience.

“Auto technicians are more closely related to guardian angels than grease monkeys”. Just imagine, before closing your auto service center/shop in the late night, a phone ring; you response the emergency call and find out a distressed motorist’s engine stalled on rural roadside in blustery weather, while on vacation with

even an experienced medical doctor or surgeon can’t diagnose the primary cause of a patient’s ailment to prescribe proper treatment without the help of high-tech equipment.

Auto-Tech working life under the vehicle

the family. You approached as AutoPara-medic and fix the engine aliment, and put back family safely on the road to enjoy vacation. Do you know how much blessings and dividend you have added in your accounts, beside money? You served as a “rescue angel” by losing your comfort and giving back comfort to community. But unfortunately most motorist do not appreciate the efforts and dedication of a Auto Technician to our society, and what kind of services Technician provide to public for safety and peace of mind motoring. Just to appreciate beloved ride, motorist should take a glance at people waiting at the transit/bus stop in adverse weather conditions. After all, have motorist ever realised? Who is keeping wheels rolling safe, fast and straight in comfort...that is your auto technician!

Car-dialogists are experts at diagnosing and treating automotive ailments! In fact, in certain respects, an automotive technician and a family doctor have much in common. One notable similarity is in interpreting problems and diagnosing ailments. It’s an enormous challenge for an auto technician to diagnose car trouble with so many new models and new features. There are numerous auto manufacturers and thousands of models are being redesigned every three to five years, with each new generation being more advanced. It can be argued that medical doctors have it easy compared to techs in that they deal with only two models – namely, male and female – and the human body has remained the same since Adam and Eve. Still, sometimes

Let’s compare a computer technician working environment with auto technician. A computer technician can work from home on line in his comfort. However, an auto technician must diagnose car in shop or on road in worst weather condition. He cannot “down load” car on his computer at home and fix by turning wrench, he must work outside in worst conditions or tow car in shop. To maintain this proud possession a technician suffered adverse working co n d i t i o n s , ad d i t i o n al e ng i n e temperature makes even more difficult to work in hot summer. It’s a 10 times more than outside especially when extreme cold or hot outside. During snow and rainy days the under carriage is full of mud with dripping shower, which makes even hard to work under. Noisy muffler sound and toxic exhaust gases also effects health, minor bruises and burning marks on hands are common. The job of a technician is much more than using minds, it also needs strong arm muscles to lift heavy wheels. In short, it is hard to realized working painful life of a technician who is fixing cars while customers are relaxing and waiting in a comfortable lounge.

The feminization of the automotive trade

Male domination with auto trade is going on since debut of automobile and

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Monthly AutoMark Magazine

Exclusive Article - continued

No matter, how motorist slice the situation, the importance of Automotive Technicians should be highly respected by the society. it will remain same forever. However, now more females are taking pride and passion by joining automotive trade from high school level and later they bec ome c er tifie d a utomo tive technicians, same as their male trade partner. I have been visiting local high schools auto shops and found good numbers of girls taking part in fixing cars and they are doing great on field. Our Canadian arm forces have few on their team. This feminization in auto service industry and trade is bringing very positive change, its due to fact that today’s’ the automotive industry is influenced by 68% women when it comes to make decision to buy a new car or budgeting service and some women feel more comfortable to deal with equal gender.

Auto Technician hero of all trades If you study closely between two bumpers of this two ton and twenty feet long big rig most sophisticated machine, you will find countless trades are involved before it ends up on road. An auto technician must also be a master and jack of several trades. These trades are not limited to mechanical, electrical, electronics; computer, plumbing, hydraulic, metallurgy, refrigeration and chemical just name few. A person who can understand all these trade skills, he or she will be master and jack of all trades, he or she will never out of job in the life as auto tech with multi skill has unlimited and untapped opportunities to cash-out in the automotive industry.

Auto tech earns solely by the time spent repairing on vehicle. When the technician goes to work, many costs have been incurred just to get him there to do the job such as own expensive tools worth over $15-25,000. Tech works mostly on flat rate(auto industry shop manual labor rate guide) and is based on how busy shop is; labor is paid to tech by flat rate guide. Tech gets an average 2O-25% of labour rate/hr. of door rate or an average $25 /hrs. to $35/hrs.(Customer pays from

$110.00 to $150.00 per hours at most dealership) the remaining labor dollars goes toward s operati onal cost, organization, competent management and a substantial capital investment just to name few. A highly skilled approved and certified automotive technician or auto body Paint and Collision certified technician can earn up to $100,000 on average per year and can enjoy a decent living in Canada. For more information on how to become a certified automotive technician in Canada, please visit www.collegeoftrades.ca or http://www.collegeoftrades.ca/memb ership/resources/training-standards

Auto-Technician, your safety guardian Let’s study three scenarios: Notably, without automotive technicians, the world would be a more dangerous place. Compare these three scenarios: 1. Twenty people are having a meeting in a room and the air conditioner fails

because the AC technician forgot to tighten the gas seal after a recent repair. 2. Twenty people are enjoying a movie via a home theatre system, but the screen prematurely fades to black due to the audio-video technician neglecting a loose wire when the system was installed. 3. Twenty people are travelling in a bus and the brakes fail, resulting in the bus plunging from a bridge because the auto technician forgot to tighten the brake-bleeder bolt/nipple after repair. The point: how many folks had their safety comprised in the first two scenarios versus scenario number three? A minor mistake by an auto tech can cost lives whereas the mistakes committed by other types of techs might only result in some inconvenience or minor discomfort. Now a million dollar key question, how many people’s safety comprised in the first two scenarios versus scenario number three? Or how many people survived under the bridge. The answer is clear… only lucky people may have survived. Now judge yourself, who is responsible for your safe ride. The reason I put this scenario is to make it clear that automotive technician is more responsible for your safety No matter, how motorist slice the situation, the importance of Automotive Technicians should be highly respected by the society. After all, without the automotive technicians, who would keep the world rolling in a safe and comfortable fashion?

This exclusive article on “Importance of Automotive Technicians” has been written by Mohammad Shahzad S.A.E., D.M.P. , specially for Monthly AutoMark Magazine. (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at shah@brimelltoyota.com or automarkpk@gmail.com

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International Automotive Industry - Update

Monthly AutoMark Magazine

A Suzuki minicar named Hustler? Japan's salacious brand names raise eyebrows

Suzuki Motor Corp had little idea that the name "Hustler" for its new, boxy minicar aimed at outdoorsy Japanese customers might cause mirth among English speakers for its association with an adult magazine - but it's not alone. Plucking words from foreign dictionaries without checking how they might be received by native speakers appears to be a habit at Japanese companies, which have produced countless products with unintentionally unsavoury names. The name Hustler was chosen to conjure the image of agility, as well as invite nostalgi a from cu st omers who remembered an off-road motorbike released in 1969 called the Hustler 250, said a Suzuki public relations officer. Foreign visitors might instead recall the sexually explicit magazine started by po rn magn at e Lar ry F ly n t as competition to Playboy, or associate the word with obtaining money through illegal activities or vice industries. The Hustler follows a string of other Japan-made cars to bemuse speakers of foreign languages, such as Daihatsu Motor Co Ltd's Naked in 2000 and Isuzu Motors Ltd's 1983 Bighorn. Spanish speakers were taken aback by

Mazda Motor C o r p ' s Laputa, a derogatory word for sex worker, while Mitsub ishi Motors Corp sold its Pajero model as the Montero in Spanishspeaking countries as the former is slang for sexual self-pleasure. Japanese confectionery often yields a chuckle from foreign tourists, too. A tubular chocolate snack called Collon and an isotonic sports drink named Pocari Sweat, for example, bear unfortunate associations with bodily functions. While many brand names around the world don't translate across borders the Iranian washing powder Barf, which means snow in Persian, or a Swedish chocolate bar called Plopp, for example - Japanese companies often use foreign

General Motors China names its first Chinese president General Motors China has appointed Matt Tsien as its first Chinese president in a reshuffle aimed at boosting exports of locally produced models while targeting buyers in China and other emerging markets. Tsien, who has been responsible for regional product development since January 2012, will succeed Bob Socia, starting January 2014, according to an announcement published on Nov. 29, marking the first personnel shift since General Motors decided in August to run its Chinese business independently from its international operations. The 53-year-old Tsien and General Motors China chairman Timothy E. Lee will together oversee the company's operations in China, with Tsien reporting directly to General Motors CEO Daniel Akerson...

Electric vehicles may benefit from wireless charging technology Japanese automaker Toyota may be expressing strong interest in hydrogen fuel cells, but the company is also keen to continue its support of battery electric vehicles. The automaker has announced that it has acquired rights for wireless charging technology developed by Witricity. By acquiring the rights to this technology, Toyotaâ&#x20AC;&#x2122;s plug-in electric vehicles, as well as its hybrid vehicles, will be able to adopt wireless charging capabilities, removing the need to plug these vehicles into an outlet.....

words for how they sound, with little regard to their original meaning. This is partly due to foreign words having an exotic ring, much like how Chinese characters are seen by Westerners as poetic or profound choices for tattoos even if the results don't make much sense to native speakers. But Japanese firms often fail to check if a name 'travels' because of historical reasons, marketers say. "Japan really is an island.....

Dongfeng-Honda and Guangzhou-Honda Prepping Low Cost Hybrid for China According to overseas and Chinese press reports Honda are working with their Chinese partner Dongfeng to develop a low cost hybrid model specifically for the Chinese market. Imported hybrid models have failed to take off in the Chinese market, hence Hondaâ&#x20AC;&#x2122;s decision to design fuel saving cars specifically for the Chinese market. Details on the new model are still exceptionally few but the model should launch in 2016. The new model is expected to come in at a key sub 100,000RMB price barrier, with several reports indicating that it maybe even cheaper around the 89,000RMB for the base model. Chinese media expect Guangzhou Honda to use the Honda Fit/Jazz platform to develop the new model, whilst no news has currently been released on any specific DongfengHonda model.

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

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

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

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

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

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

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

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

Retail Price Rs. 725,000/= Rs. 1,600,000/= Rs. 2,500,000/=

Sitara Auto Impex

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

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

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

100cc Motorcycle No. 1. 2. 3. 4. 5.

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

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

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

Product & Model Name

Retail Price Sprinter ECO Euro-II110cc Rs. 86,000/= Raider Euro-II 110cc Rs. 94,000/= GD 110 Euro-II 110cc Rs. 108,000/= GS-150 Euro-11 150cc Rs. 114,500/=

website:www.motorcycleexport.com email: sitara786@hotmail.com Price update: Jan-2014

www.automark.pk | January-2014 | Page 43

Car / Light Vehicle Price List This space available for Advertisement SUZUKI Model Model MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX Petrol Euro II SUZUKI VAN CARGO Euro II APV 1.5L GLX MT (Petrol) APV 1.5L GLX MT (CNG) JIMNY CBU JL SX MT JIMNY CBU JL DX MT

HONDA Price Price Rs. 625,000 Rs. 683,000 Rs. 1,221,000 Rs. 1,302,000 Rs. 1,438,000 Rs. 1,044,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 705,000 Rs. 676,000 Rs. 2,418,000

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

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

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

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

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

Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda

Model Aspire Manual Aspire Prosmatec City Manual 1300cc City Prosmatec 1300cc HYUNDAI Civic VTI Manual 1800cc Civic VTI Manual SR (Oriel) Civic VTI Prosmatec 1800cc Civic VTI Prosmatec SR (Oriel) CR-Z Sports Hybird Manual CR-Z Sports Hybird Automatic

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

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

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

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

Rs. 900,000

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

Hilux Pickup 4x sc Model

Dual AC - Power Steering+ Power Window

Rs. 938,000

Sokon - Cargo Van 1050cc DFSK

Rs. 840,000

Tractor Euro Ford 85 HP Rs. 977,000 Tractor Euro Ford 60 HP Rs. 740,000 Tractor Euro Ford 50 HP Rs. 685,000 Price List - Ex Factory (Hyderabad)

Rs. 1,779,000

Hilux Pickup 4x4 D/C

Rs. 1,145,000

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

Price

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

DAIHATSU

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

Price Rs. 1,702,000 Rs. 1,844,000 Rs. 1,562,000 Rs. 1,703,000 Rs. 2,065,000 Rs. 2,297,000 Rs. 2,186,000 Rs. 2,418,000 Rs. 3,286,000 Rs. 3,366,000

Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,483,200

LAND ROVER Model

Price

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

STATION WAGON 90 Rs. 3,560,000

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

(N/A)

Price updated Jan- 2014

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