Automark magazine march 2014 by Mustafa Hanif

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

CONTENTS

Monthly AutoMark International Mar-2014 Chinese Motorcycle Sector of Pakistan Auto Industry plays a part to realize the Vision of PM of Pakistan Nawaz Sharif Exclusive Article by M. Yousuf Shaikh

12-13

Pakistan Auto Show – PAPS 2014 Additional GST on auto parts sale withdrawn Post Event Review

EDB’s steps to curb illegal assembly irks APMA Exclusive Article by Ali Hassan

16-18

Dollar phenomenon to impact cars prices in 3-4 months by AM Reporter

Duty relaxation fails to bring imported cars rates down - update

Al-Haj Faw Participated in Pakistan Auto Show-2014

Congratulation Mian Muhammad Nawaz Sharif for to maintains Pak Ruppee to 99 against dollar Expo” & investment conference by M. Yousuf Shaikh

Alternate system on the cards to replace various SROs 19th meeting of AIDC

24-25

Governor Punjab’s Projects of Pure Drinking Water 35 Exclusive Article by Asif Masood Imported Used Cars - A Plague for manufacturing 36-37 Industry - By AM Research Team visit: www.automark.pk

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only. March-2014 edition Volume 07, Issue 3

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

Monthly

AUTOMARK International Congratulations to PM Nawaz Sharif and team

Editor-in-chief Muhammed 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 M. Yousuf Shaikh Ali Hassan M. Owais Khan Asif Masood Advisors Engr. IHT Farooqui GM Plant P.M. Auto Industries Hyderabad

Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad J. Pereira Genera Manager Customer Support Division Al-Haj Faw Motors (Pvt) Ltd. Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi

Syed Mansoor Rizvi Trade and industry stakeholders foresee price Principal Officer M/s. CNH Services (Pvt) Ltd. cut in various imported products as $1 is now equal to Rs1 00 in interbank market as Karachi Mr. Ashfaq Memon Senior Manager Marketing Memon Motors (Pvt) Ltd. Maker of Super Star Motorcycles Hyderabad

AutoMark REGD: MC-1330

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

AutoMark Canada Office Managing Editor: Mohammad Shahzad S.A.E. D.M.P. AutoMark Canada 41 Jordana Drive Markham (Toronto) Canada L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management

compared to Rs105-106 in the last two months. The US currency hit all-time high at Rs112 two months back for a brief period.

It is essential that exchange rate must be stabilised and in the next 20 days the rupee`s increasing strength will significantly impact at the end of the month price buildup. Last month the domestic oil prices were worked out at exchange rate of Rs105. At the end of March, the exchange rate is expected to stabilise lower than the previous month. The import bill of petroleum products will also come down thus putting a major impact on price in the long run, and overall foreign loan repayment will be reduced as US dollar will be bought in less price, he said. Commercial importers usually pass rupee dollar fluctuation in two to three days but retailers do not share the falling wholesale price with the consumers, we urge the government to monitor retail prices and ensure that consumers could avail full benefit of low cost of import due to losing value of the dollar. While appreciation of the rupee will contain inflation, a stronger currency will inevitably make exports less competitive.

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

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 (PCMIC) to help make that happen. this government should amend the new entrant policy to allow manufacturing of new products on concessionary rate of duty to the all existing manufacturers as allowed to new entrant which bring about revolution in Pakistan’s exports. The situation for investing in Pakistan markets is simple and powerful. Pakistan is far behind developed countries like Japan and America and even playing catch up with countries like Thailand, South Korea and China, but they are catching up fast. Imagine a chance to invest right now in the China of 1980 when its wages were at rock bottom levels and it exported in a year what it now does every day. It is clear that year on year in Pakistan there are many more motorcycles than cars on the road, an indicator that Pakistan mo torcycle industry and markets are growing and have great potential to export of Motorcycles to many neighboring countries and African markets. Pakistan Governments always focuses to enhance the traditional exports of Pakistan and never look on the nontraditional export items of Pakistan particularly the Motorcycles and other automotive products. The Thailand, India and China’s major portion of their exports al so are Motorcycles and other automotiv e products and auto industry vas tly contributed in their economy but in Pakistan the role of automobile industry in exports is negligible due to lack of policies and unnecessary hurdles of regulatory bodies on auto industry. Here I would like to mention that India’s automotive industry is one of the most significant and fast growing sectors of the Indian economy, averaging 20% annual growth. The automobile and components industry is a priority sector for the Government of India which projects the market will reach $145 billion by 2016. Youthful populations and the move of workers from rural areas to higher

inc om e job s i n th e c it ies a r e supercharging growth in Pakistan economy. The median age of many of Pakistan is at the demographic sweet spot of 25 years, compared to 35 years in China and South Korea, and 45 years in Germany and Japan. In order to make this happen, the P ak is ta n ’s Ch in ese v ehi c l e 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 (PCMIC) to help make that happen. We feel that Mian Nawaz Sharif government will be an opportunity for the Pak china Motorcycle Industry Council and industry to work together on the long term strategic development of the sector to enhance the exports of Pakistan adding automotive products particularly motorcycles which currently negligible. The Pakistan China Motorcycle Industry Council is suggesting to the government to focus on development of th e motorcycle manufacturing sector of auto industry. Motorcycle Manufacturing; one of the most vital parts of the many economy, is a major source of jobs, contributes to a significant portion of taxes, drives for innovation and is an effective sector to meet many national challenges. The lack of supportive policies shr inks th e motorc yc le man ufacturing sector leavin g th e country with a wide trade deficit as imports outstrips exports. The rising poverty and falling exports can be tackled by paying due attention to th e overtaxed and declining Motorcycle industrial sector which has been ignored since long, leading to economic weakness. The influence, importance and share of Auto sectors of th e eco nomy which are not as beneficial for the economy as automotive manufacturing has been increasing

www.automark.pk | March-2014 | Page 13

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Exclusive Article - continued

Currently the Pakistan motorcycle market, which is dominated by bikes having an engine of 70 cubic centimeters (cc), has started to see a change in consumer preferences. Nowadays, customers prefer motorcycles with an engine of 100cc or above while the bikes with 70cc engines have seen a fall in market share, as the trend suggests which may be good for the few but it has little positive impact. Reforming the tax regime relieving Motorcycle manufacturing sector of the und ue b ur den, p rotecting local Motorcy cle industry fr om unfair competition, barring high custom duties and extremely high custom valuation on import of partial CKD kits of motorcycles from china. PCMIC vision is to revolutioniz e motorcycl e industry by bringing in different types of motorcycles that fulfill the current demand in terms of quality, appearance an d value with in an affor d ab le pr ic e for loc al a nd international buyers. Currentl y the Pakistan motorcycl e market, which is dominated by bikes having an engine of 70 cubic centimeters (cc), has started to see a change in co nsumer preferences. Nowadays, customers prefer motorcycles with an engine of 100cc or above while the bikes with 70cc engines have seen a fall in market share, as the trend suggests. Last year, over 2.1 million motorcycles were produced in the country, of which production of 70cc bikes were the bulk. However, analysis of segment-wise data shows that production of bikes having engines of 100cc and 125cc and above grew 35t% and 25%, respectively, while production of the previously mostpopular 70cc bikes shrunk 15%. Bikes having engines of 70cc still make up 80 % of th e total mar ket sh are. Changes in consumer p reference patterns is not new to the automotive industry as India is an example where the demand for bikes with engines of 100cc and above jumped from 48% in 2005 to 65% in 2012. High economic growth rate raises the standard of living of the population,

A worker on a car assembly line in Changchun, Jilin province Both the association and the China Automobile Dealers Association expect the car market to grow by 5% this year as the government will likely restrict the growth in the industry because too high a growth will bring rising pressure on traffic congestion, also posing problems for city planners and bringing increased pollution, the report said.

which in turn creates more demand for higher-end automobiles.

Eventually, the rising standard of living when per capita income touches $3,000-$4,000 mark will drive consumers to shift from motorcycles to small cars. At that stage, the motorcycle industry will also shift focus from being a necessity market to somewhat luxury or

sports-oriented market. This transformation will start bringing in bigger-engine bikes into the Pakistani market, which will be a good sign not only for the automobile industry but for the economy as a whole. In rich cities such as Karachi, Lahore, Multan and Islamabad, the demand on large-displacement motorcycles has been increasin g by years. There, motorcycle club activities are actively organized. Nevertheless, the supply chain of components for motorcycle modification is inadequate. If this problem is r esolved , motorcycle modification will be a new growth force to the motorcycle market...

www.automark.pk | March-2014 | Page 14

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

PAPS-2014 Post Event - Review

Monthly AutoMark International

Pakistan Auto Show – PAPS 2014 It was certainly the presence of Prime Minister Muhammad Nawaz Sharif that made the three day Pakistan Auto Show 2 014 at Expo Centr e La hore a prestigious and important otherwise everybody knows where our local car assemblers and their vendors stand right now. The industry was, however, after inviting country’s top man highly expecting any words from the Prime Minister over some kind of restriction or ban on used car import and trade with India issue but the Premier did not promise or say any word on these issues. Instead, as per media clippings, he asked the auto show management to follow the Geneva and other models for effective auto shows and maintain the same standards. Pakistan Auto Show 2014 was the 10th annual three-day Pakistan’s largest auto show. As many as 150 international auto mobile manufacturing companies from

a c ros s t h e world. Nawaz Sharif certainly had a dream to see “Made in Pakistan” car but it could not be mate rialized. The industry was expecting something fr om the P r e mi e r o n this issue and even on the delayed new Auto Industry Policy but Nawaz Sharif remained tight lipped on these issues. However, the indsutry took a sigh of relief when the prime minister issued directive to the government officials to immediately sit with the industry officials and chalk out the future policy. “We are hopeful of getting government

support including the national car policy that the prime minister indicated in his speech at the Pakistan Auto Show 2014,” said Paapam Chairman Usman Malik. Malik was confident that the prime minister’s directive to the government officials would brin g some policy changes. “We’re especially looking forward for the national car policy.

Additional GST on auto parts sale withdrawn Within days after Prime Minister Nawaz Sharif`s meeting with the auto industry, the government has decided to withdraw two per cent general sales tax on sale o f a u t o p a r t s t o au t om o b i le manufacturers, and to offer more incentives to the industry in the coming budget. `T he sales m ade by aut o p arts m an u f a c t u r er s t o a u t o m o b il e manufacturers/OEMs were not to be treated as retail sales and it was not the intention of FBR [Federal Board of Revenue] to subject these sales to extra tax,` said Finance Minister Ishaq Dar after holding dialogue with a delegation of Pakistan Association of Automotive Parts Accessories Manufactur ers (PAAPAM) on last week. The finance minister directed the FBR`s chairman to institute a case for removing these anomal ies in the taxa-tion system. He acknowledged that the 2pc extra tax c onst itu ted a ha rd shi p for t he automobile industry and might have the undesired effect of escalation in the prices of the vehicles. Mr Dar said extra tax was imposed to collect sales tax on the value addition

made by the distributors, wholesalers and retailers of auto parts from the auto parts manufacturers as the traders in the downstream supply chain were mostly out of the sales tax net. He agreed that the sal es made by auto parts m an u f a c t u r er s t o a u t o m o b il e manufacturers/OEMs were not to be treated as retail sales. PAAPAM chairman Usman Malik gave a detailed presentation to the finance minister on the current status and future potential of the automobile industry. He said there were 13 vehicles per 1,000 people in Pakistan at present, whereas in Indonesia and Brazil the number of vehicles per 1,000 people was 79 and 259, respectively. T h e financ e mi nister sai d th e g o v e rn me n t a pp re cia te d t he c ontri bution mad e b y the local automobile industry and would soon announce a vibrant national auto policy. The reco mmendations of the auto industry would be considered in the upcoming budget for financial year 201415, he said. Mr. Dar said the economic coordination committee (ECC) of the cabinet had already forme d a sub-committee,

headed by the minister for water and power, to present a report in this regard. He said the government had also presented new moto rcycle policy and had been well received by the industry.

Regarding new auto policy, he directed the Ministry of Industries and Engineering Development Board (EDB) to meet the stakeholders of the automobile industry to resolve outstanding issues as early as possible. He also asked the Ministry of Commerce to separately consult the automobile industry representatives and present a report within one month on issues related to commerce ministry.

www.automark.pk | March-2014 | Page 15

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Ali Hassan

Monthly AutoMark International

EDB’s steps to curb illegal assembly irks APMA In order to circumvent the menace of illegal assembly of vehicles, the matter was placed before the Auto Industry Development Committee (AIDC) for its advice. The Committee unanimously decided that EDB would not revalidate the manufacturing certificates of all those assemblers! EDB has decided not to revalidate the manufacture in certificates of the manufacturers involved in illegal assembly of vehicles in future and all assemblers who have violated the SRO conditions would be served show cause notices to fulfill legal formalities.

Commenting on the EDB’s decision, Chairman Associaiton of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh said that the EDB had sent this letter to almost 40 assemblers of two/three wheelers. He smelled the rat saying “why the EDB has not sent the letter dated February 27, 2014 to the remaining 57 two/three wheeler assemblers.

ngineering Development Board (EDB) is authorized under condition (i) & (iii) of SRO 656(l)/2006 to issue manufacturing certificate and list of importable components to the OEMs intending to operate u nd er the concessionary regime of the aforesaid SRO. It is mandatory for the OEMs, to whom the manufacturing certificates an d list are issued to operate in compliance to the concessionary regime by procuring inputs through direct imports and from the sales tax registered vendors under condition of the SRO. In case the OEMs operate in violation, EDB is authorized not to reval idate or suspend the Manufacturing Certificates and list of importable items under condition (xii) of the SRO. It h as been ob ser ved th at t he assemblers/manufacturers in general, assembling manufacturing 2/3 wheelers, have been violating the conditions of the said SRO and have thus become noncompliant. These OEMs instead of making procurements through direct imports and sales tax registered vendors are purchasing parts from the traders and thereby misusing the concessionary regime & EDB certificate. By engaging themselves in such illegal assembly of vehicles, they are not only causing a loss to the National Exchequer but also

creating uncompetitive environment for the compliant OEMs.

Since TBS came into force from 2006, chairman APMA said his own company Ms. Sitara Auto Impex has received at least 15 certificates in the last eight financial years. This is EDB’s old practices for keeping involved small bike assemblers in cumbersome documentations. In order to circumvent the menace of illegal assembly of vehicles, the matter was placed before the Auto Industry Development Committee (AIDC) for its advice. The Committee unanimously decided that EDB would not revalidate the manufacturing certificates of all those assemblers! manufacturers who remained engaged in illegal assembly of vehicles by procuring parts from local market or through commercial imports thus violating the conditions of SRO. EDB has decided not to revalidate the manufacture in certificate s of the manufacturers involved in il legal assembly of vehicles in future and al l assemblers who hav e vio late d the SRO conditions would be served show cause notices to fulfill legal formalities. Commenting on the above EDB’s decision, Chairman As sociaiton of Pakistan Motorc ycle A ssem blers (APMA) Mohammad Sabir Shaikh said that the EDB had sent this letter to almost 40 assemblers of two/three wheelers. He smelled the rat saying “why the EDB has not sent the letter dated February 27, 2014 to the remaining 57 two/three wheeler assemblers.” In this letter, the EDB had claimed that auto industry development committee

www.automark.pk | March-2014 | Page 16

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Exclusive Article - continued

In case the EDB does not provide certificates and importable list for entire financial year, the assemblers remain in confusion whether they will face serious problems like demurrages at port besides failing to place future orders. (AIDC) has urged the EDB staff to send these letters to the OEMs who do not comply with this system or requirement of the EDB. “Under what authority the AIDC has been issuing instructions to the top three senior officials of the EDB,” he said referring to three officials holding the post of GM Policy, DGM Tariff and Incharge and DGM Tariff and Tech. Sabir said that the main person of the EDB is its CEO who must understand the issues of every stakeh olders including SMEs of bike assemblers and vendors. “Is the CEO EDB aware of the actions and decisions taken by these officials of the EDB with the so-called AIDC,” he said. AIDC is now seven years and seven months old and in its first seven years, a total 16 meetings were held while in the last seven months – three meetings were held. He expressed surprise over the extra efficiency being shown by the EDB officials by frequently calling AIDC meetings since PML-N government took over from July 2013. In the 19th AIDC meeting held on February 18, 2014, some 20 participants attended the meeting in which five belonged to EDB while three were from Atlas Honda and Honda Cars, two from Pak Suzuki Motor Company Limited, two from Indus Motor Company, four vendors of leading assemblers, PAMA’s office secretary Abdul Waheed Khan and one tractor assembler and Chinese heavy vehicle maker.

It was observed that the genuine 31 members of the AIDC did not bother to attend the meeting perhaps they took the meeting as a non-serious issue. As the Budget 2014-2015 announcement is now getting closer the government has already started taking feedback from

assurance to the auto industry of providing every possible help to boost the auto sector which is evident from his visit to PAPS 2014 in Lahore.

the stakeholders. Many leading associations have also started sending pre-budget proposals. However, the announcement of new Auto Industry Policy (AIP) has been lingering on since the new government came into power last year. Th e concerned ministers and departments have been issuing statements assuring au to sector th at AIP wou ld be announced soon but so far nothing has come out. It is fear ed t ha t th e new AIP announcement may be delayed for another two months as the new Budget would be announced in June this year. Decisions to be taken in the new AIP may be made part of the Budget announcement.

Irrespective of delay in AIP, the industries and vendors take a sigh of relief after Prime Minister Nawaz Sharif’s

However, there are many issues which Mohammad Sabir Shaikh thinks needs to be brough t into limelight and addressed especially of smal l bike assemblers as these assemblers hold high hopes from new AIP which will be announced after 15 years. Sabir believes that the government must take all stakeholders on board especially the feedback from small bike makers before unveiling new AIP.

He said APMA would not accept the AIP in case it was not fully allowed to point out its problems and issues. Without APMA’s representation in every meeting of AIDC, the new AIP will definitely be a one-sided policy rather than a comprehensive policy based on inputs of all the stakeholders, chairman APMA said. He praised the government for finally inviting APMA in the AIDC meeting. But he still feels that the vested interest has been active in misguiding the govern ment to keep Ch inese bike as semblers an d their issue on the sideline and announce AIP based on the su gg est ions of big assem bler s. He counted on some of the main problems of bike assembl ers like difficultie s in getting p ro ductio n certificates on time from the EDB, problems from Customs Valuation Department and refund of exported bikes. To save the SME bike industries and resolve its problems, he sought FBR chairman help to look into the matter as one leading bike industry has literally hijacked the government departments by influencing them on policy issues. He said precious revenue is being wasted

www.automark.pk | March-2014 | Page 17

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Exclusive Article - continued

It has been observed that the assemblers/manufacturers in general, assembling manufacturing 2/3 wheelers, have been violating the conditions of the said SRO and have thus become non-compliant. These OEMs instead of making procurements through direct imports and sales tax registered vendors are purchasing parts from the traders and thereby misusing the concessionary regime & EDB certificate. due to the policies created in the past through different SROs [SRO 655/2006, SRO 656/2006 and SRO 693/2006 (List of A-Max). Few large scale assemblers and their vendors are fully utilizing the input output ration certificates (IORC) facility while the small and medium sized units are not allowed. Importable lists approved by the EDB every year is a stereotype system which has been in practice for the last 20 years. First the lists were issued on the basis of deletion programs and in 2005 with the help of Finance Minister Shaukat Aziz, the government started Tariff Based System (TBS). He said that tenure of TBS (from 2006 to 2011) was abolished but currently the same system exists. Under TBS, the industries are operating through three SR Os – 65 6/2006, 655/2006 and 693/2006. Amendments had been made in these three SROs up to December 2013 without taking any input from the small and medium sized assemblers. He sa id t h ese S ROs ar e good oppurtunities for big assemblers and vendors but these are potential threat to the survival of the small and medium units. Sabir said AIDC actually suits three main Japanese assemblers but it is unsuitable for SMEs as well as revenue of the country. “Actually AIDC is playing the role of East India Company thus projecting the interest of big assemblers besides causing revenue crunch,” he said adding that because of this system Customs Valuation Ruling formulas are encouraging informal activities at the border. While urging the government to impose general sales tax (GST) on retail stage, he offered his help to the government in this regard for achieving positive results. “GST at retail stage is the mother of all

taxation issues. Its imposition will boost the revenues,” APMA chief said that m a nu fa ct u r er s, i mp o r ter s a nd smugglers are against the imposition of GST at retail stage. He said the FBR should take over the issues and policy matters like issuance of production certificates, IORCs, importable lists and survey certificates from EDB as there would be no problem for FBR as the Board was handling these issues prior to 2006. As the Finance Minister, Mr Shaukat Aziz transferred these powers to EDB from FBR. Sabir Shaikh said EDB itself accepts that the Board is basically a facilitator to the auto sector. If the Board fails to ensure timely issuance of production certificates and importable list then how can the assemblers smoothly run their units? Failing to get the production certificate and importable list on time, the Excise and Taxation suspends registration of bikes. Assemblers need six months time for import process including placing orders to the Chinese principal, one month time for production and shipment, one and a half month time in arrival of shipment, 15-20 days for clearance from port etc. In case the EDB does not pro vide certificates and importable list for entire financial year, the assemblers remain in

confusion whether they will face serious probl ems like demurrages at port besides failing to place future orders. Since TBS came into force from 2006, chairman APMA said his own company Ms Sitara Auto Impex has received at least 15 certificates in the last eight finan cial years. This is EDB’s old practices for keeping involved small bike a sse m bl er s in c u mb er s om e documentations. EDB has so far not cooperated in clearing refunds of bike exporters from the FBR. The board has al so not been helpful in bringing uniformi ty in higher valuation of importable parts. In his case, per EDB advice, he has also submitted undertaking that he will import parts under SRO 656/2006 but the Board provided the certificate only valid for one and a half month. Due to limited expiry of production certificate and importable list, how my company can import parts as it requires five to six months time. He said his company is ready to go with EDB system but h e needs EDB’s cooperation like issuing full one year production certificate and importable list. Due to non issuance of certificate and importable list I failed to perform as per EDB requirement in 2013-2014. After June 30, 2014, the Board will again seek my records and blame me for violating the rules. Sabir said he was also blamed by the EDB for not performing as p er parameters of the EDB during 20122013 despite the fact that he has paid 50 per cent customs duty on importable parts. “I am ready to pay CBU rate of duty (58.75 per cent) on my bike production of 2012-2013 but will this policy be applied to all the assemblers who have adopted same procedure like my company,” he said.

www.automark.pk | March-2014 | Page 18

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

by AM Reporter

Dollar phenomenon to impact cars prices in 3-4 months Most of the inventory for production has been purchased already while some purchases are still in high seas. However it is also a fact that one of the OEM has reduced its standard model price by Rs 90,000, recently, offering its customers a low priced variant

Vehicle prices in Pakistan are lower than many regional countries due to heavy localisation but the inflation in local currency, depreciation against foreign curr encies and oth er factors d o pressurize the car makers to increase prices, unwillingly, this was stated by Pr esid ent Paki stan Au tom obi le Manufacturers Assembl ers Dealers Association (PAMADA) Iqbal Shah. Car prices are neither increased nor lowered due to immediate impact of increasing or d ecreas ing foreign exchange, the impact of lowered foreign exchange today will have contribution to vehicle made after 3-4 months, as most of the inventory for production has been purchased already while some purchases are stil l in high seas . However it is also a fact that one of the OEM has reduced its standard model price by Rs 90,000, recently, offering its customers a low priced variant. This particular standard model has received huge response from the consumers. Pamada chief said that the local auto industry is being grilled for not lowering prices of new vehicles when Pakistani rupee has appreciated against dollar

during last few days only. ‘This is highly uncalled for because exchange rate is not the only factor in vehicle prices. The local auto industry has maintained prices during last 12 months despite heavy increases in their input costs, the impact of budge tary measures on vehicles prices is not car manufacturers’ decision,’ he added. ‘Minimal forex impact was passed on to consumers during the year, whereas remaining was absorbed and efforts were made by the local industry to reduce costs,’ he said, adding that on the other hand, the prices of used imported vehicles have gone north d u r i n g th e s am e p er i o d a nd unscrupulous trader mafia will surely not reduce their prices whereas they had not added any value locally and the cars imported had only one input and that is precious foreign exchange. Whereas the used cars imported last year with foreign exchange even lower than today are being sold at exorbitant prices without any contribution to the economy. While mentioning increase in the input costs of local car makers, he said that as per marketing principles every OEM strives to keep the prices on lowest possible edge but the fact remains that during last one year minimum wage has gone up by 25% (from Rs 8,000 to Rs 10,000); electricity per unit cost raised up by 30%; gas per unit cost is up by 16%; fuel prices are up by 8%; and security related costs are up as well due to uncertain law and order situation. Irony is, the industry which contributes

almost 2% to GDP is grilled over false argument and by those who have no respect of law an d are bent upon promoting illegal activities, conniving for corruption and inflicting huge blow to local documente d industry and hoodwinking the customers. The price of the smallest used imported vehicle in local market now starts from minimum Rs 900,000 to Rs one million whereas local industry provides brand new vehicle at much more competitive price, reasoned president Pamada. ‘The government should take action against these law breakers who are hurting the national economy and local industry as during last 12 months they have sent close to $300 millions through illegal channels to import over 26,000 used vehicles – a huge burden on our eco nomy and currency,’ he added. President Pamada further added that the concerned should raise voice against this trader mafia instead of grilling local auto industry that is contributing heavily tow ar ds nat ional ec onom y and providing employment to millions of people.....

Byco to produce Euro II diesel Byco Oil Pakistan Limited (BOPL) will start producing Euro II standard motor spirit a nd high speed diesel of international standards in coming 12 months. BOPL CEO Derek Alan Lawler said that after the successful start of the first phase, the company is now

preparing for the next stage of the commissioning. `We are now targeting and continue to work on the second phase of the commissioning. This will be to increase the refining schedule of the plant to 90,000 barrels per day and onwards to

120,000 barrels per day,` he said. As a result of the commissioning, the new refinery has starte d to make products on specification. These include the LPG, naphta, motor spirit, high speed diesel and fuel oil.-Staff Reporter

www.automark.pk | March-2014 | Page 19

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

Duty relaxation fails to bring imported cars rates down The industry representatives have asked the government to take action against auto dealers’ mafia for their illegal activities causing damage to the local auto industry on the one hand by importing thousands of used cars illegally and on the other hand hoodwinking innocent customers by selling them old vehicles at exorbitant rates.

The federal government’s 100 per cent duty relaxation failed to bring down the prices of imported hybrid cars, as the rate of used cars, both hybrid as well as non-hybrid, have jumped by over 27 per cent in just one year. According to market sources, despite 100% exemption of all duties and taxes on used hybrid cars of up to 1,200cc, 50% exemption of up to 1800cc and 75% exemption of up to 2,500cc, the prices of 1300cc 3-year old Honda Insight H ybri d h as jum ped b y 27% to Rs1,900,000 from its Jan 2013 rate of around Rs1,500,000. The price of 3year old 1800cc Toyota Prius has increased by 26% from Rs1,900,000 to Rs2,400,000. As compared to the prices of used imported vehicles, the price of locally produced Suzuki Swift DLX increased from Rs1,251,000 in January 2013 to Rs1,282,000 in December 2013, an increase of only 2.5%. Price of Corolla GLI version increased from Rs1,669,000 to Rs1,729,000, an increase of 3.6%, whereas price of Honda City increased b y 3.5 %, fr om R s1,4 94 ,0 00 to Rs1,548,000. Similarly, prices of non-hybrid used vehicles also increased significantly, although they continue to enjoy the same highly concessional duty structure. Used

3-year old Toyota Vitz, which was previously available for Rs1,200,000, is now being sold at Rs1,450,000, an increase of 21%. Prices of 3 year old D aih a tsu Mi r a inc r eased fr om Rs800,000 in Jan 2013 to Rs1,000,000 in Dec 2013. The industry representatives have asked the government to take action against auto dealers’ mafia for their illegal activities causing damage to the local auto industry on the one hand by importing thousands of used cars illegally a n d o n t h e o t h e r ha n d hoodwinking innocent customers by selling them old vehicles at exorbitant rates.

The Pakistan Association of Automotive Parts and Accessories Manufacturers chairman, Usman Malik, criticizing the government’s decision of releasing illegally imported 900 cars by just penalizing them with nominal surcharge, said that such decisions have always encouraged used car importers to continue their criminal activities at the cost of domestic industry and national interests.

Usman Malik said that the cash-starved government’s irrational move of allowing this junkyard to be dumped in the country will destroy the industry and if this practice goes on, the importers will never abide by the law, knowing that they can get away by paying nominal surcharges. Senior Vice Chairman Aslam Rayaz said that government is losing $4475 to $7,337 on import of every used car. The duty rates for used cars were fixed in USD through SRO 577/2005 was back in 2005 which are extremely low. Aslam Rayaz said that the duty rates fixed in SRO 577 for up to 800cc cars are $4,400 as compared to duty & taxes on import under normal regime of $ 11,392 . Wit h th e d epr ec iation allowance of 36% duty and taxes on cars up to 800cc under SRO 577 coming to $2,816 as compared to duty & taxes under normal regime of $7,291, a loss of $4,475 is inflicted to the national exchequer on import of every car up to 800cc. Similarly, the government is losing $7,337 on 1000cc, $6420 on 1300cc, $6,879 on 1500cc, and $5,653 on i mport of 1800cc used car.

www.automark.pk | March-2014 | Page 20

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

By Muhammad Yousuf Shaikh Chairman PCMIC

Monthly AutoMark International

Congratulation

Mian Muhammad Nawaz Sharif and Ishaq Dar for to maintains and strengthens Pak Ruppee to 99 against dollar

Congratulations on extraordinary efforts and measures taken by Mr. Ishaq Dar on directio n of Honorable Prime Minister Nawaz Sharif for maintain & strengthen Pak Rupee versus USD. Finance Minister Pakistan, IshaqDar is saving the most economically troubled country of the world in the recent era, virtually at the bank of destruction. The US dollar depreciated against the Pakistani rupee, reaching a 9-month low. The rupee-dollar parity now stands at Rs99.90 in the interbank market, decreasing by Rs1.52 today. The dollar weakened further on Monday dated march 10, 2014, losing within a week 5 per cent of its value against the rupee. It traded at Rs100.90 before closing at Rs101.12 in the inter-bank and at Rs101 in the open market. E xp or t ers , d ol la r h old er s and speculators are panicking over the situation and messages are being sent to the ministry of finance to contain the trend, but currency deal ers say the greenback is likely to fall below Rs100 over the next few days. Both inter-bank and open market were flooded with the dollars with people selling the US currency, which had been yielding them high profit before the current trend started. Buyers were almost absent from the currency market. Inter-bank dealers said the daily market turnover (selling to banks) went beyond $400 million against average earlier inflows of about $300m. “Our market was limited to about $10m which is now $20m per day, meaning even small investors are selling their holdings,” said Malik Bostan, chairman

of the Exchange Companies Association of Pakistan. But currency dealers and experts said th e rup ee h ad been a rtific ially depreciated over the past three years and the dollar almost doubled its value from Rs60 to Rs110. “The dollar will easily come below Rs100. There must not be any effort by the government to stop the current trend because it will ultimately benefit the c ou nt r y,” s ai d M r Bost an . T h e depreciation of the dollar would result in a massive reduction in cost of imports, he added. The trade with Afghanistan will be in dollars from 17th of this month which means Pakistan will receive up to $2 billion per year through this source. Expects to gather $10.1 billion through remittances, auction of 3G licences and outstanding CSF payments. Sentiments have shifted due to positive IMF staff reviews, expectations of significant aid and investment inflows in 2014, and interventions by the State Bank of Pakistan (SBP) through the forward/swap market. An inflow of investment in fiscal year 2013-14 also helped shift market sentiments in fav our of the rupee. According to the SBP, Pakistan received foreign direct investment (FDI) of $523 million in the first seven months of 201314. FDI amounted to $106.9 million in January alone. In addition, the expected receipt of $550 million from the International Monetary Fund (IMF), along with the launch of Eurobonds amounting to $500 million likely next month, has al so led to

positivity in the foreign exchange market. While appreciation of the rupee will contain inflation, a stronger currency will inevitably make expo rts less competitive. “Hence, a widening trade gap will put more pressure on foreign exchange reserves, forcing the SBP to readjust the rupee to equilibrium levels,” Ali had noted....

PCMIC

Muhammad Yousuf Shaikh, An Auto Industry Consu ltant, Motorcycle Industry Expert, Motorcycle Designer, Ch i na Sou r ci ng Exp er t, Ser ia l Entrepreneur and the Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), For to reach him please em ail at pakchina.mic@gmail.com

www.automark.pk | March-2014 | Page 22

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

19th AIDC Meeting by AM Research

Monthly AutoMark International

Alternate system on the cards to replace various SROs Approval of localization plans were also given in respect of M/s. Tayyaba Motors and M/s. Ghandhara DFL, in 18th AIDC meeting, subject to compliance with the conditions of new entrant policy, if required. The issue of contract manufacturing by the new entrants was also highlighted in the previous AIDC meetings wherein it was decided that the issue would be discussed separately in 19th AIDC Meeting. may become a futile exercise. It was agreed by the participants that the subject SR O shal l be discussed at appropriate time. The Agenda Item No.6 was about charging of Customs duty on a part covered under SRO 693(I)/2006, if

The 19th meeting of the Auto Industry Development Committee (AIDC) held on February 18 in Islamabad took various decisions in which one of the them was about updation of SRO 693(I)/2006. Th e i ssu e of r evi sion o f SRO 693(1)/2006 to add automotive parts indigenized especially after introduction of Tariff Based System (TBS) was discussed in the 15th meeting held on 24th October, 2012 and 17th AIDC meeting held in EDB on 10th December 2013. The issue was included in agenda for the 18th AIDC meeting held on 4th February 2014. In view of time constraint due to another meeting at Ministry of Commerce with the auto sector, the agenda item was deferred for discussion in 19th AIDC meeting. The importance of localization was deliberated in the meeting and it was discussed that as the subject SRO was issued for a period of three yeas i.e. till 2009 and at a later stage, the words “thre e years ’ were deleted. It was emphasized by the participants that SRO 693 is helpful for auto industry against roll back of localization. It was highlighted by the participants th at d ifferent SRO’s ar e being deliberate d in FBR with relevant stakeholders and as such it may not be an appropriate time to discuss updation of SRO 693 in the light of FBR’s upcoming decision in which different SROs may be abolished and an alternate system introduced. In that case, the proposals for updating the said SRO

imported with a part or assembly other than SR O 693(I)/2006 but it was deferred for discussion in upcoming AIDC Meeting. Agenda Item No.2 was about New Entrant Policy: Inputs of AIDC. Auto Industry Investment Committee (AIDC), in its 18th meeting, held 4th January, 2014, while discussing the cases of New Entrants, related to local manufacturing of LCVs and HCVs, observed that the conditions in the new entrant policy are not properly implemented that ensure the seriousness of a New Entrant. They advised the house to review the same to facilitate the investors in order to avoid defaults in future. Approval of localization plans were also given in respect of M/s. Tayyaba Motors and M/s. Ghandhara DFL, in 18th AIDC

meeting, subject to compliance with the conditions of new entrant policy, if required . T he issu e of contract manufacturing by the new entrants was also highlighted in the previous AIDC meetings wherein it was decided that the issue would be discussed separately in 19th AIDC Meeting. The house w hile evaluating the conditions under existing Auto Industry Investment Policy (AIIP) emphasized that AIIP is quite comprehensive and was finalized in consultation with all the stakeholders. The same was approved by ECC of the Cabinet which addresses all such quarries, raised during the discussion in the 18th AIDC. The Annexure of AIIP also contains business plan (which is always being circulated to all members while placing initial request of the new entrants before AIDC) and all other information related to the status of the firm, its principal, export references, local production, etc.

In order to ensure enhanced localization, the participants agreed upon following points. a) EDB to verify names of vendors included in the localization plan of new entrants. b) EDB to verify purchase orders issued to vendors by new entrants c) Ne w e n tran ts to s ub mit comprehensive lists (localization plan) d) New entrant may be allowed to select suitable products from the given basket for yearly localization during first three year of operation. e) Achievement of localization according to the given plan to be ensured and

www.automark.pk | March-2014 | Page 24

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

19th AIDC Meeting by AM Research

Monthly AutoMark International

It was decided in 18th AIDC meeting that EDB shall evaluate the reply from FBR within 10 days anda report will be submitted to AIDC for discussion in upcoming meeting i.e. 19th AIDC meeting with regard to M/s Al Haj FAW’s failure to comply with the conditions of the SROs / New Entrant Policy. higher tariffs to be implemented/ recommended immediately in case of default. It was decided that the conditions of existing new entrant policy shall remain in place subject to few updates with regard to achievement of localization plan and the enforcement of penalty clauses. It was decided that existing conditions under new entrant policy shall remain in place and no change is required in the policy, howover, achievement of localization plan and enforcement of penalty clauses shall be ensured effectively in their tru e spirits. The Agenda Item No.3 was about new entrant as assembler/manufacture of mini van/mini truck/pick-up/single cabin engine 2,200cc by Ms New Allied Motors (pvt) Limited. T h e lo ca li za t ion p l an f or t h e manufacture of mini van and mini truck/ truck-up was submitted by M/s New Allied Motors and was discussed by AIDC n its 18th meeting held on January 04, 2014. The participants, in 18th AIDC meeting, had suggested slight amendments in the localization plan and it was decided that approval of localization plan shall be considered in the upcoming AID meeting. DGM (T) EDB updated that the comp any h as sub mitted revised localization plan and has completed the requirements by carrying out necessary amendments in the localization plan. The chair advised EDB to critically review the localization plan in order to add the missing parts, if any. The approval was granted to M/s Allied Motors as a new entrant/assembler. The meeting decided that localization plan for the manufacture of mini van and mini truck/pick-up submitted by M/s. New Allied Motors was approved subject to incorporation of missing parts as pointed out by PAMA or any other, if required. EDB shall appraise with the compliance in next AIDC meeting. Approval of minutes of 17th and 18th AIDC meeting was discussed as Agenda

Item No.1. The approval of minutes of 17th and 18th AIDC meeting was solicited from the participants in the said meeting. With regard to minutes of 17th AIDC meeting, the participants did not have any observation whereas PAMA highlighted that the comments on the minutes of 18th AIDC meeting have been forwarded to EDB. It was decided by the chair that EDB would send a response to PAMA with regard to the querie s in the said letter. The meeting, however, approved minutes of 17th and 18th meetings of AIDC. However, EDB would send a response to PAMA with regard to observations h ighligh ted by th e assocaition on the minutes of 18th AIDC meeting. Evaluation of FBR’s report submitted to AIDC in case of M/s. Al Hal FAW Motors (Pvt) Ltd. Was the third Agenda Item No.4.

wh ich were to be localized w ere imported by M/s. Al Haj FAW Motors during 1st July 2013 to 31st Dec 2013 and no additional duty was paid. The house evaluated the options available in follow ing c ondi tion of SRO 1098(1)/2011. (ii) The continued non-levy of said additio nal customs-duty sh al l be contingent upon the achie vement of progressive annual indigenization as determined by AIDC of the EDB. In case of any material deviation by the new entrant, the AIDC shall determine the stoppage or withdrawal of the incent ive of non-levy of said additional customs-duty, allowed as such, retrospectively.

The committee deliberated upon prevailing market conditions and the green field investment by Al-Haj FAW Motors. In view of the options available in afore-said condition of SRO, AIDC members were of the view that additional duty on the parts which were to be localized according to localization plan but imported at concessionary rate during specified period should be collected from the company, retrospectively. For addressal of grievances, if any. M/s Al-Ha] FAW may like to approach the appropriate forum. EDB may communicate the decision of AIDC to FBR. The meeting decided that EDB would convey the decision of AIDC to FBR with regard to retrospective collection of a d di ti ona l du t y on t h e p a rt s, components, sub-components, subcomponents, assemblies, sub-assemblies etc importe d by the company on concessionary rate in contravention to the localization plan submitted by them to AIDC.

www.automark.pk | March-2014 | Page 25

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Bilateral Trade - Update

Industry wary as government prepares to give market access to India Talking about the stance of the auto industry on trade with India, Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Usman Malik said the dynamics and economies of scale in both the countries were quite different. At a time when dialogue with India to boost trade ties is one of the top priorities of the government, the industries have once again strongly objected to opening the country’s market for Indian companies, as Islamabad gears up to grant non-discriminatory market access (ND MA) to Delhi. Following the Indian Show in Lahore starting February 14, the government may offer NDMA to India, a more open status than the Most Favoured Nation (MFN) status. “In a recent meeting with leading businessmen of the country, Commerce Min ister Khurram Dastgir shared privately that they have decided to accord NDMA status to India without demanding reciprocal facility from the Indian side,” said a source present in the meeting. “This announcement will be made when a high-powered delegation of Indian diplomats, politicians and businessmen visits Lahore next week.” The pharmaceutical industry is one of those at the forefront in raising voice against the opening of Pakistan market. The MFN or NDMA status may bode well for other industries, but for the ph armaceutical sector it will be disastrous on many counts, it says. The industry be lieves th at it wil l completely nullify the heavy investment and technology transfer that have taken place so far, destroy the employment base of four million people, pave the w ay for foreign p har maceutic al companies operating in the country to shift their plants to India and make the country fully depend ent on th e neighbour. “The onslaught of cheap, substandard In dian dru gs w ill f o rce th e pharmaceutical industry to close down and in the long run Pakistan’s 180 million people will be held hostage to Indian politics and industry, which is known for shutting down the peace

pr ocess,” said Asif Akh ai, Ch ie f Executive of Akhai Pharmaceuticals. Sharing his views on NDMA, Akhai said “the first and foremost issue concerns the quality of Indian drugs. Since we don’t have a vigilan t r egulatory framework, it would be really difficult for us to completely check the quality of Indian drugs. Any spurious products could result in a big mayhem. So we have to have effective and standard regulatory frameworks before even thinking of giving access to Indian companies.” Meanwhile, export of Pakistan’s cement, which has a huge demand in the Indian market, has dropped in the first six months of fiscal year 2013-14 due to the non-tariff barriers (NTBs) imposed by Indian authorities despite all the efforts of the PML-N government to smoothen and enhance bilateral trade, industry sources say. Statistics revealed that cement exports to India stood at 786,672 tons in 200708, which steadily dropped to 482,215 tons in 2012-13. Talking about the stance of the auto industry on trade with India, Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Usman Malik said the dynamics and economies of scale in both the countries were quite different. India manufactures around two million vehicles a year while Pakistan produces just 150,000 vehicles. Furthermore, the law and order situation and scarcity of utilities mean there can’t be a level playing field for the two. Moreover, Pakistan’s auto industry was not prepared for the phase-out of the negative trade list as the government had not carried out administrative and organisational changes in the internal systems to prepare for the Indian challenge, he added. Malik suggested that the authorities should be careful about taking such

decisions and this was definitely not the r ig h t ti me. Ind ia n N TB s w er e unreasonable and unfair and this was the reason Pakistan’s exports were nominal despite being awarded the MFN status years ago, he said.

Indus Motor posts Rs1.35bn earnings in 1HFY14 Indus Motor Company on Wednesday has announced 1HFY14 earnings Rs1.35 billion (EPS Rs17.2) as against Rs978 million (EPS Rs12.4) in the same period last year, up 38 percent YoY. The result is also accompanied by Rs 6.0 per share interim cash dividend, according to the review report of Topline Securities. Improvement in earnings is primarily attributable to 7 percent YoY increase in sales revenue to Rs 26.0 billion, around 2.4 percent volumetric growth and an average 4 percent increase in car prices. In 1HFY14, gross margins of Indus Motor increased by 182bps to 9 percent. “We believe company’s ability to raise car prices higher than the cost pressure and stable Japanese Yen caused margins to surge”, the report stated. During 2QFY14, the company reported EPS of Rs6.0 as compared to Rs11.2 in 1QFY14 (down 46 percent QoQ) and Rs3.7 in 2QFY13 (up 65 percent YoY). The quarter on quarte r de cline is attributed to decline in volumes by 18 percent due to year end phenomenon. However, improvement in earnings on yearly bas is can be attributed to increased sales volumes by 5 percent in addition to price increases and relatively stable costs. “We recommend ‘Hold’ on the scrip with the target price of Rs 373 p er sha re”, Topli ne m entioned.

www.automark.pk | March-2014 | Page 26

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

Pakistan to use nuclear technology for energy needs: Prime Minister Prime Minister Muhammad Nawaz Sharif Tuesday said Pakistan was actively expanding its power production potential by utilising nuclear technology to address country's severe energy crisis. T a l k i n g t o Di r ec t o r G en e r a l International Atomic Energy Agency (IAEA) Yukiyo Amino here at the PM House the Prime Minister said Pakistan Atomic Energy Commission (PAEC) was helping the country to meet its power requirements. He said Pakistan with the help of IAEA was making use of nuclear technology in several areas in cluding power production, medicine, agriculture, food preservation and water management for the benefit of its people. Prime Minister

said Pakistan has very close co-operation with IAEA since 1957, under the `Atoms for Peace' initiative and said the country values this cooperation for peaceful uses of nuclear technology. Nawaz said Pakistan was a committed nuclear non-proliferation state and added "all our current nuclear power plants as well as research reactors are under IAEA safegu ard s and all obl ig at ions ar e be ing fu lfi lled adequately." Prime Minister appreciated the positive role played by the Agency in the development of peaceful use of nuclear technology in Pakistan for human resource development in various scientific disciplines and establishment of R&D facilities at different centres in

the country. He said PAEC has benefited significantly from IAEA' s program on Can cer Therapy and Control in member states. Every year a large number of its scientists and engineers benefit from IAEA sponsored activities and share their knowledge and experience in specific fields while Pakistani experts render valuable services to other IAEA Member States. He said the government of Pakistan values its relationship with IAEA and said this co-operation shall be strengthened in the time ahead. DG I A E A a p p r ec i a t e d P a ki s t a n ' s commitment to use of nuclear energy for benefit of its people and extended his support for the cause...

FPCCI targets China,India as potential markets for trade The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is targeting Chinese and Indian markets to boost trade by participating in their trade fairs and exhibitions FPCCI President Zakaria Usman said that the exploration of non-traditional items and non-traditional markets are essential for the promotion of exports of the country. "The FPCCI is determined to organise the country’s participation in maximum international trade fairs and exhibitions, which are the modern tool to enhance international bilateral economic trade relations," Usman said. He said that China and India are the target markets, which will be explored by participation in their trade fairs and exhibitions. He also said that the FPCCI will also organise an international trade exhibition in Karachi in the last quarter of 2014 for which preparations had alread y been initi ated, it said .

In a recent meeting held with Federal Minister of Commerce Khu rram Dastagir, the FPCCI president had also emphasised on the mobilisation of all resources and liberalising trade and t r a d e p o l i c ie s a n d m a x i m u m participation in the trade fairs and exhibitions. Unveiling the programme of the FPCCI for participation in international fairs, he said that the FPCCI will organise solo exhibitions in India and Canada coupled with a vis it of th e FPCCI trad e delegations to various countries, the statement said. The FPCCI programme includes second China South Asia Exposition 2014 – Ku n m in g , 4 t h Ch in a S i ch u a n Commodity Fair – 2014 – Chengdu, Kashgar International Fair 2014, Euro Asia Commodities Fair- 2014, Urmchi, Commodities Fair 2014, Western China Int’l Fair 2014, Chengdu, 4th China Match Making Forum 2014, Chengdu,

Fiera Del Levante Fair 2014, Bari, Italy and India International Trade Fair 2014, New Delhi, India. Usman said tha t th e FP CCI is endeavouring to help out with the government for the promotion of export of the country. He stressed on the need to export non-traditional items and exploration of non-traditional market. He appre ciated the efforts of th e government and said that the GSP Plus status has shown the government seriousness.Usman said that the FPCCI plans to organise Pakistan Pavilion in international fairs and exhibitions in various countries such as China, India, Canada, Iran, Bangladesh, Mauritius, Italy, etc. Pak is tan pav ilions will showcase traditional and non-traditional products, he said. Besides, the FPCCI also plans to organise Made in Pakistan Show in Canada, India, Iran and Mauritius...

www.automark.pk | March-2014 | Page 31

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Engineering Sector - Press Release

Monthly AutoMark International

CBI Hosts Export Coaching Seminar for Pakistani SMEs THE HAGUE, 10THMarch, 2013. CBI, the Dutch Centre for Promotion Of Exports from Developing Countries today launched , here, a four day seminar EXPRO 101 designed for enhan cing the exporting skil ls of Pakistani Engineering Sector Exporters and al so the capacity building of P akis tan i Bu si ness Su p p ort Organisations who are stakeholders in the drive to enhance Pakistani Exports. With the new government planning an exponential grow th in Pakistanâ&#x20AC;&#x2122;s exports, th e initiative fr om th e Netherlands Ministry of Foreign Affairs is well programmed for achieving its goals. There are seven Pakistani Engineering Sector Companies participating in the present Seminar with 12 participants while there are representatives of three P akis tan i Bu si ness Su p p ort Organ is atio ns, TDAP, PI TAD and SMEDA. The countries represented at the EXPRO are Pakistan, Vietnam, Phillipines, South Africa and Indonesia. The Private Sector SME companies are undergoing a four year CBI Export Coaching Program, during which they are being coached and mentored by CBI Experts to make them stable exporters and lead their companies to export led gr ow th . Th e present group h as undergone local training in Pakistan through CBI Experts and attending Workshops on Market Research, Process Control and other on going training pr ogram s initiated by th e CBI. Du rin g the present Seminar, the EXPRO101 participants shall be led through the process of refining their Export Marketing Plan as well as training on Cultural Se nsitiveness need ed for expor t sales, Bu yer Behaviour, Trade Practices etc. The group will also spend one day at the ESE F Trade Fair at Utrecht, The Netherlands. ESEF is an important European Trade Fair for sub contracting and the visit will prepare the group participants for their entry to European trade Fairs. The BSO D EXPRO101 Program is

designed to steer Pakistan into new directions of Exports, and prepare them for Skills Training and improving skills levels of their staff, for creating effective Sectoral Export Marketing Plans to achieve export-led of the Pakistan economy. The four day Seminar is being conducted at the NH Hotel, atThe Hague, Holland, 10-14 March, 2013, by CBI Experts Dirk Heuff, Imtiaz Rastgar, Zaheeruddin Dar, Jan Elferink, Peter Lichthart Allan Gozon, together with Don Van Luijn,

CBI Country Program Manager for Pakistan. The Secretary TDAP , Mrs. Rabiya Javery Ahgha and Director General Pakistan Institute of Trade & Development (PITAD) Mr. Sajid Hussain are also present on he occasion. CBI works on behal f of the Dutch Ministry of Foreign Affairs, to promote exports from developing countries to Europe. CBI has Export Coaching Programs running in the Engineering and Food Ingredients Sectors of Pakistan...

CBI Experts and Trainers at EXPRO 101. L-R , Zaheeruddin Dar, Luc Govaerts, CorDieleman, Vanessa Millard, Jan Elferink, Imtiaz Rastgar and Dirk Heuff.

www.automark.pk | March-2014 | Page 32

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

Price hikes, weaker yen key to auto industry’s success The automakers have also been accused of taking advance payments from customers and then deliver their cars after 3-6 months. Some analysts also say these advances have helped the companies to reduce their dependence on bank loans and cut their financial costs. Local auto assemblers, 2013 was an eventful year. They saw their profits go sky high, sometimes even when their sales had gone down. And all of them raised their prices multiple times in th e year — even after th e yen’s depreciation. According to Pakistan Auto motive Manufacturers Association data, total passenger car sales in CY13 clocked in at 121,122 units, down a marginal 2.7 per cent from CY12 (excluding sales of Diahatsu Cuore and Suzuki Alto, both of which were discontinued by mid2012). High-end segment: Toyota managed to sell 1,039 units of Fortuner – the SUV it launched in early 2013. And following a big reduction in import duties on imported hybrids in the FY14 budget, Honda came out with its two-door CR-Z in December. Indus Moto rs Company (IMC) brought Toyota Prius to its showrooms from December as well. Yen deprecia tion : The ru pee reversed its downward trend against major currencies in the latter part of last y ea r, b enefi tting th e au to assemblers. “The rupee/yen exchange rate remains in favour of auto assemblers, as the rupee has gained nine per cent against the yen from October 2013 to January 2014. We believe this points towards potential margin expansion, as the [carmakers] continue to pass on other inflationary shocks,” said Syed Atif Zafar, a senior research analyst at JS Global Capital. According to media re ports, each automaker raised its prices three times in CY13. This was followed by yet anoth er i ncrea se th is J anu ary. Capacity utilisation: All car assemblers were utilising less than their installed capacities in the year. Some sector watchers as well as consumer advocates say this is a tactic employed by automakers to restrict supplies and prop

up prices. The automakers have also been accused of takin g advance payments from customers and then deliver their cars after 3-6 months. Some analysts also say these advances have helped the companies to reduce their dependence on bank loans and cut their financial costs. IMC said it kept its plant shut for 53 days across FY13, while Suzuki said it operated at 52 per cent capacity in the January-September 2013 period. Issues: Car assemblers have constantly cited the import of used cars as a serious challenge for them. And while they managed to get the government to reduce the age of imported used vehicles from five to three years, they have yet to acknowledge that their product range is fairly limited, and that imported vehicles actually provide customers with more choices. Profits up: A look at the financials of the companies shows that the overall drop in sales in 2013 failed to dent gross profits and after-tax earnings of two carmakers. The third — IMC — had a breakout FY12, which led to a higher base effect for its performance in FY13. For the nine months ended December, Atlas Honda said it earned its highestever gross profit of Rs1.94 billion, against Rs866.3 million in the same period of the prior year. Its revenues rose by 41.5 per cent YoY to Rs27.6 billion, after it sold 16,468 units in the period. It posted a profitafter-tax of Rs441.3 million in the AprilDecember 2013 period, up significantly from Rs10.45 million last year. Its earnings-per-share (eps) worked out at

Rs3.09, up from Rs0.07. While Honda did not decl are any dividend for the nine-month period, it paid its first-ever payout – of Rs0.25 per share – during the year ended March 30, 2013. Similarly, Pak Suzuki Motor Company posted an after-tax profit of Rs1.53 billion in the nine mo nths ende d September 30, up nearly 30 per cent from the prior year. Its eps came in at Rs18.56. Yet, its revenues actually declined to Rs38.95 billion, from about Rs48 billion. Suzuki said it sold 59,462 units in the period, dow n from 79,393 units (including Alto and Yellow cabs) in 2012. Gross margins improved to 6.3 per cent, from 4.6 per cent. It did not declare any div idend for t he nine m onth s. Meanwhile, Indus Motors recorded a relatively subdued performance in FY13, with sales down 17 per cent YoY to Rs63.8 billion. The company mainly attributed this to the discontinuation of its Cuore model. Its after-tax profit dipped to Rs3.36 billion, from Rs4.3 billion, with eps dropping to Rs42.72. IMC paid a total dividend of Rs25 per share for the year. However, the carmaker witnessed a turnaround in the three months ended September 30, 2013, as sales jumped six per cent YoY to Rs14.3 billion. Aftertax earnings rose by an impressive 27.4 per cent to Rs879.7 million. The carmakers also performed well in the stock market last year. According to KSE data, Atlas Honda’s stock ranged between Rs18.96 (on January 1) and Rs42.04 (on December 31) per share, and hit a high of about Rs55.8. It outperformed the KSE-100 Index’s yearly return of nearly 50 per cent. Suzuki’s stock fluctuate d be tween Rs86.71 and Rs153.89 per share in 2013, up 77.5 per cent. IMC’s stock ranged between Rs264 and Rs333 per share, up 26 per cent over the year. — Ali Raza Mehdi.....

www.automark.pk | March-2014 | Page 33

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

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. 1. 2. 3. 4. 5. 6.

Brand & Model Name Super Star SS-125 Super Star SS-125 DLX Honda CG-125 std Euro II Honda CG-125 DX Ravi Storm 125 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./ Product & No. Model Name 1. Sprinter ECO Euro-II110cc 2. Raider Euro-II 110cc 3. GD 110 Euro-II 110cc 4. GS-150 Euro-11 150cc

Retail Price Rs. 86,000/= Rs. 94,000/= Rs. 108,000/= Rs. 114,500/=

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

www.automark.pk | March-2014 | Page 34

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Asif Masood

Monthly AutoMark International

Natural Resources

Governor Punjab’s Projects of Pure Drinking Water Comprising over 70% of the Earth’s surface, water is undoubtedly the most precious natural resource that exists on our planet. Without the seemingly invaluable compound comprised of hydrogen and oxygen, life on Earth would be non-existent. It is essential for everything on our planet to grow and prosper. Although we as humans recognize this fact, we disregard it by polluting our rivers, lakes, and oceans. Subsequently, we are slowly but surely harming our planet to the point where organisms are dying at a very alarming rate. In addition to innocent organisms dying off, our drinking water has become greatly affected as is our ability to use water for recreational purposes. In order to combat water pollution, we must understand the problems and become part of the solution. Unclean water contaminated chemically or microbiologically, is a health hazard. Many deaths (mostly of children under the ages of five) are caused annually by waterborne diseases such as Cholera, Typhoid fever, Diarrhoea, Dysentery, Hepatitis A and other diarrhoeal diseases. According to reports 80% of all infections are traceable to poor drinking water quality due to which 2.4 billion people suffer, resulting in 5.483 deaths/ day cau sed by d iarrhoeal diseases, including 90% children below 5 years of age. In Pakistan 40-55 million people do not have access to safe drinking water and due to water borne Diarrhea diseases, 630 Children die/day. The estimated cost to Pakistan economy due to Diarrhea disease is estimated at Rs.55-80 billion/yr.

Per capita water availability in Pakistan has been decreasing at an alarming rate. In 1951 per capita availability was 53,000 cubic meter which has now decreased to 12000 cubic meter just touching water scarcity level of 1000 cubic meter (World Bank study). The existing water resources are under threat due to untreated discharge of municipal and industrial wastes to river and other surface water reservoirs. Across the world today over 880 million people still lack access to safe drinking water, and 2.6 billion people lack basic sanitation facilities. While these figures look bleak in many developing countries, in Pakistan much progress has been made under the current government to bring safe drinking water to its citizens, particularly those living in remote and rural areas. Pak Oasis has been at the forefront of this effort. Inadequate access to safe drinking water and limited good hygiene practices pose a serious health and safety threat to Pakistan’s urban & rural population. Pak Oasis's Pakistan Safe Drinking Water and Hygiene Promotion project aimed to improve the health and wellbeing of millions of Pakistani’s without access to safe drinking water. The project worked with the Government of Punjab to: • Design and implement a comprehensive hygiene and sanitation promotion strategy for safe water management and improved hygiene and sanitation practices. • Support local government, nongovernmental organizations, and

communities through capacity building and training. • Provide a comprehensive review of water Asif Masood treatment and water quality testing technologies for use at the community and household levels.

Government of Punjab Initiative of Clean & Safe Drinking Water Similar to millions of other Pakistanis, Darul Shafqat Boys and Girls patronage of Anjuman Hamayat-e-Islam Lahore did not have access to clean drinking water. The Punjab Governor Ch Muhammad Sarwar while inaugurating the water filtration plant commissioned by Pak Oasis Industries Limited under his CSR program has said that within in the next two month one hundred thousand students of the public sector schools in Punjab will be provided with the facility of clean drinkin g water with the collaboration of Pak Oasis Industries (Pvt) Limited. The Governor while speaking at a ceremony at Darul Shafqat for boys and girls said that government will ensure the state of the art water filtration plants having Nano-filtration and Reverse-osmosis technology, will be installed in th e edu cational institutions. These water filtration plants will be capable of filtering 100 percent Arsenic and other heavy metals injurious to human health. Pak Oasis under his CSR Program has

www.automark.pk | March-2014 | Page 35

continued on next page

Automotive Sector - Update

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Car sales up Motorcycle, 9-seater rickshaws flood city roads

The motorcycle rickshaws and nineseater rickshaws are growing at fast pace as people prefer to trav el in these rickshaws instead in overloaded and overcrowded buses, mini-buses and coaches. But despite a mushroom growth of these rickshaws, there is no move from the government to regulate the motorcycle and 9-seater rickshaws. The closure of compressed natural gas (CNG) stations not only created a lot of pr ob lems for th e ci tiz ens a nd multiplying sufferings of commuters, as transporters took off their buses and minibuses due to non-availability CNG, which cost much lower as compare to diesel or petrol. During the closure of CNG stations, people have to rely on these rickshaws as sole mean of public transport. It has been observed that majority of drivers of the rickshaws are underage boys having no driving license, who resort to recklessly driving. In most cases, there is no number plate of the motor cyc le rickshaw s w hile law enforcers do not bother to check the documents of such rickshaws which are a modified form of the two-wheeler ride. According to a rough estimate around

30,000 moto rcycl e rick shaws are operating in the city and their number is growing fast. However, there is no official record of the number of such rickshaws. It is worth mention here that the 9seater rickshaws’ drives have driving license as well as the rickshaws have number plate as well. Th ese motor cycl e and 9 -seater rickshaws are in operation on numerous short and long routes of the city. In Gulshan-e-Iqbal Town alone, there are seven short routes these modified vehicles cover which run between Safari Park to Al Asif Square, Safari Park to Sh ad Bungalows, Jauhar Morr to Samama Centre, Al Asif Square to Mu h am m a d Kh an G ot h , Ni p a Chowrangi to Sohrab Goth and Jauhar Morr to Pehlwan Goth. The three major routes in Gulshan-e-Iqbal Town are Nipa Chowrangi to Saddar, Nipa Chowrangi to Sakhi Hassan and Nipa Ch ow ra ng i to Ka ri m a ba d a nd Liaquatabad. These rickshaws do roaring business at the cost of p oor commu ter s by overloading their vehicle during CNG stations closure, as buses and mini-buses remain off the road.

installed solar powered five water filtration plants at Governor Girls high school, Governor House, Data Durbar, Darul Shafqat for boys and girls and Muslim Hands Haleema School of Excellence Wazirabad. Two more plant will be installed in Ganga Ram hospital and Nazira Pakistan Trust Lahore. During the meeting with principle Darul Shafqat Boys section informed that due to clean drinking water the health complaints have reduced to 30%. The Project Director Mr Ansar of Muslim Hands Haleema School of Excellence

Wazirabad has also clued-up about the improvement of health of the children.

Water Quality Testing The bacterial examination of water samples from all sites was carried out from the PCRWR lab Lahore for testing water quality of unfiltered water and filtered water. PCRWR sampling protocol was followed in collecting all water samples. Water samples were sent to the PCRWR laboratory, with the intervals of a few days in-between each testing in order to check the consistency

Car sales increased by six percent Y-oY in the eight months of FY14 on account of high base effect of January from increased sales due to preference of new cars registration from the start of the New Year, the latest auto sales and production figures released by the Pakistan Automotive Manufacturers Association (PAMA. Cars and LCV sales were down by seven percent on month-on-month (M-o-M) bas is during February, it showed. Segment-wise breakup shows 10001300cc and above segment car sales decreased by an average of 9.5 percent M-o-M, during the period under review and increased by an average of 11.5 percent on year-on-year (Y-o-Y) basis, it showed. The economy segment (below 1000cc) increased by 14 percent M-o-M though it decreased by seven percent Y-o-Y. Pakistan Suzuki Motor Company’s (PSMC) sales were recorded at 6,941 units in February, down by two percent M-o-M with the cumulative sales in the eight months of FY14 remained flat on Y-o-Y basis by two percent. Ind us Moto r Company Limited ’s (INDU) sales fell in February to 2,232 units, which was a 12 percent decline M-o-M. On the cumulative basis in the eight months of FY14, the company registered a sales growth of four percent Y-o-Y. Honda Atlas Cars Limited’s (HCAR) sales also showed a downward trend with 12 percent M-o-M fall in February, while in the eight months of FY14, the company’s sales grew by 18 percent Yo-Y, mainly owing to low base effect of the last year (when customers waited for Civic’s new m od el lau nch). Tractors’ sales during February recorded a massive 218 percent M-o-M growth, mainly on account of seasonal impact due to the start of the kharif season. and reliability of the results. Pak Oasis is Pakistan's largest water engineering company, having designed, built and managing Pakistan's largest network of water treatment plants, using the latest in cutting-edge filtration technologies. It is our reliance on industry-leading membrane technology that has enabled us to grow so rapidly b ec a u s e , u nl i ke c o nv e nt i o na l technologies like rapid sands filtration, our membranes removal ty pes of bacter ia a nd vi rus fr om water .

www.automark.pk | March-2014 | Page 40

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by AM Research

Monthly AutoMark International

Imported Used Cars A Plague for manufacturing Industry-

Paradise for consumer market

or; a Deception? The imported used cars may offer attractive features and commendable international design changes but we can pretty surely assume that within a matter of five years due to international model change we will find our imported used cars starving for parts and hence would have to sacrifice the resale value. So, Be Pakistani, Buy Pakistani slogan prevails.

There was a time when an individual belonging to the lower middle class wanted to have brand new four wheels for his commuting requirements he would inevitably choose Mehran as there were no other alternatives present for him. Considering today’s scenario the very first observation lightening our minds is that a car is out of reach for the man belonging to the lower middle class which is reflected in the gro win g population of two wheelers all along the urban areas demonstrating the fact that the co mmo n man has given up his dreams of affordin g a four wheeler. However, if you belong to the middle class or upper middleclass you must definitely have an ample budget to own a brand new four wheeler. The lowest grade of mostinexpensiv e locally assembl ed car is now avail able at 628,000 pkr, however unlike yesterday the scenario has changed as far as choice is concerned thanks to the imported used cars from Japan. The import of used cars which began a decade ago has now rendere d the consumer market spoilt for choice as countless variants of vehicles namely (passo, vitz, kei, mira, wagon R, every,

probox, airwave, march, Cube, ) from reputed brand name s from Japan (Toyota, Daihatsu, Honda, Suzuki, Mazda, Nissan etc). The initial influx of these used cars was in an era when the car industry was hiking towards its peak and the world was yet to hear about the financial crunch due to the unforeseen oil price surge; so the local manufacturers never paid a heed towards the gradual and relatively minor market influence.

However as the year 2008 concluded the local manufacturin g in dustry crumbled and the used car market for the fir st time stood up as a competitor to the local manufacturing industry. If we observe the trend of the past four years, we would be clearly able to see a constant import rate of about 50000 cars per annum, that corresponds to the fact that the local man ufacturin g industry suffers a major blow. It is a fact that although few of the variants on offer by local brands are obsolete yet offered to local consumers at a jaw dropping price tag; however we have to keep in mind the very fact that the in dustry producin g th e same variant emp loyees thousands of individuals nationwide. The degradation of local industry due the influx of imported used cars is another discussion altogether; however the fact remains the customer willing to pay demand’s variety & that is just what he gets from the imported used car market. There are a few major factors though that I would like to highlight here though. As a nation we have been very very conscious about the “After Sales

www.automark.pk | March-2014 | Page 36

Exclusive Article - continued

Monthly AutoMark International

Talking about the general psychology of our country, we like to raise our generations around our family cars and we donot belong to the kind of 1st world races which like to scrap and crush their vehicles in every 3-5 years. Service” on offer and the “Resale value” once we purchase our vehicles. This very fact has led to the complete elimination of Hyundai, Kia and Adam motors from the market as they could not facilitate the consumer market with the proper after sales service/spares facility so the customers preferred vehicles from their competitors (even if the quality, features and specs of the vehicles were inferior to them) only because of the profuse availability of After Sales facilities also analogous to the stable resale value of these vehicles as well. So, when we consider the case of imported used cars where has the Alarmin g sense disappeared that p r ev ent ed t he consum ers fr om purchasing vehicles with poor aftersales services on offer. Although as with the imported used cars the dealers selling the vehicles may claim that due to t he ab und ance of su ch veh icle va riants on road th e aft er sa les market would establish itself due to the necessity but this is sadly not the case at all. If we remind ourselves of the nascent days when car import began we will remember Toyota Vitz as the most abundantly imported vehicle, but if we observe keenly today, their numbers have significantly reduced now and the older model Vitz that we see on roads don’t seem to be in a very good state either. This is due to the fact that the internationally the models of vehicle change within five years and the older models are scrapped, this means that no supplier/importer can guarantee the supply of parts after the model has been phased out in the international market and we have to remember the fact that the cars we are importing these days are already 3 years old, so when you purchase an imported used car the countdown to the international model phase-out has already begun. Tick tock tick tock! A lthou gh as far as th e case of aftermarket parts is concerned, we are aware that no vehicle running could survive without their availability so what is the lifeline of these imported vehicles

that keeps them running if the importing dealers do not pay a heed to import these parts? As far as the Toyota branded imported used cars are concerned the parts of these vehicles are imported by Indus motors and hence this forms a business activity for IMC as well apart from their usual manufacturing and assembling activities. Talking about the general psychology of our country, we lik e to raise our generations around our family cars and we donot belong to the kind of 1st world races which like to scrap and crush their vehicles in every 3-5 years.

The imported used cars may offer attractive features and commendable international design changes but we can pretty surely assume that within a matter of five years due to international model change we will find our imported used cars starving for parts and hence would have to sacrifice the resale value. So,Be Pakistani, Buy Pakistani slogan prevails.

Considering these facts we have to accept the reality that being a nation not used even used to scrapping our belongings from our everyday use, we definitely do not like scrapping our cars and like to drive them around for very long times indeed.

37ww.automark.pk | March-2014 | Page 37

Subscription Form Monthly Automotive Magazine

www.automark.pk

The Circulation Manager

Please do not pay in any case

Mailing Address cash Active Communications D-68, Block- 9, Clifton Karachi E-mail: automarkpk@gmail.com magazine@automark.pk Mobile: 0321-2203815 Tel/Fax: 021-2218526 Name:

1800 (Valid for Pakistan only)

____________________________________ Job Title: _____________________________

Company: _______________________________________________________________________ Address: ________________________________________________________________________ ____________________________

Sig.,&Co. Stamp: ___________________________________

City: ________________________

Post Code: ________________________________________

Phone:

______________________ E-mail:

Fax: ________________________

Mobile No: _____________________ Date: _____________

I enclose a demand draft or money order (not postal order) drawn on the karachi branch of a bank Rs.________ payable to Active Communications

I enclose a cheque of

Cheque sent from all other stations must include 300 rupees extra as bank charges

ONLINE TRANSFER MCB Bank Ltd., “Active Communications”, A/c No. 1442-1000191, Branch: Gizri, Karachi

February-2014

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 HYUNDAI City Prosmatec 1300cc 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 Price Price XLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,571,500 XLI VVT-i LE 1.3 M/T 1299cc Petrol Rs. 1,586,500 GLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,707,500 GLI VVT-i 1299cc LE Rs. 1,732,500 2.OD STD 2000cc Rs. 1,874,500 ALTIS 1.6L Dual VVT-i M/T Rs. 1,952,500 ALTIS 1.6L Dual VVT-i MT SUNROOF Rs. 2,052,500 ALTIS 1.6L Dual VVT-i AT Rs. 2,052,500 ALTIS 1.6L Dual VVT-i AT SUNROOF Rs. 2,142,500 Toyota Avanza (Up Specfication) Rs. 2,575,000 Hiace Commuter STD 3.0L Diesel Rs. 3,433,000 GASLOLINE Rs. 3,433,500 Hiace Commuter STD 2.7L Coster High Roof 26 Seater F/L Land Cruiser Prado Turbo M/T

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)

Model

Rs. 938,000

Sokon - Cargo Van 1050cc DFSK

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

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

Rs. 1,779,000

Hilux Pickup 4x4 D/C

Rs. 1,145,000

Dual AC - Power Steering+ Power Window

Price

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

DAIHATSU

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

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

Hilux Pickup 4x sc

11 Seater (Dual AC-Power Steering) Rs. 1,134,000 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

Press Release

Crown Group of Companies

Inauguration Ceremony of Peace Hike on Crown Motor Bike held on Governor House, Sindh

21, Feb 2014: The eminent auto spare a cc esso ri es a nd m oto rc yc le manufacturer Crown Motors Company (Pvt.) limited and Sindh Boys Scouts Association has arranged “Peace Hike on Crown Motor Bike” Governor Sindh, Dr.Ishrat ul Ebad Khan has inaugurated the ceremony of Peace Hike at Governor House, Sindh. Prominent personalities from Sindh Boys Scouts association and Dignitaries have attended the ceremony. Peace Hik e on Crown Mo tor Bike traveling will start from Mazar-e-Quaid on 22, Feb 2014 & end on 05, March 2014 at Islamabad. Whil e closing ceremony of Peace Hike will be arranged in Islamabad by Crown Motors Company. Speaking to the occasion, Crown Group CEO Mr. Farhan Hanif said that purpose of sponsoring this peace hike is to give a message of peace to the whole country in this era of distress. As we know in case of any causality scouts are always ready to help the society. Therefore, more and more trained scouts should be present to handle any rescue operation. So, government should take steps to make sure scouts training in

colleges and univ ersities are made mandatory so that youngsters will aware and take part in this nobl e cause. He further said for this hike Crown Group has sponsored 15 motorcycles for 30 scouts and every scout is insured by compan y. With this they will be accompanied by Company mechanics who will be equipped by all necessary tools for unexpected repair and m aintenance of motorcycles, an ambulance will also be there to provide m edic al backu p to control any unfavorable situation. He added to welcome scouts rally our marketing team, Crown Motorcycle Dealers, CRLF Parts Dealers and Local Parts Dealers and prominent political personalities will be present in every city. He also said through this Peace hike we convey the message to international media “We are peace loving nation’’. He wished them good luck for this peace mission. On this occasion, Governor Sindh, Dr.Ishrat ul Ebad Khan appreciated the efforts of Crown Group and Sindh Boys Scouts Association and wished good luck to scouts for spreading peace message throughout country...

Monthly AutoMark International

Crown Group rewarded for Quality Standard Award-2013

27, Feb 2014: For recognize the efforts and hard work to maintain the quality standard in Pakistan, Crown Group (CRLF) rewarded for Quality Standard Award-2013. It has organized by the Consumers Eye Pakistan (TCEP) in collaboration with Pakistan Standards and Quality Control Authority (PSQCA), Ministry of Science and Technology, Government of Pakistan. The ceremony was held on occasion of 44th World Standards Day at Ramada Hotel, Karachi. In ceremony, on behalf of Mr. Farhan Hanif, CEO of Crown Group, Mr. Shabir (DGM-South) received the award. This award is tribute to that quality standard Champions / Heroes of Pakistan that are considered to be the leaders of Quality movement in Pakistan hence setting the example for others to p rom ote Qu ali ty S tand ar d and consumer rights protection in Pakistan. T h i s p r est i gi ou s aw ar d i s a n acknowledgement for Crown Group (CRLF) who maintained the quality standards according to ISO/ PSQCA certification. It developed a relationship of trust among consumers with its quality motorcycles and spare parts due to this reason CRLF become the most p o p u l ar m a n u fa c t u r e r i n t h e consumers...

Crown Group celebrated its grand prize distribution ceremony for its Dynamic Scheme Winners of Karachi 17, Feb 2014: Crown Group (CRLF) celebrated its Dynamic Scheme-2013 prize distribution ceremony for Karachi winners in Pearl Continental Hotel, Karachi. The ceremony was jointly organized by eminent motorcycle and auto parts manufacturer Crown Group

and local english newspaper, Pakistan State Times. Along with the winners, whole CRLF family, Dignitaries and media persons from electronic and print were also present to attend this grand ceremony.

www.automark.pk | March-2014 | Page 41

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Exhibitors at Glance

Monthly AutoMark International

PAKISTAN AUTO SHOW 2014 6-7-8 March 2014 Lahore International Expo Centre

www.automark.pk | March-2014 | Page 42

Automotive Industry - Update

Grand science exhibition at PYF

THE grand science and technology exhibition has been held at the Expo Centre under the aegis of Ministry of Science and Technology in connection with the Punjab Youth Festival 2014. Several government and private educational institutions, including National University of Science and Technology, Pakistan Engineering Council, PCTS, National University of Oceanography, Pakistan National Accreditation Council, CAMB, PSQCA and National Institute of Electronics Islamabad, are taking part in the exhibition. “The popularity of the festival 2014 is increasing day by day and so far the grand event has covered various sectors including prisons and special people of society and now it has extended its domain to the education and art sectors,” said an official of the organising committee. Thousands of students of 47 universities have arranged 75 stalls in the exhibition. Hundreds of students from TEVTA institutions have also shown their keen interest in the exhibition with models of dams, bridges, important national buildings, roads and electronics won special praise from the audience. An eye-catching electronic bicycle made by M Tauseef of Government College of Technology Sialkot attracted a large gathering on the opening day. A special seminar and workshop was also organised in the Hall No 2 to enhance the technical abilities of the youth. The jury will announce the winners on Saturday (today) after examining models and listening to the briefing from contestants. On the sidelines of the exhibition, a large book fair has also being established and a large number of academic, religious, historic and scientific books of hundreds of publishers have been put on display. A digital Quran was also displayed...

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

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.