Automark magazine march 2013

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GIVING PEACE AND TRUST TO PAKISTAN VENDORS BY RELIABLE EXPORTING OF MACHINES, MOULDS, RAW MATERIALS AND COMPONENTS.

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CONTENTS

Monthly AutoMark Worst five years of Pakistani’s bike industry An Exclusive article by Ali Hassan

12-13

CCP’s late exposure of auto industry Who will take action ?

An Exclusive article by M. Owais Khan

14-15

Auto industry optimistic about growth if environment improves

16

Pakistan's Energy & Gas Crisis due to Poor Governance Exclusive Article By Asif Masood

18-19

Indus Motor Company commits $50,000 to INJAZ Pakistan

20

Yamaha to set up plant in Pakistan

21

Local Automoitve news

24-25

China vs India (A report on a new rivalry) Exclusive Article by David McMullan

26

lnternational Automotive news

32-33

Local Assembled/Imported car price

35

What is Your Car Trying to Tell You? It’s all Gear’s Game!

By Mohammad Shahzad from Canada

37-39

EPZA to establish new export processing zone in Faisalabad

40-41

Auto shows in Pakistan do not offer any thing new An Exclusive article by M. Owais Khan

44-45

Motorcycles Price List

46-47

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

AUTOMARK Businesspeople reject Trade Organization Act 2013

Editor M. Hanif Memon Technical Editor Muhammad Shahzad

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE Muhammad Shazad Asif Masood Ali Hassan M. Owais Khan David McMullan

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

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi J. Pereira Senior automotive professional Karachi

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

AutoMark REGD: SC-1330

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

Presidents of All Pakistan Chambers of Commerce and Industries (APPCCI) rejected the Trade Organization Act of 2013, accusing tax officials of colluding with unscrupulous elements in promoting corruption, insisting that it was a hindering revenue generation in a major way and blocking efforts for broadening the tax base.

After the conclusion of the two-day-long conference organised by the coalition of the chambers of commerce, president of Rawalpindi Chamber of Commerce and Ind us tries Manzar Khurshid , informed media persons that the Bhurban Declaration, envisaging steps to kicks t a r t t h e e c o n o m y, ha d b e e n unanimously adopted.

Rejecting the Trade Organization Act of 2013, they said that traders and their representatives should be consulted before making any business-related law.

The move should be reversed and the business community should be taken on board to devise a national trade policy, otherwise traders would not file their tax returns.

The government should restructure State-Owned Enterprises or close down all such government-run entities to avoid huge losses to the national exchequer.

Stressing the need to appoint members on board of directors in accordance with international best practices, he said that private sector representatives should be appointe d without any government interference.

Appreciating draft rules for SOEs issued by t he Sec ur ities and Exchang e Commission of Pakistan (SECP), they would help improve the performance of such government-run entities. There was accompanied by Presidents of 25 chambers of commerce and industries from all over the country, including Karachi, Lahore, Faisalabad, Sialkot, Quetta, KPK and the Fe deration of Chambers of Commerce & Industries.

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Exclusive Article by Ali Hassan

Monthly AutoMark Magazine

Worst five years of Pakistani’s bike industry There is a dire need that the new government must allow reduction in taxes in existing tariff which could encourage assemblers to produce 100cc and above bikes in the country at affordable prices. It will be a level playing for the entire bike industry. started import and assembling with Chinese principals without approval of government of Pakistan. But in 2002, the then finance minister Shaukat Aziz opened the two wheeler market by decreasing the duties and taxes on CBUs and also allowed five companies – Star, Guangta, Super Star, Jinan and Rocket to start local assembly after the approval of deletion programs.

Perhaps the last five years had really been tough for every business sector in view of law and order situation and uncertain economic and political conditions. The bike assemblers also faced turbulence which of course led to pack up of many small bike assembling units while others were trying hard to survive.

The industry especially the Chinese bike assemblers had set their eyes on the new election and smooth transfer of power as they are looking forward for boost in sales in case the government will try to provide the taxation benefits to the local industry.

Monthly AutoMark magazine tries to find out from Chief Coordinator of Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh about the industry’s worst last five years and future hopes from the new democratic government after the elections.

In 1999, in Pakistan only three Japanese players were dominating the market, Honda, Yamaha and Suzuki. In the same period, three Chinese bike assemblers namely Qingqi, Sohrab and Hero dared to start bike production despite strong foot h old of J ap anese p layer s.

By 2001, some motorcycle dealers also

The entire bike industry flourished in the Musharraf era due to low exchange rate, low taxes and duties, full support of government departments and above all sharp difference between Japanese and Chinese bike.

As a result, the bike production which was less 100,000 units a decade back went up to 1.5 million units in 20072008. Consumers highly benefitted from the low price of bikes and due to surging de man d th e to tal bik e un it

manufacturing swelled to around 100 units as compared to only three Japanese assemblers.

After change in government in 2008, Pak Rupee started losing the strength against the various currencies especially the US Dollar, Japanese Yen an d Chinese Yuan. Moreover, purchasing power of people started declining. As a result, the Chinese bike assemblers failed to push up the rates due to intense competition among themselves. Less than 10 assemblers managed to succeed in the stiff competition while around 90 units have been struggling to survive while some had cl osed down their production plants.

The last three months before completion of five years of the current government, some positive news started arriving in the bike industry. After the issuance of new SRO for bike assembly of above 100cc, only 10 per cent customs duty on whole CKD kits is allowed.

According to newspaper reports, Japan’s leading bike manufacturer Yamaha Motors will invest $150 million in auto sector of Pakistan to produce twowheelers in the country. Mr Sumioks, Senior Executive Officer of Yamaha Motors Pakistan (YMPK) said that the company would start production of motorcycles with engine capacity of 100cc an d above from 2015. The company has already submitted the application for registration to Securities

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Monthly AutoMark Magazine Exclusive Article - continued Sabir said that currently the small bike making units are highly perturbed owing to tough completion and dollar appreciation against the rupee while the tax structure is same. As a result the assemblers could not raise the prices to offset high cost of production. and Exchange Commission of Pakistan (SECP) and 18 months after getting approved from the SECP, the company would start its production.

Initially, YMPK will produce 40,000 units which will be gradually increased and after five years the production would reach to 400,000 units per year.

Production will get underway from 25 per cent localization of parts which would hit to 85 per cent in next five years.

He said the in vestment will help boosting economic activity, increasing foreign direct investment, creating job opportunities, developing human resources and broadening the base of parts supplier industry.

Motorcycles would be fuel efficient and they would have new technology with Euro-II & Euro-III compliance which was not yet manufactured in Pakistan.

Annual production of motorcycle is around 1.8 million units but almost all domestic models, so export is negligible.

He said investment by Yamaha in Pakistan would create 45,000 jobs for locals and with the transfer of technology in manufacturing of motorcycles and exclusive training institutes being run by the company, vendor skill capability and capacity would also be developed.

Representatives of Yamaha Japan also visited the proposed 50 acres site for setting up a motorcycle manufacturing plant at Bin Qasim, located in the

southeastern part of Karachi along the Arabian Sea. The Japanese company is also targeting to export bikes to the Middle East, Central Asian and African Markets.

Meanwhile, Chief Coordinator of Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh said as per current trend, the 70cc bikes had become obsolete in many countries including India.

There is a dire need that the new government must allow reduction in taxes in existing tariff which could encourage assemblers to produce 100cc and above bikes in the country at affordable prices. It will be a level playing for the entire bike industry.

“We welcome the new investment made by Yamaha Motor Cycles Pakistan Limited and hopefully the company will provide low priced high engine power bikes to the end users,� he said.

Sabir said that currently the small bike making units are highly perturbed owing to tough comp letion and d ollar appreciation against the rupee while the tax structure is same. As a result the assemblers could not raise the prices to offset h ig h cost of pr od uc tion.

He said that the local industry is eyeing th e new set u p of d emocr at ic government which would provide relief to the struggling industry.

Motorcycle buyers mainly represent low income and medium income group especially in urban areas. In big cities especially in Karachi the snatching and theft of new bikes including Chinese had taken new heights, while the insurance companies had become reluctant in insuring the bik es. In case some com panies insure th e bikes but consumers face hardship of getting claims from the companies, he added.

Due to lack of mass transit project in Karachi and other big cities consumers dependent on two wheeler and around 50 per cent buyers purchase bikes on installment basis.

He hail ed the Metro Bus Project introduced in Lahore recently which would benefit hugely to the general public. He urged the government to introduce similar project or circular railway for Karachi city.

Sabir said that some big assemblers of Chinese and Japanese bikes had introduced Euro II bikes and some are exactly Euro II compliant but few are not completely Euro II or 1.5. He added that consumers had welcomed the Euro II models especially in big cities despite Rs 1,000 increase in Chinese bike and Rs 2,000 in Japanese bike due to new technology.....

Abdul Basit Khan, a young and dynamic automotive leader receiving Excellence Award from Mr. Nisar Khoro at Business Leadership Summit held on 9th Feb, PC Hotel Karachi www.automark.pk | March-2013 | Page 13

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Exclusive Article by Owais Khan

Monthly AutoMark Magazine

CCP’s late exposure of auto industry

Who will take action ?

The late arrival of report may not cause any harm to the entire auto sector who had been maneuvering with the government thus getting the decisions in their favor The entire auto sector got stunned over the recent report of the Competition Commission of Pakistan (CCP) on three car assemblers exposing their poor performance and getting support from the government.

At least somebody dared to grill the powerful lobby of car assemblers but perhaps the arrival timing of research report is not suitable when general elections are round the corner and the interim set up will take control on March 16. As a result the report wil l go unnoticed.

The report should have arrived much earlier so that it could make an impact.

However, based on government and assemblers setting, one cannot expect that if the report would have arrived much earlier the government would ha ve t aken any ac tion aga inst assemblers or announce any decision in favor of buyers.

The government had actually fully supported the local industry in the last five years without ascertaining the impact on its mass level rather than facilitating three assemblers.

The issue of frequent price increase in the last five years remained an issue of least interest and no serious action against assemblers on rising prices of cars was taken. The price hike issue rem ained on pap ers among the concerned m inistries instead of becoming a practical reality.

The late arrival of report may not cause any harm to the entire auto sector who had been m an euvering w ith the government thus getting the decisions in their favor.

Reducing age car limit to three from five years, depreciation limit and recently waiving of NTN number condition on purchase of new vehicles are enough to support and boost the sales of local assemblers of cars ahead of elections.

Last year, the Engineering Development Board (EDB), a strong arm of Ministry

of Industries and Planning Commission (PC) jolted the local industry by giving a true picture of their slow paced developments but later Deputy Prime Minister and Senior Industry Minister Chaudhry Pervaiz Elahi rescued the cartel of car assemblers and announced decisions in assemblers’ favor. Nobody knows about the setting of local industry people with the federal government concerned departments.

Perhaps the report has missed an important point regarding achievement in localization of parts by the assemblers since their inception as while taking the excuse of rising cost of imported parts due to rupee-yen parity, the cars prices were raised.

However, the report is enough to expose assemblers and open eyes of public and supporters of local industry. The new government can take stock of the CCP report and formulate policies keeping in view consumers’ interest rather than leaving the car assemblers to enjoy full freedom especially in raising prices of decades old technology.

While t he assembler s h ad been clamoring over laggard sales, the CCP reports gave a different picture revealing 217 per cent rise in sales between 2001 to 2011. Indus Motors, Pak Suzuki Motors and Honda Atlas have increased their sales by almost 322, 241 and 217 respectively in this time period.

Parallel increase and decrease in prices by manufacturers in the last three years from 2010-12 may be a cause of concern

from a competition perspective. In all the th ree m arket-seg ments, the manufacturers/assemblers have excess installed capacities and by not utilizing their excess capacities, the incumbent firms signal their in ward looking approach towards the domestic industry.

The CCP study also states that Pakistan automobile industry is inward looking and it tries to protect itself through the use of regulatory instruments. Pakistan needs to develop the automobile industry instead of protecting it and in this regard, imports have a disciplinary

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Monthly AutoMark Magazine

Exclusive Article - continued

The CCP study also states that Pakistan automobile industry is inward looking and it tries to protect itself through the use of regulatory instruments. Pakistan needs to develop the automobile industry instead of protecting it and in this regard, imports have a disciplinary impact on domestic firms

impact on domestic firms. Currently, the import of cars is allowed only under the Gift, Personal and Baggage Schemes with restriction on allowable age limits.

The policy for import of cars with an allowable age limit of 5 years remained in practice from December 2010 to Decembe r, 201 2. Th is policy was changed and the allowable age limit was again reduced to 3 years in December, 2012. Furthermore, on 31 August, 2012, the depreciation rules were also changed. If the cumulative effect of both these policy changes is taken into account, a further protection was landed to protect the domestic automobile industry at the expense of consumers.

Due to the absence of regulation, the domestic automobile manufacturers do not offer safety features, such as antilock breaking system (ABS), airbags and lower CO emissions along with quality specifications such as alloy rims, power steering an d win dows in all their vehicles. In addition, Pakistan has an aging automobile population which is an increasing burden to the economy due to increased emission levels and a growing safety hazard. The current dealership/supply chain structure in the industry does not allow for meaningful competition as dealerships are behaving merely as agents of the manufacturing companies and have no real incentive to compete in the market. Due to delay in deliveries, premiums are charged in the secondary markets.

To improve competition, both in the short run and long term, CCP suggests opening up of domestic market to the import of new cars at reasonable tariffs and reducing protection of local industry to allow foreign competition for the benefit of consumers will bring in new technology and offer more choice to the

To improve competition, both in the short run and long term, CCP suggests opening up of domestic market to the import of new cars at reasonable tariffs and reducing protection of local industry to allow foreign competition for the benefit of consumers will bring in new technology and offer more choice to the consumers. consumers. This increased competition will reflect in bette r pricing and improved quality, as well as availability of cars on demand.

The recent reduction of allowable age limit for import of cars from 5 to 3 years in December, 2012 will further protect the domestic automobile industry which is already inward looking. Import of 5 year old vehicles provides a better competitive environment in the local automobile industry; however the idea of increasing the age limit from 3 years to older than 3 years on the import of used cars may be subject to strict road worthiness tests. It is preferable for the import of used cars to be open, rather than allowed under the Gift, Personal and Baggage S chemes tha t add transaction costs. It is also necessary to have stringent evaluation measures to assess the depreciation and actual values of th e u sed imp orted veh icles.

The report said the recent measure of lowering the depreciation allowance needs to be reconsidered as it may reduce consumer welfare by increasing the price of imported used cars.

Dealerships are merely agents of the manufacturing companies and have no real incentive to compete in the market.

It is proposed that strict laws should be implemented that prohibit both parties (man ufacturers and dealers) fro m charging any premiums from the customer. Increased competition would also eliminate the premium problem, as cars will be readil y av ailabl e and customers will not have to wait for 6 months before receiving their car after having paid the full price in advance, CCP report said.

Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Munir K Bana said the CCP report is aimed at promoting used car mafia. If CCP recommendations are implemented it would also result in closure of already traumatized downstream auto parts making industries, rendering jobless over 2 million direct and indirect workers of this sector.

He said the report is one-sided based on biased recommendations and it is not based onthe competition issues arising out of intra-local automobile players. Instead, the report compares locally assembled carswith used cars, which are illegally imported by traders against concessions allowed only for overseas Pakistanis.

He claimed that during 2001 to 2011 rupee depreciation was under control coupled with inflation and local car prices also stayed stable. Auto industry made investment of Rs 40 billion on e xp a ns io n d u ri ng 20 0 4 -2 0 07 .

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Automotive Sector - Update

Auto industry optimistic about growth if environment improves Jamali said the industry wants long-term auto policy with ironclad guarantee that it would not be tinkered for the entire period for which policy is formulated.

He said the import of old cars would have to be completely banned, under-invoicing and smuggling of auto parts should be strictly checked and genuine competition The local auto industry is still optimistic about turnaround if the government promises prudent policies and provides an enabling environme nt that is n ec essa r y i n c a p it a l-i nt en si ve engineering industries. This was stated

by Indus Motor Company Ltd Director Marketing Division Ali Asghar Jamali in a meeting with journalists last month.

Jamali said that consistent, long-term and prudent auto policy will not only help the existing industry to expand but will also attract foreign investment both at original equipment manufacturer (OEM) and vendor industry.

He said that OEMs and many vendors pulled their investment plans in recent past when the import of used cars of up to five years were allowed as nowhere in the world car manufacturing countries allow used cars import because it denies level-playing field and is unfair for the consumer both on quality versus price and after sales service.

He said that models made in Pakistan are equivalent to global quality standard a nd qu ali ty ma de b y pr incip le companies in other countries; however some luxury specs are added depending on regional and country-to-country sp eci fic ati on and r equ i rem ent.

He said th e policymaker s m ust understand that after rapid growth in 2003-06 period the OEMs and the auto part manufacturers enhanced their capacities significantly. “Today the industry is sitting on car production capacity of 300,000 units per year, in fact production crossed level of 250,000 cars in 2007-08 and was well on way to

touch half a million units by 2013 had the government policies and demand during that period been positive,” he added.

Jamali regretted that due to various adverse factors the car production is down to only half of the installed capacity. He said a number of auto part manufacturing units have closed down w hil e two mul tin atio n al car manufacturers have also been forced to wind up.

He said to further localise the auto parts used in locally manufactured cars and to reduce the prices the auto sector needs a consistent long-term po licy that provides the local industry a breathing space and sh elter from unethical competition. These objectives could not be achieved overnight.

However, he was optimistic about the growth, especially after the age-limit of imported used cars has been restricted to three years. “It was a good decision for both the local industry and the government as government was losing a lot of revenue and foreign exchange as market share of locally-made cars was decreasing, which contributes twice as much to the national economy than the used cars,” he added.

He said that the double-digit inflation, devaluation of rupee, increase in power and gas charges, high bank mark-up and other increase in operation cost coupled with low volumes call for increase in car rates instead of going for reduction but the local manufacturers are trying their best to keep the prices as low as possible.

Busting the myth that new car prices in

Pakistan are highest in the region, he said that the factual position is that the prices of the locally manufactured car brands are lower than the prices of similar brands made in region and other countries.

He said that Toyota Corolla basic has RSP (less taxes) of approximately Rs 1.69 million in United Arab Emirates whereas similar Toyota model (XLi) has RSP (less taxes) of Rs 1.01 million when made in Pakistan.

Corolla top’s RSP (less taxes) in UAE is Rs 1.95 million while Corolla Altis (full spec) in Pakistan has RSP (less taxes) of Rs 1.38 million.

Talking about duty structure regional comparison for completely knockeddown (CKD) kits, he said that CKD duty in Pakistan is 32.5 to 50 percent which is highest in the region, as in India it is 10 to 30 percent whereas Thailand has fixed CKD duty of 30 percent while these countries only allow new cars to be imported and that too at up to 90 p er ce nt a nd 5 0 pe rc ent d ut y, respectively.

He said the industry wants long-term auto policy with ironclad guarantee that it would not be tinkered for the entire period for which policy is formulated.

He said the import of old cars would have to be completely banned, underinvoicing and smuggling of auto parts should be strictly checked and genuine competition should be encouraged by luring new entrants under a transparent policy.....

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Exclusive Article by Asif Masood

Monthly AutoMark Magazine

Pakistan's Energy & Gas Crisis due to Poor Governance Recently, Consumer Rights Commission of Pakistan has conducted the policy dialogues in all the provincial capitals and in Islamabad on the “Role of Government and Regulators in the Gas Sector” with Parliamentarians, Civil Society Organization, Academia and Media.

Developing nations do confront energy crisis due to high demand on the back of rapid industrializ ation, growing commercial activities and domestic consumption, hiked by the expanding middle class, which demands a better life. Often, the energy demands out paces its supply in economies, which strive for rapid industrial and economic growth. China understood this in the very beginning that it needs sufficient energy supply to become a global b u s i nes s l ea d e r , t h e C h i ne se immediately went for Gorges HydroPower plants, the world's largest hydro facility. Today China's energy 'growth matches its GDP growth. In fact, China is also the global su ppliers and contactors in the field of power, oil and g as pla nt s and other faciliti es.

India, our next door neighbor, is another example. We are always excited to compare Pakistan with India, the energy sector, comparison appears relevant as once, Pakistan was well ahead of India in energy self-sufficiency. But India is catching up very fast. Indians also u nderstood th at for ach ieving a

competitive and leading position in the global world, it is extreme important to be strong in economically and politically, which the backbone is "self suffi-ciency in energy." Their GDP growth is 7 percent for the last many years and has resulted in rapid energy demand which apt beats the energy availability, hence the energy shortage and crisis. But there are no significant riots because the public sees gradual progress happening and have a hope that soon the crisis will be over. Under a win-win public and p r i v a te p ar t n er s h i p , In d i a i s implementing a well defined plan and strategy to meet the energy demand syste matically. The gov¬ernment understands that the time is run¬ning out energy demand has to be met on a fast track basis and it realizes that alone this cannot be done. Therefore, the Indian government motivated business giants like Tata, Reliance Group and others to invest and manage the energy sector.

Then what went wrong, in Pakistan? We were once far ahead of India in our infrastructure and the foreign investors

praised it. Even in as late as 2006, negotiating with India to sell Surplus power driven out of t h e su c c e s s f u l i nd uc ti on of independent power Asif Masood p ro duce rs an d some public sector hydel projects. PSO, OGDCL, SSGC, SNGPL and other firms were rated as blue chip global companies and as role models. In the subsequent years, Pakistan nosed dived to its lowest, purely on account of incompetence driven by lack of vision, strategy and above all poor governance on account of political influence and considerations. This is the main factor that destroyed our energy sector and standing as a developing nation. Today, Pakistan h as no significant new foreign direct investment in the energy sec tor , w hile the performance of its public sector remains pathetic.

Recently, Consumer Rights Commission of Pakistan has conducted the policy dialogues in all the provincial capitals and in Islamabad on the “Role of Government and Regulators in the Gas Sector” with Parliamentarians, Civil Society Organization, Academia and Media. The aim of these dialogues was to inform the stakeholders about the state of gas governance in Pakistan and generate a me aningful debate for ameliorating the identified areas of concern. During the discussion it reveals that, the major problem in gas crisis is the rise in un-accounted for gas (UFG), which means difference between total volume of gas p urchased by the companies and volume of metered gas supplied to consumers. UFG levels of

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Monthly AutoMark Magazine

Energy Sector - Update

Govt to crack whip on illegal CNG conversions The Islamabad district administration on last week decided to take action ag a inst u na u th or is ed r oad si d e conversion workshops found involved in installation of substandard CNG equipment in vehicles. According to details, the chief commissioner directed th e di st rict ad ministra tion and Islamabad Police to take action against such unauthorised roadside conversion workshops involved in installation of substandard CNG equipment in vehicles to ensure public safety. It was also decided that new fitness certificate/route permits would not be issued to

uncertified commercial CNG vehicles.

Meanwhile, Oil and Gas Regulatory Authority (OGRA) during awareness campaign regarding the safe usage of CNG equipments, directed all the CNG Station owners to strictl y follow refuelling procedures as per Pakistan CNG Production and Marketing Rules, 1992.uring the campaign, OGRA said that only authorised license holders should carry out CNG conversions with approved brand of CNG equipments and fix their own identification marking plate as per Pakistan CNG Rules, 1992.

Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) h av e remained abnormally high of over 10 per cent last fiscal year. International bench mark of UFG for companies is not more than two per cent. Accordin g to OGRA estimates one per cent of UFG of both companies at average price of fiscal year 2011-12 translated to a revenue loss of Rs3.0 billion per year. The OGRA annual report says that in fiscal year 2011-12 the UFG was Rs 32 billion. Massive monetary losses in the form of high UFG losses are recovered by utilities by passing on the impact to consumers.

Effec ti ve enfor cem ent of U FG benchmarks could result in savings for consumers.

A good 75 percent of Pakistan's energy crisis is attributed to poor governance.

If good governance is provided on a sustainable basis, the crisis will be diluted to manageable levels in a short period. The dichotomy of the present crisis at one end poin t to prudent m a c r o e c on o m i c s m a n a g e m e nt me chanis m and remedial an al ysis focu si ng on government p olicy, expe nditure s and tariff is sues for rectification at the other it needs a review th ro ugh the critical lens of good governance focusing on accountability and transparency of the natural gas sector th at failed on th e wh ole.

Transparency and accountability are key to 'good governance’ transparency in itself is expected to empower efforts to change the behavio r of powerful i nst i t u t io ns b y h ol d i ng th em accountable. More broadly, the twin pr incip les of tra nsp ar enc y and

accountability are rudiments for achieving national goals through good governance practices.

The transparency international’s corruption perception index which measures the perceived level of public sector corruption places Pakistan at 139/176 (27/100) for the year 2012.

Pakistan scored -1.103601129 in the control of corruption index, one of the six dimensions of the World wide Governance Indicators, this reflects perceptions to the extent at which public power is exercised for private gain. This includes both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests.

Negligence of these criterions directly impacts the economic life of the nation and its citizens. As a result the effective system of drafting policies, making financial appropriatio ns, holding hearings with stakeholders and experts, and subsequent decisions get influenced,

CNG stations to be closed in phases: Dr Asim Advisor to PM on Petroleum Dr. Asim Hussain has further heightened the anxiety of an already worried people by saying that the CNG filling stations would be closed in phases.

Dr Asim said this while replying to a question asked during the question hour in the Senate session.

Justifying the phased closure of CNG stations, Dr Asim said they gobble up all the gas. Providing gas to the CNG stations was a wrong policy... 75 per cent of the gas production is being supplied to residential consumers, he added.... politicized and staggered. The standing committees get misinformed and the resulting policy directives get maligned.

This dis-functionality also causes a clash with other institutions and policies. This always affects the citizens adversely hence cannot be overlooked under the fundamental rights of the people by Article 184(3). The natural gas crisis creates a serious focus to build the institution of OGRA it requires a team of c o mm i t t ed a nd c om p e te nt professionals with the full backing and the resources of the state to build a fruitful and sustainable public-private partnership.

About writer: Pr ojec t Mana ger ; A sif Ma sood Consu me r Rights Commission of Pakistan (CRCP) House # 13 , S treet # 1, G-6/3 Islamabad Tel: 051-111-739-739

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Monthly AutoMark Magazine

Corporate Sector - Update

Indus Motor Company commits $50,000 to INJAZ Pakistan Indus Motor Company (IMC) has committed USD 50,000 per year for the next three years to INJAZ Pakistan to support youth entrepreneurship training in Pakistan.

The event that was h eld at th e AMANTECH premises in Korangi on last month was attended by CEO IMC Parvez Ghias, CEO Aman Foundation Ahsan Jamil, Executive Director INJAZ Pakistan Azra Maqs ood, Man ager Corporate Planning IMC Atif Ahmed, GM Marketing Aman Foundatio n Su ka yna Sa dik and Progr amm e Manager INJAZ Pakistan Sitvat Jamal.

Ahsan Jamil thanked Parvez Ghias for their generous contribution. Looking forward to more partnerships that involved co mmunity buil ding, h e asserted that sustainable development is a key to positive change which is exhilarated through such alliances.

CEO IMC Parvez Ghias said the idea behind that initiative was to promote self-employment by empowering youth so that they could build their careers towards a better future.

INJAZ Pakistan, an initiative of the Aman Foundation, is a member of Junior Achievement Worldwide and has been established with the objective of fostering, promoting, encouraging and developi ng entr epreneur ial and

vocational skills (EVS) among students between the ages of five and 25 in Pakistan. It works closely and reports pr ogre ss to IN JAZ al A rab (www.injazalarab.org), which ranks amongst the top 50 NGOs of the world.

Toyota Indus has also supported us through volunteers to conduct these programs, plus put us through Habib schools, the Habib Public Schools and the Ghulaman-e-Abbas School, where INJAZ Pakistan has already ‘impacted’

314 high school students so far.

IMC is playin g a vital ro le in the development of the society with its a d va n ce d t e ch ni c al ed u c a ti o n programmes and supporting various training initiatives for young students, generating skilled based manpower for the automobile industry along with career opportunities for diligent citizens.

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Yamaha to set up plant in Pakistan Japanese automobile giant Yamaha will formally announce plans to invest $150 million to establish a state-of-the-art m ot or cy cl e a sse mb li ng a nd manufacturing plant in Pakistan, top officials of the company told media.

“A five-member d elegation from Yamaha is scheduled to meet with F i na n c e M i ni s t e r S a l ee m H .

Mandiviwala to finalise the business plan and the decision will be announced at a press conference in the evening on the same day,” confirmed Board of Investment technical adviser Feroze Shah, who expects the project to be com pl et ed in 18 m onth s tim e.

Yamaha will first invest 1.3 billion yen in the Pakistani plant before increasing the amount to a total of 10 billion yen by 2020 to raise its production capacity to 400,000 units a year.

Ryoichi Sumioka, Senior Executive Officer of Y amah a told a new s conference at the Board of Investment (oI) that the company has already submitted an application for registration to the Secur ities and Exch ange Commission of Pakistan (SECP).

He said th at the state-of the-art m ot or cy cl e a sse mb li ng a nd manufacturing plant will spread over 50 acres at the National Industrial Park in Bin Qasim where Euro-II and EuroIII compliance 100cc and above two wheelers will be manufactured.We will start the production from 25 per cent localization from first day of production and achieve up to 85 per cent in the next five years, Mr Sumioka said. `Ou r sa les and ma nufa ct ur ing subsidiary in Pakistan will be `Yamaha Motor Pakistan Private Limited

(YMPK),` he said adding the company strongly believes that Pakistan as `the Next Eleven` will achie ve further growth.

"Motorcycles sold now in Pakistan are mainly Chinese-made, but they are very old," Yanagi said. "We'd like to stimulate the market by introducing new models."

Yamaha had proposed the establishment of a $ 15 0 m ill io n m ot or cy cl e manufacturing/assembling plant on 50 acres of land at the National Industrial Park in the Bin Qasim industrial area in Karachi in 2009. Company officials say that given the size of the investment, it took a wh ile for th e pr oject to materialize. “But we are glad that we are investing in Pakistan,” said the officials.

The company plans to manufacture motorcycles of Euro-II and Euro-III standards at this new plant, which will be exported. Yamaha estimates annual motorcycle production in Pakistan at 1.8 million.

Yamaha says that the project will result in the creation of 45,000 jobs besides effecting transfer of technology. The company also plans to...

Motorbike exports to Kabul suffering Pakistan`s export of motorcycles and engineering goods has been hit hard owing to computerisation of customs posts at Torkham and Chaman by Afghanistan, according to industry sources.

A senior executive of Honda Atlas told media last month that failure of the Federal Board of Revenue (FBR) to find an alternate to the Afghan Customs Clearance Document known as Gurmik had practically brought export of motorcycles to Afghanistan to a virtual halt.

The exe cutive said the number of motorcycles exported to Afghanistan had come down to just 10 per cent or so of its peak of almost 12,000 units.

The FBR is refusing to refund duty drawback ranging between nine and 13 per cent depending on the engine power of motorcycles exported w ith out production of the carbon copy of the

original receipts issued by the Afghan customs authorities.

As this kind of documentary evidence is impossible to be furnished after computerization of imports at both Torkham and Chaman, we are being penalised, and our refunds stalled,` he said.

He said the issue was on the table since 2007 and total industry duty drawback refunds outstanding against the FBR have piled up to above Rs100 million.

The FBR is reluctant to resolve the issue despite intervention by the commerce ministry through its letter on Feb 13, 2102. `The FBR and the ministry are still exchanging letters without taking steps to resolve the issue,` th e Honda executive said.

He said manufacturers continued to send their motorcycles in big numbers till both the tr ade rou tes w er e

computerised by Kabul and the FBR started registering cases of duty evasion against them.

Nabeel Has hmi of PAPAAM said Afghanistan was a major market for Pakistani motorcycles.

He said over 12,000 motorcycles worth over $61 million were being exported to that country before computerisation at Afghan customs posts. `After modernisation of A fgh an customs, they have also adopted international ly accepted practice .

The industry sources said the FBR had received several representations from various exporters, like Atlas Honda, Syed Engineers and Cool Industries, informing the board that they were now unable to obtain copy of the Afghan Custom s Clear ance Docu ments.

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DYL Motorcycles signs technical agreement with Ehsanullah Afghan Ltd. DYL Motorcycles, Pakistan and Ehsanullah Afghan, Afghanistan sign an agreement to establish a Motorcycle Manufacturing facility in Afghanistan.

The agreement will strengthen the already close cooperation between DYL & EAL, as both are engaged since 2009 in motorcycles sales in Afghanistan. The motorcycle industry in Afghanistan expects a strong growth and new TCA agreement will further enhance the business of M/s.EAL in Afghanistan in providing a affordable and high quality motorcycles in Afghanistan.

The signing ceremony held at DYL head office in Karachi on 15th February 2013 where Mr.Yunus Dawood, the CEO, DYL M otorc yc les and Mr .J alat Khan

Achakzai, the CEO, Ehsanuallah Afghan Ltd inked the agreement.

DYL group is renowned name in the Manu facturing and Marketing of Motorcycles / Lube and Parts. EAL has a strong base of marketing channels in Afghanistan, now after this agreement EAL will also establish strong footing in Manufacturing side as well.

The venture marks a significant mile stone in collaboration between the two companies as it cements an already excellent cooperation between the two partners.

Motorbike exports to Kabul suffering Pakistan`s export of motorcycles and engineering goods has been hit hard owing to computerisation of customs posts at Torkham and Chaman by Afghanistan, according to industry sources.

A senior executive of Honda Atlas media on last month that failure of the Federal Board of Revenue (FBR) to find an alte rnate to the Af ghan Customs Clearance Document known as Gurmik had practical ly brought export of motorcycles to Afghanistan to a virtual halt.

The executiv e said the number of motorcycles exported to Afghanistan had come down to just 10 per cent or so of its peak of almost 12,000 units.

The FBR is refusing to refund duty drawback ranging between nine and 13 per cent depending on the engine power of motorcycles exported without production of the carbon copy of the original receipts issued by the Afghan customs authorities.

As this kind of documentary evidence is impossible to be furnished after computerization of imports at both Torkham and Chaman, we are being penalised, and our refunds stalled,` he said.

He said the issue was on the table since 2007 and total industry duty drawback

refunds outstanding against the FBR have piled up to above Rs100 million.

The FBR is reluctant to resolve the issue despite intervention by the commerce ministry through its letter on Feb 13, 2102. `The FBR and the ministry are still exchanging letters without taking steps to resolve the issue,` the Honda executive said.

He said manufacturers continued to send their motorcycles in big numbers t ill both th e trad e routes were computerised by Kabul and the FBR started registering cases of duty evasion against them.

A customs clearing agent, Sa`ad Mukhtar Siddiqui, said almost all exporters, including fans, refrigerators and several other engineering goods, were facing problems in getting export refunds after computerised clearance of consignments by the Afghan Customs.

He said under the comp ute rised clearance the Af ghan authorities provided Pakistan exporters an attested copy of the clearance, which was not accepted by the FBR for export refunds.

He said earlier exporters were given original copy of the Afghan Customs Clearance Document, popularly known as Gurmik. He said Gurmik was the basis on which export refunds are

CNG import decision shocking: PEW The Pakistan Economy Watch (PEW) on Saturday expressed shock over decision of the Economic Coordination Committee (ECC) to temporary lift ban on the imports of CNG cylinders and kits terming it against the government stance, claims and decisions.

Top government functionaries have been publically blaming that CNG sector has become a burden responsible for all the ills of the energy sector and that the economical fuel will be phased-out to save economy from total co llapse.

However, by allowing conditional import the government has violated its own stance to benefit an influential group in the CNG sector that imported huge quantity of cylinders and kits during ban, said Dr. Murtaza Mughal, President PEW. entertained.Nabeel Hashmi of Pakistan A ssoci ation of Au to Par ts a nd A ccessories Manufac tur er s sai d Afghanistan was a major market for Pakistani motorcycles.

He said over 12,000 motorcycles worth over $61 million were being exported to that country before computerisation at Afghan customs posts.

Another clearing agent, Aftab Vohra, said over 90 per cent of Pakistani exports go through sea and exporters do not require Gurmik-like documents to claim refunds. `The refunds are made once goods are cleared at the destination and export pro-ceeds are received.

Afghanistan was treated separately because of the porous border between the two countries,` he said, adding the government wanted to ensure that goods had been receiv ed in Afghanistan.

He said the same procedure was not adopted for exports to Iran through Taftan and India via Wahga. He said Iranian border was also porous like Afghanistan. He said no other country in the world provided Gurmik like documents to exporters. `A fter moder nisation of Afghan custo ms, they have al so adopted internatio nally acce pte d practice.

The industry sources said the FBR had received several representations from various exporters, like Atlas Honda, Syed Engineers and Cool Industries, informing the board that they were now unable to obtain copy of the Afghan Cu stoms Cleara nc e Doc uments.

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General Tyre makes fresh investment of Rs500 million General Tyres while showing confidence in Pakistan’s market has invested Rs 500 million in m otor cycle tyre production and plant enhancement, which will also create job opportunities in this recessionary period.

Chief Executive General Tyres Shahid Hussain announced this investment on the launching ceremony of motorcycle tyres in a press conference on last month.

“Pakistan is a market of 10 million motorcycle tyres per year with a 17 percent growth rate,” Shahid Hussain, chief executive of the company said.

“This includes approximately seven million tyres required for replacements per year and 3.5 million required by motorcycle manufacturers per year.”

The source of investment is a mix of bank financing and cash generated from its sales operations, an official said on the sidelines of th e confer ence.

He said that the company will consider expanding its manufacturing business next year as well, adding that it invested up to Rs350 million last year for the purpose.

The company is the country’s largest producer of automotive tyres. It has full technological support of Continental AG of Germany, which itself is Germany’s nu mb er one c om p any i n ty re manufacturing and the fourth largest compa ny globa lly. Th e G erman company has a 10 percent shareholding in Gentipak. The company’s share price, however, declined by 78 paisas to Rs32.29 with 124,500 shares traded at the Karachi Stock Exchange on Friday.

“The company has a 24 percent market share in Pakistan’s automotive tyre segment,” said another official of the company Nasir Kamal. He, however, refused to share the company’s expected market share in motorcycle tyre segment for the year. “We will market highquality motorcycle tyres from March, 2013, at a competitive price in seven different designs,” he added.

Meanwhile, Chairman General Tyres Lt Gen Ali Kuli Khan Khattak (retd) while speaking on the occasion said that “had this company not existed, government of Pakistan would have had spent more than $200 million annually on the

import of equivalent number of tyres produced by GT alone. Importers on the other hand would have taken advantage of the situation and would have wreaked further havoc on our country’s fragile economy.”

He further said tyre manufacturing was a very expensive and tedious process and lot of funds were required to continually expand, and due to very unfair competition it became extremely hard for us to expand and at the same time make only a marginal profit of two percent to 2.5 percent.

“Our country is passing through a critical phase as due to deteriorating law and order situation some industrial assets are being pulled out and shifted to other countries. We on the contrary decided to break this trend and have invested a good amount of money in putting up an ultra modern Motorcycle Tyre and Tube Manufacturin g Plant,” he added.

Managing Director Mohammad Shahid Hussain said that recently GT launched CNG rickshaw tyres which had become popular with the drivers. “We are sure that our first cl ass qual ity six-ply motorc yc le tyr es w ill meet the expectations of the motorcycle users.

We have phased this project in two parts.

The first phase will help us get into the big motorcycle replacement market and in the next phase we will approach selected top assembly plants to be one of their reliable suppliers,” he added.

He further said GT had two versions of tyres: One is the standard version and the other is the exotic version. “This exotic version is solely aimed at the youngsters who will go for its stylish tread patterns and quality. We have ensured that grip, style and fuel economy is built into each tyre as our survey revealed that grip was the most important factor motorcyclists care about. Our ty re s have low rolling resistance which means more kilometres per litre, provided of course other parameters have been taken care of,” he added.

Representative of Continental AG Dr W Flamm also spoke on the occasion and said Continental AG had a long-term association with GTR and it would continue to support GTR. He also said Continental was happy that GTR had entered into that field of motorcycle tyre manufacturing.....

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Removal of NTN condition to broaden tax base: auto industry Domestic automobile industry has defended the government’s decision of abolishing the condition of providing national tax number (NTN) for purchase of a new car, saying instead of shrinking, the move will help broaden the tax net.

T h e go ver nment on la st w eek announced that anyone could purchase a new car by only showing his or her computerised national identity card (CNIC). Newly appointe d Finan ce Minister Saleem Mandviwalla took this decision after meeting a delegation of auto assemblers of the country.

“The rationale behind our support to this decision is that now more people can buy new cars,” Director General of Pakistan Automobile Manufacturers Association (PAMA), Abdul Waheed, t old pr ess. “ Th er e wer e ma ny agriculturists and overseas Pakistanis who could not buy new cars because they did not have NTN.” Waheed believes that the logic behind the move is correct. “Since the Federal Board of Revenue (FBR) has started using CNIC as an alternative to NTN, the move will widen the tax base instead of narrowing it,” he said.

Rep lying to a question, Waheed dismissed the perception that this would aggravate the premium problem in car booking process. Rather, he stressed

that this would increase car sales in the country.

However, auto analysts disagree with Waheed’s claim. “The government’s move is contrary to its claim that it is working for documentation of the economy and broadening the tax base,” said Atif Zafar, analyst at brokerage house JS Global Capital. “In principle, this decision is not only wrong but also strange.”

“The darker side is that the government will lose potential taxpayers, who were easy to reach because of the NTN condition,” said Muhammad Sarfraz Abbasi, anal yst at Summit Capital.

However, he pointed out that this was a kind of incentive as more buyers would come forward who were holding their money. Now, they would be free to buy as many cars as they wanted, he added.

Car sales will increase sharply but the percentage increase cannot be calculated right now, said Abbasi.

This is another concession to the car industry, which has already heaved a sigh of relief following the reduction in age of imported used cars from five years to three years. Sales of new cars have started increasing as fewer used cars are now being imported into the country.

Production of buses, tractors go up The production of buses increased by 39.67 percent during the first five months of the current fiscal year as compared to the same period last year, the Pakistan Bureau of Statistics (PBS) revealed.

As m an y a s 2 5 7 b u ses w er e manufactured during July-November (2012-13) against the production of 184 buses in July-November (2011-12), it said.However, during November 2012, the production of buses witnessed a decline of 27 percent by falling from 48 units in November 2011 to 35 buses in the month under review.

The p roduction of tr actors also witnessed a surge of 83.50 percent during July-November (2012-13) as compared to the same period last year.The production of tractors during the first five months of the current fiscal year was recorded at 21,550 units against the production of 11,744 units during the first five months last year, according to the PBS data.

On year-on-year basis, the production of tractors increased by 18.92 percent by going up from 4017 in last November to 4,777 units in November 2011.

The production of trucks, jeeps and cars, ligh t c omm er ci al veh icl es, a nd motorcycles decreased by 15.47 percent, 23.85 percent, 19.20 percent and 0.48 percent, respectively during JulyNovember 2012-13 against the same period last year.

Car sales drop by 27pc Car sales declined by 27 per cent in JulyJanuary 2012-2013 period despite sales recovery in January 2013 good as c om p a r ed t o D ec em be r 20 12 .

A total of 62,158 units were sold in JulyJanuary 2012-2013 as compared to 85,011 units in same period last fiscal, figures released by PakistanAutomotive Manufacturers Association (PAMA) revealed.

However, January 2013 stood at 11,571 units as compared to 7,381 units in December 2012 but it remained below sales figure of 13,125 units achieved in January 2012.

Car assemblers are looking forward for recovery in their sales after June owing to unsold stocks of used carsparked at various showrooms coupled with hope of renewed buying after completion of

general elections and new political government.

The completion of taxi scheme for Punjab government last year also caused a dent in production.The government has already reduced the age limit of used cars import to three from five years in November 2012 which went into effect from December 15, 2012.

Auto vendors had already sparked their anxiety over clearance of five years old cars by the Customs through misdelcaration and manipulation of import documents.

They claimed that such import of used vehicles had eroded the market share of locally produced cars by 2530 per cent in the last two years.

According to PAMA figures, in 1,300cc and above, overall sales fell to 29,974

units from 35,982 units despite increase in Honda cars. Toyota Corolla sales dropped to 15,725 units from 24,885 units, while sales of Honda Civic and Honda City grew to 4,718 and 5,795 units from 2,756 and 4,235 units. Suzuki Liana sales plunged to 112 units from 259 units. A total of 3,624 units of Suzuki Swift were sold as compared to 3,847 units.

In 1,000cc category, Suzuki Cultus sales fell to 7,459 units from 8,225 units.

In 800cc and below 1,000cc, Daihatsu Cuore only 71 units were sold due to suspension in its production in the last seven of the current fiscal year as compared to 2,245 units in same period last fiscal. Suzuki Mehran and Bolan sales decreased to 6,883 and 24,725 units from 19,375 and 10,823 units.

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Pakistan car dealers expect election sales boost Pakistan’s motor dealers are expecting a huge surge in sales this month as political pa rties e quip them se lv es fo r th e upcoming election campaign.

A caretaker setup is scheduled to take over in less than two weeks from Prime M in i s te r R a j a P e r v e z As h r a f ’ s government, which will become the first elected civilian administration in Pakistan to com plete a full-term in office.

The dissolution of parliament will mark the start of campaign season and H M Shahzad, chairman of the All-Pakistan Motor Dealers Association, told AFP his members were looking forward to a boom in business.

“We expect a 100 percent increase in car sales during the election campaign,” Shahzad said.

R enta l vehicles a re ex pe nsiv e so candidates and their supporters are likely to buy new or second-hand cars to travel around the country canvassing for votes, he said.

But Shahzad warned that recent moves to relax rules on buying and importing

cars could have damaging consequences and may see vehicles used as bargaining chips during the election campaign.

The government has done away with the need to submit national tax certificate numbers for purchasing new cars, and Shahzad has written to the chief election commissioner to warn this would make it easier to buy influence at the polls.

“Influential non-tax payers can buy any number of cars to give as bribes to voters, workers and in horse-trading, without coming into the limelight,” he said.

Shahzad a dded that a government amnesty for smuggled vehicles, which will see thousands legalised in the coming weeks, will penalise importers who played by the rules.

“We pay millions of rupees of import duties and taxes to the government, but the amnesty on smuggled vehicles will discourage legal imports and impact g o v e rn m e n t r ev en u e ,” h e s a id.

G o v e rn m e n t o f f ici a ls w e re n o t immediately available for comment.

Toyota 3S dealership opened in DGK Indus Motor Company has announced the opening of its state-of-the-art Toyota 3S (Sales, Service and Spare Pa rts) Dealership in Dera Ghazi Khan, a fast emerging business and commercial hub in Southern Punjab which is populated by a consumer segment with a growing disposable income.

Toyota and Daihatsu vehicles in Dera Ghazi Khan and surrounding areas will now be backed by modern computerized auto servicing and diagnostic equipment pro vid ed a t th e ne w To y ota 3S Dealership.

Chief Executive Officer IMC, Parvez Ghias said on the occasion, “It is our special privilege to serve our customers in this area. We are well aware of the fact that Dera Ghazi Khan has come of age as a progressing commercial centre and we aim to meet the needs of our customers

in this important market by offering them our 3S network - the most advanced in the country. The new facility has been put in place in line with the future needs of a growing economy.”

He said the 3S Dealership in Dera Ghazi Khan is equipped with the most modern diagnostic facilities and offers warrantybacked genuine parts for Toyota and Daihatsu vehicles.

The Chief Executive of Toyota DG Khan Motors, Ma lik Abdul Aziz said he welcomed the arrival of the Toyota 3S Dealership in Dera Ghazi Khan, which is a fast expanding city. He expressed his satisfaction over the fact that customers would now have access to the most modern facilities for their vehicles under one roof and would not have to travel over long distances to benefit from these facilities.—PR

Toyota sales plunge Sales of Toyota brand (CKD and CBU) vehicles plunged by 38 per cent to 14,994 units in first half of 2012-2013 as compared to 24,341 units in the same period last year.

The presence of used cars hit the sales of Indus Motor Company (IMC) besides causing plunge in company`s market share to 25 per cent from 30 per cent in the same period.

Tractor production registered a decline Tractor production registered a decline of over 23 percent in the first seven months of current fiscal year, after the phasing out of the Punjab government’s green tractor scheme, sources said.

How ever, som e imp rovem ent is expected as the Sindh government has also launched a subsidised tractor scheme ahead of the general elections.

According to official figures submitted b y th e tr actor ind ustry, tr actor production declined by 23.82 percent in FY13 against the corresponding period last year. Leading manufacturers made 15,837 tractors in the first seven months of the current fiscal as compared to 20,790 produced in the corresponding period in the previous fiscal.

Tractor prices also increased by between five percent and 11 percent across different categories during the same period. General sales tax (GST) on tractors also increased to 10 percent from the previous discounted rate of 5 percent. However, the industry has continuously been asking to reduce the GST to increase sales.

According to official data, the price of lower category MF-240 increased by 10.91 percent from February 2012 to January 2013. The price of MF-260 increased by 8.06 percent, MF-375 by 4.76 percent, and other models by 4.81 percent to 7.25 percent.

Industry experts said that the decline in production was due to completion of the Punjab government’s green tractor scheme in which it had provided 40,000 tractors to farmers at subsidised rates.

The Punjab government had already committed to continue this scheme if it comes into power again. Experts believe that the production of tractors is likely to rise af ter the announcement of subsidised tractors scheme by the Sindh government. The impact would be less than the Punjab government’s scheme because a smaller number of tractors w ere g iven to S ind h ’s farmers.

According to the Economic Survey of Pakistan 2011-12, production of tractors stood at 64,482 in 2006-07, 62,512 in 2007-08, 63,197 in 2008-09, 83,646 in 2009-10, 72,449 in 2011-11 and 65,000 in 2011-12. The increase in 2009-10 and 2010-11 was due to the green tractor scheme.

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China vs India (A report on a new rivalry)

There are big differences between the Chinese and the Indian motorcycle industry. India has a huge growing domestic motorcycle market which helps to facilitate their push on to the export market whereupon the Chinese government has banned fossil fuel two wheelers in all but a handful of urban centres.

It seems unthinkable now that it was just over a year ago that I reported on the growing in fluence of Chinese motorcycles on markets typical ly dominated by the Japan ese. The devastating earthquake/ tsunami and subsequent rotating power-cuts that followed sever ely dam aged the production capabilities of the Japanese industry; but less that one year on rather than looking to further usurp Japanese market shares the Chinese motorcycle industry is anxiously looking in its rear view mirror- at India!

Indian mo to rcycl e co mpanies are queuing up to compete with the Chinese on many of China’s ‘safe’ markets. With superior design and technology the likes of Hero Moto (the biggest producer of 2-wheelers in the world) and Bajaj (3rd on the same list) are becoming a thorn in the side of the Chinese industry.

There are big differences between the Chinese and the Indian motorcycle industry. India has a huge growing domestic motorcycle market which helps to facilitate their push on to the export market whereupon the Chinese government has banned fossil fuel two wheelers in all but a handful of urban centres. India has 5 major motorcycle manufacturers who tend to compete on quality and style issues compared to the 50+ sizable motorcycle export factories in China vying for a reducing export market by undercutting the opposition leading to decreased profits.

The ambitious Bajaj have collaborated with Kawasaki for 8 years. Kawasaki has not previously looked to enter in to c ol la b or a t io n w it h a Ch in ese manufacturer but has recently joined with them to enter into competition in the world’s 3rd biggest motorcycle market in Indonesia. Bajaj/ Kawasaki had previously enjoyed great success on beginning a campaign in the Philippines effectively ending all hopes of serious Chinese involvement and they are looking to do the same in Indonesia.

American motorcycle designer Terry Linebarger resident in China had

developed new Chinese models for the Indonesian market and commented “The Japanese pr etty much h ad Indonesia sewn up with the Chinese snapping away on the fringes. We got to a stage where our new designs (Terry designed models specifically for Indonesia to some success) were staring to make inroads there but the entry of Bajaj/ Kawasaki is a real spanner in the works as we can no longer justify our slightly inflated bespoke prices. Bajaj/ Kawasaki models are the same price as ou rs and of cou rse include the KAWASAKI name on them.”

Wang Jingyu GM of Keeway Motor (who also own Benelli) reacted to the assertion that Indian brands are also taking over in China’s safe haven of Latin America in the following way “Yes, Indian bikes are very popular in some markets such as Colombia, where they occupy one third of the whole market. Actually the technologies of the Indian brands are not as good as are alleged. Their process for engine iron is inferior for one. One of the characteristics in India is that their domestic and export markets are dominated by just 5 big brands and there is not enough competition between them. In addition to this the competition has reached a certain level which has become a kind of benign competition between the different bran ds and companies through the improvement of design, performance and market requirements whereas most Chinese motorcycle manufacturers choose only to co mpe te in price competition.

Indian brands have developed some very successful markets in cl uding Colombia as I have mentioned and most of their success is down to the employment of top level distributors.

The marketing strategy for these distributors is very important and they have worked out some very persuasive selling points for Indian bikes as well as offering an excellent after-sales service. If the Chinese want to share or stem the Indian success they must also employ these kind of distributors and

effect a policy of designing n ew prod uct s for th e So u th A m er i ca n markets, by this I mean high displacement, high co nfiguration and be autiful design.” David McMullan a recent meeting of the Chongqing Motorcycle Exporters Council Brazilian motorcycle importer stationed in Chongqing remarked “my bosses are always on the look out for new models and it’s my job to source them. I travel to many factories and have been in Chongqing for 2 years but I know that my company is looking at a change in strategy. It now looks very likely that I will be going to have a look in India at opportunities there. The Japanese pretty much dominate Brazil, especi all y Hond a, bu t Ch inese motorcycles were beginning to make inroads in to the market although it’s quite difficult to get the correct COC without strict testing; unless the bike is under 50cc that is. Now I will maybe have to look at India for new models, there are not many factories there and the ones that are operating are huge and would think nothing of the investment necessary for producing a motorcycle model suitable for Brazil.”

Argentinean motorcycle importe r Christian Reyes echoed this opinion.

“There was a time when the poor people bought Chinese motorcycles and the better off people bought Japanese. Now it could be the case that the poorer people might try Indian models. Because there are relatively few Indian factories it’s much easier to arrange and organise the parts supply chain for each model.

We know th at in Colombia this organisation has been done to great affect and I think it’s only a matter of tim e before Indi an m otorc ycle dealerships spring up all over Latin America.”

email: :englishmaninchina@gmail.com

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Major economic targets revised The federal cabinet on last week revised all the major economic and fiscal targets announced in the federal budget for the current fiscal year and approved broad targets for the next fiscal year, showing clear signs of economic difficulties. `The fundamental short-term risk is sustainability of fore ign exchange reserves, which stand at $13 billion as on February 15 (including around $8.1 billion with the State Bank of Pakistan`, said Budget Strategy Paper (BSP) 201316 presented by Finance Minister Saleem H. Mandviwalla to the federal cabinet.

The BSP explained that foreign exchange reserves held by the central bank were estimated to come down to $6.8 billion from $8.1bn at present and further drop to $5.2bn during next fiscal year, which would be enough to cover slight over one month of imports.

The cabinet was informed that `budget deficit for the current is likely to be around 6.5 per cent as against 4.7 per cent of GDP envisaged in the budget` mainly due to Rs188bn shortfall in tax revenue, non-realisation of fee from the auction of 3G telecom licences (Rs79bn), increase in domestic interest liability

Impact of reduction in age limit of imported cars Authorised car dealers charging huge own-money After the reduction in age limit of imported cars from five years to three years, local authorised car dealers, controlled by all car manufacturers in Pakistan, are charging huge own-money from car lovers, which has increased up t o Rs 100 ,0 00 to Rs 250 ,0 00.

The investors throughout the country have once again entered into the new car business with the local car dealers and started getting profit, which had reduced in the last few years as the government had allowed import of used cars up to five years providing car lovers the opportunity to get their favourite cars on cheap prices from private car dealers.

Sources in the auto industry said that authorised dealers of automobile companies and open dealers continue to fleece customers through investors.

“An amount of around Rs 25,000 on the name of premium is being charged by the authorised dealers at the time of booking of the new cars, which is being delivered in four to five months period,” said a representative of All Pakistan Motors Dealers Association (APMDA).

According to him, the premium on popular cars such as Corolla, Honda Civic, Alto and Cultus is being reportedly

demanded by de alers in the local markets.

APMDA Chairman H M Shahzad said th at local assembl ing compan ies continuously show apathy towards this unethical exercise of their dealers by w h i c h c u s t om er s s u ff er fr o m overcharging.

He demanded the government to issue strict instru ctions to automobile companies to curb malpractices in the local market and protect customers from paying extra charges in the name of ownmoney or premium.

The premium on cars has been increased on the upswing demand of local cars as sales season begins on every New Year.

The local automobile manufacturing showed rebound in sales by 53 percent in January on monthly basis on the seasonal demand pickup, according to Pakistan Automotive Manufacturers Association (PAMA) data for January 2013 released on Tuesday.

Industry experts said the negative growth of the locally-made cars will likely contract in the months to come as the government has reversed the policy of used imp orted c ars thr ough restricting age limits from five years to three years.

due to higher fiscal deficit by around Rs100bn, increase in electricity subsidy

by Rs108bn, increase in defence budget

by Rs30 bn a nd p ay i ncr eases.

As a result, the debt-to-GDP ratio was likely to cross the limit of 60 per cent prescribed by Fiscal Responsibility and Debt Limitation Act. The next year allocation for defence expenditure has been set at Rs627bn.

The BSP said the defence budget was expected to touch Rs570bn during current year against abudgetary target of Rs545bn. The amount of subsidies has been estimated at Rs364bn for next year against revised current year expenditure of Rs345bn, instead of budget target of Rs237bn.The public sector development programme for next year has been estimated at Rs450bn, up fr om c ur r ent yea r` s Rs36 0b n.

The government conceded that its target for total revenue collection at Rs2.535 trillion was likely to be missed and hence revised it downward to Rs2.316tr. The next year revenue target has been set at Rs2.833tr.

It said the FBR tax revenue target of Rs2.381tr had been missed and was reduced to Rs2.193tr for the current fiscal year. For next year, the FBR target has been estimated at Rs2. 675tr.

The non-tax revenue target at Rs699bn has been revised downward to Rs639bn and set at Rs689bn for next fiscal year.

As a result of lower revenue receipts, the transfer of revenue to provinces would stand at Rs1.340tr during current year against budget allocation of Rs1.459tr. The next year provincial share has been estimated at Rs1.628tr.

The federal share out of divisible pool has been revised down for the current year to Rs1.614tr against budgetary estimate of Rs1.775tr. Next year, the federal government was expecting total revenue share at Rs1.894tr.

For the next year, the target for fiscal deficit has been set at Rs5.8 per cent of GDP. The economic growth rate for next year has been estimated at 4.5 per cent. The real GDP growth target has been lowered to 4pc of GDP from budgetary estimate of 4.3pc. The target for inflation has been set at 9p c for next year...

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International Automotive Sector - Update

Lifan plans new assembly plant in Ethiopia Lifan Industry Group Co, a Chinese automaker, plans to spend $3.5 million moving into a new vehicle-assembly plant in Ethiopia next year as it seeks to expand in Africa, General Manager Liu Jiang said.

The company’s Ethiopian unit, Yangfan Motors Plc, may begin manufacturing cars in nation and spend as much as $30 million over five years if sales continue to grow, he said in an interview in the capital, Addis Ababa. Lifan is basing its African operations in Ethiopia because of the country’s “good relations” with China, its growing economy, low crime rate and political stability, Liu said on last month...

China’s Dongfeng wants to buy Fisker China’s Donfeng Motor has emerged as a leading suitor for California-based Fisker Automotive, which is currently considering bids from several potential investors. Dongfeng Motor Corp has offered Fisker $350 (€261) million for an 85 percent stake in the company.

Sources have revealed that Dongfeng could move production of the Karma from its current location in Finland to Ch ina if its efforts to acquire a controlling stake in Fisker are successful.

Fisker spokesman Roger Ormisher declined to confirm the report, but acknowledged the firm has “received detailed proposals from multiple parties in different continents, which are now being evaluated by the company and its advisers.”

If completed, the deal could be a major boost for Fisker, which currently owes the U.S. Energy Department roughly $200 million for a green energy loan.

The automaker is also short on funding for the development of its second model, the Atlantic, which is envisioned as a more affordab le, h igh er -volu me companion to the Karma plug-in hybrid.

A Fisker spokesman said the company has “received detailed proposals from multiple parties in different continents.”

Monthly AutoMark Magazine

Chinese automakers need to spend more to become globally competitive Chinese automakers are about a decade away from being globally competitive and will have to increase their spending on research and development to close the gap, according to Sanford C. Bernstein.

Carmakers such as General Motors, Volkswagen and Toyota are outspending Ch inese brands on research and development and lead in engineering, said Max Warburton, an auto analyst at Bernstein, which has a neutral rating on China's auto industry. The Chinese have the will and money to make their auto industry world class, he said.

"The Chinese are 80% of the way there; 20% doesn't sound very hard, but it's probably the most complex bits to get right," Warburton, who is based in Singapore, said last week. "They'll be spending until they make it work and eventually they'll end up with Chinese carmakers on the world stage."

China's brands are losing share in their home market as foreign manufacturers

Honda takes aim at novice market with new CTX motorcycles Honda has introduced the first two motorcycles of its new CTX (Comfort, Technology and eXperience) series. The 20 14 CTX 700 and i ts sibl ing s (CTX700N, CTX700D, and CTX700ND) are variations of the company's 2012 NC700 model which was designed mainly as reliable, inexpensive bikes for new riders.

First shown to the biking community at this year's International Motorcycle Show in Chicago, the CTX700 is designed to offer a comfortable ride for all comers, regardless of their experience and body size. The CTX700N is the "naked" version of the same bike while the D submodels are equipped with dual clutch automatic transmissions and antilock brakes to make them particularly accessible to new riders. Honda hopes that the combination of these features and th e rat her low entry cost .

increase local production and introduce lower-priced models. The country's automakers spend less than 2% of revenue on research and pro duct development, or about half the global average, according to the China A ss oc i a t io n of A ut om ob i l e Manufacturers.

Of th e more th an 100 Chinese automakers, SAIC Motor stands the best chance of becoming a world-class manufacturer as it has learned a huge amount from its joint-venture partner GM and has more experienced engineers compared with the rest, Warburton said.

The Bernstein team was also "positively surprised" by the progress made by sm a ll er , in d ep e nd en t Ch i nes e automakers such as Geely Automobile Holdings, Warburton said. A teardown of Geely's EC7 model showed that the Hangzhou, China-based company had a clear grip of engine technology and called it almost competitive with global automakers.....

Chery A4 is Ready for the Chinese car market The best spy shots so far of the upcoming Chery A4 sedan, formerly known as the Chery M16. The Chery A4 is a new midsize sedan that will be launched on the Chinese car market in the first half of this year, debut is expected for the Shanghai Auto Show in April . The vehicles on these photos wear the current Chery logo, while the vehicle on the last spy shots we saw had a new Chery logo. Maybe Chery hasn’t decided on the logo yet....

Chinese Motorcycle sales increase 16.63% in January 2013

According to the China Association of Automobile Manufacturers (CAAM),in January, Motorcycle sales increase 16.63 percent year on year to 2,002,900 units, and decrease 5.87 percent compared with that in the last month. Two-Wheel motorcycle sales increase 15.03 percent year on year to 1,819,400 units, and decrease 5.56 percent compared with that in the last month. Three-Wheel motorcycle sales increase 35.27 percent year on year to 183,500 units....

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International Automotive Sector - Update

Monthly AutoMark Magazine

Honda takes aim at novice market with new CTX motorcycles Honda has introduced the first two motorcycles of its new CTX (Comfort, Technology and eXperience) series. The 2 014 CT X70 0 and its sib ling s (CTX700N, CTX700D, and CTX700ND) are variations of the company's 2012 NC700 model which was designed mainly as reliable, inexpensive bikes for new riders.

First shown to the biking community at this year's International Motorcycle Show in Ch icago, the CTX700 is designed to offer a comfortable ride for all comers, regardless of their experience and body size. The CTX700N is the "naked" version of the same bike while the D submodels are equipped with dual clutch automatic transmissions and antilock brakes to make them particularly accessible to new riders. Honda hopes that the combination of these features and the rather low entry cost (the

Bridgestone to build new tyre manufacturing plant in China Bridgestone's Chinese subsidiary Bridgestone Shenyang Tire will invest about $299.7m to build a new tyre manufacturing facility at the Shenyang Chemical Industry Park in China.

The company's current Shenyang plant located in Shenyang City in China will be moved to the new manufacturing facility, which has obtained the approval for construction of manufacturing facility and the tire production.

Relocatio n was prompted by the u r ba niza ti on pl an in t h e ar ea surrounding the Shenyang Plant under the Shenyang City development policies.

In addition to the construction, the investme nt w il l also be used for production equipment for the plant that is scheduled to start operations by 2014.

Production capacity of the new plant is expected to be about 5,000 tires per day that will include radial tyres for the trucks and busses, claims the company.

The new production facility will have a space of 395,000sqmts.

CTX700N has a suggested retail price of US$6999, with the D submodels costing about $1000 more) will help entice a new group of riders into the world of motorcycling.

The CTX700 is outfitted with short tours and daily commuting in mind. The design seems a bit schizophrenic, combining as it does features of both cruisers and touring bikes. The engine is a 670cc parallel two-cylinder engine with throttle-body fuel injection and four valves per cylinder. The engine delivers only 48 hp (36 kW) of power at 6 100 r p m, w h ic h seem s a bi t underpowered for a bike with a dry weight of about 500 lbs (227 kg). The relatively low power (1.17 hp/cu in or 54 kW/l) of the CTX700 engine directly derives from its origin as half of the Honda Fit (or Jazz, depending on your location) 1.3 l engine. For comparison,

Honda to introduce 3 models in China by 2015 to gain share

Honda Motor Co. will introduce three models catering to the China market with partner Dongfeng Motor Corp. by 2015 in a bid to regain market share lost after tensions escalated over a SinoJapanese territorial dispute. The new products are part of the automaker's drive to nearly double sales by 2015, and will include a global model to be first introduced in China and two countryspecific cars, said Chen Binbo, executive vice president of Dongfeng Honda, in a Feb. 20 interview

First Pakistani automotive magazine available in China

other motorcycle engines in this class run around 1.5 hp/cu in (70 kW/l).

However, the CTX700 engine reaches its peak torque at 4680 rpm, which makes the bike feel a bit peppier than indicated by its performance numbers.

The driving force is transferred to the wheels through a six-speed transmission and a chain drive.

The CTX700 models have slightl y modified NC700 steel pipe frames. The wheelbase of the bike is 60.2 inches (1,530 mm), and it has a normal range rake of 27.7 degrees and a trail of 4.4 inches (112 mm). The front suspension is a 41 mm fork combined with a single shock giving 4.2 inches of travel, while the rear suspension is a Pro-Link single shock suspension with 4.3 inches of travel..

Source: Honda Worldwide

The 7th Guangdong Sichuan-Chongqing Car & Motorcycle Industry Town Fellow Union Meeting Held in Guangzhou The 7th Guangdong Sichuan-Chongqing Car & Motorcycle Industry Town Fellow Union Meeting was held in Guangzhou on 12th January 2013. Being comprised of people who are from Sichuan and Chongqing involved in the car and motorcycle industry in Guangdong Province, this town fellow union was formed on 1st November 2005 under the guideline of related governmental departments and with the support from related friends.

Aiming to "uniting people from Sichuan and Chongqing, developing the car and motorcycle industry together, building up friendship, and seeking for joint development", the Guangdong SichuanCh ongq ing Tow n Fellow Union (hereinafter called the Union) has bec om e a channel for S ichu anChongqing based car and motorcycle companie s to communicate w ith governments. The Union has helped boost the sound development of the car and motorcycle industry, and SichuanChongqing based car and motorcycle companies, and also enhanced mutual support and development.

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Vehincle Productin Figures - Update

Monthly AutoMark Magazine

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Car / Light Vehicle Price List

SUZUKI

HONDA Price Price Rs. 595,000 Rs. 652,000 Rs. 1,171,000 Rs. 1,386,000 Rs. 1,366,000 Rs. 1,005,000 Rs. 1,452,000 Rs. 1,531,000 Rs. 674,000 Rs. 650,000 Rs. 2,199,000 Rs. 2,274,000 Rs. 2,124,000 Rs. 2,273,000

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 VXRI 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

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

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

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

MASTER MOTORS DAIHATSU Model Model

Price

Master Highland M-260 Master Forland M-330 SUP Master Grand M-410 SUP

Price

Model Honda CRV Automatic 2400cc Japan Honda Accord Automatic 2400cc Japan Honda City Manual 1300cc HYUNDAI Honda City Prosmatec 1300cc Honda Civic VTI Manual 1800cc Honda Civic VTI Manual SR (Oriel) Honda Civic VTI Prosmatec 1800cc Honda Civic VTI Prosmatec SR (Oriel)

Price Rs. 7,517,000 Rs. 7,017,000 Rs. 1,507,000 Rs. 1,648,000 Rs. 1,982,000 Rs. 2,212,000 Rs. 2,102,000 Rs. 2,332,000

TOYOTA COROLLA Model Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.6 A/T 1599cc Petrol XLI VVT-i 1299cc ECOTEC GLI VVT-i 1299cc ECOTEC 2.OD STD 2000cc 2.OD SALOON MT 2.OD SALOON SUNROOF ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT Cruisetronic ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Standard)

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

Toyota Avanza (Up Specfication)

Rs. 2,160,000

Price Price 1,537,500 1,672,500 1,827,500 1,602,500 1,732,500 1,607,500 1,809,000 1,914,000 1,902,500 1,997,500 1,997,500 2,087,500 1,960,000

Hilux Pickup 4x sc Model

Price

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

Rs. 1,763,500

Hilux Pickup 4x4 D/C Model Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model

Price Rs. 2,878,500

Rs. 1,188,000 TOYOTA VIGO Rs. 1,235,000 LAND ROVER Rs. 1,720,000 Model Price Price Model Model Price Master Grande Bus Chassis YL41B Rs. 1,625,000 Vigo Champ M/T Rs. 3,178,500 DEFENDER Fuso canter (Japan) Bus Chassis Rs. 2,950,000 (WHITE ,BLACK,STRONG BLUE & SILVER ) STATION WAGON 90 Rs. 3,560,000 Fuso canter (Japan) Rs. 3,025,000 Vigo Champ A/T Rs. 3,378,500 STATION WAGON 110 Rs. 4,260,000 Fuso Prime Mover (Japan) Rs. 9,450,000 (N/A)

DAIHATSU

Unit Price without Deck (WHITE ,BLACK,STRONG BLUE & SILVER )

Price updated Feb- 2013

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Monthly AutoMark Magazine

Automotive Sector - Update

IMC revenues drop by 27 percent in IHFY13 The Indus Motor Company’s (IMC) net sales revenue for first half ended on December 2012 decreased by 26 percent to Rs 24 billion as compared to Rs 33 billion during the same period last year, while profit-after-tax amounted to Rs 0.98 billion versus Rs 1.77 billion for the same period last year.

The board of directors of Indus Motor Company Limited has announced the company’s financial and operating per formance for th e year ended December 31, 2012.

After a record fiscal year 2011-12, the sales and production of IMC for the first half year of the current fiscal year 201213 ended on a depressing note. The sales of Toyota brand (CKD and CBU) vehicles were down by 38 percent to 14,994 units as compared to 24,341 units sold in the same period last year.

The presence of used imported car models in the category of Corolla class also played a part in impacting the sales of the company and severely restricted IMC’s m arket sh ar e of loca llymanufactured vehicles that declined to 25 percent compared to 30 percent achieved for corresponding period last year.

The sluggish market demand forced the company to shut down the plant facility for 53 non-production days. However, it remained steadfast in its commitment to its employees and did not allow any worker layoff, which was appreciated by the entire workforce and th e

government.

Overall, the local auto industry faced a difficult period during the first half of fiscal year 2012-13 with industry sales plunging 30 percent over the same period last year. During the said period, sales of locally manufactured Passenger Cars (PC) and Light Commercial Vehicl es (LCV) were 58,000 units compared to 83,000 units sold in the same period last year. The decline in cu stom er s’ d em and for loca llymanufactured cars was in sharp contrast

to the impressive recovery staged by the industry over the last three consecutive years.

The depreciation of the rupee against major currencies, unprecedented rise in prices steel and other inputs, inflation, etc, impacted the demand negatively.

The end of calendar year 2012 saw an immense peak in the import of used vehicles in order to avail the maximum depreciation advantage in d uty.

Though the company along with the entire auto industry is thankful to the government for their much-needed intervention but remains concerned regarding the criticism of the decision from some parliamentary circles.

Based on the results recorded above, the board of IMC is pleased to declare an interim dividend of Rs 6 per share for the half year ended December 2012 as compared to Rs 8 per share for same period last year.

The industry is profoundly thankful to the government for its decision to reduce the age limit of imported used cars from five to three years. This will ensure survival of the local auto industry, which provides livelihood to millions of people and is a major contributor to the national exchequer. It is in the national interest that a stable policy environment is provided for the industry to play a meaningful role in th e eco nomic development of Pakistan, said IMC Chief Executive Officer Parvez Ghias. staff report....

Industrial parks to be set up at Korangi Creek, Bin Qasim The Korangi Creek Industrial Park will be built over 250 acres of land and the Bin Qasim Industrial Park over 930 acres, besides providing employment to thousands of people in Karachi and encouraging domestic an d fore ign investment on a massive scale, KMC Adminis trator said on last month.

During a visit to the Korangi Creek Industrial Park, he said that the zone would be established under a publicpr iva te p ar tnersh ip and w ou ld encourage small- and medium-scale industries. He was accompanied by Senior A dviser of Jic a N agase,

Commodore Kamran Mirza, Vice President of National Engineering Services Farhat Adil and DirectorGeneral of Technical Services Altaf G Memon.

Highlighting improvements in Karachi’s infrastructure, he said that over the past two years, several roads in Korangi had been built, Korangi Causeway had been widened to provide better transportation to industries in the Korangi Industrial Area and Korangi Creek. He said four more roads in the Tannery Zone were being completed and the CBM Bridge towards Ibrahim Hyderi was also being

built.

CEO of the Industrial Park Mohsin M Syed briefed the Administrator Karachi and said that 200 multi-storey factories in this zone would be built.

He said that youth would be provided vocational training to improve their employment prospects. He said plots would be allotted to investors who intend ed to start up businesses im med iatel y. He sai d th at th e infrastructure in the Industrial Park was being built at a cost of Rs3.5 billion. ....

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Monthly AutoMark Magazine

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

What is Your Car Trying to Tell You? Heads up! Every sound, visual cue and performance glitch means your vehicle is trying to say something.

It pays to be observant. Being able to understand what your car is trying to tell you – in terms of noises, visual cues and performance glitches – will help you recognize what your ride truly needs in terms of service and repairs. As well, being able to interpret your vehicle’s “service signals” will also help you communicate more efficiently with your shop’s service advisor or technician – all of which will help expedite the repair process.

Indeed, if you can clearly describe your vehicle’s trouble signs to your service advisor or technician, that will help him diagnose and fix the problem quickly and accurately, ultimately saving you money on labour charges.

Thus, when it comes to pinpointing various service signals, please refer to the accompanying chart. The chart arranges the different signals according to your senses (hearing, smell, sight, and feel.) The chart also describes each

signal as you would observe it, offering the word or phrase that your service advisor or technician would also use to describe it. This means you and your service advisor or technician can work together to write up the service order because you’ll literally be speaking the same language. Better yet, you don’t have to guess what’s causing the service signals – you can leave that part to the experts.

Understanding Service Signals TYPE Noise Signals

Description

Boom

Continuous bass drum roll; distant thunder.

Click

Camera shutter; retractable ball point pen.

Clunk

Heavy door closing.

Grind

Sharpening an axe on grinding wheel; garbage disposal.

Growl

Angry dog.

Hiss

Air escaping from a tire; steam escaping from radiator.

Knock

Knock on a door.

Rattle

Baby's rattle being shaken; stone bouncing around in a can.

Roar

Lion; waterfall.

Rumble

Bowling ball rolling down alley.

Spit

Drop of water on a hot skitter.

Squeak

Tennis shoes on a wooden floor; mouse; door hinge that needs oil.

Squeal

High pitched squeal of a pig; fingernails scraping on black board.

Whine

Electrical drill motor; mosquito.

Whistle

Tea kettle boiling; toy whistle. www.automark.pk | March-2013 | Page 37

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Article - continued

Understanding Service Signals Odour Signals

Description

Antifreeze/Coolant

Sweet, steamy odour, usually accompanied by steam from under hood or exhaust.

Burning Oil

Heavy, thick odour, possibly accompanied by smoke from under hood.

Electrical Short

Acrid odour, like burnt toast.

Emissions

Continuous and heavy sulphur odour, like rotten eggs.

Gasoline

Odour of gasoline vapour.

Overheated brakes or clutch

Burning material odour, like burning rubber.

Overheating

Hot, metallic odour, usually accompanied by antifreeze/coolant odour.

Visualur Signals

Description

Axle leaks

Stains that are black in colour, with a thick consistency.

Black smoke

Smoke that is thick and dark at tailpipe.

Coolant leaks

Stains that are lighter and thinner than oil, yellow/green in colour.

Crankcase or steering oil

Stains that are brownish in colour.

Transmission oil stains

Stains that are similar to crankcase oil but with a reddish colour.

Unusual gage reading

Needle moves outside of normal range on instrument panel.

Warning lights

Glows steadily or flickers on and off on instrument panel.

Water leak

Clear liquid dripping from air condition (considered normal).

White smoke

Smoke that is billowy with a bluish tinge.

Performance Signals

Description

Cuts out

Temporary complete loss of power. Engine quits at sharp irregular intervals.

May occur repeatedly or intermittently. Usually worse during heavy acceleration.

Detonation

Mild to severe ping, usually worse during acceleration. Engine makes sharp, metallic knocks that change with throttle opening (sounds like popcorn popping).

Dieseling

Engine runs after ignition switch is turned off. Runs unevenly and may make knocking noises.

Hesitation

Momentary lack of response as accelerator is pressed. Can occur at all speeds.

Usually most severe when starting from a stop. May cause engine to stall.

Miss

Pulsation or jerking that changes with engine speed. Exhaust has a steady spitting sound at idle or low speed. Not normally felt at speeds higher than 45 km/h.

Rough Idle

Engine runs unevenly at idle. Car may also shake.

Sluggish

Engine delivers limited power under load or at high speed. Won't accelerate as fast as normal. Loses too much speed going uphill. Has less speed than normal.

Spongy

Less than anticipated response to increased throttle opening. Little or no increase in speed when accelerator pushed down a little to increase cruising speed. Continuing to push pedal down will finally give an increase in speed.

Stall

Engine stops running or dies out. May occur at idle or while driving.

Surge

Vehicle speeds up and slows down with no change on accelerator pedal.

Can occur at any speed.

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Monthly AutoMark Magazine

Article - continued

Understanding Service Signals Handling Signals Bottoming

Description Suspension moves to extreme end of travel and hits compression bumper.

Feels like a heavy thud.

Brakes fade

Stopping action seems to decrease causing longer braking distance, similar to braking from high speeds.

Excessive play in steering

Steering wheel must be turned unusually far before vehicle responds.

Hard Steering

Vehicle unusually difficult to steer, especially during parking.

Low brake pedal

Brake pedal must be pushed unusually far to engage brakes.

Pulls

Vehicle tends to move one side, either right or left, when steering wheel is momentarily released.

Pulls/ grabs

Vehicle has tendency to move to the right or left as brakes engage suddenly when applying steady pressure to brake pedal.

Shimmy

Rapid side-to side motion of both front wheels felt in steering wheel.

Sway/pitching

Mushy or spongy ride, vehicle takes unusual length of time to recover from bumps in the road.

Vibration

Vehicle shakes.

Wanders

Vehicle tends to meander, requiring frequent steering correction to maintain direction.

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Monthly AutoMark Magazine

Corporate Event – Update

EPZA to establish new export processing zone in Faisalabad The memorandum of understanding (MoU) between Export Processing Zones Authority (EPZA) and Faisalabad Ind ustrial Estate Development & Management Company (FIEDMC) has been signed to establish new export processing zone (EPZ) in M-3 industrial city , Faisalabad, said Muhammad Saadat S Cheema, EPZA Chairman.

This auspicious ceremony was arranged

by FIEDMC, which was attended by famous industrialists and business co mmunity. Chairman As ean an d Malaysian High Commissioner Dr Hasrul-Sani and Ambassadors of Asean countries were also part of this historic occasion. President FCCI Zahid Aslam was also present at this ceremony.

Khawaja Asim Khurshid, Chairman FIEDMC, welcomed the Ambassadors of Asean countries and EPZA Chairman Muhammad Saadat S Cheema on the ceremony. He personally th anked Chairman EPZA that because of his efforts we were abl e to establis h FIEDMC Export Processing Zone in such short period which would be ultimately beneficial for the country’s growth.

Chairman EPZA said investors would

come forward to get the benefit from this opportunity, we’re ready to provide al l p o ssi b le m u l ti -b od y g osh , uninterrupted power supply, off-shore banking, custom Clearance Office and one window facilitation would be also available in Faisalabad Zone and tax incentives as envisaged in EPZA act.

He said Karachi EPZ had significant importance and would act as a role model for other zones. “We will make sure to provide more and better facilities

which are already being provided to the investors of KEPZ. The Chairman said Faisal abad was known as Manchester of Pakistan and the industrial sector of that region rec eived w or ldwid e r ecognition.

Establishment of EPZ in FIEDMC would amount to a new chapter in the country’s ex por ts a nd wou ld cr eate new employment opportunities. —PR

Speech of the Mr. Aamer Saleemi Chief Operating Officer, FIEDMC Honorable Guests, Asslam-o-Aliakum.

It is a matter of great honor for me to ad dr ess th is em inent foru m of bu sinessmen & industrialists of metropolitan city.

In August 2007, the parliament of Pakistan adopted Vision 2030. Vision 2030 lays down the national consensus on the majo r chal lenges face d by Pakistan in the years to come and outlines the approaches to meet the ch allenges. By 2030 , Pakistan’s population will have increased to some 230 to 260 million people, 60% of whom will live in urban areas. To accommodate basic needs, alleviate poverty and generate employment for this growing population, GDP growth will have to average some 7% to 8% per year. In Pakistan’sresource-constraint economy, private investments in manufacturing

ventures have to be the prime engine of such growth. Meeting the challenges of the future thus depends on Pakistan’s ability to mobilize private investment, both domestic and foreign.

Honorable Guests, Accor ding to Investment Prospects Survey of world bank, the preference of Transnational Corporations (TNC’s) for developing countries in their investment plans may further increase over the next three years. Asian countries ar e w ell represented among the 15 most favored locations. Strong prospects for market growth and cheap labor appears to be among its major attractions.

Industrial sector is the largest sector of Pakistan in terms of employment and output and it has shown ample progress in the recent past. Pakistan’s industrial sector is d ominated by textile, en g in eer i n g, fo od p r oc es si ng ,

pharmaceuticals, leather industries,

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Corporate Event – Update sp or ts g ood s a nd i nfor m at io n technology sectors.

Pakistan has experienced acceleration in textile, electronics, chemicals & metal industries due to high demand in export markets for its high quality of products.

There are huge investment opportunities in the manufacturing sector of Pakistan to gether with friendly investment policies and a rapidly growing economy.

Pakistan is set to achieve laurels in bringing foreig n investments to Pakistan.

Pakistan, with a population of 180 million, is a market with huge potential enjoying geo-strategic location, ever growing market and cheap work force.

In order to cope with the future challenges faced by Pakistan’s industrial sector and especially the export oriented industry, FIEDMC has taken the task to provide socially compliant international standar d infrastru ctu res to th e industrialists. FIEDMC has under- taken two projects of national importance: A. Value Addition City B. M-3 Industrial City FIEDMC projects will serve as a gateway to all th e avenues of economic developme nt of Pak is tan through development of new strategical ly important sectors. This purpose will be achieved by ensuring that both the projects provide integrated state-of-theart-infrastructure and services through specialized industrial zones. All possible efforts are being made to attract and promote industries that are capital intensive.

Our first project of Value Addition City has been well acknowledged due to its suitable land, affordable cost, state-ofart infrastructure, provision of all utilities at the doorstep of each industry and a complete set of dedicated business support services. The success of Value

Addition City is a great source of confidence that our second project of M-3 Industrial City, which is a massive project comprising of more than 4500 acres of land accommodating Textile, Phar maceuticals, Engineeri ng & Const ru ction, Food Proc essing , InformationTechnology, Chemicals, Automotive Service complex, will also be equally successful. In M-3 Industrial City special zone has been reserved for th e foreign in vesto rs with liberal government fiscal incentives and most attractive policies. The development work of Phase 1 is likely to be completed in the mid of this year. It is a first project of Pak is tan, which h as been well acknowledge by the domestic and foreign investors due to its international standard infrastructure, facilities and services.

We are grateful to the visionary leadership of Mian Muhammad Shahbaz Sharif Chief Minister Punjab, who has personal ly taken interest in this ambitious project and has approved a dedicated 50 MW Coal Power plant. At the moment Punjab Energy Department is working on it and it will be completed on fast track basis and will offer uninterrupted power supplies to the industrialists. The first industrial unit

by Khadim Steel is near to completion.

We welcome our valued customer from the province of Khyber PakhtoonKhuah Mr. GhulamDastagir for selecting M-3 Industrial City for their industrial outfit.

We are thank full to all our customers of Value Addition City an d M-3 Industrial City for their trust on our projects. FIEDMC w il l fulfill th e responsibility of establishing social security h ospital s, labo r colonies, community centers and vocational institutions to impart training to local talent, so that they may contribute to

the productivity and development of Pakistan. This strategic project will provide job opportunities to more than 300,000 people and on full colonization will contribute 2.25% to the overall GDP of our beloved country.

I would like to mention here that the role of public sector directo rs in FIEDMC is more facil itativ e than monitoring. The private sector directors provide their services without any remuneration on voluntary basis. This eliminates the profit earning aspect of the private sector and puts them under heavy moral obligation for judicious use of public money. I am thank full to the members of our previous and present Board of Directors for their remarkable contribution. At the same moment, I will like to appreciate my team of FIEDMC professionals for their hard w o r k, d e d i c a t i on a n d s t r o ng commitment to achieve the objectives envisioned.

Today FIEDMC is going to achieve one more milestone by signing MOU with Export Processing Zones Authority for establishing FIEDMC Export Processing Zone. I am confident that this initiative will boost the exports of Pakistan. I am grateful to the Chairman EPZA and their team for their presence and cooperation in this regard.

At the end, I assure you that FIEDMC is committed to do everything we can to make this the best possible place in the world to start and grow an innovative business. We’re going to keep on develop ing th ose str ength s and capabilities that makes us a leading global location of choice for domestic and international businesses now and in the future. We welcome you to M-3 Industrial City for a better business and for greater success.

Thank You.

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CBI - Centre for the Promotion of Imports from developing countries CBI - Centre for the Promotion of Imports from developing countriesOn Tuesday 26th of February 2013 Tamar Hoek, one of CBI’s Senior Programme Manager Market Intelligence, provided a workshop at the 2nd ITC Trade Information training, organised

by ITC and Caribbean Export, in Santo Domingo.

The training was organised for over 25 BSOs across the region and aimed at building their institutional capacities for delivering enhanced trade information services (such as business intelligence analysis, data collection and processing) to their respective private sectors. The training is part of Caribbean Export’s Regional Private Sector Development Programme aimed at supporting CARIFORUM countries integrate into world economy, and therefore enhance economic growth and alleviate poverty.

In a two hour session participants received an introduction of the new CBI Market Intelligence process (especially the use of Peer Groups existing of representatives from the European trade and industry) and the complete new product portfolio.

After the introduction the platform was demonstrated live and the participants could practice the use of and familiarize themselves with the platform. To learn more about the European market when exploring export possibilities to Europe, the CBI Market Intelligence Platform is an indispensable source.

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Monthly AutoMark Magazine

Auto shows in Pakistan do not offer any thing new The only silver lining of the PAPS was the presence of new Chinese light commercial vehicles and heavy trucks which may find difficulties in luring buyers owing to issues of durability and quality. However, people, while going through internet and media coverage of world auto show and introduction of new models, were also expecting PAPS on the pattern of an international event but it was purely a local show studded with old models and old faces.

Many leading automobile giants and rising new players eagerly wait for the holding of auto shows around the world to take an edge over their competitors in unveiling of new models of cars, SUVs, sports cars, jeeps, etc so that quality conscious consumers could have first sight over the latest developments.

All the Chief Executives and senior managements of participating auto making companies face tough questions from the print an electronic media. The financial results are also discussed.

However, these manufacturers look co nfident in facing volley of stif f questions from media as they know that they produce innovative technology of high quality with fascinating colors and designs that are bound to cl ick the buyers and critics’ mind.

Foreign media starts releasing the pi ctu r es of new ca rs and new technologies in preview and pre-event press conferences just one day ahead of the grand shows. The recent Geneva Motor Show 2013 is the classic example where leading car assemblers are trying to take lead on each other to get a good business and public response of their latest products.

Ferrari, Porsche, Lamborghini, Bugatti, Toyota, Nissan, Volkswagen, Chevrolet, Renault, Ford, Peugeot, Rolls Royce, Honda, etc literally rule the auto shows world over. They introduce their latest concept, electric and hybrid cars besides latest petrol and diesel version engine vehicles.

It is really a test for new players or those who are even 10 years old to present their vehicles to the participating media and general public in world auto shows.

In contrast, our auto shows in Pakistan does cannot be compared with world auto shows as the local industry is

dependent on the three Japanese car assemblers and two leading Japanese two wheeler assemblers.

What Pak Suzuki Motor Company has to offer something unique as it has been producing decades-old models. To some extent, Indus Motor Company’s Toyota Corolla an d other veh icles offers something new but with limited models of cars. Only Honda cars role out latest models of Civic and City with Euro IV engines in Pakistan while the makers of Pak Suzuki and Toyota vehicles had introduced Euro II vehicles which had become obsolete in world markets where Euro IV and Euro V vehicl es are dominating.

PAPS-2013, organized by the PAAPAM, in Karachi earlier this year was different from previous Lahore show. In Karachi, one must be surprised to see huge panaflex photos of the PAAPAM’s most old guards at the entrance of main halls at Expo Centre near parking while some big photos were also prominent inside the halls.

Many market analysts say holding of PAPS show appears to be an effort in waste as it does not have the capacity to show some new innovations and latest car models since Pakistan’s auto sector came into existence.

Frankly speaking customers are accustomed to see the 1992 version of Honda CDI 70cc and CG-125 as its assembler introduce the Euro II engine last year after over 20 years. Are the consumers really interested to see 94 per cent localization in 70cc Honda as they know that they are paying higher price despite high localization. New models and aero dynamic bike designs actually drive buyers crazy instead of 1992 old model of Honda 70cc whose petrol tank and side covers had been changed frequently rather than its shape.

One cannot say that making same parts of Honda motorcycle for decades is an achievement of the vendors.

Shows like PAPS are basically a get together of well established PAAPAM’s senior members and their friends and family members to visit and enjoy the event besides introducing their young

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Exclusive Article - continued generations to each other. Lunch and Dinner with musical functions are essential parts.

One cannot term the PAPS a businessoriented event in terms of getting any foreign orders which is evident from low foreign exchange earnings on parts and accessories exports. PAPS is definitely a function to facilitate the decade old partners (assemblers) to continue providing parts without any problem.

For university and college engineering students, PAPS may be a good platform as they know these vendors can offer those jobs. Unfortunately, the students, instead of lea rning new engine technologies, have to first understand the decades old technology on which Pakistan’s auto industry is surviving.

Our local assembl ers had al re ady become promoters of their models which they cannot manufacture here due to high engine power and their prices.

Knowing that of very low market share, Pak Suzuki showed heavy bike at the PAPS 2013 which the company will never assemble in Pakistan.

The only silver lining of the PAPS was the presence of new Chinese light commercial vehicles and heavy trucks which may find difficulties in luring buyers owing to issues of durability and quality. However, people, while going through internet and media coverage of world auto show and introduction of new models, were also expecting PAPS on the pattern of an international event but it was purely a local show studded w ith old models and old faces.

There were hardly an y renowned international car assemblers at PAPS. There is a need to arrange at least one pavilion for global exhibitors. Two days of the exhibition must be dedicated for corporate visitors.

Some visitors feel that the exhibition should not start from Friday as people working in big private firms do not have time due to Jumma prayers and nobody

the official export figures of parts and accessories simply nullifies the big claim.

Pakistan possesses a huge potential to become a manufacturing and exporting hub of auto industry for renowned Original Equipment Manufacturers (OEMs) of the world but the potential is yet to be tapped as assemblers and vendors blame lack of conducive and consistent Government policies. arrives p rio r to Jumma prayers.

PAAPAM exhibitions either do not entertain or invite Chinese bike a sse mb le rs or ot h er b i g a u to associations.

PAAPAM should try bringing other associations’ member on board.

PAAPAM is the only automotive association that is capable to arrange yearly automotive event in current situation, while others mega event holders cannot dare to take risk.

PAAPAM must come out from association’s level and arrange PAPS event as a national automotive exhibition.

If only two to three foreign exhibitors arrive at the PAPS then it cannot be called an achievement in view of total 120 exhibitors.

It has been noticed that the PAAPAM and PAMA members usually focus on policy issues, used cars threat, lack of long term policies, rupee-dollar-yen parity impact and other problems rather than promising to make the event more powerful from the previous years.

If PAAPAM takes the credit of attracting huge foreign companies and buyers then

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle

Sr./ No. 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

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23.

Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Challenger BA-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Dabang 70cc Metro Jeet 70cc New Asia NA-70

Retail Price Rs. 42,500/= Rs. 42,500/= Rs. 42,000/= Rs. 42,000/= Rs. 41,000/= Rs. 42,500/= Rs. 49,000/= Rs. 41,500/= Rs. 45,000/= Rs. 42,500/= Rs. 46,000/= Rs. 47,000/= Rs. 42,500/= Rs. 67,500/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 43,500/= Rs. 41,500/= Rs. 41,500/=

Sr./ No. 24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

38.

39.

40.

41.

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46.

Product & Model Name Pak Hero PH-70 Raftar KM-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Sitara GT-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70

www.automark.pk | March-2013 | Page 46

Retail Price Rs. 42,500/= Rs. 42,000/= Rs. 47,700/= Rs. 46,200/= Rs. 42,500/= Rs. 42,000/= Rs. 42,500/= Rs. 42,000/= Rs. 40,000/= Rs. 45,500/= Rs. 43,000/= Rs. 44,500/= Rs. 42,400/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 45,000/= Rs. 42,500/= Rs. 40,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/=

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

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

7.

8.

9.

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 98,500/= Rs. 118,000/= Rs. 65,000/=

DYL Motorcycles Sr./ Product & No. Model Name 1. YD100 Mini 2. Janoon 100cc 3.

Retail Price Rs. 64,900/= Rs. 78,600/=

100cc Motorcycle No. 1.

2.

3.

4.

5.

6.

7.

Brand &Model Name Honda Pridor Super Star SS-100 Super Power SP-100

Retail Price Rs. 84,000/= Rs. 57,000/= Rs. 60,000/=

Suzuki Motorcycle Sr./ No. 1.

2.

3.

4.

Product & Model Name Sprinter ECO 110cc Sprinter STD 110cc Suzuki GS-150 Suzuki Raider 110cc

www.automark.pk | March-2013 | Page 47

Retail Price Rs. 77,400/= Rs. 80,400/= Rs. 101,500/= Rs. 85,400/=

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