Automark magazine nov 2013 by Mustafa Hanif

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

AUTOMARK Industry decries raise in power tariff

Editor M. Hanif Memon Technical Editor Muhammad Shahzad

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer Salman Hanif

Web Master Murtaza Hanif

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

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

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi Engr. IHT Farooqui GM Plant P.M. Auto Industries Hyderabad J. Pereira GM After Sales Al-Haj Faw Motors (Pvt) Ltd. 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

The industrial and business community of the country has shown serious concern on yet another increase in prices of electricity. Former President Federation of Pakistan Chambers of Commerce and Industry S M Muneer, members Korangi Association of Trade and Industry (KATI), SITE Association of Industry, chamber of commerce and industry of Karachi, Lahore, Islamabad and other cities besides f President All Karachi Industrial Alliance Mian Zahid Hussain and KATI President Farukh Mazher in a joint statement said National Electric Power Regulatory Authority and Oil and Gas Regulatory Authority have already dropped the petrol and electricity bombs on the industry and poor nation. They said day today increase in cost of production it has become very difficult to compete in the foreign markets. The government to review its decision in the large interest of the country in general and for the sake of industry and economy in particular. Rise in electricity tariff would make our products uncompetitive and the countries like India, China and Bangladesh would take its benefit and garb the textile markets. Prime Minister Nawaz Sharif should review the increase in electricity, gas and petroleum prices so that relief was given to industry and people. Government should consider withdrawing the recent price hike in electricity so that economic activities grow and the country could earn foreign exchange. We should avoid the theft of electricity and save the energy. Entire industrial sector has already been facing multiple internal and external challenges and the recent increase would further aggravate the econo mic situation. There would be negative effect due to increase of electricity prices and due to this step industrial and commercial activities would be badly affected. Due to the costly electricity the cost of living will also be increased. Make room of energy prices we should use new resources for producing electricity. Cheap electricity will be produced from coal and solar energy.

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CONTENTS

Monthly AutoMark China increases investment in Pakistan Exclusive Article by M. Yousuf Shaikh

11-12

Going out of their way to attract investments? Automotive Sector - Update

Used cars: Deals on wheels

Rastgar & Co, participated in 11th Textile Asia - Lahore Exp

An Exclusiveon Motorcycle sector

19-20

Shell highilights youth's contribution to innovation & technology

Regional Tax Offices told to probe ST evasion, underinvoicing

General Tyre plans to set up plant in North

Pakistan motorcycle hub

Energy crisis and economy of Pakistan

A Visionary’s Dream “Shattered”

38-39

A Comparative Review of Honda’s “CD Dream”

by Shahzad Tabish

International Automotive news

40-41

Motorcycle Prices

Passenger cars/light vehicle price list

How to prepare your car for winter By Mohammad Shahzad from Canada

45-46

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Exclusive Article by M. Yousuf Shaikh

China increases investment in Pakistan While Motorcycle manufacturing sector of Pakistan is still overlooked by Chinese motorcycle trade investors The Pakistan China Motorcycle Industry Council invite the organizers of China International Motorcycle Trade Exhibition (CIMA-Motor), to organise event in Pakistan. Muh amm ad Y o u su f S h aik h, the Founder & Chairman of Pakistan China Motorcycle Industry Council and columnist at Monthly AutoMark Magazine, offers his analysis of the motorcycle trade & industry trends from Pakistan & China. The chairman PCMIC working with motorcycle trade & industry for over two decades, Yousuf believe that Chinese investment could help to produce new technology motorcycles and engines. The result of this development could have profound implications on the Pakistan’s Chinese motorcycle industry over the next decade. To reach him, email at: pakchina.mic@gmail.com. The Chinese government is making allout efforts to take its economic relations with Pakistan to a new height by aggressively exploring opportunities for investment and joint ventures in various sectors of the economy. Many Chinese investors investing in mining, marble, and energy, chemical and many other industrial sectors but motorcycl e manufacturing sector still ignored by Chinese investors as Yamaha, a Japanese auto compan y, would invest $ 150 million to establ ish manufacturing plant of motorcycles in Pakistan. The Pakistan China Motorcycle Industry Council invite the chief organizer of China International Motorcycle Trade Exh ib iti on (her eafter refers as

CIMAMotor), the largest motorcycle exhibition in Asia to organize events in the Pakistan in a bid to build skills of entrepreneurs, seek investment, exchange technologies and to display newly developed products in such a big market of Chinese motorcycle. The Pakistan China Motorcycle Industry Council would help strengthen economic relations between businessmen of the two countries. It will also help to add international expo in the portfolio of CIMAmotor as EICMA Italy organize exhibition in many countries. The Pakistan China Motorcycle Industry Council w ould co nnect Pakistani entrepreneurs with leading Chinese entrepreneurs and investors through

CIMAmotor in Pakistan, who would be able to exchange experiences and discuss business trends, leading to investment in both countries. The promotion of commercial activities was of supreme importance for achieving economic stability in any country. Chinese automobile manufacturers avail themselves of investment opportunities in Motorcycle Sector of Pakistan’s auto industry. PCMIC is decided to take an initiative proceeding and PCMIC intends to meet government official to speak abou t the possibility of Chinese motorcycle manufacturers to exploring the Pakistan Auto industry and taking forward the long term strategic agenda in press re ports that highlighted Pakistan must raise its game to compete

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Monthly AutoMark Magazine for Chinese investment in automotive R&D and manufacturing. In order to make this happen, the Pakistan China Motorcycle Industry Council need an ever more strategic, collaborative relationship with the Government to work with supply chain and other stakeholders to achieve long term goals. We want the Council to help make that happen. The Motorcycle Industry Council will be an opportunity for the Government and industry to work together on the long term strategic development of the sector as Pakistan government offer to Chinese automobile manufacturers to ava il th em sel ves of invest ment opportunities in Pakistan auto industrial sector. In recent years, we have witnessed that the industrialization of many Asian countries greatly dep end on the development of their automo tiv e industry consecutively motorcycle industry. Similarly, automotive industry acted as a catalyst in the overall growth of the industry in China, India, Pakistan and Koreas and the consequent wellbeing of their citizens. It is indeed h eartening that the motorcycl e industry has smiled at Pakistan. Fortunately the last few years have witnessed phenomenal growth in the industry in terms of production and sale. Today the customers have choice to pick from a wide range of motorcycle brands at very co mpetitive prices. The Pakistan automotive industry has been around for more than 50 years, and today is considered an industry that is highly important to the Pakistan economy. The motorcycl e industry employs an estimated 100,000 people. The motorcycle sector of Pakistan’s auto industry produced over 2 mil lion motorcycles annually, with 10,000 being exported. Pakistan is a large producer of smalldisplacement motorcycles. The majority of the motorcycles being manufactured in Pakistan are the 70CC motorcycles. Most of the parts used in the frame,

su sp ension, engi ne et c ar e interchangeable, or can be used with minor adjustments.

Pakistan China Motorcycle Industry Council inviting global Chinese motorcycle manufacturer to produce new technology motorcycle and also invite Chinese auto parts manufacturers to produce new tech engine all parts, carburetor and Drive Chain in Pakistan which are currently imported. The engine is a core part of the motorcycle, and the deman ds for motorcycle engines are highly related to the demand s for motorcycles. Motorcycle engine market has great potential in Pakistan as a result of the b oom ing m ot or cyc le d ema nd s. Meanwhile, although the auto industry may be a big earner at present Pakistan still d on’t h ave new tech nology motorcycles. This makes it difficult to m or e in cr eas e th e de ma nd of motorcycle. Chin ese purchase of Pakistan also increased many fold in key areas such as slot growth, streets, railways, mobile phones communication technology,

Pakistani motorcycle assemblers. Both nations have free business contracts which should be effectively researched for common benefits of both helpful nations. Community as well personal market Pak-China combined tasks are need of time due to immense investment prospective in Pakistan. Today automotive tech nolog y is changing quickly due to environmental concerns and the rising prices of fossil fuels. This has led auto-makers around the world to develop vehicles that have improved fuel economy and emission levels. Many have also introduced hybrid and electric vehicles, while developing fuel-cell vehicles for the futu re that would emit nothing but water vapour. For the Chinese automobile industrial development in Pakistan there are two ideas, working on which can bring prosperity. One, that when Japan was moving from intermediate technology to high-tech, Japan relocated their old industry moved it to South Korea, to Malaysia and other countries. That stage has now been reached for China. China can focus on high-tech industries and relocate the intermediate level industry to Pakistan an d it will bring coprosperity. Secondly, if there are some new industrial units which China wants to set up, these can set up these in

“The motorcycle industry employs an estimated 100,000 people. The motorcycle sector of Pakistan’s auto industry produced over 2 million motorcycles annually, with 10,000 being exported.” hydro and heat energy, exploration, electronics, and nuclear energy. A lot of China organizations are working in Pakistan in oil and gas, IT and telecommunications, energy creation, technological innovation, vehicles, facilities and exploration market but the investment by Chin ese motorcycle manufactures is negligible due to lack of inter action b et ween Chi nese motorcycle and parts manufacturers and

Pakistan, as joint ventures and with a buy-back condition. The details can be w orked out between the par ties concerned. The other idea which is written in the already agreed documents is to build China specific Special Development Zones. Pakistan can allocate certain land and Chinese can establish industrial units th ere.

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Monthly AutoMark Magazine

Automotive Sector - Update

Going out of their way to attract investments?

ndustry sources privy to the matter suggest that existing players feared that Yamahas better technology could potentially erode their pricing power, disrupting the control exerted by the "auto-trinity" Yamaha Motor Comp an y, Japan announced it is all set to invest $150 million in Pakistan over the next five years. The deal comes as a much needed respite to Federal Governments probusiness credentials, as the country has seen a few major investment projects for the past several years. Following its div estiture from Dawood Yamaha Limited in 200 8, t he J apanese motorcycle giant made headlines the following year with news to set up a motorcycle manufacturing facility in the country. The Company planned investment in a 50-acre plot in Bin Qasim Industrial Park, a state-of-the-art facility managed b y N at i on a l I nd u s tr i a l P a r ks Development & Management Company (NIP) in a bid to attract foreign investment into the country. However, the project was placed on back burner as t h e Com p any sou g h t t ar iff concessions for import of CompletelyKnocked-Down (CKD) parts. At present, existing manufacturers pay 32.5 percent customs duty on import of parts; high enough to discourage importde pe ndency among play ers in the motorcycle industry and create business for local automotive-part manufacturers. Yamahas plans faced opposition during the tenure of the previous government as the auto-friendly regime preferred to protect existing players in the market from competition in an already saturated market. Local vendors demanded that Yamaha at least achieve 25 percent localisation within its first year to prove its commitment. In 2011, the efforts of the Board of Investment and National industrial Parks came to naught when Federal Minister for Industries Hazar Khan Bijarani announced that "no such incentive will be provided to the new players which affect the interests of existing assemblers". Industry sources privy to the matter suggest that existing players feared that Yamahas better technology could potentially erode their pricing power, disrupting the control exerted by the

Federal Minister for Finance, Senator Mohammad Ishaq Dar in meeting with a delegation of Yamaha Motors in ministry of finance in Islamabad August 19, 2013 "auto-trinity". The dormant issue thus presented itself as a ripe opportunity for the PML-N government to prove that it was serious in its plan to revive economic growth. After successive meetings last month, the Federal Board of Revenue, al ong with Ministry of Indu stries, p ublished two SROs amend in g rules to accommodate Yamahas concerns over tariff structure. Under th e p rev ious ru les, any "assembler or manufacturer declared to be a new entrant by the Engineering Development Board (EDB)" is excluded from customs duty for a period of three years. The amended rule increased the exemption by two years, "in line with the new entrant policy for motorcycle manufacturing industry with new tech nology" (u nd er lines ad ded). Interestingly though, the amended rules have removed the condition for new entrant to meet the level of localisation already achieved by existing players, within a maximum span of three years. Ea r li e r , f a i l u r e t o m e e t t h e indigenisation, could result in "stoppage or withdrawal of the incentive non-levy of customs duty, retrospe ctiv ely". Obviously, no such condition exists under the amended SRO passed on

October 21st. Three days later, the Secretary of Industries signed the agr eem ent wi th Y ama ha Motor Company. It is also interesting to note that Yamaha M ot o r s , J a p a n b e l i e ve s t h a t "manufacturing back home has become too-costly". The Company sees Pakistan as a launching pad for exports to Afghanistan, Central Asia, Middle East and African countries. This realisation, how ever, c ame only after DYL Motorcycles (Yamahas erstwhile partner during its last stint in the country), announced its own plans to establish a motorcycle manufacturing facility in Afghanistan. There is no doubt that Pakistan is in dire need of large scale investments to kick start economic activity and any step in such direction is welcome. But, it is a fair question to ask whether the Federal Government has gone out of its way to facilitate Yamaha. If the government is to kick start the growth eng ine on th e bac k of for eign investments based on shaky foundations of tariff concessions and SROs, it is imperative that it understands the full costs of such investments....

www.automark.pk | November-2013 | Page 13

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Monthly AutoMark Magazine

Automotive Sector - Update

Pak Suzuki earnings grow on margins P a k S u z u k i s q u a r t er l y r es u l t announcement has fallen in line with the overall trend of the domestic auto industry. The company posted earnings grow th on the back of improved margins, despite freefalling sal es. For the nine-month period ending September, the top line fell by nearly 19 percent, compared to the same period of last year, to Rs38.9 billion. Net sales in the third quarter, however, posted an improvement of 5.6 percent, compared to the dismal performance posted in the same period of the previo us year. Volumes saw a sweeping decline of 25 percent, falling from 79,098 cars in the nine-month period of last year to 59,562 cars this year. The phasing out of Suzuki Alto, which sold more than 9,500 units last year, coupled with a 35 percent decline in the sale of Suzuki Bolan, ru bbed salt in Suzukis wounds. Performance of other variants was also dismal, with Swift and Mehran sales falling by 1,326 and 714 units, respectively. 1,000cc Cultu s and motorcycle sales were the only two segments to post volumetric growth,

albeit nominal. Fortunately for Suzukis investors, a freefall in volumes did not keep the company from staging a turnaround in financial performance. While turnover declined, an even greater fall in cost of sales helped gross margin inch forward by 173 bps to 6.3 percent, allowing gross profit to grow by 12 percent. According to market analysts, cost of sales declined on the back of 13 percent year-on-year depreciation of Yen against the local currency. The decline in volume (and hence in cost of sales) meant fixed costs such as d istrib ution and adm inistra tive expenses increased as a percentage of total sales, but, were partly offset by a jump in other operating income. This allowed operating margin to jump from 3.4 to 4.9 percent, a growth of 156 percentage points. Finance cost remained at negligible levels of Rs52 million, but grew for the nine-month period by nearly six times, compared to 9M CY12. A change in taxation rules, from 0.5 percent of total turnover to corporate tax, slightly offset

the gains from improved operating margin. Net margin, hence, improved by 147 bps, with net income clocking in at Rs1.58 billion. The companys performance heavily relies on the economy segment of 800cc1,000cc. Exogenous factors such as 100 bps jump in GST, high inflation, decline in consumer auto-finance as well as high price sensitivity of the target market has contributed to lower volumes for the company. An announcement of auto-policy review by the new government has rekindled hopes among some auto players, given the business-friendly image of the ruling party. However, sources warn that such hopes may come to naught as review board is headed by Khwaja Asif, one of the most vocal critics of local assemblers for their "low quality, over-pricing, and failure to complete localisation." Given the uncertain regulatory and economic environment, it is unlikely for PSMC (and the auto sector in general) to recover sales in the near future....

NESPAK completes 3,400 projects in Pakistan, 36 countries

NESPAK has successfully completed 40 years of its establishment and during the last four decades it has undertaken 3,400 major engineering proje cts costing $195 billion in Pakistan and 36 other countries in the Middle East, Africa, As ia and the Arab world. A total of 2,900 projects are located all over Pakistan and 500 in the foreign countries. NESPAK Managing Director Amjad Khan said these projects have played a significant role in the development of these countries and NE SPAK has emer ged as the leading firm of consulting engineers in Pakistan and one of the top consultancy firms in the world. He said NESPAK was established in 1973 primarily to replace the foreign consultants who were working in a large number on engineer in g p rojects including the Indus Basin Project, which included Mangla and Tarbela Dams, 6 barrages and 8 link canals.

He said NESPAK undertook its first project relating to the design and construction of 2,065 feet long and 36 feet finished diameter 5th Left Bank Irrigation Tunnel at Tarbela. This huge tunnel was successfully completed ahead of time by Pakistani engineers much to the surprise of foreign consultants and contractors working at Tarbela Dam Project. Within a year, NE SPAK undertook the design and construction supervision of Pakistan Steel Mill and Port Qasim in Karachi. With the magnificent start, the Company rapidly expanded its business and carried out several more projects at home and abroad. MD said these include Metro Bus Service and Ring Road in Lahore, 969 megawatts (MW) Neelum Jhelum Hydropower Project, Mangla Dam Raising Project, Gadani Power Park Project, 747 MW Combined Cycle Power Plant Guddu, 425 MW Combined Cycl e Power Plant Nandipur, Solar Energy Projects, Iran Pakistan Gas

Pipeline Project, New Benazir Bhutto International Airport Islamabad, Sindh and Punjab Water Sector Improvement Projects, Textile City at Port Qasim Karachi and government of Pakistan funded projects in Afghanistan, Power Plants in Saudi Arabia, Road Projects in Oman, Architectural Projects in Qatar and Irrigation Projects in Nigeria, Iraq and Afghanistan as well as Port Projects in Yemen. Over the last 40 years, NESPAK has grown from strength to strength and today it has on its roll more than 3,050 h ig hl y qu ali fied engineer s and professional experts including several PhDs. In addition 1,100 personnel are working as support and office staff. NESPAK has gained confidence of home and foreign clients due to its top quality performance and workmanship and has considerably achieved the objectives for which it was created...

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Monthly AutoMark Magazine

Automotive Sector - Update

Used cars: Deals on wheels Shopping for a used car can be a daunting task — while most used car sellers are known to be unreliable, our guide can teach you how to spot the red flags and score the perfect deal. Deciding on your car The Toyota Corolla is the best-selling 1300cc (or above) locally manufactured passenger car according to the Pakistan Automotive Manufacturers Association (PAMA). The market has responded positively to th e c ar’s supr em e performance and reliability, earning it a great resale value. If this car is out of your budget, we recommend th e dependable Honda City, which at a lower price is al so a worthy investment. For vehicles at 1,000cc or below, the Suzuki Mehran leads the pack in terms of sales due to its more affordable price tag. But if you are in the market for such a vehicle, we recommend the more expensive Suzuki Alto or a Daihatsu Cuore instead. An Imported Japanese vehicle with a modern look is another feasible option. But the scarcity of its spare parts might make it a more expensive and timeconsuming proposition in the long run. Finding your car Shift into first gear by exploring all available sale platforms. Websites such as Pakwheels.com, OLX.com.pk and Bolee.com have classifieds available from all across the country and are the fastest way to explore your options. Shoppers in Karachi can visit the Sunday Car Bazaar, where thousands of serious sellers show up from locations far away. Similar bazaars are organised in other major cities as well. However, buyers sh ould be aw are that some cars presented here tend to hide major flaws and should be examined thoroughly. Inspection time Although common sense dictates that a car which has a lower mileage will be in a better condition than a car that has run a greater distance, in reality, it is rar ely th at simp le. A regu larl y maintain ed vehicl e w hich ran on smoother roads will be in a better condition than a roughly used car that has half the mileage. Keep in mind that mileage can be doctored so trust the power of your observation and keep the following tips in mind:

Get the car’s license, engine and chassis number checked with the Citizens-Police Liaison Committee (CPLC) on their hotline (136) for a detailed history of the vehicle’s tax payments, traffic accidents and possible criminal activity record. Complete the transaction using official documents available at most notaries, and have the car’s registration file checked to see if it is complete before buying.

be reversed, natural signs of aging cannot. Compare the car to similar vehicles and watch out for signs of wear and tear on the pedals, as well as rusting under the hood. b) A large number of owners in a short lifespan for a car can be a warning sign, pointing towards a major issue — a ccident s. c) A ca r with a r eco rde d maintenance history from an authorised dealership is a better buy. d) Sellers who evade questions are more likely to be hiding something. On the other hand, owners who happily allow their vehicles to be examined b y dealer ships are more trustworthy. e) Be wary of vehicles losing radiator liquid on a daily basis, or blowing strange smoke out of the exhaust pipe. Cars with a potentially blown gasket may be due for major repairs, or worse. Moreover, if the engine oil is reducing on a daily basis or has a suspicious texture, the car has serious flaws. f) For automatic vehicles, if the car is jerking while shifting gears, it may require expensive repair. Keep in mind that certain automatic cars will have their transmissions ruined if run on CNG. Have your future new car thoroughly examined by a reliable, experienced and competent mechanic before purchasing preferably at an authorised dealership. Negotiating Once you have found your dream car, bargain unabashedly to reduce the suggested price. There are usually significant profit margins involved and sellers will reduce the original price by as much as Rs50,000. Buying

a ) W h il e t h e n u m b e r o f kilometres on a car’s display can www.automark.pk | November-2013 | Page 15

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Monthly AutoMark Magazine

Automotive Sector - Update

New entrant policy for motorcycles industry

Yamaha to set up motorcycle plant: Deal signed

No additional custom duty to be charged The Federal Board of Revenue (FBR) will not charge the additional customsd u t y on su b - co m p one nt s a nd components, imported in any kit form b y a new entrant assem bler or m anu fac turer of motor cycles in Pakistan. In this regard, the FBR has issued SRO.939(I)/2013 and SRO.940(I)2013 to notify duty concessions for the manufacturers of motorcycles in line w ith the new entrant policy for motorcycles manufacturing industry applying new technology. Through these notifications, the FBR has amended SRO 656(1)/2006, dated June 22, 2006 and SRO 693(I)/2006, dated July 1, 2006. According to SRO 939(I)/2013, in line w ith the new entrant policy for motorcycle manufacturing industry with new technology notified by Ministry of Ind ustries and Pr od uct ion vide Notification No. 4-1/2013/LED-II-(VolIII), dated the 26th September, 2013, the additional customs-duty leviable under this notification shall not be ch arged on sub-components and components, imported in any kit form b y a new entrant assem bler or m anu fac tu rer , for assemb ly or manufacturing of motorcycles classified under Pakistan Customs Tariff (PCT) heading 87.11 specified for a period of five years from the start of assembly or manufacturing with new technology. This is subject to the fulfillment of certain conditions. Firstly, the new entrant assembler or manufacturer shall achieve the annual localisation or indigenisation targets / l evel s in a cc or d anc e w it h th e

localisation, plan spreading over a maximum period of five years, duly approved by Ministry of Industries and Production. Secondly, the additional customs-duty shall be levied on the sub-components a nd c om ponent s w hic h become localised/ indigenised by the new entrant assembler or manufacturer, in accordance with the said localisation plan. Thirdly, the new entrant shall abide by all the terms and conditions laid down in separate notifications issued by the Ministry of Industries and FBR for a ssem bl y or ma nu fac tu r ing of motorcycles and the expressions ‘new technology’ and ‘new entrant’ shall bear the same meaning as declared or notified by the Ministry of Industries and Production in respect of Motorcycle Manufacturing Industry.” Under SRO 940(I)/2013, in line with the new entrant policy for motorcycle manufacturin g industry with new technology notified by Ministry of Ind ustries and Pr od uct ion vide notification No. 4-1/2013/LED- II(VolIII), dated September 26, 2013, the incentive of importing CKD kit in any form @ 10% customs-duty imported by the new entrant for assembly or manufacturing of motorcycles shall be withdrawn on components localised by the new entrant each year in accordance with the approved localisation plan. The expressions ‘new entrant’ and ‘new technology’ shall bear the same meaning as declared or notified by the Ministry of Industries and Production in respect of motorcycle manufacturing industry....

A new entrant agreement has been signed between Yamaha and Ministry of Industries on Wednesday here at Board of Investment (BoI) office in the presence of Chairman BOI Mohammad Zubair. The agreement was singed by federal secretary industries Shafquat Hussain Naghmi, while Yasushi Ito, Manag ing Di rect or of Y amah a, repr esented t he Jap anese sid e. The Yamaha Company will set up a motorcycle plant in Karachi and the company would invest $150 million over the next five years, but would start operations in December 2014. The com pany would bring advanced technology to Pakistan where initially 22,000 motorcycles of 125-150 cc, per year, would be manufactured in the factory with EFI engines and during the next 10 years its production would reach 750,000. During the signing ceremony, the Chairman BOI highlighted the initiative and cr edi bi lit y of th e pr esent gover nment and invest ment opportunities available in Pakistan. Yamaha was also fully supported by Minister for Finance, Ishaq Dar and Secretary Industries Shafquat Hussain Naghmi to materialize this mega project for manufacturing of Yamaha motor cycle plant at Karachi. The Chairman BOI said that steps are being taken by the present government to attract foreign direct investment and development of local industry. But local industry would hav e to introduce modern technology to be the beneficiary of new policy formed by the government, he added. Mohammad Zubair also said that the decision of Yamaha to establish its plant in Pakistan will encourage other brands to invest in various sectors of economy, as the country offers more lucrative business opportunities as compared to other countries in the region.

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Monthly AutoMark Magazine

Automotive Sector - Update

Mass transit system still a distant dream Because of a negligent approach of federal and provincial governments as well as the vested interests of political parties and the civil administration, Karachiites still remain deprived of a modern transport system, ie, the mass tr ansi t sys tem , sinc e de cad es. Although it has a population of more than 20 million, Karachi, most probably, is the world's only metropolitan city of the world, which is without mass transit/metro system. While a comfortable and economical transport has become a distant dream for Karachiites, the Punjab government, in early 2012, introduced the Metro Bus Service (MBS) in Lahore, one of its kinds in Pakistan. Lahore is the second largest city of Pakistan, having a population of more than one million. The MBS was an initiative by Punjab Chief Minister Shahbaz Sharif with the support of the Turkish government. Sinc e l ong a la rg e nu m ber of organisations including The World Bank, Japan International Cooperation Agency (JICA), the Asian Development Ba nk (A DB ) a nd ot h er s h a ve r e c om m e nd ed t h e p r o v i n c i a l government and other authorities concerned to establish mass transit for Karachiites but to no avail. A number of mega transport projects for Karachi have been introduced with the passage of time, ie, Mass Transit System, Bus Rapid Transit System, Karachi Circular Railways and Benazir Bhutto Shaheed CNG Buses Scheme, both at the provincial and federal level; they haven't been implemented yet. Although Karachi Circular Railway was made operational in Karachi in 1964, mismanagement of stakeholders, and a tussle with the transport mafia, the system became non-operational by 1990. During the tenure of Zulfiqar Ali Bhutto (1974-77), with the cooperation of the Communication Ministry and Pakistan Railways, a study regarding Rapid Transit Cell was prepared for the first time, and mass transit system was suggested for resolution of transportrelated issues. In 1982, a commission headed by Justice Aj ma l Mi an r ecom me nded th e

formation of Karachi Metropolitan Transport Authority to resolve the never-endin g issues of transport. And adding fuel to the fire, Bushra Zaidi, a student was hit by a speeding bus in 1985, wh ich sparked widespread protests and ethnic riots across the metropolis. After the Bushra Zaidi incident, the Masood Zaman Commis sion was formed which suggested immediate implementation of a mass transit system in the city to improve the existing law and order situation, and remove the ethnic turf between the Mohajirs and Pashtuns of the city. In 1987, Karachi Mass Transit Cell was constituted by the KDA. It was formed with the cooperation of the World Bank, which yet again recommended the construction of six corridors in Karachi - where a Light Rail Mass Transit (LRT) was to be made operational in future. World Bank experts marked Corridor1 from Sohrab Goth to Merewether Tower and Corridor-II from Orangi Tow n to Cantonment Station as preferred options for construction. On the basis of this study in 1996-97 during the second regime of Benazir Bhutto, a Canadian company and Indus Mass Transit Company signed an agreement with the federal government for the construction of Light Rail Mass Transit System in corridor-1. However, even this project did not come into effect. And after the continuous rivalries of the Bhuttos and the Sharifs in the 90s, comes the Musharraf regime when in 2004, with the cooperation of JICA, work on the revival of KCR was started but it has never been speed up in the given circumstances due to reckless ap p roa c h of t h e sta keh ol de rs.

In the meantime, two different city mayors, Naimat Ullah Kh an and Mustafa Kamal, introduced their own Green Bus projects, which turned into shambles, as soon as their tenures were completed. In 2005, a Chinese company signed an agreement to construct Corridor-1 of LRT; but even this project went in vein due to the non-availability of funds and encr oach ments w ith in the city, par tic ular ly near S oh r ab G ot h. After 2008 in the PPP-led tenure, it was planned to make 4,000 CNG buses operational under the Benazir Bhutto CNG Buses Scheme - a 20 percent subsidy was supposed to be given and the federal government transferred Rs 300 million to the bank concerned for making 500 buses operational, but the relevant departments showed least interest in the project. The Karachi Metropolitan Corporation bought yet another 50 Green Buses, but their fate was no different than previous schemes. And till date, no audit has been done as to where these funds were spent or where the buses are at the moment. Comin g to the present scenario, according to the Karachi Urban Transport Corporation (KUTC) an agreement with the Japanese and the Pakistani government had to be signed in June 2013, whose construction was planned to end by 2017. Experts on the issue say more than six departments of the city deal the subject of mass transit - the main reason of a delay in such projects. These bodies not only mishandle and mismanage the projects, but corruption also widespread. The irony is that rather than having a modern transport system, the city is full of Qingqui rickshaws - a dangerous mode of transportation - criticised by many. "Although the projects were designed perfectly, the political scenario wasn't feasible for their implementation. This was because of political rivalries. Every government cancelled or delayed the projects initiated by previous regimes," said a source at the Mass Transit Cell, Karachi....

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Corporate Event - Update

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Rastgar & Co and CompAir 11th Textile Asia Int'l Textile & Garment Machinery Show Displayed AirAudit and AirPro remained center of attention of visitors due to their multiple benefits for industries Latest in Compressed Air Equipment Rastgar & Co and CompAir Team displayed the latest and innovative technology in compressed air equipment from CompAir at the 11th Textile Asia exhibition which was held at Expo Center Lahore from 2-4 November, 2013. Several Models of CompAir, Quantima and Hydrovane were at display at its Stand and Rastgar & Co reinforced its position in the textile sector by offering dedicated services, dependable products and turnkey air installations for new and old textile plants. Major textile industries such Monnoo, TATA, Superior Textile, Charlotte Group of Industries,, A.R. Foods, Alwani Textiles and many others keenly enquired about CompAir technical details and features from CompAir expert Chris Goldsworthy, who was available at R&C stand during the show. Rastgar & Coâ&#x20AC;&#x2122;s AirPro and AirAudit stand, innovative initiative successfully winning confidence of textile sector, remained center of attention during the show. AirPro engineers demonstrated important aspects of AirPro services at the stand and set future meetings for detail discussio ns. AirAudit stand rendered specialized advice on energy savings and quality of compressed air

to industrialists which resulted in follow up meeting for detail presentations and briefing on auditing services. AirPro, offering Complete Compressed Air Installations, and AirAudit, offering Compressed Air Auditing Services, are winning confidence of all industrial sectors in Pakistan. These services have put Rastgar & Co in leading position in providing compressed air services in Pakistan. T h e Int erna tiona l Text ile Asi a Exhibition, one of the most promising

and enduring Event was held for the 11th successive year at Lahore Expo Centre from 2-4 Nov. 2013, and is the official event of the Federal Ministry of Textile Industry. The exhibition aimed to focus on the immense buying selling p otenti al of t exti le & g arm ent machinery, accessories, raw material supplies, chemicals and allied services under one roof, where Rastgar & Co is a regular participant...

Airtec, Frankfurt. Alsons and R&D Precision Exports displaying aerospace components at CBI Stand

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Corporate Event - Press Release

Monthly AutoMark Magazine

Pakistani companies score well at Airtec, Frankfurt In the next twenty years, the aviation industry expects to make 20,000 commercial planes. There is a vast opportunity for Pakistani parts manufacturers and system integrators who can rise to the occasion with the disciplines needed by the aviation industry. The skill sets and opportunity is present for Pakistan to grow its exports in this sector of engineering goods and the Ministry of Commerce as well as the TDAP would do well to recognize these facts. The 8th International Aerospace Supply Fair closed at Frankfurt, show casing components suppliers, service providers and machinery builders in a networking environment with a large seminar at the centre. Assisted by The Netherlands Centre for Promotion of Imports from Developing Countr ies (CBI ), tw o Pakista ni c o m p a n i es , A l so n s a nd R & D Engineering are today returning home with some excellent business orders. The CBI Stand consis te d of four participants. Alsons, Pakistan, a manufacturer of autoparts and ordnance components, had Mr. Nadeem and Abdul Rahman Allana at the stand. It was good to have the export manager and the CEO together. They made a good team. Mr. Allana reported good prospects for their aviation sub cantract business and pitched to customers as integrators of assemblies, in addition to being a parts producer. R&D Engineering Pakistan, had very busy first two days, thanks to diligence in pre-fair work. Displayed at their stand were some heighten and precisely machined parts which became the centre of attractio n for most discerning customers. R&D already have good track record of supplies of aviation grade machined parts and reported that their customers now demand a higher level of w ork from them as assembly integrators, instead of parts supply. Famous Secret, Philippines is another interesting company seen at the CBI stand at the Airtec. This was their first entry. They have good machine tools. FS have 250 CNC Machine Tools. The most interesting part of their business is that they also assemble two engine planes from kits imported from the US

and re-export the assembled planes. Probably th ey will need a higher technical discipline from what they are used to as a producer of motor cycle parts. It is a insuring company for Pakistani engineering sector companies, particularly the fact that assembly of light aircraft is also a potential field for Pakistani companies. Innovate Tecnocast, India, is a seasoned manufacturer of investment castings at the CBI Stan d. Mr. R.N.Mavani, Manag ing Director ,was h imself manning the stand. He informed us that he has a regular export department and his company already has a turnover of over Euros 6.00 Mil. He is excited about pro spects for his products for the European market as the Government of India has mandated that all aerospace purchases must have at least 30% Indian content. This has opened up prospects to Indian companies which have or can develop capabilitie s for aerospace components. Mr. Mavani is investing in a new company, Turbo Cast, which will be equipped by machinery and controls capable of handling parts for aerospace market. In the next twenty years, the aviation industry expe cts to make 20,000 commercial planes. There is a vast opp or tunity for Pakist ani par ts manufacturers and system integrators who can rise to the occasion with the disciplin es needed by the aviation industry. The skill sets and opportunity is present for Pakistan to grow its exports in this sector of engineering goods and the Ministry of Commerce as well as the TDAP would do well to recognize these facts.

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Automotive Sector - Update

FBR asked to verify used vehicles import records Auto dealers misusing policy The Pakistan Association of Automotive Parts Accessories Manufacturers, while seeking investigation of used cars scam unearthed by the FIA, has asked the authorities to verify the record of all vehicles imported after relaxation of used car import policy in Dec 2010, as used-car dealers are grossly misusing th e i mp ort poli cy c oncessions. PAAPAM Chairman Usman Malik pointed out that used car dealers are abusing the auto import policy, which is meant only for expatriate Pakistanis, by importing huge quantities of used vehicl es through manipulation of documents of Pakistanis returning from abroad. He also lauded the recent used car scam unearthed by the Federal Investigation Agency. Describing details of the scam, he said that an FIR was lodged on the basis of a written complaint by a passenger regarding misuse of his passport by an agent dealing with the is suance of visa, al leging that the Customs clearing agent had imported a vehicle on his passport fraudulently

under the personal baggage scheme without the passenger’s knowledge. The investigation agency scr utinized immigration database, finding it to be forged and concluded that the clearing agent had committed a fraud with the complainant, whose passport was used for the issuance of fake visa. The FIA officials also nominated six officials of th e Mod el Cu st om Collectora te Appraisement West in the FIR through the interim charge-sheet. Usman Malik said that the FIA should also investigate unsold stocks at used car dealerships, verify their ownership details, scrutinize immigration database and the entry / exit stamps affixed on the passports. “All these malpractices are critically h u r t i n g t h e lo c al a u t o p a r t s

Auto makers asked to maintain quality The Unio n of Small and Medium Enterprises (Unisame) has urged the Pakistan Automotive Manufacturers Association (PAMA) to impress upon its members to maintain quality in the face of the depletion clause imposed by the government, said a statement. Unisame President Zulfikar Thaver said that the PAMA members are required to increase the use of indigenous parts and reduce their reliance on imported parts for the production of automobiles in the country as per the depletion clause agreement. Thus, he added, PAMA members find it difficult to maintain the standards desired by the principal companies in Japan. “However, this agreement does not allow the manufacturers to compromise on

standards. In fact, they have to be more particular about the quality of the parts supplied by local vendors.” Thaver said that if local vendors would improve the quality of their products, then they would start to get orders for the automobil e plants from many countries of the world. “ There have been many complain ts fro m customers regarding substandard batteries and other parts supplied by the vendors. The customers are suffering even though most of the members of PAMA have increased their prices,” he said. “There have been several complaints about negligence and lack of check and control systems in the manufacturing units and also about many dealers who are not doing up to mark repair work.”...

manufacturers and their volumes/profit margins have been eroded by such illegal imports, while, on the other hand, used car dealers are reaping bumper profits from the abuse of import policy order.” PAAPAM Senior Vice Chairman, Aslam Rayaz, said that, as per Import Policy Order 2012-15, minimum stay abroad for import of personal baggage shall be 180 days within the last seven months preceding the date of application and minimum stay abroad requirement for gifting a vehicle or importing under transfer of residence shall be at least 700 days during the past three years. A vehicle may be gifted only to a family member normally resident in Pakistan. He added that, unfortunately this policy is being massively abused by used car dealers, which is now confirmed by the written complaint filed by a passenger regarding misuse of his passport by an agent dealing with the issuance of visa, who had fraudulently imported a vehicle on his passport under the personal baggage scheme without the passenger’s knowledge.....

Tractor sales go down Farmers are lifting tractor at Rs50,000-100,000 less from the open market instead of purchasing from the manufacturers. The government had given subsidy of Rs200,000300,000 on various tractors. Sale and production of Fiat tractors dipped to 1,622 and 1,714 units in JulySeptember 2013 as compared to 5,339 and 3,489 units in same period of last year. Sale and production of Massey Ferguson tractors also fell to 4,556 and 3,281 units as compared to 6,094 and 4,782 units, figures released by Pakistan Automotive Manufacturers Association (Pama) revealed.

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Shell Eco-marathon - PR

SHELL HIGHLIGHTS YOUTH’S CONTRIBUTION TO INNOVATION & TECHNOLOGY M atth i as Bic hsel, P roj ec ts and Technology Director of Royal Dutch Shell Pl c met w ith Electrical and Mechanical Engineering students at the Nati onal University of Sciences & Technology (NUST). They spoke a bo u t Sh el l’s g lob a l f ocu s on t ec hnolog ica l innovati on i n its operations and developing integrated energy solutions. Mr. Bichsel highlighted a number of exciting new projects that Shell is working on around the world and in the South Asian region, where thousands of engineers and scientists are working on fr on t-en d d esi g n a nd p r od u c t development and on the delivery of highend advanced technical studies. In his address, he added that Shell sees “universities as our friends. Not only do they provide a rich source of recruits, but they are also a wonderful source of research and innovative ideas – some of which are important to many of the things we do at Shell.” “Additionally, Shell endeavours to create learning opportunities particularly for young bright minds lik e those at the university, and the Shell Ecomarathon is one such event that does

this. I’m very pleas ed to see the wonderful fuel-efficient vehicles teams here at NUST have worked so hard to build,” he said. At the event, Major General Obaid bin Zakria said, “the opportunities for our students to meet with and hear about global technological and engineering projects and opportunities is a crucial part of encouraging them to think creatively not only about their careers, but also to think seriously about how they can apply their knowledge and the

education they have to help solve practical challenges facing Pakistan and the world.” Over 150 students from electrical, m ec h a n i c a l a n d m e c h a t r o n i c engineering disciplines attended the address by Mr. Bichsel, after which he and members of the faculty at NUST view ed various ongoing projects students are working on, including Shell Eco-marathon vehicles for the 2014 competition.

MORE THAN 150 STUDENT TEAMS FROM ACROSS THE REGION TO TAKE ON MILEAGE CHALLENGE IN SHELL ECO-MARATHON ASIA 2014 157 student teams from 16 countries across Asia and the Middle East are preparing to hit the streets of Manila, Philippines in February 2014 to compete in the fifth annual Shell Eco-marathon Asia. The mileage competition will welcome a record number of participating teams this year, as it moves for the first time from the Sepang International Circuit in Kuala Lumpur (Malaysia) to Luneta Park in the heart of Manila (Philippines). Representing Pakistan are 15 teams from the country’s top 11 engineering schools, na m ely: N.E .D Un iver si ty of Engineering and Technology, National University of Sciences and Technology (NUST), Ghulam Ishaq Khan Institute of Engineering Sciences and Technology, FAS T Nat ional University, Iqr a University,Karachi, Gulshan, COMSATS

Institute of Information Technology, Sahiwal, Air University, Islamabad, Uni ver sity of Eng ineeri ng and Technology (UET), Pakistan Institue Of Engineering and Applied Sciences, Mehran University of Engineering and Technology, Jamshoro, Pakistan Institue Of Engineering and Applied Sciences The teams have been designing and building their energy-efficient vehicles for more than a year. Success is not measured by speed – it is measured by who can drive a set distance on the least amount of fuel and become the most fuel efficient team by thinking creatively about energy efficiency and putting new ideas into practice. “Shell Pakistan is honoured to be a part of this great effort to design and build energy-efficient vehicles in the face of ever growing energy demands of an

expanding population and economy”, said Natasha Qamar, Communications Advisor at Shell Pakistan. With the first urban track for Shell Ecomarathon Asia in Manila, participating students can experience first-hand the energy challenges faced by true urban environments. City centres will bear the brunt of the world’s surging population – rising to 9 billion from 7 billion by 2050 – as well as the energy demands that come with it. Beyond the student competition, Shell Eco-marathon Asia 2014 will for the first time convene partners and other stakeholders around the future of energy, technology and mobility. Shell please visit the Shell Eco-marathon website at www.shell.com/ecomarathon.

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Monthly AutoMark Magazine

Automotive Sector - Update

PAMA opposes removal of available protection Pakistan’s auto industry has reportedly opposed removal of available protection, arguing that reduction in present CKD tariff may spur growth, but it would discourage further localisation, sources close to Secretary Industries told media reporter. An inter-ministerial committee headed by Minister for Water and Power, Khawaja Muhammad Asif is deliberating on the draft of new auto policy with the industry, which will be considered by the Economic Coordination Committee (ECC) of the Cabinet very soon. The ECC headed by Finance Minister, Ishaq Dar, in its meeting on October 2, 2013 had expressed dis appoin tment on the perf orman ce of auto industry and d irec ted th e new ly const itu ted committee to submit the new draft auto policy within 45 days. Engineering Development Board (EDB), which is functio ning w ithout an y permanent head, has drafted new auto sector development policy, which the committee’s convener discarded last w eek. S ec retar y Ind ustr ies and Production, Shafqat Nagmi, who is u na wa re of t he very b asic s of engineering industry, is heading the EDB temporarily. Pakistan Automotive Manufacturers Association (PAMA) representative body of auto sector has written a letter to the Secretary Industries in which woes of auto industry has been brought to his notice. The Association is of the view in the post 2008 period the economy was in the whirlwind of global economic recession that adversely impacted the industry which later worsened by frequent policy changes and not delivering according to the Au to Industry Develop ment Plan(AIDP) like HRD, PAII and TASS. In short, the programme was actually never put into action. PAMA has requested the committee to look into the reasons of continued fall in production volume since 2008. The committee has also been suggested that the future auto policy should go around one point agenda; namely sustainable growth in production and sales volume. According to PAMA, volume of locally as sembled passenge r cars wil l be

222,403 in fin ancial year 2012-13 followed by 259,550 in 2013-14; 293,155 cars in 2014-15, 323,065 in 2015-16 and 349,176 in 2016-17 respectively. The projected production of light commercial vehicles will be as 33,138 in 2012-13, whereas 40, 232 in 2013-14, 46,177 in 2014-15 as well as 50,794 in 2015-16 and 55,873 in 2016-17. The Association is of the view that the tariff may be designed to achieve targeted volumes with a host of nontariff meas ures su ch as overseas Pakistanis m ay purch ase locally manufactured cars with relief in duty and price payment in foreign exchange. PAMA further stated that erstwhile deletion programme has since been terminated in 2006 and replaced by a new system called Tariff Based System (TBS), as such, use of this term in the present scenario would not be correct. Further the auto-related tariffs are to be so designed to achieve production volu mes wi thou t com pr omising localization opportunity. Accordingly, for the AIDP the tariffs were designed keeping in view volumes in 2007. For example, in case of passenger cars, the actual volume, in 2007, was 176,016 units and the growth after five years, in 2002, was targeted to be 500,000 units, with CKD tariff of 35 per cent to 30 per cent. At present, in year 2013 the volume ended with 120,332 units which is lower than the figures in 2007, implying the ind ust ry h as m ater ial ly st ayed unchanged rather slide downward for all the previous years. Local industry, which failed to achieve localisation threshold on one pretext or the oth er , has now advised th e government that there is not enough room to maneuver the figures of tariffs for a stagnant industry riddled with high fixed costs and idle cap acities. PAMA has welcomed new investment in the auto sector but recommended that the existing policy of 2011 should continue except for providing it to the existing play ers if they bring new product/ new platform as it would be akin to new investment and provide level playing field. Commenting on import of used cars

policy, local industry has stated that any similar policy of import of used vehicles may not work if the industry is to survive and grow. PAMA has agreed to extend all possible support to the government regarding any change in the used cars import policy. “While we ourselves do anything that the government legitimately ask us, we see a firm policy document on used vehicles imports and once agreed that may stay unchanged during the tenure of future auto policy,” PAMA added. The As sociation has proposed the following point to be included in future policy on used cars;(i) proof of payment b y o ve r se a s P a ki st a n is m a d e mandatory;(ii) three years age limit to stay and extended to SUV, LCV and HCVs;(iii) val uation under SROI 577/2005 may be indexed and updated on current international price and ;(iv) conditions of registration in the name of overseas Pakistani and driving licence be restored. Giv ing an overview of motorcy cl e industry, PAMA has acknowledged that unfair competition in the market has almost forced out the organised sector from the industry. The few left in the organised sector may not be able to survive much longer if rampant under in voicing, outright smuggling and massive tax evasion is not checked. At present, the unfair competition has reached a stage where the players are using all unlawful means to survive. The lar g e u nor gani sed sec tor a fter exhausting all avenues of tax evasion is now engaged in supporting its credit circle through delaying or in many cases, refu sing payments to the vendor industry. The vendor industry is under a lot of pressure these days as they are not being paid and a huge credit has piled up resulting in stiffening of growth. PAMA further argued that so far only one player i.e. Yahama has been declared new entrant, adding that the industry needs to adjust changes in policy and it should not be subject to any further jolts through further policy changes before the very recently introduced policy initiatives start bringing in the needed results....

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Monthly AutoMark Magazine

Automotive Sector - Update

Bikes' spare parts

Regional Tax Offices told to probe Sales Tax evasion, underinvoicing It is high time that the government should take into account the development of Chinese bike assemblers and their thriving vendor base relating to production, sale and market share before finalising a new policy for the entire auto sector The Federal Board of Revenue has directed all Chief Commissioners of Regional Tax Offices (RTOs) to investigate whether huge sal es tax evasion and underinvoicing of imported spare parts is taking place, due to nonregistration with the sales tax by certain auto sector dealers. Sources told media on last week that the FBR has received a representation from Association of Pakistan Motorcycle Assemblers (APMA), Karachi regarding sales tax evasion and underinvoicing of imported parts by auto sector dealers. The FBR has directed th e Chief Commissioners of RTOs to investigate the aspect of sales tax evasion and under invoicing by the said sector. The Board ha s fur th er dir ect ed t he Ch ief Commissioners of RTOs to submit the report on priority basis. According to the APMA, the government should abolish the condition from buying parts from commercial importers for th e assembly of mo torcycles. Currently, a number of assemblers are procuring smuggled parts from the markets due to the above condition. This mis -procurement lead s to illegal assembly of vehicl es, resultin g in substandard production of vehicles and above all creating uneven playing field for genuine players. The firms engaged in such unscrupulous activity are putting a colossal dent on national kitty through evasion of duties and taxes. The government should immediately announce a motorcycle policy and it should contact the stakeholders who are ready to give po sitive suggestions keeping in view their vast experience, it said. APMA was of the view that the increase in taxes and duties would improve revenue and bring many sectors into the tax net. The businessmen had already warned the government not to impose any fresh tax as it would trigger inflation besides raising cost of doing business. The Chinese bike assemblers have set their eyes on ministry of finance and

EDB for a good policy. The assemblers are highly hopeful especially of Finance Minister Ishaq Dar due to his vast experience in running the affairs of finance ministry. Finance Minister will take such steps which would encourage assemblers to come out with new models especially replacing the decades-old 70cc bikes which do not exist in any of the country. The government should bring a change by abolishing the SRO culture as the Finance Minister promised in his budget speech. It said that the government has also not called upon any meeting with Chinese bike assemblers and yet to discuss future road map of the two wheeler industry. In the last 14 years, Pakistan Automotive Manufacturers Association (PAMA) and PAAPAM had strong hold in po licy making of the govern me nt including tax structure. Chinese bike assemblers' body (APMA) and various Chinese vehicle manufacturers had failed to get representation in policy making. It is high time that the government sh ou l d t ak e int o a cc ou nt th e development of Chinese bike assemblers and their thriving vendor base relating to production, sale and market share before finalising a new policy for the entire auto sector. All zero rated imports must be fixed at minimum five per cent customs duty. In auto sector, all the Input Output Ratio Certificates (IORCs), which are valid up to June 30, 2013 should not be revalidated and one customs duty on imported parts and one customs duty on CBU imports (eg for two wheelers customs duty on CKD parts (localised or non-localised) should be fixed at 25 per cent. Currently non localised parts have 10 percent customs duty and duty on localised parts is 38.75 percent. The customs duty on CBU two wheelers should not be more than 45 percent, which is currently over 50 per cent. The government which issues lists for import through EDB to OEMs and

assembler s should b e abolished immediately as it was cumbersome and time consuming exercise. Besides, the entire auto sector is burdened with many SROs and notifications and there must be one policy document or the SRO or notification for entire sector which will discourage corruption. The valuation advises and ruling issued in the last 10 years on auto sector should be scrapped immediately as they had only encouraged informal trade through various channels and mis-declaration. Due to this, a culture of smuggling of parts and other items has developed. The government should also strive hard to register all dealers of two an d four wheeler including the entire auto sector stakeholders in the sales tax net. In the last 10 years, there was huge sales tax evasion and under invoicing of imported parts due to non registration in sales tax by auto sector dealers al l over Pa ki sta n, a ssoc ia t ion maintained. It is high time that the government should frame such policies which would lure new investors for which the government has to simplify laws as there are reports of tax evasion. A uniform policy is needed. The government should also ponder on fixing an age limit of two wheelers as people still own decades old bikes. It further opined that the exports refunds of many industries had been in doldrums as the Afghan Customs had been computeris ed which did not provide a copy of the invoice of the cleared consignments to the importers. The Afghan customs was relying upon a computer generated invoices and did not provide any docume nt on the clearance of goods to the Pakistani exporters. The government should realise that this segment of the engineering needs little power and gas for running and the government should encourage them so that more jobs could be created, it added.

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Energy Sector - Update

Goodbye CNG

With petroleum prices at a record high, and CNG to be unavailable very soon, the people seem to be running out of viable options. Own a vehicle which runs on CNG? No problem. Just keep it parked for three months, or use petrol and diesel instead. Can’t afford to? No worries. Sometimes, it appears that what goes around in Pakistan must be scripted, and the writer has a cruel sense of humour. One federal government runs a national campaign, encouraging its citizens to switch to compressed natural gas (CNG) for transport, and the next government in power announces a complete shut-down of all CNG stations in th e fed eral capital as well as throughout Punjab for three months. Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, declared that the decision had been taken in order to handle the expected gas shortfall during winters. T h e te rm h e u sed w a s “ l oa d m anagem ent” . S o, th at’s quite interesting. Because, if memory serves right, it was no one else but Punjab Chief Minister, Shahbaz Sharif himself, who refused to acknowledge that the province genuinely faced a gas shortfall crisis.

Everyone must remember his heated spe eches during the co ld winters, accusing the PPP government of maliciously depriving Punjab of gas u nd er t h e false g ui se of ‘loa d management’. So, was he right then, or is he wrong now? With petroleum prices at a record high, and CNG to be unavailable very soon, the people seem to be running out of viable options. Own a vehicle which runs on CNG? No problem. Just keep it parked for three months, or use petrol and diesel instead. Can’t afford to? No worries. There is a reason why God made buses and bicycles. Also, please stop whining about the unavoidable increase in public transport tariffs. Something is better than nothing. No one knows that better than the middle (assuming such a thing exists anymore) and salaried classes. If the PML-N government doesn’t wish

CNG winter closure proposal illegal: APCNGA The All Pakistan Compressed Natural Gas Association (APCNGA) on Tuesday said pro posal to close CNG filling stations in the winter is illegal which will hurt investments, spark inflation, create transportation issues and leave millions starving. The government should not focus on CNG sector for offsetting shortage of natural gas in winter but abide by the agreements while arresting illegal use of natural gas, illegal provision of gas to influential sectors, extra usage of gas by some sectors, massive leakages and increasing theft, it said. The authorities seem least interested in abiding by the law or ensuring just use of natural gas while putting all the blame on the unfortunate CNG sector, said APCNGA Supreme Council Chairman Ghiyas Abdullah Paracha.

In a statement issued on Tuesday, he said that masses would get relief if CNG outlets are kept open from 9am to 7pm during the calendar week as they would get plenty of natural gas for domestic use and CNG for tran sportation. Building his point, he said that provision of gas to CNG sector during Eid did not increased consumption of natural gas or sale of the pumps but provided relief to the masses. Paracha added that practice of providing gas illegally to some powerful sectors must cease to give relief to masses as a lot of natural gas is being diverted to them creating shortage for the domestic consumers during the biting cold. He said that CNG sector has been facing discrimination on the behest of many mafias including highly connected and powerful oil import mafia.

to further add to the miseries of the masses, it must act fast. Such temporary measures are not worth the candle to counter a permanent problem. When asked about the Iran-Pakistan gas pipeline, Minister Abbasi, revealed that the government had asked Iran for assistance of $2 billion to construct the long-delayed section of the pipeline. That’s reassuring. Not the first time Pakistan is completely depending on another country to deal with its own short-comings. Here’s a suggestion: cut down on the unbelievable expense of the PM House, Governor Houses, CM Houses, laptop schemes, VIP protocols, etc and maybe, just maybe, the country will not be broke all the time. Pakistan desperately needs gas. For that, it must construct the pipeline. Without it, this madness is bound to become an annual occurrence, which the people simply c annot suffer through anymore.

Solar power ACs could be next big thing in Pakistan The first shipment of the products is expected in Pakistan in mid-November With a serious power crisis and rising fuel prices, Pakistan’s industry appears to be looking to ward al ternative solutions to overcome its energy needs. The industry’s predicament also seems to have piqued the interest of foreign companies trying to find new markets for their eco-friendly, energy-efficient products. One such example is the Ch inese multinational Midea Commercial Air Cond it io ner (C AC), w h i ch h a s announced it will be distributing three new “green, energy-efficient” solutions for the Pakistani Heating, Ventilation and Air-conditioning (HVAC) industry. The products, which fall under Midea’s MDV brand, include a solar-powered air-conditioner, a DC Inverter Variable Refrigerant Flow (VRF) system and a “Dual Storage Fu ll Falling-Film Centrifugal Chiller.”

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Automotive Sector - Update

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General Tyre plans to set up plant in North General Tyre while showing confidence in Pakistan’s market invested Rs 500 million in motorcycle tyre production and plant enhancement early this year, which also created job opportunities in this recessionary period. Chairman General Tyre, Lt-Gen Ali Kuli Khan Khattak (retd) has said that company h as a plan to set up a manufacturing plant in North “where we could produce some new products to supplement our current range and add more profitability.” He was addressing a gathering to commemorate 50 years of General Tyres. Despite several challenges and tough operating environment local tyre industry has strengthened the economy by not only saving foreign exchange while fulfilling local demand but also earnin g the much needed foreign exchange through increasing exports. “General Tyre and Rubber Company alone contributed around Rs 16.5 billion to national exchequer in three decades an d emerged as leading and most trusted tyre brand of the country,” he added. “Inshal lah, I am sure our dedicated workforce led by their able captain will help me realize my dream of setting up plant in North,” Chairman General Tyre added. While talking about the initial days of the company and its struggle he said that his late fath er Lt. G ener al Habibullah Khan had a basic philosophy for life and that was to care of the people under his command.

“Be it the Army or his private enterprise he had the same philosophy which has resulted in three generations working in not only our various companies, where the average working life spent is 25 years, but it was the same case with our deal ers wh ere th e th ird generat ion is running the show,” he added. Ali Kuli Khan said that as per vision of his father for social development, all the companies in the group donate 2.5 percent of their profits to Wakf-e-Kuli Khan, a non-profit organization which provides free education to the needy. Chief Executive General Tyre Shahid Hussain said that 50 years are just the beginning of a new era and thanked all

the partners, workers, dealers and customers who played part to make General Tyre a success story of the county. “Our success does not hinge on doing things in isolation. We have a very good understanding with our equity holder Continental AG an d their Director on our Board Dr. Willi Flamm. Similarly, we h ave a very good understanding with our other equity p art ner s inc lud ing Pak Ku w ait Investment Company and National Investment Trust,” he said. It is pertinent to mention here that General Tyre while showing confidence in Pakistan’s market invested Rs 500 million in motorcycle tyre production and plant enhancement early this year, which also created job opportunities in this recessionary period. GT produces passenger car tyre, light truck tyre, truck / bus tyre, tractor tyre, rickshaw tyre and motorcycle tyre having extensive dealer network across the country. Some 50 percent of its tyres are sold to the origin al equipment manufacturers (OEMs) – carmakers – in the country. The company also exports its products to Afghanistan and Syria an d is exploring new export markets.—PR

PSO profit jumps 83pc, skips dividend Pakistan State Oil (PSO) announced results for the first quarter July-Sept of 2013-14 posting profit after tax at Rs7.8 billion, translating into earning per share at Rs31.57. It represented growth of 83 per cent over PAT at Rs4.3bn and eps at Rs17.28 earned in the corresponding period of the previous year. The results beat a na l ys ts ` c on se ns u s fo r ec a st . The extra ordinary growth in earnings was attributable to a giant leap in `other income` by 764 per cent to Rs10.1bn, from Rs1.2bn.

Operating cost rose by 123 per cent to Rs7.2bn, from Rs3.2bn. Net sales recorded growth of 11 per cent to Rs307bn, from Rs276bn in the same period last fiscal year. In a statement, PSO said that the company had recorded the highest ever quarterly after tax earnings in the period under review. It stated that the company maintained its market leadership during the period under review with overall market share of 63.8 per cent. The PSO share in Black Oil and White Oil stood at 75.9pc and

52.5pc, respectively. The company`s liquid fuel sales grew by 4.3pc. The sales volume of furnace oil and motor gasoline rose by 6.7 and 17.4pc, respectively, while sales volume of high speed diesel dropped by 6.4pc. The oil marketing company observed that the positive impact of the improved sales on bottom line was partially offset by the sharp devaluation of the rupee against the dollar by approximately 6.7pc against erosion of just 0.5pc in the same time last year.

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Automotive Sector - Update

Transport system in a mess People maintain their physical balance with difficulty as a qingqi (pronounced Chin-Chee by locals) negotiates twists and turns in a narrow, rickety, over-crowded road in Ancholi area, a middle-class locality in Karachi. However, “it is a blessing in disguise. It has provided an affordable solution for people’s short distance commutation needs. The ride is not enjoyable, but serves the purpose. Walk three miles after a full-day job and cannot afford to spend Rs50 on oneway rickshaw fare, qingqis charged Rs10 till last month, but after the petrol price hike, th e fare has risen to Rs15”. There are several thousands of vehicles of this new transport mode, which is a cross between a motorcycle and an autorickshaw, that ply on roads in cities and towns from Mingora in Swat in the north of the country to the port city of Karachi in the south. Little wonder then, that motorcycles account for as much as 5560 per cent of the total domestic consumption of petrol. The fact is that the auto-driven transport system is unsustainable, insufficient, inefficient, economically ineffective, unfair and unsafe for the passengers. It lacks cross model balance and stunts the country’s development. Lack of investment in infrastructure; infl uence of interest grou ps i n Islamabad; abs ence of innovative reg ula tory fr am ewor k, and th e government’s insensitivity to the needs of the people in a transforming economy are hal lmarks of the transportation system, which is projected to be the second largest service segment, next only to the financial sector. According to the Pakistan Economic Survey 2012-13, transport has a share of 24 per cent in the services sector. It is projected to be both means and an end of growth activities in emerging economies. The fact that its growth pace dipped from nine to three per cent in a year, between FY 2011-12 and 2012-13, reflects the direction in which the economy is heading. Experts believe that the social cost of the lack of an integrated transport policy is higher than the economic cost. The escalation and the changing pricing equilibrium in petrol, diesel, CNG and

LP G fo rc e op er at or s to m ak e ad j u stm ent s w h ose cos t o fte n compromises safety and efficiency and is borne by commuters. “The burden is dis proportionately greater on vulnerable, impoverished segme nts,” commente d an expert. The low income urban households (earning between Rs15,000-20,000) spend roughly as much as 20 per cent of their income on transport. It is the third biggest head, after food and rent, on their family budget. Families w ith incom es bet ween Rs60,000-100,000 spend around 10 per cent of that on transport, and the relative percentage falls as incomes go up. This was deduced from a random survey conducted by this writer. The single biggest factor troubling the populace is the escal ating cost of essential services. “The prices of local petroleum products tend to move in tand em w it h th e trend in t h e international market, because of the co untry’s de pende nce on imports . However, one needs to factor in the rupee-dollar parity when commenting on the retail price of petrol and diesel. Every depreciation of the rupee hikes the cost of imports. How can it be sold for a price that does not cover the cost,” Aftab Hussain, MD and CEO, Pakistan Refinery Limited (PRL), commented on the rising cost of transport when reached over phone. “Close to 50 per cent of the hike in

petroleum products is because of rupee depreciation and government levies. Refineries are under a lot of pressure because of the depreciation, as PRL’s balance sheet turned red, from a Rs50 million profit last year to a Rs270 million loss, thanks to the falling value of the rupee,” he lamented. “The country needs a well defined, integrated transport policy, which is properly benchmarked and closely monitored. Unfortunately, we lack both the capacity and willingness,” he said. A draft of the ‘National Transport Policy’ (NTP), dated July 2009, was found on the website of the National Transport Research Centre (NTRC), which falls u nde r t h e fed era l m ini str y o f communication. “It sure can serve as a starting point,” commented an expert. NRTC chief Mohammad Shamsuddin Qureshi was cautious when reached over phone in Islamabad to find the fate of the draft prepared four years back. “We forwarded it to the planning commission (PC). It was supposed to finalise the policy document after accommodating the input of all relevant stakeholders and then present it to the cabinet for approval. Unfortunately, that was the last we heard of it,” he said. “A number of reminders have been sent to the PC, but there must be more urgent issues at hand, as its response is still awaited. The last reminder was sent in September 2013,” “The commuters are paying more for less of the quality and quantity of service. Stagflation tends to drive people towards cheap modes and unsafe practices, such as travelling on bus/wagon rooftops. The public sector options are depleting; exp er i me nts of p ub li c p r iv at e partnership have not been pursued prop er ly, and pr ivate transport operators have not been regulated effectively,” said an expert. “It all adds up to make daily travelling for students and the working population a challenge, and drags down their economic and social well being,” he concluded.

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Automotive Sector - Update

Pakistan motorcycle hub As per capita income rises, consumer preference shifts to big bikes The Pakistan motorcycle market, which is dominated by bikes having an engine of 70 cubic centimetres (cc), has started to see a change in consumer preferences. N ow a d a y s , c u st om e r s p r e f e r motorcycles with an engine of 100cc or above while the bikes with 70cc engines have seen a fall in market share, as the trend suggests. According to industry experts, the 100cc and above bike segment witnessed a record growth, while the growth in sales of bikes having 70cc engines posted decline. The changing consumer choices h av e forced the local motorcy cle assembl ers to begin focusing on production of bikes with engines of 100cc and above. Last year, over 1.5 million motorcycles

were produced in the country, of which production of 70cc bikes were the bulk. However, analysis of segment-wise data shows that production of bikes having engines of 100cc and 125cc and above grew 34% and 20%, respectively, while production of the previously most-popular 70cc bikes shrunk 10%. Bikes having engines of 70cc still make up 80% of the total market share. Changes in consumer preference patterns is not new to the automotive industry as India is an example where the demand for bikes with engines of 100cc and above jumped from 48% in 2005 to 65% in 2012.

“The real change in the industry has come with the transformation of Pakistan, and the phenomenal jump (in motorcycle production) from 100,000 motorcycle in 2000-01 to two million a year presently is a testimony to this transformation,” said Atlas Honda Research and Development General Manager Afaq Ahmad, while talking to journalists. When per capita income touches the $3,000-barrier, the Pakistani auto market will experience a change in consumer behaviour where the customer will opt for both luxury motorcycles and trendy bikes like scooters and so on, Ahmad added. Per capita income is a very important factor in the development of the automotive industry of any country as it results in healthier competition when

the economic situation is unfavourable, Ahmad said. According to data from the Pak istan Bureau of Statistics, the country’s per capita income clocked in at $1,290 in 2012 – much lower compared to other developing nations. High economic growth rate raises the standard of living of the population, which in turn creates more demand for higher-end automobiles. Eventually, the rising standard of living when per capita income touches $3,000$4,000 mark will drive consumers to shift from motorcycles to cars. At that stage, the motorcycle industry will also shift focus from being a necessity market to somewhat luxury or sports-oriented market, Ahmad said. This transformation will start bringing in bigger-engine bikes into the Pakistani market, which will be a good sign not only for the automobile industry but for the economy as a whole, he added. The advantage of 100% localisation, w hi ch t he Pakistani motorcycle assemblers enjoy, has not only helped the price s stablil ise and be come competitive with the region, but it has also allowed local assemblers to gain a foothold in foreign markets such as Bangladesh and Sri Lanka. The local industry is also seeking to introduce locally-made bikes to South African and I ra nia n m ar ket s, Ah m ad s aid . “Honda Japan has recently declared Pakistan as the hub for 70cc technology in the region.”

In Pakistan, first-ever locally-assembled motorcycles were seen in 1964 with the inauguration of a motorcycle factory by Honda in Karachi. The industry saw a revolution in the 1990s when local brand names surfaced. Presently, there are 100 assemblers in the country, out of which 81 are active.

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Energy Sector - Update

Energy crisis and economy of Pakistan By luck, we have the points for the production of wind energy which is available into the coastal areas of Karachi, Thatta, Jiwani and Baluchistan’s coastal belt and other areas situated into northern areas and Azad Kashmir. Self-sufficiency in energy is th e assuran ce to exce l any cou ntry’s economy. According to an international analysis, the oil and gas reserves will be finished into the second half of this current century. For that reason, to attain self-sufficiency, alternative energy resources are being explored. There are 929 billion tons approx. coal reserves available in the world whose 40% is used to produce the electricity. As per an estimation, third biggest coal reserve of 185 billion ton exists in Pakistan which is equivalent to 400 billion barrels of oil. In other words, our coal reserves are equivalent to Saudi Arab and Iran’s combined oil reserves. As per research, $50 per barrel price gives the value of our coal reserve as high as $30 trillion which goes to 187 times high as compared to current GDP of Pakistan. Current government has taken appropriate actions to produce the electricity from Thar coal and other resources during the three to five coming years. Recently, Sindh Government has contracted with a multi-national firm and work has been started to produce the 1000 mega watt electricity from the coal. These power generating projects will save huge foreign currency which is spent on the import of oil. The second largest oil producing country Iran too is producing electricity from coal. China, in this time is producing 75% electricity with coal and is ready to help us produce electricity with coal. The strong lobby of multi-national oil companies didn’t let the plans of generating the electricity from wind and coal come into being. In world level, the share of electric produced by the gas is 19% while in Pakistan 45%, nuclear energy’s share in world total energy is 16% while in Pakistan only 2%, hydro-generated electricity’s share into the world’s total energy share is 16% but in Pakistan 3.3%

and from oil in world only 7% but in Pakistan is 16%. Poland and Germany produce the electricity more than 80% from coal. Likewise, South Africa 93%, India 78.3%, Australia 77%, China 72%, Germany 52%, America 49%, Denmark 47.3% and UK 32.9% produce the energy from coal. Pakistan produces only 200 mega watt from coal which is 7% of total energy production while the energy produced by coal should be up to 25%. An important and natural resource of alternative energy is wind. Minimum 13 kilometer per hour wind blowing is supposed to be sufficient. By luck, we have the points for the production of wind energy which is av ailable into the coastal areas of K arachi, Thatta, J iwan i an d Baluchistan’s coastal belt and other areas situated into northern areas and Azad Kashmir.

This time from wind Germany 18000 mega watt, USA 7000 mega watt, and Spain 8000 mega watt are producing the energy. Wind energy is of importance as it does not create any environmental pollution at all. Solar energy is one of the cheapest and important way to produce the energy. As per scientists, the energy received from the sun in one hour is more than the whole world’s total produced energy in a year. As per analysis if only half percent of desert land is used for solar energy it would cater the energy demand for this entire world. Pakistan has much potential for solar energy because Pakistan is receiving 19 mega joules per square meter in a year through which 90% of rural area can be provided the electricity.

Like wise, geysers run by solar energy can reduce the demand of natural gas in the northern areas. Nuclear energy is also a cheap resource to attain the electricity. We are producing only 462 mega watt electricity from nuclear resources which is only 2% of our energy production by alternative resources. In the contrary, in the world 16% electricity is being produced by nuclear energy. Our natural gas reserves are finishing rapidly so therefore, it is necessary that electricity be produced by alternative resources and dependency over the natu ra l g as cou ld be lessened . If just 50% of alternative resources available in Pakistan is used so we can export the additional energy to neighbor states. No doubt self-sufficiency in energy is the first key in attaining the countryw i d e ec on o m i c a l a nd s o c i a l development.

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Pakiston Economy - Update

Pakistan holds successful investment conference in Germany Qazi Sajid was of the view that if we create a right kind of environment a number of German companies would be interested in setting up of their manufacturing, trading and warehousing units in Pakistan. He believed that potential is there in the automotive, manufacturing sector, agriculture, energy, pharmaceutical, health and nutrition, technology and machinery sectors etc The volume of bilateral trade between Pakistan and Germany is expected to increase to Euro 3 billion in an year or two from the existing Euro 2 billion. This was stated by Chairman of Pakistan German Business Forum (PGBF), Qazi Sajid Ali, after the conclusion of celebration of ‘Pakistan Days’ in Berlin and Munich. He was confident that the successful holding of the event, attended by a 90member delegation with representation of 70 companies from Pakistan, would also give a boost to the trade ties with Germany. Eight memorandums of understanding (MoUs) have been signed between the Pakistani and German firms as a result of the Pakistan Day conferences in Berlin and Munich. As many as 25 German companies have shown interest to visit Pak istan and h ave some sort of affiliations with the Pakistani firms, the PGBF chief informed. “Now a tempo has been created on both the sides- Pakistan and Germany, in the wake of investment conferences in Berlin and Munich, on October 30 and 31 respectively, organised for the first time”, the chief of PGBF remarked. He was of the view that the Germans have for the first time listened to what Pakistanis are doing. “Our success stories of the German companies in Pakistan w ere al so a part of the conference sessions,” he added.This, Qazi Sajid remarked, has created a good impression an d a go od image of Pakistan. “We are going to establish a committee at the PGBF with representation from Pakistan as well as Germany for a

regular follow up of the decision taken and the interest exhibited by the companies from the twe added.The PGBF chief also spoke of the support being extended by the German government, the German Chambers of Commerce and Industry (DIHK) and the Munich Chamber of Commerce and Industry (IHK). He also lauded the role of the Ambassador of Germany to Pakistan Dr. Cyrill Nunn, and the Consul General in Karachi, Tilo Klinner as well as that of th e Pakistan Ambassador to Germany, Abdul Basit. Qazi Sajid disclosed that there is a move to establ ish the German Pakistan Bilateral Chamber of Commerce which is very important especially for the co u nt r y a s w el l as ec o nom i c development of Pakistan. He was of the view that efforts are being undertaken to make it a reality by next year with its headquarter in Karachi. An investment conference would be organised by the PGBF in Karachi towards the beginning of the next year and a good number of German companies are expected to attend. An exhibition would also be arranged

on the occasion to depict the industrial development attained by Pakistan as well as the investment opportunities. The PGBF would also prepare feasibility reports for various sectors for the potential investors from Germany. Qazi Sajid was of the view that if we create a right kind of environment a number of German companies would be interested in setting up of their manu fa ctu r ing, tr ad ing a nd warehou sing units in Pakistan. He believed that potential is there in the automotive, manufacturing sector, agriculture, energy, pharmaceutical, health and nutrition, technology and machinery sectors etc. Meanwhile, the Chief Executive Officer of Siemens Paki stan Engineer ing Comp any, Gu ent er Zw ic ki, sai d th at h is organisation would like to be a contributor for the development of energy infrastructure, healthcare as well as the industry in Pakistan. “We will now play our role even more intensively than we have done in the last few years”, he declared. Guenter believed that there are a lot of positive signs and referred to the visit of th e Pu nj ab C hi ef Mi nist er, Muhammad Shahbaz Sharif, at the Pakistan Day Conference held at Berlin. About the role of his firm in Pakistan he commented that “We are there to stay. We are in Pakistan to stay”. Guenter dispelled the rumours that Siemens would quit Pakistan. “Believe me this is not the case”, he made it clear. He said that for investment in Pakistan, the Siemens would look for the energy projects.

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An Exclusive Review by Shahzad Tabish

A Visionary’s Dream “Shattered” (A Comparative Review of Honda’s “CD Dream”) Speaking on the occasion chief guest Takahashi from Honda Motor Japan said the new model offered another option for Pakistan’s motorcycle users of the CD 70. Atlas Honda’s Chief Executive Saquib H. Shirazi said the company was on target to achieve the one million sales target in the next few years while making Honda more affordable to a larger segment of young people. If we use the word visionary for the Japanese giant named Honda known globally as one of the leading Automotive manufacturers I sincerely believe that all shall nod in agreement with my words as the brand names like Civic & CBR are well known globally for their repute. Products Honda has given us in the past six decades are incomparable when we judge the level of innovation, quali ty, evolu tion, aesth etics & economy. Though many may relate Honda as being the best power plant manufacturer & a four wheel assembl ing giant, however I like many believe that the specialty of Honda resides in the two wheel industry. The first spark that il lu minates an yone’s mind is the Fireblade impression while others may take in to accou nt that I may be mentioning the Interceptor or Shadow however this is not the case. The Honda CB & CD series signify the ultimate urban commuter motorbikes of its era as far as innovation is concerned. The best motorbike of its kind that Honda produced was Honda Cub, better known to us as Honda 50cc, it came at a time of oil crisis & mobilized generations due to its economy, affordability & reliability. The derivatives of the Cub 50, became popular with the emerging markets amongst which Pakistani nation was presented with the CD 70, featuring a more powerful 72cc four stroke engine & the sturdy reliability of the legendary cub while maintaining a very good economy. It became popular with the masses immediately & it won’t be irrelevant to say that apparently the clock of innovation stopped to tick for ou r consum er m arket since the introduction of CD 70. The local market since the 80’s has been dominated by Atlas Honda Limited which has poured in bulk of CD 70’s since that era. The te chnological development of the CD 70 has seen very

the sole brand. However, when we turn around to have a look at the past five years things have changed rapidly as far as the motorbik es of the Chinese orientation are concerned. We would address that point later on. Although I’ve deviated a long way from the review itself due to the significant historical perspectives, AHL has been very active in the past year as it updated its old 100cc variant adding some body panels & sort of sporty graphic stickers to make it look modern yet decent. The CD 70 remained the very same until the ending days of October 2013 which now looks a bit different.

little attention receiving upgrades like the conversion of CB Point Ignition to CDI & improvements in the design of carburetor etc. while the aesthetics have remained almost very same since its introduction apart from the changing graphic stickers. AHL received its first major competition in the early 2000’s when motorbikes of Chinese orientation started to pour in yielding the exact copies of the CD 70 at almost half the price. The reduced price came at a compromise of quality but the consumer now had a choice over

Officially launched on 1st November 2013, it’s named the CD Dream & has the same chassis, suspension & almost everything else apart from a few aesthetic updates. The frontal square headlamp assembly is now replaced with one having fairing/cowling to enhance its aesthetic appearance while the standard separate tail light now is a part of rear fender housing the tail lamp beneath theseat design of which has also received design upgrade after 30 years to look a bit neat & smooth giving a sportier look. The standard elliptical indicator lamps have also been replaced by ones havin g sharp er outlines. The old square speedometer assembly has been replaced by stylish “twin dial” one like the Pridor, with the fi rst d ial h ousing th e standar d speedometer & odometer displays & for those getting excited I would like to elaborate that the second dial houses only the neutral gear indication & headlight beam indication lights & that’s the end of the story. The fuel tank design has been changed giving it a curvy finish rather than a simple smooth continuous curve. As we can observe, the matt black

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Monthly AutoMark Magazine paint is perhaps considered to be a style statement for the design development engineers of AHL & has been utilized in abundance making way to the exhaust manifold & silencer pipe, chain cover, crank case & the frontal lower shock absorber assembly replacing the silver & chrome. Along with that, the standard rear brake hub has been replaced by a larger one, which should enhance braking performance. As far as the upgrades are concerned, the CD Dream is basically an aesthetic makeover of the standard CD 70, the drive train elements remain the very same including the 72cc engine. So what’s new about this bike? Perhaps nothing, as most of the observers might say & the reasonfor th at is th e development & evolution of the 70cc bikes of Chinese orientation in the past five years about which I had mentioned earlier. Let’s take a look at the develop ments & compar e them with those offered by AHL in CD Dream. To start off, the Super Power brand launched the standard 70 motorbike with the very same angular indicator lamps we see on the Dream in the year 2009, then came along Eagle Firebird 70cc which had a fairing incorporated frontal headlamp assembly very similar to Dream & twin dial gauges with the second dial housing the tachometer. Then came the Asia Hero 70 deluxe having very sty lish fuel tank, seat, fairing, & tail lamp housing body panel designs in the year 2010. Me tro int r od u c ed a s im p le st an da r d speedometer assembly with digitalized display in 2011. The major innovation in my perspective came from Super Power with the introduction of their 70 deluxe which featured a large frontal headlamp with stylish cowling housing 3 LED’s for aesthetic enhancement & a large LED Tail lamp. The unique aspect of this bik e was its speedometer assembly which was fully digitalized, housing a digital display of speed indication, gear indication, clock & remarkably fuel level indication as well& all this at a very reasonable price. Very recently the Super power Deluxe model has received further upgrades with incorporation of a 125cc motorbike exhaust manifold & silencer pipe & a carbu retor with enhanced barrel diameter, giving it better performance. Very re cently Super Star has also launched its 70 deluxe variant with features similar to super power deluxe

while including casted alloy wheels & an electric starter too. Even work on enhancing power of the 70cc bike has been considered by Union Star, as thy introduced a 86cc variant of their motorbike.

We have to remember the fact that although Chinese motorbikes have launched these upgraded variants however the cost of their prime product in the 70cc category still remains very low & incomparable to the cheapest product from AHL. Even the Unique UD 100 incorporating most of Chinese imported parts, having much powerful engine & unmatched styling is available for a cheaper price than CD Dream. So, the CD Dream brings for th improvements that have already been co nsidered& implemente d by th e Chinese oriented manufacturers, in much reduced price & even years ahead of the Japanese giant’s innovative team so what’s the point of the so called newly launched motorbike other than making a mockery of itself in front of the manufacturers AHL claims to be copy cats? Indeed they have been the copy cats a decade earlier but seemingly this status now suits better to AHL as the developments they have brought in the CD dream already exist in the market & are in use by the masses. Turning our attention towards the abundance of matt black paint usage, indeed the retailers would claim that it looks cool & aesthetically aggressive enhancing the looks of the product but anyone having a little knowledge about the industrial processes does know that looks apart, the black paint cost’s much less than chrome too. Keeping the critics aside let’s admit that the introduction of CD Dream is a much

anticipated response from Honda, at least showing the intent to stay with the development. With the introduction of Suzuki raider, basically an improvement version of Sprinter & the all new GD 110; critics were pointing fingers towards the obsolete technology & medieval design aspects of CD 70, whom had to be answered. When we peek into the motorbike industry of our neighboring countries, specifically India we see a very dynamic & vibrant motorbike industry producing eleg ant & tech nically ad vanced mo torbike variants from different brands, which yield good power while not compromising economy. This is perhaps due to high consumer demand for style, power & economy & the presence of healthy competition in their local market. However, as we turn around to look back on our ow n roads,astonishment kicks in as we realize that the innovation clock that stopped ticking has yielded us a present which is very similar as it was two decades ago, or may be more than that as far as motorbikes technological & aesth eti ca l d evelo pm ent ar e concerned. This is perhaps due to the fact that the local consumer market prioritizes cheap maintenance beyond any other aspect wh ich for ces th e manufactur ers to halt the development process, focusing on the streamlining of Production process & Supply chain management of currently produced parts rendering least possible costs & ease of availability. Thus it has to be said that the lagging in evolution of motorbike industry is not solely due to the manufacturer’s in tent but al so due to co nsumer perception. We might be able to say that the development of CD Dream may not inspire many as many of us own such motorbikes belonging to Chinese OEM’s however the only fact that resides in between is the quality, which was & will remain the stronghold of AHL, besides the Chinese clones that we see running today are a mere adaptation from the legendary Cub & CD 70, & wont have been present without their blueprints. Alt hough the development designs the Chinese offer have many more features, but the Father’s legacy of Honda can ’t be deprived from them. Cheers!

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International Automotive Industry - Update

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

variants. A new Boost Blue Pearl metallic color will also be offered in the lineup. Talking about interiors, the dashboard of the new Swift will remain unchanged, however the 2014 Swift will get a new upholstery for the seats. It is also expected that the vehicle will feature an Auto-Up one touch function to the driver's side power window, automatic headlamps, electronically adjustable side mirrors and others. The new Swift will retain the 1.2-litre K-Series petrol engine and the 1.3-litre Fiat Multijet turbo diesel engine. Maruti Suzuki India will unveil new comp act S UV, YL1 sed an (S X4 replacement) and YL7 h atch (AStar/Estilo replacement) at the 2014 Indian Auto Expo. We expect that the company might also present the updated Swift at the same event. Recent media reports also suggest that it is also working on a new premium hatchback, which will be launched by 2015-16.

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

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

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

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

Monthly AutoMark Magazine

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

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International Automotive Industry - Update

Toyota keeps top spot in auto sales rankings, outselling GM, VW Toyota Motor Corp kept its lead over ri val s G ener al M otor s C o a nd Volkswagen AG this year, JanuarySeptember global sales figures showed, as the Japanese carmaker closes in on a record annual profit. Toyota’s groupwide sales totalled around 7.412 million vehicles, up 0.1 percent from the same period a year ago, the company said on Monday, as strong sales in the United States offset slowdowns in Thailand and China. Toyota’s groupwide total includes sales at affiliates Daihatsu Motor Co Ltd and Hino Motors Ltd. Ge neral Mo to rs sold 7.25 million vehicles during the same January to September period, up 4.6 percent yearon-year, while Volkswagen rose 4.8 percent to 7.03 million veh icles, according to figures released earlier this month. Volkswagen’s sales figure however, excludes its Scania and MAN brands. Scania sold around 56,220 vehicles up to September. Scania and MAN brands ty pically account for a combined 200, 000 vehicles in a full year . Toyota regained the global sales crown in 2012 after slipping to third place behind GM and Volkswagen in 2011, following natural disasters in Japan and Thailand. Previously, it had been on top

from 2008 through 2010. Anal ysts expect Toyota to post 2.4 trillion yen ($24.7 billion) in operating profit for the year ending March 2014, more than the record 2.27 trillion yen it hit in the year ended March 2008, as the weaker yen makes exports profitable. For the full year, Toyota, together with Daihatsu and Hino, expects to sell 9.96 million vehicles, up 2 percent from 2012. Toyota, which will announce its JulySeptember results on Nov. 6, is expected to post an operating profit of 616.5 billion yen, nearly double what it posted a year ago. In September, Toyota’s month ly groupwide global vehicle sales rose 6.3 percent from a year ago to 832,000 vehicles. Toyota said September exports to the United States from Japan rose 9 percent from a year ago to around 53,130 vehicles as US demands for the RAV4 and Lexus IS are strong. In Thailand, Toyota’s biggest market in Southeast Asia, sales are slowing after the end of the government’s first-car initiative. September sales dropped about 33 percent year-on-year to 31,000 vehicles, while July-September quarterly sales fell 30 percent to 96,000 vehicles.—Reuters

Monthly AutoMark Magazine

Honda Cars India Ltd. reports a sales growth of 39 percent in October 2013 Honda Cars India Ltd. (HCIL) has reported a sales growth of 39% during October 2013. The car maker sold 11,214 units as against 8,085units sold during the corresponding month in 2012. HCIL registered an overall growth of 63% in April –October’13 with 70,831 units as against 43,525 units during the corresponding p er iod last year . The company also exported a total volume of 365units in the month ofOctober 2013. Comm ent ing on th e c omp any’s performance, Mr. JnaneswarSen, Sr. Vice-President – Marketing & Sales, Honda Cars India Ltd, said,“On the happy occasion of Diwali, we would like to thank our customers for making Amaze as the bestselling model for HCIL which has registeredits highest monthly sales of 9,564 units during October 2013.Adding to the excitement of this festive season and to offer greater convenience to our customers, HCIL is starting 3rd shift for production in our Greater Noida plant from this month to reduce waiting period and aid in quick delivery of cars.”

New car sales in China to reach 20 million by 2020 According to estimates released by the Global Automotive Forum, the growth to 20 million new car sales by 2020 will make China the biggest car market. New car sales in China will hit 20 million by 2020, and double to 40 million by 2030, according to estimates released by the Global Automotive Forum. The growth to 20m new car sales, which will make China by far the biggest car market in the world (ahead of the US), is expected to be a result of an average GDP growth of about seven per cent per year for the rest of the decade. However, key industry figures are now estimating that new car sales will double again

between 2020 and 2030. Estimates shown by Ronald Hoge, CEO of Pinnacle Engines, showed Chinese sales at 40.7m units and the US at just 17.6m sales. India is estimated at 11.7m, Brazil at 7.8m and Russia at 5.2m.In what is clearly bad news for mature Western markets, Germany is expected to see 3.7m new cars sales in 2030, and France 3.2m, with the UK predicted to hit just 2.9m units, a surprise figure that suggests big falls in the number of cars per adult in Britain over the next 25 years. If China does reach these predicted heights, it will be a consequence of the

determined drive by car makers who want to penetrate new markets, in particular the smaller cities in central and western China which are set to expand following the huge growth in megacities such as Beijing and Shanghai. Longer-term growth will also be driven by the Chinese government, which already wants to further extend China’s huge road network and see more selfsustaining megacities established. This is backed by the strong trend for the Chinese population to move out of poorer rural areas into urban areas.

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

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

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

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

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

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 99,000/= Rs. 119,000/= Rs. 99,900/=

DYL Motorcycles Product & Sr./ Model Name No. 1. YD100 Mini 2. Junoon 100cc 3. YD Sports 125cc

Retail Price Rs. 65,500/= Rs. 79,300/= Rs. 10,6000/=

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

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

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

100cc Motorcycle No. 1. 2. 3.

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. 5. 6. 7.

Product & Model Name Sprinter ECO Euro-II110cc Raider Euro-II 110cc GD 110 Euro-II 110cc GS-150 Euro-11 150cc Inazuma GW 250 Intruder M 800 Hayasuba GSX1300R

Retail Price Rs. 81,400/= Rs. 89,400/= Rs. 101,000/= Rs. 106,500/= Rs. 675,000/= Rs. 1,500,000/= Rs. 2,400,000/=

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Car / Light Vehicle Price List This space available for Advertisement SUZUKI

HONDA Price Price Rs. 610,000 Rs. 668,000 Rs. 1,201,000 Rs. 1,282,000 Rs. 1,418,000 Rs. 1,034,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 690,000 Rs. 666,000 Rs. 2,318,000

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

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

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

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

MASTER MOTORS DAIHATSU Model Model

Price

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

Price

Honda Honda Honda Honda Honda Honda Honda Honda

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

Price Rs. 1,522,000 Rs. 1,663,000 Rs. 2,000,000 Rs. 2,232,000 Rs. 2,121,000 Rs. 2,353,000

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

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

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

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

Hilux Pickup 4x sc Model

Price

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

Rs. 1,779,000

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

Price Rs. 3,483,200

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. 3,282,500 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. 3,483,500 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 Nov- 2013

Subscription Form Monthly Automotive Magazine

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November-2013

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

How to prepare your car for winter KEEP YOUR CAR UP… it will never let you down!

As winter approaches, you adjust your lifestyle by selecting winter needs such as warm dressing and snow boots. Similarly, it is very important to prepare your car for the winter to achieve safe, trouble-free and comfortable driving. The harsh winter weather is actually a lot harder on your car. The snow, ice, salt, cold temperature and blustery w eat h er ca n a ffec t you r c ar ’s perfor manc e, r oad and d ri ving conditions. Therefore, it is important to check your car for SPA - Safety, Performance and App earanc e inspection. This will also help to increase the longevity of your car and safe driving during the winter season. A good place to start any inspection and maintenance is to consult your owner's manual and make sure to follow the manufacturer's suggested preventive maintenance schedule.

1-SAFETY FIRST! Check all tires (including the spare) for air pressure, leak, tread, depth and condition. Replace worn out tires as they are equally unsafe during rain. If you still having the summer tires on your car, switch to winter tires. Winter tires are highly recommended for below 7°C and sub-zero conditions because they are significantly softer than all-season tires and provide better traction and grip on snow/icy road condition. Check tires for balance and alignment to improve the longevity of the tire for

safety and fuel economy. Check the spare wheel jack and essentials tools to change a flat tire in an emergency. Keep a basic winter emergency kit including: battery booster, flash light, snow brush, salt or sand bag, shovel, basic tools, first aid kit and a charged cell phone ready to use in case of an emergency on the road. Your car’s brakes are the primary safety system and your life saver. Every time you step on the brake pedal you are calling on your car’s brake system to perform a function that can potentially lead to a life or death situation. “Take a break to test your brake for safe stopp ing,” especially during rain. Stopping on wet roads can take four

times the normal distance it takes on dry roads and ten times longer distance on icy road. Unsafe brakes and tires are among the major root cause of auto accidents. “It is better if your car takes extra time to start on the driveway rather than extra time to stop on the highway” and that could cause accidents. Check the brake oil for level an d condition. If it is low and the brake ped a l is sp ong y, consu lt you r dealer/auto shop for complete brake safety inspection. While your car is in the shop, ask for another safety checkup i nc luding, shoc ks steering/suspension for proper safe operations. Do not drive with unsafe/defective brakes. Tow your car to shop a.s.a.p. The windshield acts similar to having safety glasses on your car. Driving with a clean and clear windshield is critical not just for your safety, but also for the safety of others. At the speed of 90km/h, your car covers nearly 90 feet per second and 90% of driving decisions are based solely on vision. Check your wipers and washer system for proper windshield cleaning operations. Use only washer fluid rated-35°C for winter. Replace wipers rubbers or blades that have been worn down. Check your windshield for any dings or stone chips and fix it before it gets crack. Check windshield de-frost system for clear vision. All windows and side view mirrors must be free of ice/snow for

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Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. clear rear vision. Check to make sure all of the lights are operational; replace burned-out bulbs if needed. Pay close attention to head lights, brake lights, and indicators lights as these are most important for your safe driving. Check all warning lights on dash. Any unwanted lights indicate a valid reason and may cause problems on the road. The warning lights include the engine check or service soon light, temperature, oil pressure and brake oil/ABS, VSC lights. Confirm all switches and controls for proper operations.

proof to maintain your car’s appearance. Touch up all stone chips before they become larger and create rust spots. During the winter your car goes through snow, salt and harsh winter conditions. Salt can accumulate underneath your vehicle on rust spots, as well as inside carpets. Use genuine rubber winter mats to protect floor carpet and sheet metal under. Wash and clean the exterior of your car re gularly and pressure wash underneath to remove salt residue and clear all drain holes under the doors. Apply de-ice to the locks and lube latches/hinges. Lubricate all rubber/ weather door seals. It is important to remember that your car’s outer body can be damaged by the snow and road salt. Consider applying a polish or wax to the exterior of the car to enhance good look. Use your garage to keep car out of snow.

2- PERFORMANCE INSPECTION The engine is the heart of your car and oil is its blood. Check your engine oil for level and condition. If it is due for an oil change, make sure to replace with the winter rated 5W30 oil, or as per your car maintenance manual/schedule. Check engine for tune-up if due, get it done to avoid hard starting, and to i m p r o v e g a s m i l ea g e / e n g i ne performance. While you are doing the under hood inspections check other fluids for condition and level too. Check transmission oil level and replace it, if it’s due for change. Avoid rapid start-and-go practice when the engine is cold. Warm up engine for few minu tes d epend ing on t he temperature outside or use an engine block heater to speed-up warm up time. This will reduce engine wear, and it also enhances the de-frosting process to keep windows clear for safe dr iving. There’s nothing more depressing -- or frustrating – than the "worr-worr-worr" of a cold engine trying to get started. Your low or dead battery is the culprit. The battery is the heart of car’s electrical system an d becau se it w ill face harsh/chill winter, it can lose its power. Check the battery for condition and cranking power. If the battery is low and slow, this is a sure sign that it is draining and may die at any point. It costs much less to replace battery for your peace of mind than to tow your broken-down car. Mak e s ure t o ch ec k the coolant/antifreeze rating inside reservoir bottle, when the engine is cold, check level, condition or leak. Never open the radiator cap when the engine is hot. It may cause severe bo d y d am ag e d u e t o h i g h temperature and pressure. Replace coolant, if it is due for changing. Always use the recommended coolant which

has a higher antifreeze rating for winter at least -40°C and higher boiling point temperature rating for summer. Check radiator and water pump for any leak under pressure. Check all coolant rubber hoses and drive belts for wear, cracks and adjustments. These rubber parts wear out with age and mileage. Check thermostat and radiator cap to enhance heating system and replace these parts

DRIVE SAFE... it all starts with you! The winter weather driving is a big challenge. Make sure to clean snow and ice from all windows for clear vision. However, regardless of weather, road and traffic conditions you should never consider drinking and driving, speeding, tailgating or weaving in and out of traffic. These actions can result in serious collisions, traffic tickets and an increase to your insurance premium. Instead of taking risks, relax, take your time and arrive at your destination safely. Make sure you and all occupants wear seat belts.

“Mind your Motoring for Safety, Savings and Satisfaction” if over due to avoid unexpected break down. Use only recommended octane and brand name quality gas and keep at least hal f level to av oid excessive moisture/condensations in the gas tank and use gas line antifreeze to avoid cold hard starting.

3- APPERARANCE INSPECTION Rust is the root cause of your car’s skin cancer and culprit of car’s appearance. Salt is used on the road to melt ice and snow for safe driving, but on the other hand it speeds up the oxidation process by acting as a rust catalyst. It is highly recommended to have your car rust

Regular pre-winter inspection and maintenance spares you the expense of major repairs, saves you money and adds more trouble free years with peace of mind safe motoring.

KEEP YOUR CAR UP… it will never let you down! Mohammad Shahzad S.A.E., D.M.P. (Automotiv e Engin eer/ Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at sha h@ b r i m el lt o yo ta .c o m o r automarkpk@gmail.com

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

Automotive Industry - Update

Toyota chief pins auto industry’s hopes on young Passing on Japan’s car culture to the next generation and getting young people more interested in the auto and manufacturing industries will be crucial for the survival and growth of the domestic vehicle industry, according to Japan Automobile Manufacturers Association Chairman Akio Toyoda. Ahead of the Tokyo Motor Show late this month, Toyoda, who also is president of Toyota Motor Corp., spoke to The Yomiuri Shimbun about the spirit of craftsmanship that has sustained Japanese industry and how domestic firms can stay competitiv e in the international market. The 43rd Tokyo Motor Show will run from Nov. 22 to Dec. 1 at Tokyo Big Sight in Koto Ward. With advances in digitalization an d information technology in automobiles, we have come into an era of changes. The motor show will feature cars loaded with cutting-edge technologies, such as driving safety support systems (DSSS) and ultramini mobility vehicles. Letting people experience new technologies firsthand is more persuasive than giving explanations, I think. Unlike other means of transportation, a car gives the driver more freedom, such as by giving them the ability to step on the accelerator or brake, or choosing their own road to drive down. We want to convey the feeling of “expectations and excitement” that cars can bring. We’d like to broadcast the good elements made-in-Japan brands have to the world, beyond the borders of industries or corporations. At CEATEC, automakers had an area where people could try out ultramini mobility vehicles. Electronics firms showcased technologies that connect residences and home appliances with automobiles through networks. If the auto and electronics industries can overcome their differences and work together, I feel it will create a great opportunity for Japanese industry to showcase its strengths to the world. I’d be happy if I helped inspire interest in the auto industry and craftsmanship among young people.

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